Crescent Point Energy Corp. (NYSE: CPG) on Sept. 5 named Craig Bryksa its new CEO and said it would immediately reduce 17% of its workforce as the Canadian energy producer looks to turn around its business.
The company, whose stock has underperformed the broader market in recent years, in May won a proxy fight with activist investor Cation Capital.
Crescent Point’s stock has dropped 18.4% this year, much bigger than the 1.4% fall in the S&P TSX Energy Index.
A widening in the discount at which Canadian oil trades to the U.S. light crude has hurt the company’s bottom-line, while costs and debt have risen.
Crescent Point also said on Sept. 5 it planned to reduce its debt by more than CA$1 billion (US$759.5 million) by end-2019. The company had a net debt of CA$4.02 billion, according to its latest earnings report.
The Calgary, Alberta-based company, which had 1,085 full-time permanent employees as of December end, said the workforce reduction is expected to generate annual savings of over $50 million.
The company said it would also divest some assets.
($1 = 1.3167 Canadian dollars)
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