West Texas explorer Approach Resources Inc. has realigned its executive team, including replacing Chairman and CEO J. Ross Craft.
The Fort Worth, TX-based independent, whose primary focus is the Permian Basin’s Midland formation, said CFO Sergie Krylov has been appointed CEO. Krylov has been the financial chief since he joined the company in early 2014, and he would retain the CFO title.
Jim Crain, a director since 2007, has been appointed chairman. Crain has been chair of the nominating and corporate governance committee.
Management “remains in discussions” with COO Qingming Yang, who also is president, regarding his departure. Senior Vice President Troy Hoefer, who has been at Approach since 2013 and oversees engineering, is to assume oversight of production and drilling operations with Yang’s departure.
In addition, Chief Administrative Officer J. Curtis Henderson, who also is corporate secretary, is leaving. He agreed to remain for up to six months to transition responsibilities to new team members. Henderson’s duties would be assumed by general counsel Josh Dazey.
Compensation and benefits associated with Craft, Yang and Henderson would represent about 19% of 2018 total corporate cash and noncash general/administrative (G&A) expenses, according to Approach.
The move by Approach follows a management shuffle and layoffs announced earlier this week at Laredo Petroleum Corp., another big West Texas player. The move is to align the cost structure with operational activity by reducing G&A expenses and capitalizing employee costs by around 25% on an annualized basis.
Laredo’s total employee count was reduced by about 20%, with a 40%-plus reduction at the “vice president and above level,” for annual savings of around $30 million.