Crescent Point takes $2.73B writedown

CALGARY 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.

The writedown is more than Crescent Point’s market capitalization. The shares fell 3.43 per cent to close at $3.94 in Toronto, giving the company a market value of about $2.17 billion.

Chief executive Craig Bryksa 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. Crescent Point said Thursday that it has started marketing some conventional holdings in southeast Saskatchewan and some infrastructure assets for sale.

Crescent Point had slid 5.7 per cent this year through Wednesday, compared with a 15-per-cent gain for the S & P/TSX Energy Index.