EnLink Midstream Lays off 20% of Workforce
EnLink Midstream LLC said it has laid off about 300 employees, or 20% of its workforce, to cut costs amid an unprecedented crash in oil prices because of the coronavirus outbreak and a price war between Saudi Arabia and Russia.
U.S. pipeline companies are seeing thin profits as oil and gas exports shrink amid a growing glut due to lower demand and storage terminals filling up. Their biggest customers are also cutting drilling, which will undercut future business.
EnLink last week cut its quarterly distribution and was looking at ways to cut its spending even further than the planned 30% reduction to its original forecast. It had close to 1,400 workers as of the end of 2019.
"We continue to take deliberate actions to position EnLink to weather this evolving environment," said Barry E. Davis, Enlink chairman and CEO. "The comprehensive measures we have taken during 2020 will create over $500 million of cash flow available for full-year 2020 to effectively manage our balance sheet, including our liquidity and leverage."
Dallas-based EnLink operates about 12,000 miles of gathering and transportation pipelines, 21 processing plants with more than 5 Bcf of net processing capacity, and seven fractionators with 290,000 barrels per day of net fractionation capacity. It also operates barge and rail terminals, product storage facilities, purchase and marketing, brine disposal wells and a crude oil trucking fleet.
Its assets are located in the Permian Basin, Central Oklahoma, North Texas and the Louisiana Gulf Coast.
"Looking ahead, we remain focused on operating safely, responsibly, and efficiently to meet our customers' needs while reducing our costs and optimizing performance across our business," Davis said.
Other energy companies, including services giants Halliburton Co, Schlumberger NV and debt-laden producer Occidental Petroleum Corp, have also started to lay off employees and cut salaries as they prepare for oil prices remaining distressed for months at least.
— Reuters and P&GJ Staff Report
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