DENVER – Extraction Oil & Gas Inc. (OTCMKTS: XOGAQ) hired a new CEO after he was released from Chapter 11 bankruptcy several weeks ago.
In a statement, the Denver company said that former chairman Tom Tyree would become CEO, while former CEO Matt Owens would be demoted to chief operating officer. The company will also resume trading on Nasdaq after its shares were suspended for failing to maintain the standards required by the exchange.
Extraction’s board has six new independent directors, led by Kimmeridge Energy Management Co. managing partner Ben Dell. Kimmeridge is a New York-based private equity group focused on unconventional oil and gas activities.
“The extraction team has worked hard over the past six months to scale the business, reduce its cost structure and optimize its intermediary contracts,” said Dell in a statement.
Howard Willard, who was CEO of Phillip Morris’s successor, Altria Group Inc. (NYSE: MO), also joined the board.
The extraction was among several energy producers with heavy debts across the country who filed for bankruptcy last year after the pandemic and the resulting drop in fuel demand, taking oil prices to deep lows. The company had 4.4 times more debt in its books at the end of 2019 than its equity, leaving it over-leveraged at a time of industry weakness.
Extraction is the fourth largest energy producer in Weld County, producing 13.27 million barrels of oil and 98.94 million McF of natural gas last year, according to data from the Colorado Oil and Gas Conservation Commission.
The company also has a large production facility in Broomfield, which is the subject of an ongoing dispute, claiming that county officials targeted it with rules designed to prevent it from operating.
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