A drilling rig in the Uinta Basin. Credit: WildEarth Guardians.

North American light and medium oil producer Crescent Point Energy has unveiled cost-cutting and asset monetisation plans to reduce its debt by more than $1bn by the end of next year.

The company intends to realise its debt reduction target by downsizing its workforce by around 17%, selling certain assets.

The development comes after the company conducted a review of its asset base, business strategy and organisational structure.

As part of the transition plan, Crescent Point appointed Craig Bryksa as the new president and CEO.

Bryksa said: “Our transition plan is designed to ensure we become a more focused and efficient company with a stronger balance sheet.

“Our transition plan is designed to ensure we become a more focused and efficient company with a stronger balance sheet.”

“After taking a refreshed approach in reviewing our business, we will look to refocus our asset base into fewer operating areas, follow a more disciplined capital allocation process and reduce our costs. We believe this new approach will enhance our company’s sustainability and returns for shareholders.”

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The workforce reduction move is expected to result in aggregate expense savings of more than $50m per year.

Crescent Point has noted that certain midstream assets were identified for potential monetisation and a review is underway to consider the sale of certain infrastructure properties.

The firm will focus on the Viewfield, Shaunavon and Flat Lake resource plays in Saskatchewan, Canada and continue the development of its emerging and early stage resource plays in the Uinta Basin in the US and East Shale Duvernay in Canada.

Furthermore, the company will focus on improving its cost structure and a more disciplined capital allocation process in a bid to enhance free cash flow generation.

For the second half of this year, the company’s guidance for capital spending stands at around $750m, while production average is set to be about 174,000boe/d.