Tag Archives: CFO

Weatherford CFO resigns after 6 months

Christian Garcia, the CFO of Weatherford International, has resigned. He will leave the company in early August after they have filed the second quarter report. The company will announce a successor at a later date.

Just a few days ago, Mr Garcia was named, along with COO Karl Blanchard as co-interim CEOs following the sudden departure of CEO Mark McCollum. Mr Garcia steps down from the office of the CEO role with immediate effect.



Mr Garcia only became the CFO in January. There’s no reason given for his departure, but it appears to be a personal decision he made. However he was close to Mr McCollum. Mr Garcia replaced Mr McCollum as Halliburton’s CFO during Halliburton’s proposed merger with Baker Hughes (2015-2016).

When Mr Garcia joined Weatherford, he received a sign-on bonus of $500,000. Under the terms of his employment contract, he will have to repay this.

Mr Garcia replaced Christoph Bausch as CFO. When Mr Bausch left in December 2019, he received termination pay of $3.6 million. Adding in Mr Bausch’s retention bonus and quarterly cash bonuses, he received $7.7 million in total cash payments in 2019.

Interim CEO

Karl Blanchard, interim CEO, will get an increased salary while performing those duties. As COO, he was making $700,000 a year. This was temporarily reduced by 20% due to the downturn caused by COVID-19. As interim CEO, his salary has been increased back up to $700,000. In addition he is eligible for monthly cash bonus payments of $370,296.

Non-Execs resign

It’s been a rough few days for Weatherford. In addition to the turmoil in the executive suites, three non-exec directors, who were nominated for re-election to the board, had to resign after failing to obtain the necessary votes at the Annual General Meeting of shareholders. This followed a campaign by an activist investor.

In addition to announcing the departure of Mr Garcia, Weatherford announced the appointment of a new non-exec director, Benjamin Duster. He serves on a number of boards as a non-exec director and is a corporate governance expert specializing in companies going through reorganizations.

SEC filing – Weatherford CFO resigns

Oilfield Services company appoints new CFO

Key Energy Services has appointed Nelson Haight as its new CFO. He replaces Marshall Dodson, who became the interim CEO after Robert Saltiel left in December 2019 with a $2.5 million severance, just ahead of an out-of-court restructuring plan. Mr Dodson was made permanent in March 2020.



Key operates the largest well service rig fleet in the US. It also provides fishing and rental tools, coiled tubing and fluid management services. It is based in downtown Houston.

In late January, the company converted $242 million of debt into 97% of newly-issued equity. Its shares were delisted from NYSE and now trade over the counter.

Mr Haight has been serving as a consultant providing financial and accounting services to companies in the energy industry, Between January 2014 and July 2017, he was the CFO at Tulsa-based Midstates Petroleum, a publicly-traded E&P company.  Midstates was in a pre-packaged bankruptcy reorganization between April and October 2016. The company later merged with Houston-based Amplify Energy in Aug 2019.

Mr Haight will receive a base salary of $375,000 (though it will be temporarily reduced by 10% due to current conditions).

SEC filing – Key Energy CFO

CFO steps down at Houston distributor

Chris Micklas, the CFO of Houston Wire and Cable, has resigned, effective July 10, to join a start-up business in another industry.

Houston Wire is a distributor of electrical and mechanical wire and cable with revenues of $340 million. Approximately a third of its revenues come from the energy sector. It has a market capitalization of $46 million. The company has its head office near the 610/I-10 interchange on the east side.



Mr Micklas joined the company in April 2018 and was previously the CFO at Par Pacific Holdings, another Houston public company that is involved in refining. He also worked for the LNG business of BG Group (now part of Shell).

Eric Davis has been appointed the interim CFO. He joined the company in 1993 and spent 14 years as the Controller of the company. He is currently the President of the Heavy Lift division.

SEC filing – Micklas resignation

 

 

 

Oilfield Supply company appoints new CFO

DistributionNOW has appointed CFO Dave Cherechinsky as its new CEO, replacing board member, Dick Alario, who has been the interim CEO since November 2019.

In turn, the company has promoted Mark Johnson to be the new CFO. He is currently the Chief Accounting Officer.



The company is a worldwide supplier of energy and industrial products and engineered equipment solutions. It has 3,075 employees in 210 locations in 20 countries. It was spun off from National Oilwell Varco in 2014. It has its head office in NW Houston.

