DCP MIDSTREAM ANNOUNCES COST, WORKFORCE, AND CAPITAL REDUCTIONS
April 13 2020 - 5:10PM
Today, in response to unprecedented market conditions and an
uncertain economic outlook caused by the COVID-19 pandemic, DCP
Midstream, LP (NYSE: DCP) announced a 15% workforce reduction
across its nine-state footprint. The company is providing severance
packages, subsidized health coverage, and outplacement counseling
for impacted employees.
The senior executive team also unanimously
elected to reduce their base salary and variable compensation by
between 15% and 10%. The reduction in force, voluntary reductions
in senior executive compensation, and other internal cost savings
will result in $40 million of incremental retained cash flow.
Additionally, DCP has identified $10 million of incremental
sustaining capital reductions. These actions come three weeks after
the company announced a 75% growth capital reduction, a 50%
distribution reduction, and over $80 million in previously
identified cost and sustaining capital savings. Since early
February, DCP has created a total of over $900 million in expected
retained cash flow to reduce leverage and strengthen its balance
sheet.
“Despite the significant cash preservation
measures we have recently taken, the external environment continues
to rapidly change, resulting in the extremely difficult decision to
implement workforce reductions,” said Wouter van Kempen, chairman,
president, and CEO of DCP. “We continue to prioritize safe and
reliable operations, and a strong company culture, while
positioning the company for long-term sustainability.”
ABOUT DCP MIDSTREAM, LPDCP
Midstream, LP (NYSE: DCP) is a Fortune 500 midstream master limited
partnership headquartered in Denver, Colorado, with a diversified
portfolio of gathering, processing, logistics and marketing assets.
DCP is one of the largest natural gas liquids producers and
marketers and one of the largest natural gas processors in the U.S.
The owner of DCP’s general partner is a joint venture between
Enbridge and Phillips 66. For more information, visit the DCP
Midstream, LP website at
www.dcpmidstream.com.
FORWARD-LOOKING STATEMENTSThis
document may contain or incorporate by reference forward-looking
statements regarding DCP Midstream, LP (the “Partnership” or “DCP”)
and its affiliates, including projections, estimates, forecasts,
plans and objectives. Although management believes that
expectations reflected in such forward-looking statements are
reasonable, no assurance can be given that such expectations will
prove to be correct. In addition, these statements are subject to
certain risks, uncertainties and other assumptions that are
difficult to predict and may be beyond our control. If one or more
of these risks or uncertainties materialize, or if underlying
assumptions prove incorrect, the Partnership’s actual results may
vary materially from what management anticipated, estimated,
forecasted, projected or expected.
The key risk factors that may have a direct
bearing on the Partnership’s results of operations and financial
condition are described in detail in the Partnership’s periodic
reports most recently filed with the Securities and Exchange
Commission, including its most recent Forms 10-Q and 10-K.
Investors are encouraged to consider closely the disclosures and
risk factors contained in the Partnership’s annual and quarterly
reports filed from time to time with the Securities and Exchange
Commission. The Partnership undertakes no obligation to publicly
update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise except as
required by applicable securities laws. Information contained in
this document speaks only as of the date hereof, is unaudited, and
is subject to change.
Investor and Media
RelationsSarah
Sandberg303-605-1626scsandberg@dcpmidstream.com
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