Crescent Point Energy cuts 17% of workforce, plans to reduce debt by $1 billion
September 6, 2018
Crescent Point Energy Corp. says it plans to reduce its workforce by 17 per cent, sell some infrastructure assets and reduce its debt by more than $1 billion by the end of 2019.
The Calgary-based company says the workforce reduction will lower expenses by more than $50 million annually, but it didn't say how many people would be affected.
According to a regulatory filing, it had 1,085 permanent employees at the end of December, including 462 at its head office.
Crescent Point also confirmed Craig Bryksa is the new president and chief executive. He replaced long-time CEO Scott Saxberg on an interim basis in May.
"This restructuring is difficult, however we needed to adjust the organization to match our current business needs," Bryksa said in a statement.
"We are all focused on executing our transition plan and are excited about Crescent Point's future."
Cost saving at the top, too
The company said it will focus on its Viewfield, Shaunavon and Flat Lake resource plays and to continue advancing emerging and early-stage plays in the Uinta Basin and East Shale Duvernay areas.
It's also reviewing the sale of some infrastructure assets.
At Crescent Point's board of directors, Robert (Bob) Heinemann replaces Peter Bannister as chairman.
The appointments of a new chairman and CEO are part of a previously disclosed review of governance that began in late 2017.
Earlier this year, Crescent Point shareholders rejected a dissident slate of directors that was put forth by Cation Capital Inc., which had been critical of the company and its compensation policies.
The company said Wednesday that a recent restructuring of its executive team is expected to reduce annual compensation for the five current highest-paid executives by 20 per cent compared with 2017.