Summary
- Schlumberger appoints Mark Papa as chairman.
- Papa founded EOG and Centennial.
- EOG did well but Centennial is under performing.
- The EOG "halo" seems to be gone, with SLB stock under-performing after the announcement.
Schlumberger (SLB) announced the appointment of a new CEO and chairman of the board. The new CEO has been with the company for 32 years, but the chairman appointment is more noteworthy: Mark Papa, "shale innovator", founder and former CEO of EOG Resources (EOG) and chairman and CEO of Permian-focused E&P Centennial Resources (CDEV).
For some context, here is a one year chart of CDEV versus its index:
And here is a chart of CDEV vs its index (XOP) since it went public as a SPAC (special purpose acquisition company) - it initially popped on the promise of Papa's track record and the focus on the "hot" Permian basin, only to fall off on a series of disappointments:
His track record at EOG was more remarkable, outpacing the index by more than double, albeit leaving before the oil price crash of 2014 which shifted multiple paradigms in the oil and gas industry:
And of course, Schlumberger has its issues, which likely prompted a shift in CEO and Chairman. It performed in-line with the oil services index (OIH) over the past three years, which was likely disappointing for investors expecting more stability from the largest publicly traded oil services company versus the smaller components of that index:
