Source: Kimmeridge will nominate Scott Sheffield to Coterra Energy Board

Sources familiar with the matter say that investment firm Kimmeridge plans to nominate Scott Sheffield, former CEO of Pioneer Natural Resources? to Coterra Energy’s board.

Source: Kimmeridge, one of the most well-known activists in the oil and gas sector, is planning to nominate five directors, including Sheffield, at the next Coterra shareholders meeting.

Kimmeridge has been trying to put pressure on the U.S. gas and oil producer since November, when he called for an increase in the price of the product.

overhaul

Coterra's leadership and strategy is aimed at addressing the weak performance of its shares since the merger of Cabot Oil & Gas with Cimarex Energy in 2021.

Coterra has also been in early talks about a

possible merger

With peer Devon Energy, this could create one the largest independent U.S. Shale operators.

Kimmeridge confirmed in a?statement that it was assembling director nominees with the?goal of strengthening governance?at the company. The company argued that this was necessary, considering the interest that other companies may have shown in Coterra's assets.

The statement said that "given the board’s unwillingness to pursue a strategic review in a formal manner, as we recommended, these nominees are intended to make sure all options for maximizing value are fully considered."

Kimmeridge, however, declined to comment on the number or identity of possible board directors. Coterra Energy has not responded to the 'comment request.

Sheffield founded Pioneer Energy, a producer of energy focusing?on the Permian basin of Texas. In 2023, Exxon Mobil agreed to buy Pioneer for $60 billion.

The Federal Trade Commission challenged the decision, accusing Sheffield of colluding to manipulate oil prices with the OPEC cartel.

The regulator approved the acquisition on the condition that Sheffield would not be joining the board. The FTC

Reversed

Sheffield, who was banned from Exxon in July of last year, has never been a director.

The Wall Street Journal reported earlier that Kimmeridge planned to nominate Coterra's Sheffield as one of five directors. Reporting by Pranav Mathur in Bengalur and David French in New York, with editing by Devika Syamnath, Anil D'Silva and Devika Syamnath

(source: Reuters)