Crescent Point Energy takes $2.7B writedown on its assets

Focuses on core operations after fending off activist investor’s attempt at board takeover

Crescent Point Energy Corp., the Canadian oil driller that fended off an activist investor last year, wrote down the value of its assets by $2.73 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 Thursday.

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.

Crescent Point shares fell 8.6 per cent to $3.73 at 11:19 a.m. in Toronto after earlier dropping as much as 9.6 per cent, the most since October.

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.

These actions are after the company beat back activist in- vestor Cation Capital’s attempt to take over its board.

Investors will need to see the company’s new leadership make more progress before they can appreciate its quarterly results and cash flows, said Chris Cox, an analyst at Raymond James.