Canada energy firm Encana said it will cut 274 jobs in The Woodlands after acquiring Newfield Exploration for $5.5 billion in an all-stock deal.
Encana is axing much of its workforce in the region now that it has taken over The Woodlands-based Newfield. The job cuts will take place from now through the end of May. Newfield previously employed roughly 600 people in The Woodlands.
However, Encana Chief Executive Doug Suttles has said the company will maintain Newfield’s old headquarters to run much of its U.S. shale operations, although some layoffs were anticipated.
The Newfield deal, announced at the end of October, bolstered Encana’s U.S. presence with Newfield’s holdings in oil-producing regions, especially in Oklahoma and North Dakota. The expanded Encana has become one of the top shale producers in North America.
While Encana is headquartered in Calgary, the company has more oil and gas activity in Texas than Newfield. Encana operates in both the Permian Basin and the Eagle Ford shale. Suttles said the deal will leave Encana with significant operations in three major oil regions, Permian, Oklahoma and in western Canada, home of the Montney shale.
The goal is to create a combined company with the best mix of shale oil assets in North America, Suttles said.
Newfield had beefed up its employee base in The Woodlands in recent years, moving more people to the Houston area as it closed its offices in Denver and Tulsa.
This article first appeared on the Houston Chronicle – an Energy Voice content partner. For more from the Houston Chronicle click here.