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.
Recommended Reading
Advent Technologies Appoints Naiem Hussain to CFO
2024-01-15 - Hussain is replacing Kevin Brackman as Advent Technologies Holdings Inc.’s CFO, who resigned from the position on Jan. 5.
Vast Appoints Two Additional Directors to Board
2024-01-12 - Vast’s appointment of Peter Botten and Tom Quinn brings the board’s recently expanded size to seven members.
APA Promotes Stephen J. Riney to President
2024-01-10 - Stephen Riney joined APA in 2015 and has served as the company’s executive vice president and CFO.
Gevo Appoints Katie Ellet to Board of Directors
2024-01-07 - Gevo appointed Katie Ellet, who has held a variety of leadership roles in the chemical and energy industry, including serving as president of hydrogen energy and mobility for North America at Air Liquide.
ArcLight Creates AlphaGen to Manage Firm’s US Power Infrastructure Portfolio
2024-01-11 - Alpha Generation, owned by ArcLight Capital Partners, will manage one of the U.S.’ largest power infrastructure portfolios with annual revenues of about $2 billion.