Eighty-three employees are being notified that their positions are
affected by the workforce reduction, including 44 in
The company is offering affected employees severance payments and outplacement services to help with the transition.
Approximately 120 people also will be affected by consolidating most of
The possibility exists that WPX’s office in
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
Following the reductions announced today, WPX’s staff level supporting
its primary operations is approximately 900. The company also has
WPX plans to maintain a small staff of less than 15 people in
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.
WPX Energy develops and operates oil and gas producing properties
in North Dakota, New Mexico and
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
Kelly Swan, 539-573-4944
David Sullivan, 539-573-9360