In early morning trade on Monday, the stock price of PostRock Energy Corporation (OTCMKTS:PSTR) is trading with gains of over 48% at $0.770. Although there is no evident news behind the sharp gain, the positive momentum in crude oil prices appears to be supporting the declining stock. Like most natural gas and oil producers, the company has borrowed fund using commodities still unproduced as collateral. Declining natural gas and oil prices over the last one year have eroded the net worth of the unproduced oil and prompted producers to renegotiate the credit terms.
It has been extremely tough year For PostRock Energy and its shareholders. In February, the company reduced its field staff at Oklahoma City by as much as 25%. Also, the company’s stock got delisted from the NASDAQ platform only to trade on the Over the Counter market. PostRock Energy’s market cap has dropped to approximately $4.5 million from over $11.3million in a matter of a couple of months.
In the first week of September, PostRock Energy reported that elected Clark Edwards as interim Chief Executive Officer and President of the company. The new change was enforced as Terry W. Carter retired from his roles of CEO and President effective September 1, 2015. Mr. Edwards has been associated with PostRock as VP of Operations since February 2012. Prior to that, he was the Director of Midcontinent Field Operations with PostRock Energy.
The management view
Commenting on the new appointment, Duke R. Ligon, the Chairman of PostRock Energy Corporation (OTCMKTS:PSTR) said that Mr. Carter significantly contributed in his tenure of four years with the company. The Board appreciates him for devoted service. Ligon added that they are very delighted to report Edwards’ appointment as company’s Interim President and CEO. His operational experience and expertise in managing the company’s field activities position him to head PostRock Energy at this challenging point in history.