Tulsa World: SemGroup's chosen CFO resigns

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SemGroup's chosen CFO resigns
Philip Reedy leaves less than a month after being hired.

By ROD WALTON World Staff Writer
Published: 10/7/2009 2:23 AM
Last Modified: 10/7/2009 4:23 AM

Complete coverage: Read all the stories and documents related to the SemGroup collapse.

SemGroup LP will look for a new chief financial officer after chosen candidate Philip Reedy resigned Monday less than a month after agreeing to take the job, the bankrupt Tulsa-based energy company announced Tuesday.

Reedy was hired in September to work as a paid consultant during SemGroup's remaining months in Chapter 11. He was on target to take the CFO post once SemGroup emerged from bankruptcy in early November.

Company spokesman Tom Becker said he could not elaborate on the reasons for Reedy's sudden departure. However, presumptive CEO Norm Szydlowski said a new CFO could be hired from the same candidate pool that produced Reedy this summer.

"We have a strong group of candidates for the position of chief financial officer and are confident we will be able to select one shortly," Szydlowski said in a statement. "The company remains on track to complete a successful reorganization in November."

Szydlowski and a new board of directors are scheduled to take charge if and when SemGroup emerges from bankruptcy. Current CEO Terry Ronan will stay on through the Chapter 11 period.

Reedy would have been only the second CFO in SemGroup's nine-year history. Co-founder and former CFO Gregory Wallace departed SemGroup last year amid a Bankruptcy Examiner's

report alleging that he mismanaged the firm, gained millions of dollars in bonuses without proper oversight and approval, and kept financial details hidden from co-workers and lenders.

The search for a new CEO and CFO began in May, when U.S. Bankruptcy Judge Brendan Shannon approved SemGroup's hiring of Russell Reynolds Associates Inc. The search firm also helped SemGroup find directors for seats on the new board.

Reedy most recently was CFO of Citgo Petroleum Corp., which was based in Tulsa before moving to Houston a few years ago. It was not known what his immediate plans were.

"We wish Phil well in his future endeavors," Szydlowski said.

SemGroup was once one of the nation's fastest growing private firms, generating revenues above $14 billion annually through its midstream oil, gas and asphalt pipeline, storage and transportation services. Oil futures trading losses exceeding $2.4 billion, however, caused a cash-flow crisis that forced SemGroup into Chapter 11 bankruptcy protection in July 2008.

Co-founder and first CEO Tom Kivisto was placed on administrative leave and later fired amid allegations that he kept the trading strategy and outcomes secret from co-workers, creditors and counterparties. SemGroup has sued Kivisto, Wallace, SemGroup Energy Partners CEO Kevin Foxx and other former executives for their alleged roles in the company's financial collapse.

SemGroup LP plans to offer $2.24 billion in cash and equity to creditors if its reorganization plan is accepted by the court in Wilmington, Del. If so, SemGroup would emerge as a publicly traded entity after an Oct. 26 confirmation hearing.

Rod Walton 581-8457
rod.walton@tulsaworld.com By ROD WALTON World Staff Writer

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Some reader comments for this story were copied from "SemGroup's chosen CFO resigns," which was published on 10/6/2009.

	Report Comment FS, Broken Arrow (10/6/2009 9:46:17 AM) I'm available - I guarantee I can screw up as bad as the last guy did ...
	Report Comment HOGRIDER, BA (10/6/2009 10:19:56 AM) Must have saw something he didn't like.
	Report Comment Hawktalk, (10/6/2009 12:42:07 PM) He dropped a rock into the Semhole and never heard it hit bottom.
	Report Comment Whoknew?, Tulsa (10/6/2009 10:48:40 PM) Worked with Phil and he is sharp. Guess he thought I'd better move on down the road.
	Report Comment hardball, (10/8/2009 12:27:31 PM) Grabbed his "sign-on" bonus and split!!

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