Former CEO Robert Workman left in November 2019 with a $3.0 million cash severance and accelerated vesting of common stock, valued at $4.4 million. He had been the CEO since the spin-off. The share price at spin-off was $32.  When he left it was $11.40. It is now $7.63.

Mr Cherechinsky has been the CFO since February 2018. He joined NOV in 1989 and was appointed the VP Finance for its distribution arm in 2003. In his new role, he will have a base salary of $650,000.

Mr Johnson joined NOV in 2008 and became the Chief Accounting Officer in February 2018. His new salary will be $385,000.

The company also announced the retirement of Daniel Molinaro. He worked at the company or its predecessors for 52 years. Mr Molinaro was the CFO for four years prior to Mr Cherechinsky. He started work with the Oilwell division of US Steel in 1968. That division was merged with the oilfield division of Armco, another steel company, in 1987 to form National Oilwell. The business went public in 1996 and merged with Varco in 2005.

SEC filing – DNOW CFO appointment

CFO to step down at Houston auto dealership group

John Rickel, CFO of Group 1 Automotive, has announced that he step down from his role in August and retire by the end of the year. Daniel McHenry, currently the CFO of the UK subsidiary, has been appointed as the new CFO.

Group 1, which has its head office in the Memorial City area, has 119 dealerships in the 15 US states, 50 in the UK and 17 in Brazil. The company furloughed 4,800 US and 2,800 UK employees in response to the downturn caused by COVID-19.  In its earnings call in early May,  the company said it expected to bring back 500 US employees by the beginning of June.



Mr Rickel has been CFO for almost 15 years and worked at Ford for 21 years prior to that. His time-based restricted stock awards will fully vest on the second anniversary of his retirement.  At the end of December 2019, Mr Rickel had 38,322 unvested shares. At that time they were worth $3.8 million. They are down to $2.5 million at today’s stock price.

Mr Rickel won’t receive a severance payment or 2020 bonus and his performance-based equity awards will be forfeited.

Mr McHenry was born in Northern Ireland and joined Group 1 in 2007 as part of the acquisition of Chandlers BMW in southern England. He will receive a base salary of $575,000 (temporarily reduced by 20% to $460,000) and will relocate to Houston.

SEC filing – Group 1 CFO appointment

 

ConocoPhillips CFO to retire after 39 years at the company

Don Wallette, the CFO of ConocoPhillips, is retiring effective August 31, 2020. He will be replaced by Bill Bullock, currently the President, Asia Pacific and Middle East.

Mr Wallette retires after 39 years with the company. He joined Phillips Petroleum in 1981 as a staff drilling engineer in Houston. He was appointed to the CFO position in February 2016 after stints in Russia and as President, Asia Pacific.



The company has the second-largest market capitalization of a Houston-area company ($46 billion), behind only Crown Castle. And Mr Wallette is the only the CFO of a Houston-area public company with a base salary of over $1 million.

Mr Wallette has a defined benefits retirement plan worth $2.6 million. He also has a Key Employee Supplemental Retirement Plan that was worth $23.6 million at December 31, 2019. The Supplemental Plan will be paid out as a lump sum cash payment six months after Mr Wallette retires.

In his current role Mr Bullock has a base salary of $717,000. He joined ConocoPhillips in 1986 and has had spells in many different parts of the company. Like Mr Wallette, he has a bachelor’s degree in Chemical Engineering (from Texas A&M). Mr Bullock also has a Master’s degree in business administration with an emphasis in finance from Oklahoma City University.

SEC filing – ConocoPhillips CFO

Dril-Quip promotes from within for CFO position

Dril-Quip has promoted Raj Kumar, currently VP Finance and Chief Accounting Officer, to be the Chief Financial Officer. Jeffrey Bird, who was Senior VP of Production Operations and CFO, has been promoted to Chief Operating Officer.



Dril-Quip is based in NW Houston and manufactures and services offshore drilling and production equipment. It currently has a market capitalization of $889 million. The company has always been conservatively run and has $344 million of cash on the balance sheet and no debt.

Mr Bird joined Dril-Quip as its CFO in March 2017. He joined from another oilfield services company, Frank’s International. Mr Kumar also worked with Mr Bird at Frank’s between March 2015 and May 2017.

Mr Kumar’s base salary increased from $300,000 to $350,000. There was no change to Mr Bird’s salary ($680,000). Both men were given new restricted stock awards that vest over three years (50% is performance-based).

