(courtesy of Kallanish Energy)
The Rice team, led by Toby and Derek Rice, Wednesday garnered more than 80% of votes cast at EQT’s annual shareholder meeting, with all seven Rice-nominated directors winning seats along with five EQT-nominated and Rice-backed directors.
The new board met later Thursday once the votes were officially verified. with Toby Rice named president and CEO of the U.S.’s largest natural gas producer, succeeding ousted Robert McNally, Kallanish Energy reports.
Big win for the dissidents
The results were a big win for the dissident Rice brothers and a major blow to EQT management. The two sides had waged a very public and very divisive proxy campaign for roughly nine months.
The Rice brothers argued the company’s board and management should be revamped because the company underperformed after EQT paid $6.7 billion for Rice Energy, a deal that closed in late 2017.
The preliminary vote results were announced at a five-minute meeting at EQT’s headquarters in downtown Pittsburgh.
“We’re not surprised at the vote,” Toby Rice said. “It is consistent with what we’ve been hearing over the last nine months.”
McNally thanks employees, board
“I’d like to thank employees across the organization for their outstanding work and dediciation to EQT, as well as our directors for their counsel and dedication,” former EQT CEO Robert McNally said, in a release.
Toby Rice said he plans to begin meeting over the next two weeks with many of the company’s 800 workers. That will be done electronically, in a town hall-type meeting and individually, he said.
Only one other management position in addition to McNally will be replaced, Rice said. That will be Jonathon Lushko, general counsel and senior vice president, governmental affairs. His replacement is William E. Jordan.
EQT’s board is now comprised of Lydia Beebe, Philip Behrman, Lee Canaan, Janet Carrig, Kathryn Jackson, John McCartney, James McManus II, Anita Powers, Daniel Rice IV, Toby Rice, Stephen Thorington, and Hallie Vanderhider.
Moving in the Rice direction
Rice said the new company will rely on what he called eight “evolutionary” leaders within the company to begin moving EQT in the Rice direction.
He said he intends to add management positions, including a chief information officer and a chief human resources officer, not eliminate them.
Talking to Gary Gould
Toby also said he really looks forward to talk with Gary Gould, a former Continental Resources executive, who joined EQT as chief operating officer in April.
“He’s seen under the hood,” Toby said.
Asked by reporters about his repeated comments about the company generating $500 million in free cash flow under his hand, Rice answered: “The clock starts now.”