NEW YORK and DENVER, June 5, 2019 /PRNewswire/ -- Kimmeridge Energy Management Company, LLC ("Kimmeridge"), beneficial owners of 5.1% of the shares of common stock of PDC Energy, Inc. ("PDC" or the "Company") (PDCE) commented today on PDC's voting results for its 2019 annual meeting of shareholders.
Ben Dell, Founder and Managing Partner of Kimmeridge, said, "On behalf of the Kimmeridge team, I would like to thank our fellow PDC shareholders, many of whom supported us throughout the solicitation process. While Kimmeridge is disappointed with the outcome of the PDC shareholder meeting held on May 29th, we remain encouraged that over 70% of active managers voted in favor of the Kimmeridge slate. Despite the majority of passive managers (approximately 80%) choosing to support the existing PDC management team, we remain hopeful that with continued dialogue, these investors will increasingly understand their role in driving better performance, and greater accountability."
Kimmeridge believes that its campaign was instrumental in amplifying its message about the issues that plague the E&P sector, and PDC specifically. Mr. Dell further said, "We now encourage PDC's management team to deliver on the promises to investors to implement cost reductions, capex controls, free cash flow generation and buybacks. In addition, we would encourage the Board to focus on creating better alignment with shareholders and improving governance so that investors and the Board can hold management accountable."
With these goals in mind, Kimmeridge believes that PDC would be best served by embracing best governance practices and de-staggering the Board so that all directors will be elected annually at the Company's 2020 annual meeting of shareholders.