Gulfport Energy announces pay cuts, other changes to combat market conditions
Gulfport announces pay cuts, furloughs
Oklahoma City-based Gulfport Energy announced this week its employees are taking tiered pay reductions and furloughs, beginning this month.
Affected employees include its senior management team, who are taking a 10% salary cut, and its CEO David M. Wood, who will see his pay reduced 20%.
Additionally, retainers earned by board members' will be cut 10% as the natural gas producer continues to navigate evolving energy market conditions.
The expense cuts were announced as part of an operational and financial update the company released June 1.
The company reported as part of its update that it is delaying near-term production to later this year and early next year, as it expects natural gas prices to be materially higher then.
It noted it intends to complete three drilled wells in the Utica Shale field during the latter half of this year.
Based on shut-in decisions made by Gulfport and partners that operate some of its wells, it expects its full-year average daily production to be between 1 billion cubic feet and 1.075 billion cubic feet of natural gas (equivalent).
As for furloughed employees, Gulfport stated they would continue to be covered by health and related benefits while they are off work.
The company stated it expects the pay/furlough steps, combined with other non-payroll initiatives, will reduce its general administrative expenses by between $2 million and $4 million this year.
It also predicts it will save an additional $10 million in production costs by reworking contracts with service providers in both of its operating areas.
“We believe these efforts will better position the company as we enter 2021,” Wood said as part of the release.
By Jack Money, Business writer