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John Richels
President/CEO, Devon Energy
Age:
Years as a CEO:
Tenure: 0
Industry: Energy & Natural Resources
CEO DOSSIER
John is only the third CEO in the company’s history; he is an outspoken advocate of shale oil production and has clear views on America’s becoming energy independent. Can he return profits and uphold his principles?
early years
John graduated from York University with a Bachelor’s Degree in Economics and gained a Degree in Law from the University of Windsor.
John began his working career with Bennett Jones, a Canadian-based national law firm; he worked in the capacity of Managing and Chief Operating Partner, and served as general counsel to the XV Olympic Winter Games Organizing Committee.
He later joined Northstar Energy Corporation where he was director from 1993 to 1996 and then served as Executive Vice President and Chief Financial Officer until 1998. In 1998 the company was acquired by Devon Canada Corporation; in 2001 John was named as Senior Vice President and Chief executive Officer and he held these positions until 2004 when he was elected as President of Devon Energy Corporation.
John has served as the Director of Devon Energy Corporation since June 2007 and courted some controversy in 2009 when he oversaw the selling off of the company’s international and deep-water assets. The sales resulted in a gross income of $10.1 billion for the company. The following year John was named as the company’s President and Chief Executive Officer.
As ceo
John began 2011 with the announcement that A.P. Moeller-Maersk A/S's Maersk Oil had agreed to acquire a 15% interest in Block 16 in Angola from the company. The deal was reported to involve an initial payment of $70 million and was subject to conditions including government approval.
US government policies were one of the subjects that John covered in an interview he gave in March 2011; he stated that energy companies required more certainty from fiscal and regulatory bodies if they were going to be able to continue to hiring staff and create a sustainable industry for the future.
In April 2011 John spoke publicly about Dallas City Council’s and other cities approaches to energy and the environment. He raised his concern that much of the discussion was based on exaggeration and sensationalism rather than on “fact and sound science.”
In the same interview he emphasised the company’s safety record, especially in relation to hydraulic fracture technology, and discussed the steps the company took to “protect communities and the environment.” John also gave his support to the online disclosure registry, designed and implemented by the Interstate Oil and Gas Compact Commission, which allowed public access to fracture fluid content information related to individual wells completed through the hydraulic fracturing process.
Later in the year John emphasised the importance of investing in Canada’s oil and natural gas fields; he stated that these fields represented one of the biggest resources in the world with a potential 170 billion barrels of oil sand reserves that could help to provide the US with a secure energy source. He spoke out against an environmentalist movement that was trying to block the import of the reserves. He stated that without it the country would,
“Continue to be more dependent on foreign sources of oil in less friendly and less stable places.”
John maintained the safety and limited environmental impact of the project stating that the open-pit mining, which is the most carbon intensive element, would represent just 20% of the mining; 80% would be completed through steam-assisted gravity drainage (SAGD).
This system has the added advantage of not requiring big tailing ponds. In response to questions over the projects use and contamination of Canada’s water system John said, “We only use fresh water, so our guys can have showers and heat oatmeal,”
John believes that if the project goes ahead in its fullest capacity it could create 20,000 jobs and aid the US economy; however, he stated that decisions needed to be made before Canada developed alternative export markets. John also praised Alberta for having a financial and regulatory outlook that is favourable to the oil industry:
“It’s a good lesson…having a regulatory regime that is uncertain is bad. They saw that in Alberta and have done a lot to fix it.”
In October 2011 John announced that the company would have to pay US corporation tax on the $6.5bn cash it earned when it withdrew from its operations outside of the US and Canada if it decided to repatriates the money.
The move would affect profits from assets they sold in Brazil, the Gulf and Azerbaijan; once the proceeds are taken home Devon Energy faces a tax bill of up to 35%, although the US does allow for foreign taxes that have already been paid.
John questioned this approach to taxing money brought in from overseas stating that lowering the rate of tax would encourage companies to bring the cash back and help to “stimulate the economy.”
2012 continued to be a mixed year for the company; in August it was announced that an agreement had been signed with Sumitomo Corporation that would see Sumitomo invest $1.4 billion in the company in exchange for 30% of Devon’s interest in the Cline and Midland-Wolfcamp Shale.
