Bonanza Creek Energy Inc. (NYSE: BCEI) has performed a corporate reorganization, which has resulted in a total workforce reduction of 26 employees and 17 contractors, along with two executive departures.
William J. Cassidy, executive vice president and CFO, and Christopher I. Humber, executive vice president, general counsel, and secretary, will separate from their positions with the company. Cassidy joined the company in 2013 and Humber joined the company in 2012.
As a result of the reorganization and executive departures, Bonanza Creek will incur a one-time charge of $2.1 million related to severance payments, and expects its annual general and administrative expense and lease operating expense to be reduced by $7.6 million and $3.1 million, respectively.
The moves "will likely help at the margin," noted analysts with Seaport Global Securities Monday, but "the timing of the CFO/General Counsel departures could raise concern among investors given that BCEI is in the midst of renegotiating the sale of its RMI midstream business, an important step toward restoring the company to a healthy liquidity position."
Bonanza Creek continues to work towards closing the sale of its wholly-owned midstream subsidiary, Rocky Mountain Infrastructure LLC, to Meritage Midstream Services IV LLC, backed by private equity firm Riverstone Holdings LLC.