Noble Energy Inc. (NYSE: NBL) said Nov. 10 it will cut about 7% of its staff as the company grapples with life in the slow lane of oil and gas prices.
The company is reducing its staff by 180 personnel, mostly in the U.S.
“Noble Energy announced that it is adjusting the size of its organization to reflect anticipated activity levels and the ongoing price environment while preserving long-term opportunities,” the company said in a statement to Hart Energy.
Texas was hardest hit, with 60 positions eliminated, including Noble’s Houston headquarters and its Permian Basin and Eagle Ford Shale operations.
The company also reduced staff in April, when it cut roughly 220 positions.
Following the reductions, Noble will have about 2,400 employees.
“As we approach 2016, we intend to be cash flow neutral while maintaining long-term operational capacity,” Noble said. “Our diverse portfolio offers exceptional investment options, and we will continue to focus capital allocation on activities that best deliver overall returns and value.”
Noble posted strong production in third-quarter 2015 but reported a net loss of $283 million. The company ended the quarter with about $5 billion in liquidity.
Noble’s Texas production was also in line with Rosetta Resources full-year guidance of 60 thousand barrels of oil equivalent per day (Mboe/d), said Mike Kelly, senior analyst, Seaport Global Securities LLC. Noble acquired Rosetta in July for $3.9 billion.
Noble also has producing assets in the Gulf of Mexico, Equatorial Guinea and the Eastern Mediterranean.
The company lowered its 2015 capex budget by $100 million to $2.9 billion while raising fourth-quarter 2015 production to 385-405 Mboe/d, said David Tameron, senior analyst, Wells Fargo Securities LLC.
Darren Barbee can be reached at dbarbee@hartenergy.com
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