- Push-out Score determined
- After less than one year in the position
- Thanks and good wishes for McKinney
- John Suter taking over in the interim
(exechange) — Oklahoma City, Oklahoma, December 13, 2019 — Paul McKinney, chief executive of SandRidge, leaves. As announced by SandRidge Energy Inc. in a news release and in a regulatory filing published on Friday, December 13, 2019, Paul D. McKinney has left his post as Chief Executive Officer at the oil and natural gas exploration and production company after less than one year in the role, effective December 12, 2019.
Among the 3,000 largest publicly held companies incorporated in the U.S. based on market capitalization, the average tenure of the CEOs who announced their departure over the past 12 months was 7.6 years, according to data compiled by exechange. Around 5% of the CEOs who announced their departure over the past 12 months left their posts within their first year. On an accumulated basis, around 15% left their posts within two years, and 25% left their posts within three years.
Paul McKinney’s duties as CEO will be taken over in the interim by John P. Suter, most recently Chief Operating Officer of SandRidge Energy Inc., as Interim Chief Executive Officer.
“To improve shareholder value”
Paul McKinney’s departure from the CEO post is explained as follows. SandRidge said: “SandRidge Energy, Inc. (“SandRidge” or the “Company”) (NYSE: SD) today announced it has initiated a series of actions designed to improve shareholder value: Evaluation of minimal 2020 capex plan to maximize free cash flow; John P. Suter named Interim President & CEO following departure of Paul D. McKinney.”
Precise information regarding Paul McKinney’s future plans was not immediately available.
“Resigned”
SandRidge said: “In connection with this initiative, Paul D. McKinney has resigned as President and Chief Executive Officer and as a Board member and John P. Suter, who currently serves as the Company’s Chief Operating Officer, has agreed to serve as Interim President and Chief Executive Officer.”
SandRidge further said: “On December 12, 2019, Paul D. McKinney, President and Chief Executive Officer of SandRidge Energy, Inc. (“SandRidge” or the “Company”), tendered his resignation from the Company, effective December 12, 2019.”
“Not the result of any disagreement”
“Mr. McKinney’s resignation from the Board of Directors (the “Board”) of the Company, which was also effective December 12, 2019, was not the result of any disagreement with the Company on any matter relating to the Company’s operations, policies or practices,” SandRidge said.
Share price decline
The announcement follows a decline in SandRidge Energy, Inc.’s share price of 50% since January 2019.
Chaired by Jonathan Frates
SandRidge Energy, Inc. is chaired by Jonathan Frates.
Jonathan Frates has been a Managing Director at Icahn Enterprises L.P., a diversified holding company engaged in a variety of businesses, including investment, automotive, energy, gaming, railcar, food packaging, metals, mining, real estate and home fashion, since June 2018.
In the position of CEO since 2019
Paul McKinney became CEO of the Company in 2019.
In connection with his resignation, McKinney also tendered his resignation as a director of the Company and as a director, member or partner of any and all subsidiaries of the Company.
McKinney was named President and Chief Executive Officer in January 2019.
McKinney served in various positions with Yuma Energy, Inc., from June 2014 to January 2019, most recently as its President and Chief Operating Officer.
Prior to Yuma Energy, McKinney worked in different roles of responsibility for Apache Corporation from 2007 through 2013, where he was last responsible for the development and all operational aspects of the Gulf Coast region for Apache as Region Vice President, Gulf Coast Onshore.
From 2006 through 2007, McKinney was Vice President and Director, Acquisitions & Divestitures for Tristone Capital, Inc.
McKinney commenced his career with Anadarko Petroleum Corporation and held various positions with Anadarko over a 23-year period from 1983 to 2006, including his last position as Vice President of Reservoir Engineering, Anadarko Canada Corporation.
McKinney currently serves on the Board of Directors for Pro-Ject Holdings, LLC, a private oil field chemical services company.
McKinney has a Bachelor of Science degree in Petroleum Engineering from Louisiana Tech University.
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 SandRidge and offered the company the opportunity to comment on the score.
Read the full story in the exechange report 50.2019 ($).