Tag Archives: CFO

Houston E&P appoints new CEO and CFO

Epsilon Energy, based in Greenspoint area of North Houston, has appointed a new CEO and CFO.

Jason Stabell is replacing the retiring Mike Raleigh as CEO while Andrew Williamson replaces Lane Bond as CFO.

Mr. Stabell and Mr. Williamson worked together for many years at Merlin International, LLC, an E&P business with its primary operations in Egypt. The business was sold in 2019 to a SOCO International, a UK-listed company. Mr. Stabell stayed on as a consultant until 2021 while Mr. Williamson became the Corporate Development Manager at a small E&P company.

Epsilon primarily owns properties in the Marcellus basin in Pennsylvania. A few years ago, it started acquiring acreage in the Anadarko Basin in Oklahoma. However it is not the operator of those wells. The company has revenues of $48 million and a market capitalization of $130 million.

The departing executives were among the lowest paid executives for their positions. Mr. Raleigh, who had been CEO since 2013, had a base salary of $150,000, though between 2018-2020 he did not take a salary. He will receive a severance of $150,000 plus $480,000 in lieu of equity awards for 2021 and 2022.

Mr. Bond, who had been CFO since 2012 and is also retiring, had a base salary of $200,000. He will receive no severance, but will receive a pro-rata bonus for 2022 of $37,500. However, he will be engaged as a consultant until March 2023 at a monthly rate of $16,667.

Incoming CEO Stabell will have a base salary of $300,000 while Mr. Williamson will have a base of $230,000.

SEC filing – Epsilon Energy CEO CFO change

 

Team Inc appoints new CFO

Team Inc, based in Sugar Land, has appointed Nelson Haight as its new CFO. He joins from Key Energy Services, where he had been CFO since June 2020. He replaces Susan Ball, who resigned in November 2021.



Team provides testing, inspection and repair services to industries such as refining and power, though the company describes itself as a ‘global leading provider of integrated, digitally-enabled asset performance assurance and optimization solutions’.

The company has had a rough few years following a couple of disastrous acquisitions made in 2015-2016 for $538 million that went south very quickly. At the end of March 2022, the company had shareholders’ equity of $27 million and long-term debt of $501 million.  In the first quarter, the company made a net loss of $32 million on revenues of $219 million.

Amerino Gatti, who had been CEO since 2018, left the company in March to be replaced by interim CEO, Keith Tucker. Mr. Gatti received a severance payment of 18 months of salary ($1.275 million in total, to be paid over 12 months) plus a 12-month consulting contract of $39,583 per month.

The company hired Alvarez and Marsal in 2017 to assist in identifying cost-saving opportunities. After Ms. Ball left, Matt Kvarda, an A&M employee, had been acting as interim CFO.  Since the beginning of 2021, the company has paid A&M nearly $12 million dollars in consulting fees, which includes the interim CFO services.

Mr. Haight will receive a base salary of $450,000. He also received a signing bonus of $25,000 and a guaranteed bonus for 2022 of at least $150,000.

No word on Mr. Haight’s replacement at Key, which is now a private company. In 2020, an out-of-court restructuring resulted in the lenders receiving 97% of the new equity of Key.

SEC filing – Team CFO appointment

Houston biopharma company replaces its CFO

Aravive, a Houston biopharmaceutical company, has replaced its CFO. Vinay Shah, who has been CFO since 2010, has resigned and Rudy Howard appointed in his place.

The company is conducting clinical trials on a protein that inhibits the signals produced by the AXL protein. These signals help proliferate tumors and cause the body to suppress its immune system. The trials are being conducted on patients with ovarian, kidney or pancreatic cancers.

Aravive went public in October 2018 via a reverse takeover of Versartis, a biopharma company based in California. The transaction valued the company at $39 million. Currently, the company has a similar market cap with its share price being $1.21. A year ago, its share price was around around $5-$6.

Mr Shah will receive a severance payment of $286,443 (nine months, paid monthly) and will enter into a consulting contract for four months with a monthly payment of $44,557.

Mr. Howard will receive a base salary of $395,000. He also received stock options on 290,000 units that will vest over four years.

Mr. Howard was previously the CFO of vTv Therapeutics, a struggling biopharma company, based in North Carolina. He resigned in December 2021, receiving a one year severance payment of $325,000. At that time, the company let go 16 of its 25 employees.

SEC filing – Aravive CFO

Weatherford CFO is out after less than two years

Keith Jennings, CFO of Weatherford International, is out after less than two years with the company. His last day will be July 31. The company has begun an executive search for his replacement.



Weatherford filed for bankruptcy in July 2019, emerged in December 2019 and relisted its shares on Nasdaq in June 2021. At the time of the relisting, its share price was $12.81. It is now $31, giving it a market capitalization of over $2 billion.

The company still has over $2 billion in net debt, but it has had some success in moving away on high volume, low margin business. This is evidenced by its gross margin percentage of 27%  being the highest since 2011.

Mr Jennings joined from Calumet Specialty Products Partners in September 2020, where he was CFO.  Earlier in his career he spent seven years as VP and Treasurer at Cameron International, leaving a few months after its takeover by Schlumberger.

Six weeks after Mr. Jennings started, Girish Saligram was appointed CEO.

Mr. Jennings had a base salary of $500,000. He will receive a cash severance of almost $1.8 million (1.5 times base salary and target bonus, plus pro-rated bonus for 2022). In addition, according to the annual proxy filed last month, $5 million of restricted stock awarded to Mr. Jennings will also vest.

Calumet is based in Indianapolis, so Weatherford gave Mr Jennings a relocation allowance of $150,000. He also received $500,000 as a sign-on bonus.

SEC filing – Jennings departure

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