Director of Encana Corp. says that it cut its total workforce by 15 percent and reduced the number of executive directors by 35 percent in just over a week after the conclusion of a contract to buy a US rival Newfield Exploration Co. in mid-February.
This move was made by Encana Calgary, which reports US dollar results on the way to achieving its promised annual savings of $ 250 million since the takeover, said director Doug Suttles.
"Eight days – once again, eight days – after closing, we completed the reorganization of the merged entity," he said.
"Altogether we have reduced executive and senior management roles by 35 percent and total positions for 15. The main team of the merged company is today smaller than the Encane team before the merger."
Number of lost jobs
The company did not indicate how many employees were dismissed, while in the United States, at the beginning of last year, there were 1,010 employees, almost all in the United States, while the Enna had 1,160 employees in Canada and 950 in the US.
A 15% reduction would mean a total of 470 jobs lost.
Most reductions occurred in the US, said Cindy Hassler, an email spokeswoman who confirmed a reduction in staffing in Calgary, Denver and Houston offices. I would not comment on the total number or specification of how many jobs were lost in Canada.
Suttles said cutting employee costs represents half of the savings – the other half will come with a reduction of at least $ 1 million in costs for any future unconventional well in the Anadarko Oklahoma Pool, formerly owned by Newfield.
$ 5.5B in shares
When it was announced in November, Encana said that the deal was worth about $ 5.5 billion, but its share has since decreased by more than 20 percent. He also accepted Newfield's $ 2.2 billion debt.
Encana adapted its research priorities when buying Newfield to focus on three pools – Anadarko, Montane West Canada and Perme in West Texas and New Mexico – because they produce more valuable petroleum liquids and less natural gas than other options.
He said that 75 percent of his capital budget for 2019 will be from $ 2.7 billion to $ 2.9 billion for these three games.
Profit in the fourth quarter
In the fourth quarter of December 31, Encana reported a profit of $ 1.03 billion or 1.08 per share in the fourth quarter, compared to $ 229 million or 24 cents a share in the last three months of the year 2017.
Operating profit for the quarter was USD 305 million or 32 cents per share, more than the operating profit of US $ 114 million or 12 cents per share a year earlier.
Revenue for the quarter amounted to 2.38 billion dollars, or $ 1.21 billion.
The total production in the fourth quarter of 2018 was 403,400 barrels per day, compared to 335,200 before the year.
Encana shares rose 5.2 percent to 9.52 dollars in the afternoon trading on the Toronto stock exchange, as analytical reports showed that the results in the fourth quarter were largely in line with expectations.