What does the appointment of Ronald D. Ormand as the chairman of the board of Lilis Energy Inc (NASDAQ:LLEX) mean? It can mean different things to different people, but from an investor perspective, it does mean right positioning. Ormand is a merger specialist and energy industry veteran. As such, he understands where exactly shareholders what to see Lilis. The question is: can he help steer the ship there?
Lilis Energy Inc (NASDAQ:LLEX) announced a few months ago that the chairman of its board Nuno Brandolini, would relinquish the role to a new blood in the name of Ormand. The company was quick to point out that Brandolini, who has served in the position of chairman of the board since 2014, would still remain a board member.
Lilis announced a host of other board changes including the addition of R. Glenn Dawson to the board as an independent director and member of the audit committee. The company also said that one of its largest shareholders called G. Tyler Runnels was stepping down from his board seat.
Of the various board changes that Lilis did announce, it is only becoming apparent why the elevation of Ormand to the position of board chairman was a strategic move. After years of oil prices trending lower, hope is beginning to return in the oil industry that crude oil prices could reenter a phase of growth.
Multiple concerted efforts have been set in motion to at least try to put a bottom to crude oil price slide. A high-level oil meeting is set for June at which curb of oil production is expected to be discussed. A similar attempt by some OPEC members to freeze crude production to help lift prices failed after Saudi Arabia came up with conditions that couldn’t be met.
Why is Ormand important for Lilis?
For the nearly a little of a year that Ormand has been on the board of Lilis Energy Inc (NASDAQ:LLEX), he has helped the company to achieve so much in many areas. For example, Ormand has helped the company to complete over $25 billion worth of transactions concerning financial advisory and capital markets during his one year career. Therefore, Ormand is viewed as a key talent asset to the growth strategy of Lilis.