FILE PHOTO: A piece of equipment stands in the ProPetro yard before being sent to a fracking site where it will be used to coax oil from underground, in Midland, Texas, U.S., on April 12, 2018. REUTERS/Ann Saphir
(Reuters) - Hydraulic fracturing firm ProPetro Holding Corp (PUMP.N) on Wednesday announced a management shakeup, following an internal investigation into disclosure of electric frac equipment purchases and executive spending.
Dale Redman will no longer be the principal executive, but will remain on as chief executive officer. Phillip Gobe, currently board chairman, will take over as the company’s executive chairman and serve as the principal executive officer, responsible for its annual and quarterly reports.
Gobe will also partly oversee the remediation of control deficiencies identified in the internal review, the company said.
ProPetro said its chief accounting officer had resigned, while chief financial officer moved to the role of chief administrative officer.
The Midland, Texas-based company said in August it would delay its second-quarter results due to an audit into disclosures related to purchases of DuraStim hydraulic fracturing fleets from AFGlobal.
The audit, which pointed to weakness related to internal controls, was then expanded to include expense reimbursements and transactions involving key executives that may have been in conflict of interest.
Reporting by Liz Hampton in Denver and Arathy S Nair in Bengaluru; Editing by Shinjini Ganguli