DCP Midstream Announces Reduction in Force
DENVER, April 4, 2016 (GLOBE NEWSWIRE) -- Today, Denver-based DCP Midstream exercised a reduction in force affecting approximately 300 operational and corporate roles across its 17-state footprint, or 10 percent of its workforce. The magnitude of the reductions was decreased by the careful evaluation of the need for new hires and recent functional consolidations in Denver and Houston.
“DCP Midstream recognized the signposts of a challenging cycle in 2014 and implemented measures to reduce our break-even cost by 50 percent through simplifying and realigning contracts, optimizing our systems, and taking cost out of the business, all the while operating safely and reliably and ensuring ample liquidity,” said chairman and CEO Wouter van Kempen. “This is a challenging environment that we are managing through and we continue to execute on our strategy to reset our break-even cost to ensure we are the most reliable, safe, low-cost midstream services provider sustainable in any environment.”
In addition, DCP Midstream has reduced its capital budget to $250 million, having largely completed its planned capital program in 2015. The company will continue to match pace with producers and will be prepared to respond when recovery occurs.
“This is a clearly a very tough cycle and it is difficult to say goodbye to friends and colleagues who have contributed to DCP’s success. They have our respect and gratitude and we will support them in their transition through offering severance and outplacement counselling,” added van Kempen.
ABOUT DCP MIDSTREAM, LLC
DCP Midstream, LLC leads the midstream segment as the largest natural gas processor, the largest natural gas liquids producer and one of the largest marketers in the U.S. DCP Midstream operates in 17 states across major producing regions. The company is a 50:50 joint venture between Phillips 66 and Spectra Energy. It owns the general partner of DCP Midstream Partners, LP (NYSE: DPM), a master limited partnership, and provides operational and administrative support to the partnership. DCP Midstream is the largest oil and gas company and the largest private company in Denver, the city of its headquarters. DCP Midstream now employs 2900 employees. For more information, visit the DCP Midstream website at www.dcpmidstream.com.