Tommy Nusz, the CEO of Oasis Petroleum, has retired. He has been replaced, on an interim basis, by Chairman Douglas Brooks, the former CEO of Energy XXI and Yates Petroleum.
Mr. Nusz founded Oasis in 2007 and the company went public in 2010. Most of the company’s operations are in the Williston Basin of North Dakota and Montana It also has operations in Delaware Basin in Texas. The company has its head office in downtown Houston. At its peak in 2014, its market capitalization was almost $6 billion.
Oasis filed for a pre-packaged bankruptcy on September 30, 2020. Unsecured loan note holders swapped $1.8 billion of debt for 92.5% of the equity in the newly-reorganized company. Existing shareholders were diluted down to 7.5%.
Mr. Nusz was Chairman and CEO prior to bankruptcy. After the company exited from Chapter 11 in early November, he remained on the Board of Directors. However, because he was no longer Chairman, it was deemed a termination for good reason following a change of control, under the terms of his 2018 employment contract.
That means Mr. Nusz gets a change of control payment of 2.99 times base salary of $881,250 plus 2.99 times average bonus paid in the previous two years. In the 2019 proxy statement that total came to $5.4 million. He will also receive a target bonus for 2020 which is probably another $984,000 (based on the 2019 target bonus) .
Mr. Nusz has also stepped down as a director of Oasis Midstream Partners, the publicly-traded MLP controlled by Oasis Petroleum. The midstream entity was not part of the bankruptcy proceedings.