Activist investor Kimmeridge Energy Management Co. said May 17 shareholder advisory group ISS recommended two of its board nominees for PDC Energy Inc., a day after Glass Lewis backed the company's full slate of directors.
Kimmeridge, which owns 5.1% of PDC and is the seventh largest shareholder in oil and gas producer, had nominated three directors to the PDC board. ISS has recommended Kimmeridge founder Benjamin Dell and James Adelson.
ISS was, however, concerned about the potential impact on PDC if CEO Bart Brookman were to be removed from the board, said Kimmeridge.
Brookman, along with directors Mark Ellis and Larry Mazza, are up for reelection at PDC's annual meeting scheduled for May 29.
The company, which has been under pressure from shareholders as have others in the industry for higher expenses and lower returns, stood by its three director nominees.
It is important to highlight that at no point in its report did ISS endorse Kimmeridge's proposed plans for PDC, the oil producer said in its response.
PDC Energy is an independent E&P company with operations in the Wattenberg Field in Colorado and the Permian within the Delaware Basin in Reeves and Culberson counties, Texas.
Crude oil production slipped to 10.7 million bbl/d, down in part due to storm activity that closed offshore drilling sites in the U.S. Gulf of Mexico.
U.S. natural gas futures jumped over 10% on Sept. 23 from a seven-week low in the prior session as output continues to slide, demand edges up and LNG exports increase.
In early July, two U.S. energy groups gave up their six-year battle to build a natural gas pipeline, despite fighting all the way to the U.S. Supreme Court to obtain a permit.