Cathy Proctor – Reporter-Denver Business Journal – May 4, 2014
Yet another oil and gas company is making cuts to its Colorado operations, with Pioneer Natural Resources Co. (NYSE: PXD) on Monday announcing it will close the company’s Denver office and cut the number of people working out of its Trinidad field office by nearly half.
Pioneer in a statement said the cuts were “a result of continued weakness in natural gas prices and the recent collapse of crude oil and natural gas liquids prices.”
Oil prices have slid to about half the recent peak price of $107 per barrel set in June 2014 and natural gas prices have been similarly dismal — averaging less than $3 per thousand cubic feet during 2015 compared to a peak of about $4.20 per thousand cubic feet last summer.
Pioneer said the company’s headquarters staff in Irving, Texas, a suburb of Dallas, would oversee the company’s operations in the Raton Basin, in southern Colorado, as well as in the West Panhandle field in Texas.
“The decision to close the Denver office and to consolidate the Colorado workforce was made to preserve the value of these assets and to allow for their continued development within the constraints of the current commodity pricing environment,” the company said.
Pioneer said that of its 70 employees in the Denver office, about one-third will be offered relocation opportunities to Dallas. The rest will be offered severance packages and access to outplacement services.