TULSA, Okla.--(BUSINESS WIRE)--
WPX Energy (NYSE:WPX) is trimming its company-wide workforce by
approximately 8 percent and consolidating most of its regional office
staff in Denver, Colo., together with personnel at the company’s
headquarters in Tulsa, Okla.
Eighty-three employees are being notified that their positions are
affected by the workforce reduction, including 44 in Tulsa, 25 in
Denver, 11 in Parachute, Colo., two in New Mexico and one in North
Dakota.
The company is offering affected employees severance payments and
outplacement services to help with the transition.
WPX CEO
Rick Muncrief
said, “These are tough decisions that impact good
people – people who have worked hard and done their best for WPX. We do
not take that lightly.”
Approximately 120 people also will be affected by consolidating most of
WPX’s Denver workforce to company headquarters in Tulsa. These employees
are receiving offers to relocate to Tulsa.
The possibility exists that WPX’s office in Tulsa will see a net gain in
total jobs during the transition, contingent upon the number of Denver
employees who accept an offer to relocate. WPX has space available at
its existing office in downtown Tulsa to accommodate additions.
The office consolidation is designed to reduce costs, achieve
efficiencies and bring the company’s technical professionals – such as
engineers and geologists – together in one office to enhance how people
work together.
The company’s decisions come in response to a dramatic drop in the price
of the two main energy sources WPX produces.
Over the past six months, crude oil prices have plummeted almost 50
percent. Natural gas prices have decreased about one-third. Lower
commodity prices essentially result in lower revenues.
“We’ve evaluated many options to adjust our cost structure, and no
solution is perfect. Decisions are especially difficult when they affect
people’s lives,” Muncrief added.
WPX drills for oil and natural gas in North Dakota, New Mexico and
Colorado. The company operates more than 5,800 wells in these areas.
Following the reductions announced today, WPX’s staff level supporting
its primary operations is approximately 900. The company also has
employees in Wyoming and Pennsylvania who support assets that are
targeted for divestiture.
WPX plans to maintain a small staff of less than 15 people in Denver to
support its legal, environmental compliance, safety and government
affairs functions. Their jobs depend upon maintaining strong local
relationships and interacting frequently with judicial, governmental or
regulatory officials.
To manage costs, WPX also offered a voluntary early exit program in
mid-2014. Approximately 100 people accepted the early exit offer last
year.
Additionally, WPX reduced its general and administrative expenses by 11
percent in the fourth quarter of 2014 compared to the same period in
2013.
About WPX Energy, Inc.
WPX Energy develops and operates oil and gas producing properties
in North Dakota, New Mexico and Colorado. The company has a long history
of innovation and stakeholder engagement, recognized through more than
40 local, state, federal and industry awards.
This press release includes “forward-looking statements” within the
meaning of the Private Securities Litigation Reform Act of 1995. All
statements, other than statements of historical facts, included in this
press release that address activities, events or developments that the
company expects, believes or anticipates will or may occur in the future
are forward-looking statements. Such statements are subject to a
number of assumptions, risks and uncertainties, many of which are beyond
the control of the company. Statements regarding future drilling
and production are subject to all of the risks and uncertainties
normally incident to the exploration for and development and production
of oil and gas. These risks include, but are not limited to, the
volatility of oil, natural gas and NGL prices; uncertainties inherent in
estimating oil, natural gas and NGL reserves; drilling risks;
environmental risks; and political or regulatory changes. Investors
are cautioned that any such statements are not guarantees of future
performance and that actual results or developments may differ
materially from those projected in the forward-looking statements. The
forward-looking statements in this press release are made as of the date
of this press release, even if subsequently made available by WPX Energy
on its website or otherwise. WPX Energy does not undertake and
expressly disclaims any obligation to update the forward-looking
statements as a result of new information, future events or otherwise.
Investors are urged to consider carefully the disclosure in our
filings with the Securities and Exchange Commission, available from us
at WPX Energy, Attn: Investor Relations, P.O. Box 21810, Tulsa,
Okla., 74102, or from the SEC’s website at www.sec.gov.
Source: WPX Energy Inc