- Push-out Score determined
- After seven years in the position
- Thanks and good wishes for Wilson
- Responsibilities redistributed
- Search for a successor
- Wilson kept it short and said 49 words
(exechange) — Denver, Colorado, February 21, 2019 — Floyd Wilson, chief executive of Halcón, leaves. It is an abrupt change. As announced by Halcón Resources Corp. in a news release and in a regulatory filing published on Thursday, February 21, 2019, Floyd C. Wilson, Chief Executive Officer, leaves the energy company engaged in the development of onshore oil and natural gas properties in the United States, after seven years in the role, effective immediately.
Among the 3,000 largest publicly held companies incorporated in the U.S. based on market capitalization, the average tenure of the CEOs who departed over the past 12 months was 8.2 years, according to data compiled by exechange.
Halcón will undertake a search for a successor.
The position of Chief Executive Officer is currently not filled. For the time being, Floyd Wilson’s responsibilities are redistributed.
Floyd Wilson’s move is part of a management shake-up also involving the positions of Chief Financial Officer; and Executive Vice President, Corporate Development.
“To pursue other interests”
The management change is explained as follows. Halcón said: “Floyd Wilson has resigned from his role as the Company’s Chairman, Chief Executive Officer and President to pursue other interests.”
The phrase “to pursue other interests” opens the door to speculation.
Precise information regarding Floyd Wilson’s future plans was not immediately available.
Generally speaking, it is often a wake-up call for stockholders when a CEO leaves the position abruptly and without a reasonable explanation.
Halcón said: “On February 21, 2019, the Company announced that Floyd C. Wilson, Chief Executive Officer, President and Chairman of the Board of Directors of the Company (the “Board”), is departing the Company effective immediately and has resigned as Chief Executive Officer, President and as a Director of the Company.”
In addition, Mark J. Mize, Executive Vice President and Chief Financial Officer of the Company, and Stephen W. Herod, Executive Vice President, Corporate Development, will also be departing from the Company. Mize and Herod will depart the day after the Company files with the US Securities and Exchange Commission its Annual Report on Form 10-K for the fiscal year ended December 31, 2018, which is expected to be in early March 2019.
“Not the result of any disagreement”
“Each of Messrs. Wilson, Mize and Herod have confirmed that their departures were not the result of any disagreement with the Company on any matter relating to how the Company has operated, its policies or its practices, including its controls or financial related matters,” Halcón said.
It is a phrase that may be intended to prevent false rumors. It may also fuel further speculation and raise more questions than it answers. Such a phrase should be read very carefully. The exact wording may be insightful.
Share price decline
The announcement follows a decline in Halcón Resources Corporation’s share price of 73 percent since February 2018.
Chaired by James W. Christmas
Halcón Resources Corporation is chaired by James W. Christmas.
In connection with Wilson’s resignation, effective February 15, 2019, the Board appointed James W. Christmas as the Chairman of the Board to succeed Wilson. Christmas has been on the Board since 2012 and serves as the Board’s Lead Independent Director and Chairman of the Board’s Audit Committee.
In the position of CEO since 2012
Floyd C. Wilson has served as Chairman of the Board, Chief Executive Officer and President since February 2012.
Wilson served as Chairman of the Board and Chief Executive Officer of Petrohawk Energy Corporation from May 2004 until BHP Billiton acquired Petrohawk in August 2011.
Wilson also served as President of Petrohawk from May 2004 until September 2009.
Wilson was the Chairman and Chief Executive Officer of 3TEC Energy Corporation from August 1999 until its merger with Plains Exploration & Production Company in June 2003.
Wilson founded W/E Energy Company L.L.C., formerly known as 3TEC Energy Company L.L.C. in 1998 and served as its President until August 1999.
Wilson began his career in the energy business in Houston, Texas in 1970 as a completion engineer. He moved to Wichita, Kansas in 1976 to start an oil and gas operating company, one of several private energy ventures which preceded the formation of Hugoton Energy Corporation in 1987, where he served as Chairman, President and Chief Executive Officer.
In 1994, Hugoton completed an initial public offering and was merged into Chesapeake Energy Corporation in 1998.
Push-out Score determined
The Push-out Score™ determined by exechange gauges the likelihood that a manager was pushed out or felt pressure to leave the position.
exechange reached out to Halcón and offered the company the opportunity to comment on the score.
Read the full story in the exechange report 8.2019 ($).