Tag Archives: CFO

Magnolia Oil & Gas promotes from within for CFO role

Magnolia Oil & Gas has promoted Christopher Stavros from CFO to CEO.  Brian Corales becomes the CFO, having previously been VP, Investor Relations. The promotion for Mr. Stavros was announced on September 21, two days before founder and CEO, Stephen Chazen, died.

Magnolia has its head office in Greenway Plaza and operates wells in South Texas around Giddings and in Karnes County. It has a market capitalization of $5.6 billion.

The company began as a SPAC (Special Purpose Acquisition Company) formed by Mr. Chazen (ex-CEO of Occidental Petroleum). Mr. Stavros worked with Mr. Chazen at Oxy for 12 years, eventually becoming the CFO, before leaving in 2017.  The SPAC acquired the South Texas properties from Enervest, a PE firm, in 2018 for $2.7 billion and Mr. Stavros became CFO of Magnolia at that point.

Enervest remains the largest shareholder in Magnolia at 18%. Mr. Chazen owned 3% at the time of his death.

Mr. Corales joined Magnolia in November 2018. Prior to that, he had spent many years in investment banking including Johnson Rice & Co and Scotia Howard Weil. He will receive a base salary of $367,500.

SEC filing – 8-K Magnolia CFO appointment

Baker Hughes appoints new CFO

Nancy Buese has been appointed CFO of Baker Hughes. She replaces Brian Worrell, who will stay on with the company as an advisor through Q2 2023.

The company has revenues of $21 billion and a market capitalization of $25 billion.



Baker Hughes recently announced a reorganization that would reduce its four reporting segments into two. Oilfield Services and Oilfield Equipment were combined into one while Turbomachinery & Energy Technology and Digital Solutions were combined into the other. The company expects to save $150 million as a result.

Ms. Buese was the CFO of Newmont Corporation, a Denver-based gold miner, from October 2016 until last month. Prior to that, she was the CFO at MarkWest Energy Partners for 10 years, a midstream company. When it was acquired by MPLX, a publicly-traded MLP owned by Marathon, she became the CFO of MPLX.

Ms. Buese will receive a base salary of $900,000. She will also receive a cash sign-on bonus of $2 million and an award of restricted stock units worth $5 million, that will vest over 3 years. In 2023, she will also be eligible for long-term incentive awards with a current annual target of $3.5 million.

Mr. Worrell has been the CFO of Baker Hughes since it was combined with GE’s oil and gas division in 2017 (it became independent of GE in 2019). Prior to that, he served as CFO of GE Oil and Gas between 2014 and 2017. He began with GE in 1992 and is based in London.

No details of any severance arrangements with Mr. Worrell were disclosed.

SEC filing – Baker Hughes CFO

New CFO at NCS Multistage

NCS Multistage has appointed Michael Morrison as its new CFO and Treasurer. He replaces Ryan Hummer, who has been promoted to CEO following the retirement of Robert Nipper, the founder of the company. Mr. Nipper will remain on the Board.



NCS manufactures products used in the fracking of horizontal wells. It has revenues of $135 million and a market capitalization of $65 million.

The company has its head office in NW Houston and went public in April 2017 at the $17 per share. The current share price of $26 sounds good until you realize there was a 1-for-20 reverse stock split in 2020. In other words, on a like-for-like basis, the stock has dropped from $340 at IPO to $26 now.

Mr. Morrison was, until recently, the CFO at ION Geophysical, another Houston oilfield services company.  He joined that company in 2002 and became CFO in February 2020. Ion filed for bankruptcy protection in April 2022, due to continued ongoing weakness in the seismic sector.

Mr. Morrison will receive a base salary of $325,000.

8-K filing – NCS Multistage CFO

Carriage Services CFO to depart by end of year

Ben Brink, the CFO of Carriage Services Inc, has announced he will be leaving at the end of the year to pursue other opportunities. The company has begun a search for a new CFO. Mr. Brink will assist the new CFO in a consulting capacity for the first six months of 2023.



Carriage Services is a leading provider of funeral and cemetery services and merchandise in the United States. Carriage operates 169 funeral homes in 26 states and 31 cemeteries in 11 states. The company has a market capitalization of $473 million.

Mr. Brink, who is 41, began his career at International Paper. He joined Carriage in 2009 as a Cash Manager and was promoted to CFO in 2015.

Chairman and CEO Mel Payne issued a very effusive press release praising Mr. Brink’s contributions to the company’s recent development. In the press release, the CEO stated that he offered Mr. Brink a severance payment of $1 million in cash or 30,000 shares (worth $965,000 at Friday’s close). Mr. Brink chose to take the shares.

SEC filing – 8-K Carriage CFO

Midstream company appoints new CFO

Crestwood  Equity Partners has appointed John Black as its new CFO. He replaces Robert Halpin, who had been CFO since 2015. Mr Halpin will remain with the company as President, a role he took over in January.



Crestwood owns and operates midstream businesses primarily in the Williston, Powder River and Delaware Basins.  In February, it completed the acquisition of Oasis Midstream for $1.8 billion. The company currently has a market cap of $2.9 billion and has its head office in downtown Houston.

Mr. Black, age 34, joined Crestwood in 2014 and was formerly the Senior VP, Finance. Prior to joining Crestwood, he held positions at First Reserve and Citi. He will receive a base salary of $400,000.

Josh Wannarka, Senior VP, Investor Relations, has been promoted to to Mr. Black’s old position. He joined the company in 2015. In his new expanded role, Mr. Wannarka will oversee the investor relations team and the full financial planning and analysis function.

Andrew Thorington, VP of Finance, has been promoted to VP, Finance and Investor Relations. He joined the company in 2014.

Crestwood Equity – press release

Renewables company appoints new CFO

Archaea Energy has appointed Brian McCarthy as its new CFO, replacing Eric Javidi, who left in February after ten months with a $2.95 million cash severance.

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. It currently has 12 of them. The company also has 33 landfill gas to electric facilities, some of which were added after a recent acquisition.



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 $19, about a $1 higher than the price when the deal closed.

The company was supposedly conducting a search process for Mr. Javidi’s replacement, but ended up appointing Mr. McCarthy, who was the previous CFO and had been acting as the interim CFO since March. (Technically, he was the CFO of the legacy business from January 2019 to May 2021). Between his CFO stints, Mr. McCarthy was the Chief Investment Officer of the company.

No compensation details were disclosed for Mr. McCarthy. However, last month, the company adopted a new executive severance plan which limits the severance outside a change-of-control event to 1x base salary plus 1x pro-rata target bonus.

SEC filing – Archaea CFO appointment

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