The agreement will involve an initial investment of $340 million in cash and a further investment of $1.025 billion in the form of a drilling carry.
In November John reported that the company had made a third quarter loss of $719 million due to low prices and lower than expected output; the news resulted in a 5% fall in the value of their stock. John also reported that the company had taken a $1.1 billion writedown in the value of some of their assets.
In response to this news John reported that the company would be spending "significantly less", especially on exploration and production over the coming year; however, he expected to continue with similar activity levels to 2012 and to be able to focus on their oil-drilling programme.
Away from work
John is married and both he and his wife take time to work with the Oklahoma City National Memorial Foundation. John was named as the Foundations Chairman of the Trustees in January 2010 and was central to creating the fifteen projects for the foundations fifteenth Anniversary.
Leadership and philosophy
John takes a very clear stand on the environment; “We need energy and a clean environment — and they are not mutually exclusive. That principle should be at the foundation of the Dallas City Council review.”
He is also aware of the effect of world events on his company and the services they provide; he believes that shale gas is a clear way forward:
“Recent events in the Middle East and North Africa demonstrate how vulnerable we are to geopolitical strife.”
“ President Barack Obama has reaffirmed the importance of our energy resources and recognized natural gas as a focal point to reduce dependence on foreign oil.”
“The Barnett Shale is where the “shale gas revolution” began, and it will continue to play a major role in a more self-sufficient, clean energy future.”
John believes the company’s future is based on its ability to focus and compete in its strongest areas:
“We had more opportunities than we could reasonably develop…We decided to focus on the biggest piece – 90 per cent of our portfolio was onshore North America…If you don’t have some sort of competitive advantage, you shouldn’t compete in that area,”
Our Three Questions
Three Questions for the CEO
1. Is it just idealistic or realistic to America as no longer reliant on the Middle East for its energy needs in the future?
2. You have said that the energy industry needed certainty from US fiscal and regulatory bodies; do you think you will get this from the current administration?
3. How will you grow productivity while looking to cut costs over the next twelve months?
Colleagues, Friends & Analysts' report
"John Richels is a highly capable leader with a thorough knowledge of Devon and our industry," commented J. Larry Nichols, chairman and chief executive officer.
"In his years as president of Devon's Canadian subsidiary, an operation with over $6 billion in total assets, John has established a proven track record of successfully leading a large organization. In addition, his service on Devon's executive and capital budget committees has provided him with an in-depth understanding of Devon's worldwide operations."
Date Written
02-01-2012Sources
Bloomberg
Business Week
Dallas Morning News
Financial Times
Forbes
Reuters
University of Windsor
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Bloomberg
Business Week
Dallas Morning News
Financial Times
Forbes
Reuters
University of Windsor
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Latest News
Devon Energy Swings to Loss as Commodity Prices Hurt Revenue
Devon Energy Corp. DVN 4.85 % swung to a third-quarter loss on ... pursue cost reductions and maintain the flexibility of capital programs. He succeeded John Richels, who retired as CEO but remained on as vice chairman. Mr. Richels is expected to be ... read more...
2015-11-03 22:43:03
Oilman James Carl Anderson was a relentless, restless businessman
“His word was his bond,” says John Richels, the former CEO and current vice-chairman of Devon Energy and the man who sat across the proverbial table from Mr. Anderson in the 2001 deal that saw Devon buy Anderson Exploration for $5.3-billion in cash. read more...
2015-09-19 02:24:59
Eagle Ford, Permian Growth Lift Devon's Output Above Guidance -- Again
Onshore explorer Devon Energy Corp. crushed it -- in a good way -- during the ... who took the helm July 1 from John Richels, who has become vice chairman. "With current industry conditions, we are focused on maintaining flexibility in our capital programs ... read more...
2015-08-05 22:30:50
Devon elects Hager as president and CEO
Devon Energy Corp. (NYSE DVN) has elected Dave Hager, most recently Devon’s COO, as the company’s new president and CEO. Hager succeeds John Richels, who announced plans to retire in December 2014. Hager assumed the roles of president and CEO on Aug ... read more...
