Devon Energy Announces Consolidation of U.S. E&P Operations
Devon Energy Corporation (NYSE:DVN) today announced plans to consolidate its U.S. personnel into a single operations group centrally located at the company’s corporate headquarters in Oklahoma City. As a result, Devon will close its office in Houston and transfer operational responsibilities for assets in South Texas, East Texas and Louisiana to Oklahoma City. The company expects to relocate a number of employees from Houston to Oklahoma City. The completion of this initiative is expected to be substantially complete by the end of the first-quarter 2013.
“Consolidating our U.S. operations will improve our ability to quickly shift the focus of our workforce between project areas as economic conditions dictate,” said Dave Hager, Devon’s executive vice president of exploration and production. “In addition, this move will improve the sharing of best practices and enhance overall operational efficiency.”
Devon expects the announced changes to deliver savings of approximately $80 million annually. The cost reductions will materialize through both lower general and administrative expenses and reduced capitalized personnel costs.
Reorganization charges are expected to approximate $125 million, with $100 million estimated to be incurred in the fourth-quarter 2012. The remaining costs will be incurred in the first half of 2013. In aggregate, roughly 20 percent of the total restructuring charges are non-cash.
Devon Energy Corporation is an Oklahoma City-based independent energy company engaged in oil and gas exploration and production. Devon is a leading U.S.-based independent oil and gas producer and is included in the S&P 500 Index. For additional information, visit www.devonenergy.com.
This press release includes "forward-looking statements" as defined by the Securities and Exchange Commission. Such statements are those concerning strategic plans, expectations and objectives for future operations. 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. These risks include, but are not limited to the volatility of oil, natural gas and NGL prices; political, economic or public policy changes; uncertainties inherent in estimating oil, natural gas and NGL reserves; drilling risks; and environmental risks. 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 Devon on its website or otherwise. Devon does not undertake any obligation to update the forward-looking statements as a result of new information, future events or otherwise.
Devon Energy Corporation
Scott Coody, 405-552-4735
Shea Snyder, 405-552-4782
Chip Minty, 405-228-8647