Vastar Resources Elects New Chairman Amid Resignation of Four Board Members

Strategic Insights -

Vastar Resources, a leading independent energy producer, announced the election of Charles D. Davidson as chairman of the board following the resignation of four board members who were executives of Atlantic Richfield Company (ARCO). The election and resignations were a result of the merger of ARCO and Prairie Holdings, Inc., a subsidiary of BP Amoco Corporation, which gave BP Amoco indirect ownership of approximately 81.9 percent of Vastar's common stock.

The departing board members, Michael E. Wiley, Terry G. Dallas, Marie L. Knowles, and Donald R. Voelte Jr., were all ARCO executives. Davidson expressed gratitude for their contributions to Vastar's success, specifically thanking Mike Wiley for his leadership during Vastar's first three years and as chairman since 1996.

Under the stewardship of the outgoing directors, Vastar became one of the best-performing companies in the independent E&P sector, with significant contributions to the company's growth and performance. Vastar shareholders have recognized this performance, and the company appreciates their ongoing support. Davidson will continue to serve alongside other directors, including Steven J. Shapiro, Vastar's senior vice president and chief financial officer, and independent directors J. D. Callison, Robert C. LeVine, and William D. Schulte.

Key Takeaways:

  • Vastar Resources, Inc. has elected Charles D. Davidson as chairman of the board following the resignation of four board members who were executives of Atlantic Richfield Company (ARCO).
  • The resigning board members were Michael E. Wiley, chairman; Terry G. Dallas, Marie L. Knowles, and Donald R. Voelte Jr.
  • The election and resignations were a result of the merger of ARCO and Prairie Holdings, Inc., giving BP Amoco indirect ownership of approximately 81.9 percent of Vastar's common stock.
  • Davidson expressed gratitude for the outgoing directors' contributions to Vastar's success, specifically thanking Mike Wiley for his leadership.
  • Vastar has become one of the best-performing companies in the independent E&P sector under the stewardship of the outgoing directors.
  • Vastar shareholders have recognized this performance, and the company appreciates their ongoing support.
  • Vastar Resources is active in more than 100 producing fields, with exploration and production activities in the Gulf of Mexico shelf and deepwater, Gulf Coast, Rocky Mountains, and Mid-Continent areas.
  • BP Amoco owns indirectly approximately 81.9 percent of Vastar's common stock.
  • Messrs. Callison, LeVine, and Schulte currently serve on a special committee evaluating BP Amoco's proposal to acquire Vastar's publicly traded stock.

Statistics:

  • Vastar Resources, Inc. has a total of 18.1 percent of its stock publicly traded.
  • BP Amoco has indirect ownership of approximately 81.9 percent of Vastar's common stock.
  • The company is active in more than 100 producing fields.
  • Vastar has exploration and production activities in the Gulf of Mexico shelf and deepwater, Gulf Coast, Rocky Mountains, and Mid-Continent areas.
  • The proposed acquisition transaction by BP Amoco is valued at $71 per share for the minority stockholding of Vastar.

Sources:

  • PRNewswire, April 18, 2000
  • Vastar Resources, Inc. press release
  • BP Amoco Corporation press release
  • Atlantic Richfield Company (ARCO) press release
  • Securities and Exchange Commission filings, including Form 10-K for the year ended December 31, 1999