WPX offers 58 workers severance
Terra Energy Partners LLC is extending job offers to a “significant portion” of WPX Energy employees in Parachute, while WPX on Friday confirmed it will offer severance packages to 58 employees who did not receive offers from Terra.
A statement from Terra, a private equity-backed company, said it is committed to maintaining a strong local presence in Parachute, but after completing the integration process, it was determined certain positions will be based in Houston, where Terra is headquartered.
In early April, WPX announced it completed the sale of all Piceance Basin assets to Terra for $910 million. The 207 Parachute employees were to remain WPX employees until the end of a transition period through June, when Terra would conduct interviews with the intent of extending offers to an unknown number of employees.
“Through the integration process, Terra has examined the structure of the combined entity and concluded that certain functions will be located in Houston, resulting in the elimination of certain positions in Parachute,” Friday’s statement read. “These are difficult decisions and we have been focused on ensuring a respectful and fair process. Terra has extended offers to a significant portion of WPX employees based in Parachute.”
Kelly Swan, WPX spokesman, on Friday confirmed Terra extended offers to 70 percent of the employees. WPX will offer severance packages to 58 employees.
A “handful” of WPX employees were transferred to operations elsewhere on a case-by-case basis, Swan said.
The company’s acquisition of the WPX Piceance assets — which include more than 4,700 wells — was Terra’s first since it formed in the summer of 2015. The privately held company is financially backed by Kayne Private Energy Income Fund LP and Warburg Pincus LLC.
When the sale was first announced earlier this year, Terra stated the assets also included 200,000 acres under lease totaling a net production of approximately 500 million cubic feet equivalent per day. It estimated that the assets contain approximately 2 trillion cubic feet equivalent of proved, developed producing reserves and plenty of low-risk drilling locations.
On Friday, Terra reaffirmed its optimism regarding the Piceance assets.
“Terra sees significant potential in the Piceance region and we believe the company will be well positioned for its next chapter of growth,” according to the statement.
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