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Denver oil company fights against NYC investor's push for slate of directors

Greg Avery
Denver oil company fights against NYC investor's push for slate of directors

A Denver oil and gas company is trying to ward off an activist investor fund by trying to defeat a slate of three board candidates the fund is running in shareholder elections. At stake in the election may be whether PDC Energy Inc. (Nasdaq: PDCE) sticks to its current growth and investment plans and keeps its current executives, or whether it shifts focus to near-term profitability and considers dividends and mergers and acquisitions to improve shareholder returns. Barton Brookman, CEO and president of PDC Energy, sent a letter to shareholders Monday urging them to reject the candidates proposed by New York City-based investment fund Kimmeridge Energy Management Company LLC. The Kimmeridge approach would slash investment in PDC operations, lead to an excessive shareholder dividend and likely push the company into merger and acquisitions that benefit Kimmeridge, Brookman said.