PITTSBURGH—EQT Corp. said Sept 10 it is streamlining its business to improve operational effectiveness and create a more efficient and nimbler organization. The new structure will simplify the company from 58 to 15 departments, streamline management and focus the organization on processes and functions that are directly aligned with its mission, the company said in a press release.
As part of the reorganization, EQT is reducing its workforce by approximately 23%. The company is shedding 196 positions representing approximately $50 million of annual general and administrative costs. EQT said it anticipates providing guidance on run-rate G&A in connection with its third quarter 2019 earnings results.
“Today’s action represents another significant milestone as we transform EQT into a modern, technology-driven and efficient natural gas producer,” said Toby Rice, EQT’s CEO, in a statement. “Following the addition of proven leadership and the establishment of our digital work environment, we evaluated the business and determined the appropriate ‘future state’ organizational structure.”
Rice took over as CEO on July 10 after a lengthy and sometimes contentious proxy battle. He laid out a plan July 25 that leverages technology and better development planning, aiming to improve operations for one of the biggest producers of natural gas in the U.S.
At the time he told shareholders on a second-quarter earnings call, “A well-designed development schedule planned 36 months in the future is the key to consistent operational execution that will drive lower well costs and more free cash flow.”
In today’s announcement, Rice said, “This future state will challenge, empower and support employees so we can achieve our strategic goals of reducing costs, improving efficiency and realizing the full potential of our asset base for the benefit of all stakeholders.
“I’d like to thank those employees who are leaving for their contributions to EQT. We firmly believe this is a step we must take to create a more efficient organization and to enable our employees to succeed,” he said.
U.S. natural gas producer EQT Corp. said Jan. 13 it would take a non-cash impairment charge of up to $1.8 billion in the fourth quarter driven by record low gas prices.
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