Tag Archives: CFO

Quanta Services promotes CFO to operations role

Quanta Services has promoted CFO Derrick Jensen to Executive VP, Business Operations. The company is the third Houston-area public company this week to promote its CFO, following Halliburton and US Well Services.



Jayshree Desai moves from Chief Corporate Development Officer to CFO. Both changes are effective July, 2022.

Quanta designs, installs, repairs and maintains energy and communications infrastructure. It has revenues of $13 billion and a market capitalization of $17 billion.

Mr. Jansen has been with Quanta since its inception in 1997 and has been the CFO for the last 10 years.

Ms. Desai joined Quanta in January 2020. She was previously the founder of a renewable energy company focused on utility-scale wind, solar and storage development and COO of a electric transmission development company. Prior to that, she was CFO of EDP Renewables North America.

No new compensation arrangements for either executive were disclosed.

SEC filing – Quanta CFO change

 

Leadership changes at US Well Services

US Well Services Nyx Clean Fleet® Frac Unit

Kyle O’Neil, CFO of US Well Services, has been promoted to CEO, replacing co-founder, Joel Broussard, who becomes non-executive Chairman. Josh Shapiro, currently VP of Finance, is promoted to CFO.



Poor financial performance

US Well Services is a struggling pressure pumping company that has its head office in the Galleria area of Houston.  The company was founded in 2012 and it struggled even before it was taken public for $274 million by a SPAC in November 2018. In early 2017, the company had completed an out-of-court restructuring that resulted in $118 million of debt being converted to equity.

Mr. O’Neil was appointed CFO when the business went public and joined from TCW Direct Lending, the main equity shareholder.

The company’s unique selling point was that it had patented all-electric hydraulic fracturing which uses less fuel and generates less emissions than conventional diesel fleets. At the time of going public, it had 11 fracking fleets, including two that were electric-powered. It had plans to add five more electric units.

As of May 2021, the company still had 11 fleets, though five were electric. The company has since sold off its diesel units to become a pure-play electric fracking company. It is currently building four of its next generation units and will put them into service later this year.

As of December 2021, the company had negative shareholders’ equity of $129 million and debt of $172 million. The current stock price of USWS is 91 cents. The market cap is $64 million.

In with the new…

Mr. O’Neil will receive a base salary of $540,000 and was granted 600,000 deferred stock units that will vest over three years. He also received a performance stock award worth $650,000, that vests under certain conditions.

Josh Shapiro, the new CFO, joined the company in March 2019. Prior to that, he worked at Piper Sandler as an investment banker. His new base salary will be $400,000.

…Out with the old

Mr Broussard will receive a severance of $950,000, to be paid in three instalments over the next 18 months. He also received 1.1 million restricted stock units. Half vests in 6 months, the rest in 18 months.

The company also announced that Matt Bernard had resigned as Chief Administrative Officer. Mr. Bernard was also the CFO between 2015-2018.  Mr. Bernard isn’t receiving any severance. However, he has signed a consulting agreement that will pay him $13,417 monthly. The agreement can be terminated by either party with 30 days notice.

SEC filing – management changes

 

Halliburton appoints new CFO

Halliburton has appointed Eric Carre as its new CFO. He replaces Lance Loeffler, who has been promoted to Senior VP of Middle East and North Africa.

Halliburton has revenue of $16 billion, over 40,000 employees and a market capitalization of $32 billion.



Mr. Carre is currently the Executive VP, Global Business Lines and Chief Health, Safety and Environmental Officer. He started with Halliburton in 1991 as a Project Engineer and holds a master’s degree in mechanical engineering from Université Libre de Bruxelles in Belgium.

Mr Carre’s former role, Global Business Lines, covered the Drilling & Evaluation and Completion & Production divisions as well as Landmark & Consulting, Project Management and Global Technology. Halliburton already had Executive VPs for Drilling & Evaluation (Rami Yassine) and Completion & Production (Michael Sugura) and they remain in place. It’s not clear who now has responsibility for Landmark & Consulting, Project Management and Global Technology.

Mr. Loeffler has been CFO since November 2018. He joined Halliburton in 2014 and was VP of Corporate Development and then Investor Relations before becoming the CFO. Previously he held director positions at Deutsche Bank and UBS Investment Bank.

Presumably both Mr. Carre and Mr. Loeffler are being groomed for the CEO position at some point. Current CEO Jeff Miller has been in that position since June 2017.

No compensation arrangements have been disclosed for either Mr. Carre or Mr. Loeffler.

https://www.businesswire.com/news/home/20220502005110/en/

 

Microvast appoints new CFO

Microvast has appointed board member, Craig Webster, as its new CFO. He replaces Leon Zheng, who has been CFO since 2010.



The company went public via a SPAC in July 2021. It now trades at $5.80 a share ($1.7 billion market cap). Microvast is a leading provider of vehicle battery technology for all types of vehicles. The company claims its batteries have longer range, quicker charging and longer lifespan than its competitors. It had initial success with electric buses, especially in China.  Its products operate in 160 cities in 19 countries.

