- After about six years in the position
- Praise and thanks for Chazen
- Chris Stavros taking over
SEE UPDATE AT THE END
(exechange) — Houston, Texas, September 21, 2022 — Steve Chazen, chief executive of Magnolia, leaves. As announced by Magnolia Oil & Gas Corp. in a news release on Wednesday, September 21, 2022, Stephen I. (Steve) Chazen leaves his post as chief executive officer at the oil and gas exploration and production company, after about six years in the role, effective immediately.
Steve Chazen’s duties as CEO will be taken over by Christopher G. (Chris) Stavros, most recently Chief Financial Officer at Magnolia Oil & Gas Corp.
“Mr. Stavros will continue to serve as the Company’s Chief Financial Officer until a permanent successor is appointed”, Magnolia stated.
Health reasons
Steve Chazen’s departure from the CEO post is explained as follows. Magnolia said: “Stephen Chazen, who has served as Chairman, President and Chief Executive Officer since 2018 will no longer be able to serve in his positions due to serious health reasons.”
Share price increase since September 2017
The announcement follows an increase in Magnolia Oil & Gas Corp.’s share price of 130% since September 2017.
In the position of CEO since 2017
Steve Chazen became CEO of the Company in 2017.
Chazen has served as the Company’s Chairman, President and Chief Executive Officer since 2017.
Chazen has served as Chairman of the Board of Directors of Occidental Petroleum Corporation, whose principal businesses consist of oil and gas, chemical, and midstream and marketing segments (“Occidental”), since March 2020.
He retired from his position as Chief Executive Officer of Occidental in April 2016.
Chazen began his career at Occidental in 1994 as Executive Vice President—Corporate Development.
He was named Chief Financial Officer in 1999 and served in that position until 2010.
Chazen was appointed President of Occidental in 2007.
He was then named Chief Operating Officer in 2010 before being appointed Chief Executive Officer in May 2011.
Chazen previously served on the Board of Directors of Occidental from 2010 to 2017. Before joining Occidental, Chazen was Managing Director in Corporate Finance and Mergers and Acquisitions at Merrill Lynch.
He worked as Director of Project Evaluation and Reservoir Engineering at Columbia Gas Development Corporation from 1977 to 1982.
Chazen began his career at Northrop Corporation in 1973 as Laboratory Manager at the Johnson Space Center, where he worked until 1977.
Chazen is a former Chairman of the Board of the American Petroleum Institute and the Catalina Island Conservancy.
He was appointed to the University of Houston System Board of Regents in 2018 and serves on the Advisory Board at Rice University’s Baker Institute for Public Policy.
He is a director of Houston Methodist Institute for Academic Medicine, The Williams Companies, Inc., and the National Park Foundation.
He served on the Board of Directors of Ecolab, Inc., a global leader in water, hygiene, and energy technologies and services (“Ecolab”), from 2012 to 2019.
Chazen holds a Ph.D. in Geology from Michigan State University, a Master’s degree in Finance from the University of Houston, and a Bachelor’s degree in Geology from Rutgers College.
Push-out Score not determined
When the reason for the departure is health-related, a Push-out Score™ is not determined.
Not classified
For academic researchers: According to the Simplified Push-out Algorithm™, the executive change is not classified (health reasons).
Chris Stavros taking over
The duties of Steve Chazen will be taken over by Chris Stavros as Chief Executive Officer, effective immediately.
Christopher Stavros, the Company’s current Executive Vice President and Chief Financial Officer, has been named President and Chief Executive Officer, and has been appointed to the Board of Directors, effective immediately.
Prior to his appointment as President, Chief Executive Officer and member of the Board of Directors, Christopher Stavros served as the Company’s Executive Vice President and Chief Financial Officer since Magnolia’s inception.
Stavros has 30 years of experience in the energy and financial industries.
He most recently served as Senior Vice President and Chief Financial Officer of Occidental Petroleum Corporation (“Occidental”).
Stavros joined Occidental in 2005 and was named Chief Financial Officer in 2014 having previously served as Vice President, Investor Relations and Treasurer.
Stavros retired from Occidental in May 2017.
Prior to joining Occidental in 2005, Stavros was a Senior Analyst at UBS with coverage of the Oil and Gas sector.
Stavros received his BSBA from Boston University and received his MBA from the University of Rochester.
Praise and thanks
In the announcement from Magnolia, which is based in Houston, Texas, Steve Chazen received praise and thanks.
Dan Smith, who previously served as Magnolia’s Lead Independent Director and has been named as Chairman of the Board, praised him.
Chris Stavros praised him and expressed gratitude.
Chris Stavros received advance praise.
