Gleeson Van Riet has resigned as CFO of SilverBow Resources, effectively immediately. He has been replaced by Chris Abundis, currently General Counsel of the company. Mr Abundis will perform the CFO duties in addition to his current role.
SilverBow is based in west Houston and has a market capitalization of $148 million. The company operates in the Eagle Ford basin in South Texas. It was formerly known as Swift Energy which filed for bankruptcy in December 2015. After the company emerged from bankruptcy in April 2016, it changed its name to SilverBow.
Mr Van Riet was appointed CFO in March 2017. Prior to that he was the CFO of Sanchez Energy. For his severance package he will receive a payment of one year’s salary ($390,000) and one year’s target bonus ($292,500). He will also receive an acceleration of time-based restricted stock units. These were valued at $85,000 at December 2018.
Mr Abundis joined the company in 2007 and has been the General Counsel since April 2016.
It’s not clear what triggered the departure of Mr Van Riet. The share price has halved since the start of the year, but that’s in line with other E&P companies. The company is not especially leveraged and generated a small positive free cash flow in the third quarter.
However the company did disclose a material weakness in internal controls in the second quarter pertaining to deferred tax accounting. This remained a weakness in the third quarter.