logo
Plus   Neg
Share
Email

Devon Energy Plans To Consolidate U.S. E&P Operations - Quick Facts

Devon Energy Corp. (DVN) said it plans to consolidate its U.S. personnel into a single operations group centrally located at the company's corporate headquarters in Oklahoma City. Consequently, Devon would 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 may be substantially complete by the end of first-quarter 2013.

Dave Hager, Devon's executive vice president of exploration and production noted, "Consolidating our U.S. operations will improve our ability to quickly shift the focus of our workforce between project areas as economic conditions dictate." As a result of these changes, the company expects savings of around $80 million annually. The cost reductions would materialize through both lower general and administrative expenses and reduced capitalized personnel costs.

Reorganization charges are estimated to approximate $125 million, with $100 million expected to be incurred in the 2012 fourth quarter, while the remaining costs would be incurred in the first half of 2013. In aggregate, roughly 20 percent of the total restructuring charges are non-cash.

by RTTNews Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Quick Facts

Editors Pick
In a move likely to further inflame global trade tensions, President Donald Trump has threatened to impose a 20 percent tariff on all cars imported to the U.S. from the European Union. Trump claimed he would impose the new tariffs unless the EU removes tariffs and trade barriers placed on the U.S. The Federal Reserve has determined that the largest U.S. banks are strongly capitalized and would be able to lend to banks as well as households during a severe global economic recession. This is the fourth straight year that all banks have met the Federal Reserve's standards. The first round of results of the supervisory stress tests were released by the central bank on Thursday. The "safety" driver behind the wheel of a self-driving Uber was streaming a television show on her smartphone up until about the time of a fatal crash in March, according to a report from the Tempe Police Department. Uber's self-driving Volvo SUV, which was traveling at under 44 miles per hour, had struck and killed a pedestrian in Arizona on March 18.
Follow RTT