Cenovus CEO Sees More Deep Basin Asset Sales, But No Full Exit
- Alex Pourbaix seeking ways to speed up debt reduction
- Fourth-quarter production in line with analyst estimates
Photographer: Brent Lewin/Bloomberg
Cenovus Energy Inc. Chief Executive Officer Alex Pourbaix said the oil-sands producer will consider selling more of its holdings in Alberta’s Deep Basin -- but not exiting the play entirely -- to speed up efforts to repair its balance sheet.
Pourbaix, who took the reins in November, has been cutting jobs, trimming expenses and working to sell more assets to pay down debt the company took on to fund its $13.3 billion acquisition of ConocoPhillips’ oil-sands and Deep Basin holdings last year. Investors have panned the deal, which was struck by Pourbaix’s predecessor, saying it saddled Cenovus with too much leverage at a time of uncertain oil prices and stuck it with Deep Basin drilling operations that fell outside of its expertise in the oil sands.