Cenovus Energy Inc. (NYSE:CVE) Q4 2022 Earnings Call Transcript

Alexander Pourbaix: Well, Chris, that’s a good question. I would tell you — I sort of said it at the start, but I think that a thoughtful and measured succession plan is a hallmark of a well-managed company. And I know my board thinks of that. When I joined the company I remember telling the Board that they could count on me for 5 to 7 years. And I’m kind of probably a little more than halfway through that. I’m heading towards 6 years in the company. But I would say — I think all companies benefit by a thoughtful succession plan. And in this case, John has been such an instrumental part of the strategy and the execution of the things you heard me talk about today in my comments. I think he has amply earned the right to have a shot at leading this company.

And it’s not lost on me. John and I are not too far apart in age. And if I were to decide to stick around for another 2 or 3 years, I could really put John in a situation where he might time out and not be able to have a good run at leading the company. And I don’t think that would be fair to John. I don’t think it would be fair to the shareholders because I think they’re all going to be great beneficiaries of his leadership over the coming years. So at the end of the day, I think what’s best for the company and what’s best for the shareholders needs to take a little bit of precedence over what might be best for me.

Chris Varcoe: Just to follow up on that, I want to ask you about your new role. You talked about the fact that you’re going to focus on advancing the industry and policy. I guess what do you see as those key issues that you’re expecting to tackle in that role as Chairman? And why do you feel it’s necessary to speak out or advocate at this time?

Alexander Pourbaix: Well, Chris, it — those priorities are those things you and I talk about so regularly. But it — as I think a lot of people appreciate, over the last 2 or 3 years, an increasing amount of my time has really been spent on working on pathways on a larger scale for the industry, but particularly focused on Cenovus’ GHG reduction plan. And I am a very meaningful part of pathways discussions with the various levels of government in this country about that. And I’ve actually been very, very lucky to have a leadership team like I have that they’ve been able to pick up the slack while I spend an increasing amount of time on that issue. I think it is absolutely vital that industry, the federal government, the provincial government come to some type of durable agreement as to what our emission reduction ambitions are, and that we put in place a structure to make sure that industry can do that while maintaining this incredibly important industry for the country, for Canada, for Alberta.

I suspect this industry is probably going to represent somewhere around 10% of the country’s GDP this year. And I think it’s just incredibly important for Canadians that we find a way for this industry to be able to continue to thrive. And the way we’re going to do that is by constantly improving our environmental leadership.

Chris Varcoe: Finally, I just had a question for John. John, what will be the key issues for you going forward? And I guess, I’m particularly curious in what significant changes or differences in focus will we see, if any, under your leadership, whether it’s in terms of production, downstream expansion or anything else?