2015-08-04 22:32:01
Devon Energy earnings beat expectations
Devon Energy Corp. reported better-than-expected earnings ... Chief Operating Officer Dave Hager into the chief executive position. Mr. Hager replaced John Richels, who announced in December his plans to retire. The company has been shifting its focus ... read more...
2015-08-04 05:57:01
Devon elects Hager as president, chief executive officer
Devon Energy Corp. has elected Dave Hager, most recently the company’s chief operating officer, as its president and chief executive officer. Hager succeeds John Richels, who announced plans to retire in December 2014 (OGJ Online, Dec. 4, 2014). read more...
2015-08-03 17:39:43
Devon Energy names COO Hager as chief executive officer
Aug 3 Devon Energy Corp said on Monday that chief operating officer Dave Hager was named chief executive officer, taking over for John Richels, 64, who is retiring. Hager takes the helm of Devon at a challenging time in the industry. Crude oil prices have ... read more...
2015-08-03 15:52:20
Devon Energy names COO Hager as chief executive officer
Aug 3 (Reuters) - Devon Energy Corp said on Monday that chief operating officer Dave Hager was named chief executive officer, taking over for John Richels, 64, who is retiring. Hager takes the helm of Devon at a challenging time in the industry. read more...
2015-08-03 15:52:20
Devon Energy Completes Leadership Transition as Board of Directors Elects Dave Hager New President and CEO, Succeeding Retiring John Richels
Devon Energy Corp. (DVN) announced today that its board of directors has elected Dave Hager (58), most recently Devon’s chief operating officer, as the company’s new president and chief executive officer. Hager succeeds John Richels (64), who announced ... read more...
2015-08-03 13:29:10
Devon Energy Completes Leadership Transition As Board Of Directors Elects Dave Hager New President And CEO, Succeeding Retiring John Richels
Devon Energy Corp. (NYSE DVN) announced today that its board of directors has elected Dave Hager (58), most recently Devon's chief operating officer, as the company's new president and chief executive officer. Hager succeeds John Richels (64), who ... read more...
2015-08-03 13:29:10
Hager Replaces Richels As CEO Of Devon
Devon Energy Corp said on Aug. 3 that chief operating officer Dave Hager was named chief executive officer, taking over for John Richels, 64, who is retiring. Hager takes the helm of Devon at a challenging time in the industry. Crude oil prices have fallen ... read more...
2015-08-03 12:17:36
Devon Energy Appoints Dave Hager As President & CEO - Quick Facts
(RTTNews.com) - Devon Energy Corp. ( DVN) announced its board has elected Dave Hager, most recently Devon's chief operating officer, as the company's new president and chief executive officer. Hager succeeds John Richels. Hager assumed the roles of ... read more...
2015-08-03 09:40:07
Devon Energy (DVN) Board Elects New CEO
Devon Energy (NYSE DVN) announced that its board of directors has elected Dave Hager (58), most recently Devon’s chief operating officer, as the company’s new president and chief executive officer. Hager succeeds John Richels (64), who announced plans ... read more...
2015-08-03 09:25:48
UNDER NEW MANAGEMENT Oklahoma City-based Devon Energy announces a new CEO will take reins
Devon Energy Corp. announced in December that Dave Hager, currently Devon’s chief operating officer, would succeed current CEO John Richels as president and CEO. [Photo by Paul Hellstern, The Oklahoman] Despite the leadership change, incoming CEO Dave ... read more...
2015-07-24 03:54:03
UNDER NEW MANAGEMENT
Devon Energy Corp. announced in December that Dave Hager, currently Devon’s chief operating officer, would succeed current CEO John Richels as president and CEO. [Photo by Paul Hellstern, The Oklahoman] read more...
2015-07-24 00:04:59
Devon Energy's John Richels describes value based culture
Corporate culture and stockholders were part of the mix in a speech by John Richels on one of the nation’s leading exploration and production companies he heads — Devon Energy Corp. He talked about how and why the industry changed its focus in recent ... read more...
