Ring Energy has appointed Travis Thomas as its new CFO as it relocates its head office from Midland to The Woodlands. Former CFO Randy Broaddrick, who had been CFO since 2012, elected not to relocate from Tulsa, Oklahoma, where the accounting office was based.
Ring is an E&P operator with properties in the Permian Basin. It has revenues of $108 million and a market capitalization of $245 million. In February 2019 it acquired assets in the Permian Basin for $300 million from Wishbone Energy Partners. $28 million of the consideration came through issuance of new equity at $6.20 per share, the rest came from a revolving line of credit.
Prior to the acquisition from Wishbone, the company had been conservatively run with little long-term debt. In February 2018, one year prior, it issued new stock at $14 per share. High debt and a declining share price is not good for management and shareholders and both Lloyd Rochford (Chairman and co-founder) and Kelly Hoffman (CEO) stepped down in September 2020.
New CEO and dissident shareholders
Paul McKinney was appointed CEO. He spent 23 years at Anadarko (hence The Woodlands connection) and 6 years at Apache. More recently he was CEO at Yuma Energy from April 2017 to January 2019 and at Sandridge Energy for 11 months in 2019.
Those short stints raised the ire of Dr. Simon Kukes, a 11% shareholder , who stated that Mr. McKinney was too connected to the old Board and was overpaid ($480,00 base salary). Dr. Kukes is the CEO of Pedevco, another E&P company headquartered in Houston, with properties in the Permian Basin.
Mr. Thomas joined the company in October 2020 as its VP of Finance. Prior to that, he was the Chief Accounting Officer and Treasurer at Paradox Resources, a private E&P company with its head office in downtown Houston. Mr. Thomas will receive a base salary of $290,000. His predecessor had a base salary of $195,000.
I’ve added Ring Energy to the list of Houston-area public companies. You can see the complete list here.