Cenovus goes external in search for new chief executive.
• Cenovus Energy Inc.’s search for a new chief is focusing on external candidates with strong technical skills to help stabilize a company whose shares have nearly halved after an unpopular acquisition.
The crude producer is working with executive recruitment f i rm Korn/ Ferry International to find a replacement for outgoing chief executive Brian Ferguson, an accountant by profession, sources familiar with the matter told Reuters.
Cenovus made a transformational acquisition in March, paying about $ 16.8 billion for Conoco Phillips’ Canadian oil and gas assets, which doubled the company’s production capacity. But the debt- fuelled deal angered shareholders, and last month Ferguson, who had championed the transaction, decided to leave the company.
Among the potential candidates Cenovus is likely to consider for the top job include Devon Canada President Rob Dutton, MEG Energy Corp CEO Bill McCaffrey, ARC Financial Corp Director Chris Seasons and former Shell Canada President Lorraine Mitchelmore, the sources added.
Most of these executives have extensive experience operating in the oil sands, but Cenovus is also expected to tap top talent from U. S. energy sector.
Cenovus spokesman Brett Harris declined to comment on the search process beyond saying the company’s global search would look at both internal and external candidates.
Energy industry analysts and company executives in Calgary said Cenovus’ search for a new CEO may be hampered by a lack of available top candidates with experience in the oil sands.
They added the company is more likely to plump for a candidate with a good track record at turning around struggling businesses, given the hammering Cenovus’ share price and strategy have taken since the Conoco Phillips deal.
Cenovus could f i nd it challenging if the company is looking for more than a caretaker, said Laura Lau, senior portfolio manager at Brompton Group, which holds Cenovus shares.
“There aren’t that many people with vision … I would prefer somebody with oil sands experience. I would also prefer an engineer,” she said. “I find engineers to be the best leaders because they’re very process- oriented.”