Canaccord Genuity Morning Coffee on Forest Oil (FST): Change In The Corner Office – Effective Immediately
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Price: $5.32 +3.10%
Rating Summary:
8 Buy, 11 Hold, 1 Sell
Rating Trend:
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Today's Overall Ratings:
Up: 11 | Down: 35 | New: 23
Rating Summary:
8 Buy, 11 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 35 | New: 23
Trade FST Now!
Canaccord Genuity Morning Coffee on Forest Oil (NYSE: FST): Change in the corner office – effective immediately.
Forest Oil announced Friday that it has appointed Patrick McDonald, a member of its board of directors, to serve as Interim CEO, effective immediately.
Canaccord Genuity Oil & Gas Analyst John Gerdes stated that no reason was given for the departure of now former CEO Craig Clark, though the loss of a second executive in less than a month is troubling. Recall JC Ridens tendered his resignation as COO on May 29. It is concerning that Ridens was either not presented with or interested in the CEO role. Gerdes noted that the loss of these leaders creates doubt as to Forest’s business progression and Eagle Ford sale process. Further, the Interim CEO appears to have a full plate, as he is CEO of another oil and gas company and Chairman of the Board of Lone Pine Resources (NYSE: LPR), Forest’s former Canadian subsidiary. With the loss of these two executives, Gerdes questions if Forest, a company with a proud history dating back to 1916, can remain independent. Forest Oil's Chairman James Lightner said in a statement that the first priority for McDonald will be to "personally involve himself" in the company's expansion into the oil-rich Eagle Ford shale development in Texas. Lightner also said McDonald will focus on selling assets to cut Forest Oil's $1.8 billion debt load - more than double the company's current market value.
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Forest Oil announced Friday that it has appointed Patrick McDonald, a member of its board of directors, to serve as Interim CEO, effective immediately.
Canaccord Genuity Oil & Gas Analyst John Gerdes stated that no reason was given for the departure of now former CEO Craig Clark, though the loss of a second executive in less than a month is troubling. Recall JC Ridens tendered his resignation as COO on May 29. It is concerning that Ridens was either not presented with or interested in the CEO role. Gerdes noted that the loss of these leaders creates doubt as to Forest’s business progression and Eagle Ford sale process. Further, the Interim CEO appears to have a full plate, as he is CEO of another oil and gas company and Chairman of the Board of Lone Pine Resources (NYSE: LPR), Forest’s former Canadian subsidiary. With the loss of these two executives, Gerdes questions if Forest, a company with a proud history dating back to 1916, can remain independent. Forest Oil's Chairman James Lightner said in a statement that the first priority for McDonald will be to "personally involve himself" in the company's expansion into the oil-rich Eagle Ford shale development in Texas. Lightner also said McDonald will focus on selling assets to cut Forest Oil's $1.8 billion debt load - more than double the company's current market value.
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