The previous COO of Dril-Quip was James Gariepy who left with a $1.1 million cash severance in March 2019.

You can see the complete list of Houston-area public companies here.

 

Dril-Quip – Kumar promotion to CFO

 

 

Seismic company appoints new CFO

SAExploration Holdings has appointed John Simmons as its new CFO. He has joined the company immediately. However, he will only start serving as the CFO after the company files its Quarterly report for the first quarter.



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SAE is a seismic services company that has its head office in west Houston.

Mr Simmons will replace interim CFO, Kevin Hubbard, a partner at Ham, Langston & Brezina. Mr Hubbard was appointed after the former CFO, Brent Whiteley, was fired in August 2019.

In its restated 2018 annual report filed in early February, the company alleged that the former CFO and former CEO misappropriated $16.6 million between 2012 and 2019.

Investigations by the Securities and Exchange Commission and the Department of Justice are still ongoing.

Mr Simmons was previously the CFO at Dauphine Energy, a private oil and gas company, from March 2019 to March 2020. Prior to that, he spent 17 years at BHP Petroleum. Mr Simmons will receive a base salary of $308,600.

The company has a market capitalization of $8 million and net debt of $121 million. It recently announced it had hired Imperial Capital to advise the company as it evaluates strategic alternatives to address its capital structure.

SEC filing – SAEX new CFO

 

CFO of Houston-based restaurant group departs

Scott Gray, the CFO of Luby’s, has left his role with immediate effect. No successor has yet been named.

Luby’s operates 119 restaurants in the US, including 41 Fuddruckers locations. They are also the franchisor for 97 Fuddruckers franchise locations. Not surprisingly, they have been hard hit by the coronavirus pandemic.



Mr Gray joined the company in 2001 and became the CFO in 2007. He had a base salary of $342,000 before it was reduced, temporarily, last month to $171,000. He will receive a severance of $105,231 to be paid over 6 months.

Mr Gray will also receive the immediate vesting of 31,028 restricted stock units and the vesting of 83,666 stock options at a strike price of $2.82 per share. Those options are out of the money as the current share price is $0.81.

In fact, last week, the company received a delisting notice from the NYSE as its share price had been below $1 for at least 30 consecutive trading days. To regain compliance, the company has to bring its average share price back above $1.00 within six months.

The company was also in the news last week as it was a recipient of a $10 million Paycheck Protection Program (PPP) loan under the CARES Act. Luby’s is one of seven Houston-area public companies that received a PPP loan. The others are Applied Optoelectronics, EnGlobal, Flotek, Gulf Island Fabrication, RiceBran and Sharps Compliance.

SEC filing – Lubys CFO departure

 

 

Occidental Petroleum appoints new CFO

Robert Peterson has been appointed the new CFO of Occidental Petroleum. He replaces Cedric Burgher, who will transition to another role in the company. Mr Burgher joined the company in May 2017.

Mr Peterson joined the company in August 2014 as President of OxyChem, the chemical subsidiary of the company. Most recently he was VP of Permian Strategy. Mr Peterson holds a Bachelor’s degree in Mechanical Engineering and an MBA in Corporate Finance from the University of Florida.



Changes coming thick and fast

The changes are coming thick and fast at Oxy. It’s been barely a week since the company reached a truce with activist investor, Carl Icahn by agreeing to add three new Icahn designated directors to the Board. The company also brought back former CEO Stephen Chazen as its new Chairman.

In its proxy statement filed on April 1, the company disclosed that Oscar Brown, Senior VP Strategy, Business Development and Supply Chain, was no longer with the company. He played a substantial role in the acquisition of Anadarko. For that, he received a $1.2 million cash bonus (which was more than Mr Burgher’s bonus). The company has not filed the required 8-K with the SEC, so the terms of his departure are not known.

No compensation details were given for Mr Peterson. Last week, the company reduced the salaries for all executive officers to $250,000. Mr Burgher was making $765,000.

New severance agreements

The company also filed new severance terms for executive officers yesterday. Prior to the amendment, the company did not have formal arrangements with them. If Mr Burgher were to be let go before December 2021, severance would be 1.5 times base salary in effect on March 1, 2020 plus 1.5 times actual annual bonus. A pro-rata bonus for the year would also be paid.

Were CEO Vicki Hollub to leave, it would be 2 times base salary as of March 1, 2020 (2x $1.33 million) plus 2 times bonus.

SEC filing – Occidental CFO