UPDATE 2-Forest Oil replaces CEO with long-time board member

Fri Jun 22, 2012 7:59pm IST

Related Topics

Stocks

   

* Board member Patrick McDonald to be interim CEO

* McDonald succeeds Clark; had been CEO since 2003

* Board has initiated a search process for a permanent CEO

* Shares up 2.2 percent in morning trading

June 22 (Reuters) - Forest Oil Corp, whose stock price has plunged more than 50 percent since January, replaced Chief Executive H. Craig Clark with a long-time board member on Friday.

Patrick McDonald, 55, a director at the independent oil and natural gas producer since 2004, takes over immediately. Clark had been CEO since 2003.

A Forest Oil spokesman declined to comment on the reason for Clark's departure.

Forest Oil Chairman James Lightner said in a statement that the first priority for McDonald, who has worked in the energy industry for more than 25 years, will be to "personally involve himself" in the company's expansion into the oil-rich Eagle Ford shale development in Texas.

Ratings agency Standard & Poor's said in March that there was "some uncertainty around (Forest Oil's) liquids-production growth and drilling costs over the next couple years" as it was relatively new to some of its liquids-rich fields.

McDonald also will focus on selling assets to cut Forest Oil's $1.8 billion debt load - more than double the company's current market value - Lightner said.

"Forest has valuable assets, hard-working and talented employees, and tremendous potential, and the Board is confident that the Company can significantly increase shareholder value," Lightner said.

The company had cash and equivalents of roughly $900,000 as of March 31.

McDonald will serve as interim CEO and has asked not to be considered as a permanent successor to Clark. He plans to remain CEO of Carbon Natural Gas Co, a small oil and natural gas exploration company.

Forest Oil has hired executive search firm Spencer Stuart to find a new CEO.

The company, valued at roughly $745 million, has lost more than two-thirds of its market value in the last year.

Shares rose 2.2 percent to $6.60 in morning trading on Friday.

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared
People walk in the Wipro campus in Bangalore June 23, 2009. REUTERS/Punit Paranjpe/Files

Wipro Q4 net profit beats estimates, rises 29 percent

Wipro posted a 29 percent rise in its fourth-quarter net profit, beating expectations, helped by increased IT spending by its customers. For the quarter ended March 31, the company said it earned 22.27 billion rupees compared with 17.29 billion rupees a year earlier.  Full Article | Full Coverage 

REUTERS SHOWCASE

Literary Giant Dies

Literary Giant Dies

Nobel winner Garcia Marquez, master of magical realism, dies at 87.  Read 

Election 2014

Election 2014

India holds biggest day of voting with BJP gaining strength  Full Article | Full Coverage 

Insider Trading

Insider Trading

Ex-Goldman director Gupta starts prison term on June 17.  Full Article 

Market Eye

Market Eye

Sensex jumps 351 points, snaps 3-day losing streak  Full Article 

Expansion Plans

Expansion Plans

Reliance Industries, HPCL Mittal plan refinery expansions.  Full Article 

S&P on India

S&P on India

S&P: India's ratings to depend on next govt econ, fiscal policies.  Full Article 

Ambitious Aim

Ambitious Aim

In green car race, Toyota adds muscle with fuel-cell launch.  Full Article 

Deal Talk

Deal Talk

Piramal to buy 20 percent stake in Shriram Capital for $334 million.  Full Article 

Bond Market

Bond Market

A star abroad, RBI boss riles bond traders at home  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage