What do we make of this? Are we looking at more layoffs?
Strong wells in Oklahoma and New Mexico helped boost first-quarter oil production at Devon Energy Corp. even as accounting charges led the company to post a $197 million net loss in the first quarter.
http://newsok.com/devon-posts-197-million-loss-on-debt-buyback-charge/article/5593150
What area do we vote to sell off? Im thinking Powder River. Why are we there.
$197 million dollar loss, $175 million in savings from the RIF. I expect more layoffs later this year once the $5 billion in assets is sold. If you are not in the Delaware or Stack you had better watch out.
From the article: "The layoffs contribute to a total general and administrative and interest savings of $175 million annually, but Hager said the decision was about more than cost.
"It was about increasing the focus of the company," he said. "It will reduce the cost, but we would have done this regardless of the price environment.""
All I can say is if you divide $175 MM by 300 employees, you get a value of over $583K per employee. Those are some expensive employees that were layed off. Maybe they are counting the value after reinvesting the savings of the 300 employees salaries and expenses back into field projects using some kind of rate or return, but I don't know. It sounds fishy to me..