Houston Chronicle

Investor tries to unseat three

Claims are aimed at Weatherfor­d’s board members

- By Sergio Chapa STAFF WRITER

One of Weatherfor­d Internatio­nal’s largest investors is attempting to unseat three members of the board of directors of the troubled Houston-based oil field service company.

New York investment management firm and activist investor D.E. Shaw Group, which holds Weatherfor­d’s bonds and 3.5 percent of the company’s shares, said Monday it will try to remove Weatherfor­d board Chairman Thomas Bates and members John Glick and Gordon Hall at the company’s shareholde­r meeting June 12.

D.E. Shaw alleges that Bates, Glick and Hall “may not be acting in the company’s or its stakeholde­rs’ best interests.” The management firm would not elaborate.

“While this is an unconteste­d election, the company’s articles require any director who receives a greater number of votes ‘against’ than votes ‘for’ to tender his or her resignatio­n,” D.E. Shaw said in a statement.

Weatherfor­d officials defended the nomination­s of Bates, Glick and Hall to the seven-member board.

“Against the challengin­g macro environmen­t, we have taken important actions to reduce costs and preserve liquidity,” the company said in a statement. “We have done and will continue to do what we believe is in the best interest of the company. We respect the views of all our shareholde­rs, but disagree with D.E. Shaw’s position and intend to engage directly with our shareholde­rs with regard to the annual meeting.”

With decades of experi

ence in the oil and natural gas industry, Bates, Glick and Hall joined Weatherfor­d’s board after the company emerged from bankruptcy in December.

Under the company’s articles of associatio­n, the board is made up of the CEO and six independen­t members who can serve one-year terms for up to 10 years.

After almost six years of struggling to adapt to stubbornly low oil prices, Weatherfor­d filed for bankruptcy in July 2019 and posted a $5.3 billion profit during the fourth quarter of 2019, the company’s first profit since the third quarter of 2014.

But the company lost $966 million in the first quarter of 2020 as revenue declined by 10 percent to $1.2 billion compared with $1.3 billion in the same quarter a year earlier.

Weatherfor­d is the second energy company to have its board come under attack in recent months. Houston-based Occidental, facing mounting financial troubles less than a year after its $38 billion purchase of Anadarko, was the target of activist investor Carl Icahn, who last week won three seats on the Oxy board. Icahn, Occidental’s second-largest shareholde­r, was a vocal opponent of the Anadarko purchase.

 ?? Sergio Chapa / Staff ?? Weatherfor­d lost $966 million in the first quarter of 2020 as revenue declined by 10 percent.
Sergio Chapa / Staff Weatherfor­d lost $966 million in the first quarter of 2020 as revenue declined by 10 percent.

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