The company was formed in Houston in 2006 by Yang Wu. Nominally, the company has its headquarters in Stafford where it has a 4,000 sq. ft. office. The main operations have been in Huzhou, China where the company has a manufacturing plant with 1.7 million sq.ft.  Mr. Wu had previously founded a water treatment company in Huzhou that he sold to Dow Chemical in 2006.

Mr. Zheng will stay on in a consulting capacity for 18 months. He will receive a fee of $25,000 a month.

Mr. Webster has served as a director of Microvast since 2012. Between 2005 and 2018, he worked for Ashmore Group, an emerging markets Investment manager. He is a UK citizen and currently resides in New Zealand. Mr. Webster will receive a base salary of $400,000 and will be required to relocate to the US to a region mutually agreeable between him and the company. (According to LinkedIn, CEO Mr. Wu lives in Hawaii, while the company has a new R&D facility in Orlando and a large manufacturing plant in Tennessee).

The company also announced the promotion of Mr. Sasha Rene Kelterborn to President. He will lead the day-to-day operations of the company. Currently based in Berlin, he will also relocate to the US, to a region mutually agreeable between him and the company.

SEC filing – Microvast CFO

Murphy Oil CFO to retire

David Looney, CFO of Murphy Oil, has announced his retirement, effective June 30, 2022. He will be replaced by Tom Mireles, who is currently Senior VP of Technical Services.



Murphy Oil has a market capitalization of $5.6 billion. It is the 5th largest producer in the Gulf of Mexico and also has producing assets in onshore Canada and the Eagle Ford shale basin. The company also owns exploratory blocks or interests in Australia, Brazil, Brunei, Mexico and Vietnam.

In 2020, it moved its head office from El Dorado, Arkansas to the Memorial City area.

Mr. Looney, who is 64, joined the company as its CFO in 2018. Mr. Mireles joined the company in 2005 and has held various roles such as Senior Manager of Planning and Business Development and Senior VP in both Eastern and Western hemispheres.

Mr. Mireles will receive a base salary of $500,000.

Healthcare waste management company appoints new CFO

Eric Bauer has been appointed the new CFO at Sharps Compliance Corp. He is replacing Diana Diaz, who is staying on with the company as its Chief Accounting Officer. Ms. Diaz had been the CFO since June 2010.



Sharps is a waste management company that handles medical, pharmaceutical and hazardous waste for small to mid-size companies such as pharmacies, dentist offices and nursing homes. The company went public in 2009 and has a market capitalization of $120 million. Its head office is just south of NRG Stadium.

Mr. Bauer was the CFO at Nuverra Environmental Services until its acquisition by Select Energy Services last week. He joined Nuverra in April 2020 on a three-year contract as interim CFO. Before that he worked in investment banking at Evercore Partners, CITI and Lehman Brothers.

For the year ended June 30, 2021, revenues at Sharps increased by almost 50% to $76 million, primarily driven by waste disposal related to Covid-19 vaccines. Since then, the company has made two small acquisitions in October 2021 for $2.2 million and in February 2022 for $4.3 million. The company has a growing cash pile – $32.5 million at December 2021 – and is looking to make more acquisitions.

Mr. Bauer will receive a base salary of $275,000. That’s the same base that Ms. Diaz was receiving.

SEC filing – 8-K – Eric Bauer CFO

Houston chemical company hires new CFO

Jeff Glajch has been appointed the new CFO at Orion Engineered Carbons. He replaces Lorin Crenshaw, who resigned in November to become CFO at Kansas-based Compass Materials. Bob Hrivnak, who had been the interim CFO, reverts back to being the Chief Accounting Officer.



Orion has its head office in the Kingwood area, though it is technically registered in Luxembourg. The company manufactures Carbon black, a powdered form of carbon used in consumables and additives for polymers, printing inks and coatings. It has 14 production sites around the world and revenues of $1.5 billion.

The company went public in 2014 and has a market capitalization of $1.2 billion.

Mr. Glajch joins from Graham Corporation, a New-York based manufacturer of equipment for energy, defense and petrochemicals, where he had been CFO for 13 years. Graham appointed a new CEO in August 2021, who was part of a business acquired earlier in 2021. In November 2021 Mr Glajch announced he would be retiring and leaving sometime in the second quarter.

In early February, the stock of Graham plunged by 30% following a surprise quarterly loss as a results of issues in the legacy business. Mr. Glajch received a severance of 1.5 times base salary of $325,000.

No compensation was disclosed for Mr. Glajch. His predecessor at Orion had a base salary of $421,000.

SEC filing – Orion Engineered CFO

Houston CFO leaves after 10 months with $3 million severance

Eric Javidi, CFO of Archaea Energy, is leaving after ten months with a $2.95 million cash severance. In addition, six weeks ago, the company gave him stock worth $3.6 million that is now fully vested.



No reason was given for his departure. The company has started a search process for his replacement.

Archaea develops, constructs and maintains renewable natural gas facilities (RNG) that capture waste emissions from landfills and converts them into low-grade fuels and electricity.

The company is based in the Galleria area and was taken public in September 2021 by a SPAC based in Pennsylvania, Rice Acquisition Corp.  The SPAC actually acquired Archaea LLC for $347 million and Aria Energy LLC for $680 million, with the combined business being renamed Archaea Energy. The stock is trading at around $18, similar to the price when the deal closed.

