Open Letter to Crescent Point Energy Board of Directors: Accountability Capital Calls for Sale of Company
August 18, 2018
Board of Directors
Crescent Point Energy
2000, 585 8 Avenue SW
Canada T2P 1G1
Attn: Peter Bannister, Chairman of the Board
Further to our previous recommendations, we now urge the board to consider all strategic options including sale of the company. The board and management of Crescent Point Energy (“CPG” or the “Company”) have been unable to create shareholder value. Further, the board has been unable to recruit a new CEO who can restore shareholder confidence and stem the continuing share price destruction. Given these failures, we believe it is time for the board to consider all strategic alternatives and ultimately sell the company.
The asset review that is currently underway is insufficient strategic review and does not give us any confidence that it will lead to meaningful value creation. We note that the same management and board who had been responsible for acquiring and managing these assets have now spent months reviewing potential options for these same assets. At the very least it would have been more appropriate to have a new external CEO lead this review.
These continuing missteps and poor performance provide investors no rationale to continue to hold CPG shares, much less buy additional shares. We urge the board to prioritize shareholders and demonstrate sense of urgency.