Newfield Exploration Co. plans to combine its onshore Gulf Coast and Rocky Mountain business units into one operating region to be based in The Woodlands, Tex., and will close its Denver and north Houston offices during August.
The reorganization of regional operating units aligns Newfield’s workforce with near-term drilling and asset management plans, creating cost efficiencies, the independent said.
Newfield will continue to manage its growing operations in the Midcontinent from its regional office in Tulsa.
“We are aggressively pushing for cost efficiencies in our operations and working to improve our margins in today’s lower oil-price environment,” said Lee K. Boothby, Newfield chairman, president, and chief executive officer. “Our near-term plans are focused on drilling in the Anadarko basin,” he said.
Newfield expects that the one-time costs associated with this restructuring plan of $20 million, which will be reported primarily during this year’s second half.