Many of you still think that Ben Dell the Activist from Kimmeridge lost, but he didn't- he is now sitting on the PDC Board of Directors. Check out any of the Financial tracking pages, from Wall Street Journal, Yahoo Finance, etc. Ben Dell is now a member of the PDC Board of Directors.
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PDC Energy: is A Company in Denial and a Board Asleep at the Wheel not hold SMT or managment at Evan's office accountable!!!
- PDC says it "Has the Right Strategy for Driving Long-Term Shareholder Value"
Absolute TSR has been negative over the past 1-, 2- and 3-year periods. Over the last 3 years, TSR has been negative 44%, putting PDC in the 39th percentile of its chosen peer group. 2018 Reported Net Income was $2 million and Adjusted Net Income was negative $196 million, on a capital base of roughly $4 billion.
PDC Energy: A Company in Denial and a Board Asleep at the Wheel
NEWS PROVIDED BY
Kimmeridge Energy
Apr 23, 2019, 07:00 ET
NEW YORK and DENVER, April 23, 2019 /PRNewswire/ -- Kimmeridge Energy Management Company, LLC ("Kimmeridge" or the "Firm") today released a presentation highlighting a history of excessive pay and misalignment with shareholders at PDC Energy, Inc. ("PDC" or the "Company") (NASDAQ: PDCE). Over the past two years, PDC's Board has rewarded management with bonuses greater than 100% of target despite the fact that in both years the Company missed four out of five internally-set performance metrics, and over the last 3 years has seen a total shareholder return (TSR) of -44%.
The strong compensation in light of such poor performance is symptomatic of a Board that is not interested in holding management accountable. Put simply, this Board has fallen asleep at the wheel. Despite the evident failings, in a recent letter to shareholders PDC claimed that, "In 2018, our entire team executed well on our strategic plan and achieved strong financial and operating results." This letter, in which the Company recommended that shareholders vote for the PDC slate of nominees, is mistaken in a number of key areas:
- PDC says it "Has the Right Strategy for Driving Long-Term Shareholder Value"
Absolute TSR has been negative over the past 1-, 2- and 3-year periods. Over the last 3 years, TSR has been negative 44%, putting PDC in the 39th percentile of its chosen peer group. 2018 Reported Net Income was $2 million and Adjusted Net Income was negative $196 million, on a capital base of roughly $4 billion.
- PDC says its Board is "Highly Qualified and Has the Expertise and Skills Needed to Drive Value"
Multiple board members have a history of leading underperforming firms. Mark Ellis, who is up for election this year, was the CEO of Linn Energy when it filed for bankruptcy protection in 2016. For leading LINN through bankruptcy Mark received $60 million. Jeff Swoveland, the chairman of PDC's Board, was also a LINN Board member for ten years as the company declined and filed for Chapter 11. Weatherford International's General Counsel, Christina Ibrahim joined in May 2015, and since then1 the company's share price has declined an estimated 95%.
- PDC says "Mr. Brookman has led PDC as it has delivered on its financial commitments and is leading the successful execution of the Company's operating plan"
Mr. Brookman missed four of five internally set performance targets in 2018 and 2017. The company also continues to report a material weakness in internal controls over financial reporting for the second year in a row.
https://www.bloomberg.com/press-releases/2019-05-22/pdc-energy-issues-statement-regarding-kimmeridge-s-conflicts-of-interest