Canadian natural gas giant Encana has announced that it will be cutting its workforce by about 20 percent and will be closing one of its offices in the U.S.
The Calgary-based company says that they’re making the changes to become more efficient.
Encana will be closing its Plano, TX, office.
It didn’t say how many employees will be affected in Calgary, but said that it would consolidate locations in Calgary and Denver.
As of late 2012, Encana had about 650 corporate staff out of a total workforce of nearly 4,200 in Canada and the United States.
"In order to align our organization with our strategy, we have had to make a number of exceptionally difficult decisions," Encana CEO Doug Suttles said in a statement.
"The restructuring that is underway reflects our shift from funding about 30 different plays to focusing our resources on five key areas."
"We will work as hard as we can to make these staffing decisions quickly and thoughtfully and we will treat everyone affected with respect as we work through this very difficult part of our transition."
The company also says that it will create a new public company that will focus on southern Alberta and reset its dividend to shareholders.
Encana, like many other natural gas producers, have been struggling with persistently low prices.
Many have adjusted by focusing more on oil or liquids-rich natural gas that offer higher margins.
Encana expects next year's capital spending to be around $2.5 billion, though it will flesh out the details next month. About 75 per cent of that will be on five resource regions that offer higher returns because they are rich in oil and natural gas liquids.
They include the Montney area in northeastern British Columbia and the Duvernay area in Alberta. The others are the DJ Basin, San Juan Basin and Tuscaloosa Marine Shale in the United States.
Encana shares rose 4.6 percent to $19.45 in mid-morning trading on the Toronto Stock Exchange.
(With files from the Canadian Press)
