Laredo Petroleum Inc. on June 17 named Bryan Lemmerman, formerly with Chesapeake Energy Corp., as CFO, replacing Michael Beyer who left the Permian Basin-focused shale producer effective immediately.

Separately, Laredo also announced additional actions to further reduce personnel expenses. The Tulsa, Okla.-based company had already slashed its capex for 2020 by more than 40% vs. its original budget in response to the collapse in the oil market related to the COVID-19 pandemic.

“Although oil prices have rebounded from the historic lows reached just six weeks ago, we remain committed to maintaining our competitive cost structure and have taken decisive action to support corporate-level returns,” explained Laredo’s president and CEO, Jason Pigott, in a statement.

Through a combination of reductions in headcount and director and officer compensation, Laredo expects to reduce personnel costs for full-year 2020 by approximately 10% from full-year 2019 levels.

“Decisions to cut personnel costs are never easy, but we have focused compensation reductions primarily at the officer and director level,” Pigott continued in his statement. “We regard our low-cost structure as a competitive advantage and are continually focused on making the necessary adjustments in this challenging price environment.”

Pigott also thanked Beyer, who had been named senior vice president and CFO in April 2019, for his contributions to Laredo over his last 13 years with the company. In particular, he said Beyer played an integral role in leading the company through its recent debt issuance and credit facility redetermination.

Additionally, Pigott welcomed Lemmerman, who will join Laredo as senior vice president and CFO, effective June 30, noting his past experience will fit well with the company’s strategy.

“[Lemmerman’s] strong financial background and leadership role in numerous acquisition and divestiture projects fit perfectly with the strategy we are planning to execute to build the company’s scale and increase margins,” he said.

Lemmerman has more than 15 years of experience E&P industry, including an extensive background in strategic planning and business development. Previously, he spent 10 years with Chesapeake Energy, serving in financial roles with increasing responsibility, most recently as vice president of business development and treasurer.

Prior to Chesapeake, he was a portfolio manager at Highview Capital Management and Ritchie Capital Management, overseeing investments in public and private energy companies. Lemmerman began his career as a tax consultant with Deloitte & Touche.

Beyer’s departure was not the result of any dispute or disagreement with Laredo Petroleum relating to its accounting practices or financial statements, according to a filing with the U.S. Securities and Exchange Commission.

Laredo Petroleum is a pure-play Permian operator with an acreage position covering 134,614 net acres primarily in the Midland Basin. The company recently completed a reverse stock split in order to boost its share price and avoid delisting from the New York Stock Exchange (NYSE).

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