Miller Energy Resources Inc. is losing a lot of money. But its senior officers are nevertheless pocketing a lot.
The company’s newly appointed chief executive, Carl F. Giesler, will receive an annual salary of $800,000, according to a Sept. 18 filing with the U.S. Securities and Exchange Commission.
Giesler, 42, replaced Scott M. Boruff as CEO. Boruff resigned on Sept. 14 and then was appointed as “executive chairman of the board.”
The company “will pay to Mr. Boruff an annual base salary of not less than $795,000,” the SEC filing said. Boruff also will continue to be eligible for bonuses.
In changing roles, Boruff said in a Sept. 15 press release that he intended to “remain active in Miller’s strategic activity and help grow the value of my family’s substantial investment in the company.”
Along with Boruff’s move, company founder Deloy Miller retired as board chairman. He was the stepfather of Boruff’s late wife, an SEC filing said.
Under a separation agreement, the company said it would pay Deloy Miller a lump sum cash payment of $500,000 on or before Oct. 1. The company said it also intends to work out a consulting contract with Miller.
Miller is a Tennessee-based, publicly traded company that operates in Alaska via its Anchorage-based subsidiary, Cook Inlet Energy LLC. Miller shares trade on the New York Stock Exchange.
The company recently reported average net production of just over 3,300 barrels of oil equivalent per day. Nearly all this production comes from Cook Inlet properties including the offshore Redoubt unit, the West McArthur River oil field and the North Fork natural gas field.
Miller has pursued an aggressive program of well workovers, new drilling and acquisitions. The company has borrowed extensively to pursue its agenda.
For now, the company is losing significant money.
For the three-month period ended July 31, Miller reported total revenue of $25.4 million and an operating loss of $9.6 million.
- Wesley Loy
