Abraxas Petroleum Corp. announced last week that president and CEO, Robert Watson, will voluntarily cut his salary by 20 percent due to stressful market conditions.
Related: Abraxas Reports Best Year on Record
In 2014, the company reported its best year on record and compensated Robert Watson over $900,000. When Abraxas released its final 2014 earnings report in March, Watson anticipated a “tumultuous” 2015, and his predictions have been proven true. Crude prices have continued to fluctuate and hit a 6 ½ year low last month, causing producers to do all they can to stay competitive.
“As our shareholders continue to suffer from a difficult environment caused by falling commodity prices, the compensation committee and I felt the right thing to do was adjust my salary to a level more reflective of the current environment.”
In a second quarter earnings call, Abraxas reported a $6.6 million loss, marking six consecutive months of losses. The company also confirmed it would continue to hold back on new development in the Eagle Ford Shale until oil rebounded to at least $65 a barrel.