Bill McCaffrey is stepping down as chief executive officer of MEG Energy Corp. after 19 years at the helm of the oil-sands producer, the company said on Monday.
MEG, known for its Christina Lake project south of Fort McMurray, Alta., said director Harvey Doerr will step in as interim CEO as it searches for a successor to Mr. McCaffrey.
MEG is one of the last remaining pure-play oil-sands companies following the financial crisis in 2008 and oil-price crash that began in 2014. Both eras took a heavy toll on the industry, which is known for immense reserves but high capital and operating costs.
The company responded to the industry downturn by slashing capital spending and employing new recovery technology. It has also sold assets as a way to reduce its high debt level. Earlier this year, it sold its interest in a regional pipeline for $1.6-billion.
The company has entered a period of carrying out the strategy it has devised, making it an opportune time to bring in a new boss to replace the co-founder, it said.
“Since the decline in crude oil commodity prices in late 2014, we’ve worked hard at reinventing ourselves to be successful in this new environment,” Mr. McCaffrey, 60, said in a statement.
The company has not been approached by potential buyer, said John Rogers, spokesman for MEG.
The new CEO could be chosen from internal or external candidates, he said.
Mr. McCaffrey will formally step down as CEO and director after the annual meeting on May 31, MEG said.
Jeffrey Jones