As an aside, the Rice family are the majority owners of both the SPAC and Archaea LLC.

Mr. Javidi joined Archaea in April 2021, the same month that the deal with the SPAC was announced. He was previously the CEO of Southcross Holdings and a Managing Director at Kayne Anderson Capital. Both companies are primarily involved in energy infrastructure.

Severance and Stock Award

The base salary and employment contract for Mr. Javidi has never been publicly disclosed, so it is not clear how the $2.95 million severance was calculated. We do know that the company awarded Mr. Javidi 140,000 fully vested shares on December 29, 2021. Mr. Javidi promptly sold 55,090 shares for $949,200. He was also awarded 62,750 shares that were due to vest in 2024. With his severance, these are now fully vested.

General Counsel leaving after 7 months

The company also announced that Lindsay Ellis, General Counsel, is also leaving. She has only been with the company since July 2021. No details of her severance were disclosed. She also granted 33,333 restricted shares that have now fully vested, worth $600,000.

The company thanked Mr. Javidi for building out the company’s financial functions and Ms. Ellis for building the legal and HR functions. Undoubtedly, going public at the same time as trying to combine two businesses is a very stressful and complicated affair. It’s not clear what went wrong.

SEC filing – Archaea CFO departure

Archaea Investor Presentation – April 21

Houston midstream CFO steps down

Summit Midstream Partners Logo. (PRNewsFoto/Summit Midstream Partners)

Marc Stratton, the CFO of Summit Midstream will be stepping down, effective March 4, 2022. He will be replaced by Bill Mault, who is currently VP Corporate Development, Finance and Treasurer.



Summit has its head office in downtown Houston and operates midstream assets in the Utica, Williston, DJ and Permian Basins. It went public in 2012 and had a peak market capitalization of $1.9 billion in 2014. Its current market cap is $243 million.

The company appointed a new CEO, Heath Deneke, in August 2019 and last year, it completed a refinancing that replaced a lot of debt that was due to mature in 2022. The company still has $1.4 billion of debt. It expects to pay down $130 million or so this year.

Mr. Stratton joined Summit in 2009 as a founding member and became its CFO in December 2018. He will receive a severance of 1.5 times his combined base salary ($350,000), 2021 annual bonus  paid (not stated but assumed to be $350,000) x 1.5) and a pro-rata bonus for 2022.  Mr. Stratton’s unvested phantom stock units will also vest. They will be worth about $0.8 million.

Mr. Mault joined the company in 2016 and has a background in investment banking. He will receive a base salary of $300,000.

The company also announced it was promoting Matt Sicinski to Senior VP and Chief Accounting Officer. He joined in February 2020, having previously worked at Venari Resources and Southwestern Energy.

SEC filing – 8-K Summit CFO steps down

Long-serving Houston REIT CEO fired for cause

[UPDATE 02-28-22 The day before the original posting James Mastandrea filed for divorce from his wife, Christine. On Feb 9, Ms. Mastandrea was appointed COO. On Feb 23, Mr. Mastandrea filed a lawsuit in Harris County for wrongful termination, He is suing his wife, and the new CEO, amongst others].

Whitestone REIT has terminated, with cause, James Mastandrea from his position as Chairman and CEO of the company. David Holeman, the current CFO is appointed CEO. In turn, Scott Hogan, currently Vice President, Controller, becomes the CFO.



Whitestone has its head office in the Westchase area and is a shopping center REIT (real estate investment trust), with properties primarily in Houston and Phoenix. It has a market capitalization of $508 million.

The company said that an independent internal investigation found that Mr. Mastandrea’s conduct to be in violation of his employment agreement and inconsistent with Company standards and responsibilities of the CEO. They also stated that his termination is not related to Whitestone’s operating performance, financial condition or financial reporting.

Mr. Mastandrea, 77, has been the CEO since 2006 and has a base salary of $600,000. Because he was fired for cause, he will only receive accrued and unpaid base compensation.

Christine Mastandrea

Interestingly, the press release and SEC filing makes no mention of his wife, Christine, who is also an Executive Officer of the company. Presumably, she is still employed in her role as Executive VP of Corporate Strategy (base salary $300,000).

2016 Transaction

Back in 2016, Whitestone sold 14 non-core properties for $84 million to Pillarstone Capital REIT, which is a private company that James Mastandrea set up for the transaction. Mr. Mastandrea is still the beneficial owner of 78% of this REIT. John Dee, the COO of Whitestone, is also a beneficial owner of Pillarstone and acts as the latter’s CFO. The transaction was approved by a special committee of independent trustees. Even so, in my opinion, it is not a good look for a public company. Pillarstone has since disposed of six of the properties.

New officers

Mr. Holeman joined the company as its CFO in 2006 and was previously the CFO of Gexa Energy. Mr. Hogan joined in 2008 having previously been the Controller at Gexa Energy.

New compensation arrangements for Mr. Holeman and Mr. Hogan have yet to be determined.

SEC filing – Whitestone CEO