2015-06-02 11:15:07
Devon Energy's John Richels describes value based culture
Corporate culture and stockholders were part of the mix in a speech by John Richels on one of the nation’s leading exploration and production companies he heads — Devon Energy Corp. He talked about how and why the industry changed its focus in recent ... read more...
2015-06-02 11:15:07
Devon Energy's John Richels describes value based culture
Corporate culture and stockholders were part of the mix in a speech by John Richels on one of the nation’s leading exploration and production companies he heads — Devon Energy Corp. He talked about how and why the industry changed its focus in recent ... read more...
2015-06-02 11:15:07
Richels thinks oil prices will return to $70 next year
TULSA – Devon Energy Corp. projects crude oil futures will trade around $70 per barrel next year, President and CEO John Richels said Thursday. “That doesn’t sound that good when you’re used to $90 to $95 oil, but we all have to remember that this ... read more...
2015-05-28 00:58:16
Richels thinks oil prices will return to $70 next year
TULSA – Devon Energy Corp. projects crude oil futures will trade around $70 per barrel next year, President and CEO John Richels said Thursday. “That doesn’t sound that good when you’re used to $90 to $95 oil, but we all have to remember that this ... read more...
2015-05-28 00:58:16
Media heads rule ranks of best-paid CEOs
David Zaslav, Discovery Communications, $US156.1 million ($A201.70 million), up 368 per cent 3. John Richels, Devon Energy, $US14.9 million ($A19.25 million), up 301 per cent 4. Jeffrey Leiden, Vertex Pharmaceuticals, $US36.6 million ($A47.29 million), up ... read more...
2015-05-26 23:33:34
The biggest CEO pay raises and cuts in 2014
David Zaslav, Discovery Communications, $156.1 million, up 368 per cent 3. John Richels, Devon Energy, $14.9 million, up 301 per cent 4. Jeffrey Leiden, Vertex Pharmaceuticals, $36.6 million, up 179 per cent 5. Patricia Woertz, Archer Daniels Midland ... read more...
2015-05-26 20:34:36
Top 10 Highest-Paid CEOs
David Zaslav, Discovery Communications, $156.1 million, up 368 percent 3. John Richels, Devon Energy, $14.9 million, up 301 percent 4. Jeffrey Leiden, Vertex Pharmaceuticals, $36.6 million, up 179 percent 5. Patricia Woertz, Archer Daniels Midland ... read more...
2015-05-26 19:23:01
CEO pay biggest raises and biggest cuts of 2014
David Zaslav, Discovery Communications, $156.1 million, up 368 percent 3. John Richels, Devon Energy, $14.9 million, up 301 percent 4. Jeffrey Leiden, Vertex Pharmaceuticals, $36.6 million, up 179 percent 5. Patricia Woertz, Archer Daniels Midland ... read more...
2015-05-26 07:27:12
CEO pay biggest raises and biggest cuts of 2014
David Zaslav, Discovery Communications, $156.1 million, up 368 percent 3. John Richels, Devon Energy, $14.9 million, up 301 percent 4. Jeffrey Leiden, Vertex Pharmaceuticals, $36.6 million, up 179 percent 5. Patricia Woertz, Archer Daniels Midland ... read more...
2015-05-26 05:25:30
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Financials
Business summary
Employees: 5,700
Devon Energy Corporation, an independent energy company, engages primarily in exploration, development, and production of oil, natural gas, and natural gas liquids (NGLs). The company holds interest in various properties located in Rocky Mountains, Mid-Continent, Permian Basin, and Gulf Coast regions of the United States. It also owns oil and gas properties in Alberta, British Columbia, and Saskatchewan provinces of Canada. As of December 31, 2012, the company had total proved reserves of 2,963 million barrels of oil equivalent. It also operates approximately 25,000 wells. In addition, it offers marketing and midstream services, including selling of processed gas and NGLs, as well as natural gas processing plants, natural gas gathering systems, and oil pipelines. Devon Energy Corporation was founded in 1971 and is headquartered in Oklahoma City, Oklahoma.
Data supplied by Yahoo! Finance.
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