Crescent Point Energy Corp., the Canadian oil driller that fended off an activist investor last year, wrote down the value of its assets by C$2.73 billion ($2 billion) and is putting more holdings on the block as its new chief executive officer targets core operations.
The after-tax writedown reflects the fair value of its assets, many of which were acquired during a crude rally, to account for the current environment of lower prices, Calgary-based Crescent Point said. The charge doesn’t affect its available credit or its adjusted funds flow, and it isn’t related to the performance of the assets, the company said.
The writedown is more than Crescent Point’s market capitalization. Chief Executive Officer Craig Bryksa, who took the helm on a permanent basis in September, has been cutting costs and refocusing Crescent Point on its core operating areas, including Saskatchewan and Utah, after the company beat back activist investor Cation Capital’s attempt to take over its board.