“We would like to extend our deep support to Steve’s family”
Dan Smith, who previously served as Magnolia’s Lead Independent Director and has been named as Chairman of the Board, said many words regarding the long-standing chief executive Steve Chazen: “First and foremost, we would like to extend our deep support to Steve’s family. Steve is an exceptionally talented and revered leader, who will leave an extraordinary legacy on our industry. Not only has Steve led an evolution of Magnolia, but his influence has also shaped the oil & gas landscape and the greater business and Houston communities. He cares deeply about Magnolia and our employees and created opportunities for many throughout his career. We share a commitment to carrying out the initiatives Steve developed, both inside Magnolia and in our local communities.”
“Steve has always expressed his utmost confidence in Chris”
Dan Smith, who previously served as Magnolia’s Lead Independent Director and has been named as Chairman of the Board, said, regarding Chris Stavros: “Steve has always expressed his utmost confidence in Chris, and the Board believes Chris is uniquely qualified and the right person to lead Magnolia. Our Board has engaged in thoughtful long-term succession planning, and today’s announcement demonstrates the strength of that process as well as our depth of talent to drive the Company’s business plan and continued success.”
The financial terms of Steve Chazen’s departure were not immediately disclosed.
The compensation details for Chris Stavros were not immediately disclosed.
“Grateful for the impact he has had on us”
Chris Stavros said: “I have had the honor for almost two decades to call Steve not only a mentor and colleague, but also a dear friend. Steve is a charismatic and transformational leader with a passion for our business. We are all privileged to have worked with Steve and are grateful for the impact he has had on us. I step into this role confident that Magnolia is well positioned to successfully execute our strategic plan.”
Magnolia Oil & Gas Corp. (MGY): $6.5 billion market value
Magnolia Oil & Gas Corp. is listed on the NYSE in New York. The shares with the symbol “MGY” have a market capitalization of around $6.5 billion. Magnolia Oil & Gas Corp. is a member of the Russell 2000 index. The stock belongs to the energy sector.
The title of the announcement from Magnolia is: “Magnolia Oil & Gas Corporation Appoints Christopher Stavros as President and Chief Executive Officer and to the Board of Directors.”
UPDATE
On September 23, 2022, the Company issued a press release announcing Chazen’s passing.
The press release reads as follows:
“Magnolia Oil & Gas Corporation Mourns the Passing of Former Chairman, President and Chief Executive Officer Stephen Chazen
HOUSTON, TX, September 23, 2022 – It is with great sadness that Magnolia Oil & Gas Corporation (“Magnolia” or the “Company”) (NYSE: MGY) mourns the passing of former Chairman, President and Chief Executive Officer, Stephen Chazen.
On behalf of the entire Magnolia team, Chris Stavros, President and Chief Executive Officer, said, “We are greatly saddened by Steve’s passing, and extend our thoughts and sympathies to his family. As Magnolia’s founder, Steve has left an indelible mark on the Company, the oil and gas industry and the greater Houston community. Professionally, Steve had a profound impact on how E&P companies are managed with an objective of creating long-lasting shareholder value. He was the type of businessman who didn’t follow trends, but rather established trends. Steve always had a great affinity for investors and enjoyed interacting with them.
Steve’s significant professional accomplishments are exceeded only by his humanitarianism and philanthropic generosity that has touched the lives of countless individuals. He spent much of his non-business-related time focusing on areas he cared deeply for including education, health care and the environment. As much as Steve was a wonderful leader, he was an even greater person.”
Mr. Chazen served on the University of Houston System Board of Regents, as a director of the Houston Methodist Institute for Academic Medicine, on the Advisory Board at Rice University’s Baker Institute for Public Policy and the U.S. National Park Foundation. He is a former Chairman of the Board of the American Petroleum Institute and the Catalina Island Conservancy. Most recently, he served as Chairman of the Board of Occidental Petroleum Corporation..
Magnolia, a publicly traded midsize driller, operates primarily in the Eagle Ford and Austin Chalk formations of South Texas. It reported roughly $300 million in profit in the second quarter of the year and production of about 74,000 barrels of oil equivalent a day.”
| exechange at a glance | |
| Who leaves | |
| Name | Stephen I. (Steve) Chazen |
| Age | 75 years (as of the date the company filed its most recent annual proxy statement) |
| Position | Chief Executive Officer |
| Company | Magnolia Oil & Gas Corp. |
| Action | “will no longer be able to serve” |
| When | September 21, 2022 |
| Days remaining | none, departure effective immediately |
| Reason | health reasons |
| Tenure | five years and nine months (as of September 21, 2022) |
| Push-out Score* | – |
| Forced/Voluntary** | Not classified (health reasons) |
| Future position | – |
| Who takes over | |
| Name | Christopher G. (Chris) Stavros |
| Age | 58 years (as of the date the company filed its most recent annual report) |
| Position | Chief Executive Officer |
| Company | Magnolia Oil & Gas Corp. |
| Previous position | Chief Financial Officer |
| Previous company | Magnolia Oil & Gas Corp. |
| When | September 21, 2022 |
| Announcement date | September 21, 2022 |
| *assessment by exechange; **according to the Simplified Push-out Algorithm | |