Quick Facts
FONT-SIZE Plus   Neg
Share SHARE

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

RELATED NEWS
Trade DVN now with 

Devon Energy Corp. (DVN: Quote) 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.

Register
To receive FREE breaking news email alerts for Devon Energy Corp. and others in your portfolio

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Quick Facts

Editors Pick
British manufacturing growth eased further in August to its lowest level in 14 months as output and demand increased at slower rates, survey results from Markit Economics showed Monday. The Markit/CIPS Purchasing Managers' Index dropped to 52.5 from a revised 54.8 in July. Economists had expected the score to fall to 55.1 from July's original figure of 55.4. Consumers spent less in July than in the previous month, a surprise retreat that complicates the prevailing belief that the U.S. economic situation is improving. Along with the unexpected drop in spending, government figures released on Friday showed that incomes rose at a slower pace in July than in the previous month. Meanwhile, data on prices indicated that inflation pressures remain tame. India's economy grew faster-than-expected in the three months to June and at the strongest pace in two years, preliminary figures from the Central Statistics Office revealed Friday. Gross domestic product grew 5.7 percent in the April to June quarter, which exceeded economists' forecast for 5.5 percent expansion. The economy grew 4.6 percent in the previous three months.
comments powered by Disqus
FREE Newsletters, Analysis & Alerts

 

Stay informed with our FREE daily Newsletters and real-time breaking News Alerts. Sign up to receive the latest information on business news, health, technology, biotech, market analysis, currency trading and more.