Anadarko
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Anadarko Petroleum Corp. CEO James Hackett will pass the baton to one of his lieutenants in May, completing his eight-year campaign to turn around a company that was floundering before he took over.
Anadarko’s president and chief operating officer, Al Walker, will replace Hackett, who will take on the new role of executive chairman until he retires in June 2013, The Woodlands-based oil and natural gas producer announced Tuesday.
Hackett, 58, took the reins at Anadarko shortly afterJohn Seitz abruptly resigned in 2003 amid concerns about the company’s stock price.
“He was the guy who basically fixed up Anadarko,” said Fadel Gheit, a managing director and senior analyst for Oppenheimer & Co. “Anadarko was down on its knees in one of the bleakest periods the company has ever had. … He basically brought back the company luster.”
Anadarko’s stock price doubled within Hackett’s first two years at the helm and has grown 368 percent since he was named CEO in December 2003. Shares closed at $85.74 Tuesday, down $2.31.
“We’re in a good position strategically and operationally,” Hackett said during a conference call with reporters. “And I think, importantly, one of the major responsibilities for a public company CEO is to find a good successor, and this was something that’s been planned for quite a while.”
Analysts predicted a smooth transition. Walker, 55, has worked as an Anadarko executive for six years. He has more than 30 years of experience in the energy industry and serves as a director of CenterPoint Energy and of Anadarko subsidiary Western Gas Holdings, the company said.
Walker and Hackett have been part of an executive team that has pushed new discoveries and increased production from a daily tally of 525,000 barrels of oil equivalent in 2003 to 680,000 in 2011.
Anadarko this month reported a fourth-quarter net loss of $358 million, and a full-year loss for 2011 totaling $2.65 billion. The negative results were largely a result of one-time expenses, including the company’s $4 billion payout to BP to settle claims related to the 2010 Gulf of Mexico oil spill at BP’s Macondo well, of which Anadarko was a co-owner.
Still, the company recorded $13.96 billion in 2011 revenue, up 27 percent from 2010, and analysts have been encouraged by its performance.
A recent find off Mozambique, estimated to hold 15 trillion to 30 trillion cubic feet of natural gas, has augmented existing company assets in U.S. shale plays and other oil and natural gas fields.
“The company’s operating performance has probably never been better,” Walker said. “Our exploration track record is certainly industry-leading.”
Andrew Coleman, a managing director and analyst for Raymond James, agreed with the assessment.
“They’re hitting, I think, operationally, if not on all cylinders, certainly the vast majority of cylinders,” he said.
He noted that the company’s performance has fueled speculation that it could be purchased by one of the major integrated oil giants.
Hackett said of such talk, “Outside forces will determine that.”
As for his own future, Hackett said in the company’s news release that he will “consider other avenues for personal and professional growth.” He is mentioned as a possible candidate for public office and has ties to educational institutions, serving as vice chairman of Baylor College of Medicine and as a board member and adjunct professor at Rice University.
zain.shauk@chron.com twitter.com/ZainShauk
Look who just won the resignation lottery.
What did he win? $20 Million, $50 Million, $100 Million +
Jim Hackett has been a transformation leader at Anadarko. He has strong energy creditials, is very effective and well liked. Moreover, he has been making that long drive to the Woodlands from the inner loop just like many of his employees. The old saw says “good guys finish last”; apparently not is this case!
Mr. Hackett is a good man with a good family. I grew up along with his kids and when one of my middle school teachers (in 1997 or 1998) fell ill for the entire school year Mr. Hackett’s wife stepped in and was our “substitute teacher” for the remainder of the year. A lovely family which I am sure Mr. Hackett is eager to spend more time with.
I worked with Jim when he went to work for Meridian Oil in the mid-80′s. He was a down to earth, family man. He spent a year in the old Shamrock field in the pan-handle learning the business. The lease operators loved the guy. Truly one of the nicest people I have ever worked with in my 40+ years in the business…
Bob, feel free to go be a CEO and deal with all of its responsibilities. You would be done in less than a week.
I guess gas prices will go up to cover his retirement.
@Bob – don’t be a hater just because you didn’t work hard enough to become an oil company CEO. I didn’t either, but at least my 401k has some good Anadarko stock in it!!!
I would have to agree with all the statements above. He has positioned Anadarko for future success, he is very well liked by the employees of Anadarko and am sure Mr. Walker will take APC to even greater heights.