Posted on 01/21/2016 4:57:18 PM PST by TigerClaws
HOUSTON — Southwestern Energy Co. will shed more than 40 percent of its workforce starting in the first quarter as it pauses its U.S. drilling program to cope with low natural gas prices, the company said Thursday.
The natural gas driller expects a $60 million to $70 million pre-tax charge for severance payments and other costs of cutting 1,100 jobs. About 300 of those are part of Southwestern’s Houston headquarters.
Falling natural gas prices over the past year has meant “cash flow to fund projects will be significantly lower than it has been the past few years,†Southwestern spokeswoman Christina Fowler said in an emailed statement. “These organizational changes are required to maintain competitiveness in this low gas price environment.â€
Domestic gas prices have fallen 27 percent since this time last year, squeezing cash flows for shale gas drillers like Southwestern that put most of their drilling rigs in the gas-rich regions in West Virginia and Pennsylvania.
(Excerpt) Read more at fuelfix.com ...
But Obama was on the TV’s talking about how great America is right now. We are at full employment, gas prices are down. It’s a paradise out there. /sarc
40 percent? I’d call that massive. Either they’ve increased efficiency on a grand scale or things ain’t good.
40 percent? I’d call that massive. Either they’ve increased efficiency on a grand scale or things ain’t good.
They primarily drill for oil and nobody will be drilling at $27 a barrel.
They primarily drill for natural gas in Arkansas and Pennsylvania.
And no one can make any money anywhere at $2.10 per MMBTU. We need the Yankees to freeze in the winter and the South to fry in the summer.
The oil and gas industry has always been a feast or famine business. Good for several years, then bad for several years. Then good again for a while.
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