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.