Penn Virginia Corporation has appointed Rusty Kelley as its new Chief Financial Officer, effective November 13, 2019. He replaces Steve Hartman, who is leaving the company as previously previously reported in July.
Penn Virginia filed for bankruptcy in May 2016 and moved its headquarters from Pennsylvania to west Houston as part of that process. It emerged from bankruptcy in September 2016. In October 2018 the company announced that it would be acquired for $1.7 billion (including debt) by Denbury Resources. However that deal collapsed in March due to shareholder opposition.
Mr Kelley was previously the CFO of Extraction Oil & Gas, a public company based in Denver, from July 2014 to September 2019. Prior to that he worked as an investment banker for Moelis & Company and Goldman Sachs. He will have a base salary of $400,000.
Penn Virginia currently has a market cap of $411 million and an enterprise value of $933 million. That’s way below the $1.7 billion that Denbury agreed to pay. Given his investment banker background, I presume Mr Kelley has been brought in to help sell the company.