logo
Plus   Neg
Share
Email
Comment

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 RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Quick Facts

Editors Pick
French drug giant Sanofi SA Monday announced an agreement to buy US-based hemophilia drugmaker Bioverativ Inc. (BIVV) for around $11.6 billion. The deal expands Sanofi's presence in specialty care and strengthens leadership in rare diseases. Sanofi shares were losing around 4 percent in the early morning trading in Paris. Swiss banking giant UBS Group AG reported Monday a hefty net loss in its fourth quarter hurt by a charge related to US tax law changes. Pre-tax profit, however, increased from last year with improved operating income and lower expenses. Further, the company announced an increase in dividend, as well as a share buyback of up to 2 billion Swiss francs. Angry protesters are planning more than 50 demonstrations on Friday at several Tim Hortons locations across Canada after some franchise owners in Ontario slashed workers' benefits as well as paid breaks in response to the Ontario government's minimum wage hike. The protests are being organized by advocacy group Leadnow and the Fight for $15 & Fairness Campaign.
comments powered by Disqus
Follow RTT