- Push-out Score determined
- After about a year in the position
- Praise, thanks and good wishes for Ormand
- Joe Daches taking over in the interim
- Search for a successor
(exechange) — Houston, Texas, June 6, 2019 — Ron Ormand, chief executive of Lilis, leaves. As announced by Lilis Energy Inc. in a news release and in a regulatory filing published on Thursday, June 6, 2019, Ronald D. (Ron) Ormand, Chief Executive Officer, leaves the independent oil and gas exploration and production company after about a year 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 7.6 years, according to data compiled by exechange. Only 12 percent of the CEOs who departed over the past 12 months left the position within two years, and 22 percent left the position within three years.
Lilis will undertake a search for a successor.
Ron Ormand’s duties will be taken over in the interim by Joseph C. (Joe) Daches, currently Chief Financial Officer of Lilis Energy, Inc., as Interim Chief Executive Officer.
“Find a new leader who will set the tone and drive the strategy to bring this company to the next level”
A reason for Ron Ormand’s departure from the CEO post was not explicitly provided. David Wood, Chairman of the Board, said: “Lilis Energy has a concentrated premium acreage footprint in the northern Delaware Basin and is delivering strong well results across multiple targeted horizons. The company is primed for growth with a strong balance sheet focusing on operational excellence and efficiencies. We have already engaged a leading executive search firm to help find a new leader who will set the tone and drive the strategy to bring this company to the next level.”
Precise information regarding Ron Ormand’s future plans was not immediately available.
Lilis said: “Ron Ormand, currently Chairman of the Board of Directors … and Chief Executive Officer …, has notified the Board of his planned retirement from the Company effective June 6, 2019.”
Lilis further said: “On June 6, 2019, Lilis Energy, Inc. … announced that Ronald D. Ormand has notified the Company’s Board of Directors … of his retirement from his positions as Chief Executive Officer and Chairman of the Board of the Company.”
“Did not result from any disagreement”
“Mr. Ormand’s decision to retire did not result from any disagreement with the Company, the Company’s management, or the Board,” Lilis said.
Share price decline
The announcement follows a decline in Lilis Energy, Inc.’s share price of 86 percent since June 2018.
In the position of CEO since 2018
Ormand will continue to serve as a member of the Company’s Board.
Ormand joined the Company’s Board in February 2015, bringing with him more than 33 years of experience as a senior executive and investment banker in energy, including extensive financing and mergers and acquisitions expertise in the oil and gas industry.
He served as the Company’s Chief Executive Officer and has held that position since April 6, 2018.
During his career, he has completed more than $25 billion of capital markets and financial advisory transactions, both as a principal and as a banker.
Prior to joining Lilis, Ormand served as the Chairman and Head of the Investment Banking Group at MLV & Co. (“MLV”), which is now owned by FBR & Co., after it acquired MLV in September of 2015.
After the acquisition, Ormand served as Senior Managing Director and Senior Advisor at FBR & Co. until May 2016, where he focused on investment banking and principal investments in the energy sector.
Prior to joining MLV in November 2013, from 2009 to 2013, Ormand was a senior executive at Magnum Hunter Resources Corporation, or MHR (NYSE:MHR), an exploration and production company engaged in unconventional resource plays, as well as midstream and oilfield services operations.
He was part of the management team that took over prior management and grew MHR from approximately $35 million enterprise value to over $2.5 billion enterprise value at the time he left in 2013.
Ormand served on the Board of Directors and in several senior management positions for MHR, including Executive Vice President, Chief Financial Officer and Executive Vice President of Capital Markets.
On March 10, 2016, in connection with his prior position as Chief Financial Officer of MHR, Ormand, without admitting or denying any of the allegations, settled with the SEC in connection with an investigation of MHR’s books and records and internal controls for financial reporting.
Specifically, Ormand agreed to cease and desist from violating Sections 13(a) and 13(b)(2)(A) and (B) of the Exchange Act and Rules 13a-1, 13a-13 and 13-15(a) thereunder.
He also paid a penalty of $25,000.
The SEC did not allege any anti-fraud violations, intentional misrepresentations or willful conduct on the part of Ormand.
Ormand’s career also includes serving as Managing Director and Group Head of U.S. Oil and Gas Investment Banking at CIBC World Markets and Oppenheimer (1988 – 2004); Head of North American Oil and Gas Investment Banking at West LB A.G. (2005 – 2007), and President and CFO of Tremisis Energy Acquisition Corp. II, an energy special purpose acquisition company from 2007 – 2009.
Ormand has previously served as a Director of Greenhunter Resources, Inc. (2011 – 2013), Tremisis (2007 – 2009), and Eureka Hunter Holdings, Inc., a private midstream company (2010 – 2013).
Ormand holds a B.A. in Economics, a M.B.A. in Finance and Accounting from UCLA and studied Economics at Cambridge University, England.
Push-out Score determined
The Push-out Score™ determined by exechange gauges the pressure surrounding the management change on a scale of 0 to 10.
exechange reached out to Lilis and offered the company the opportunity to comment on the score.
Read the full story in the exechange report 23.2019 ($).