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(Bloomberg) — Kimmeridge Energy Management Co. said it’s prepared to nominate directors to the board of Ovintiv Inc. if the oil and gas producer fails to take the necessary steps to improve its performance and restore investor confidence. The private equity firm, which said it owns a 2.4% stake in Ovintiv, argues in a new 18-page presentation that the company is falling behind its peers as a result of its misguided spending, expensive acquisitions, poor governance and inadequate environmental stewardship. Kimmeridge also outlines a strategy to address investor concerns by better aligning executive compensation with performance, selling non-core assets and shifting spending to the Permian Basin, among other measures. “There’s a lack of alignment, a lack of accountability and frankly, there doesn’t seem to be any acknowledgment that this company is owned by its shareholders and not the management team,” Mark Viviano, Kimmeridge managing partner, said in an interview. He said the firm has a slate of three directors in mind. “If we don’t see the right degree of progress and receptivity, we are going to nominate directors,” he added. Kimmeridge first went public with some of its concerns around Ovintiv’s executive compensation in November. Ovintiv said at the […]
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