Nuverra Announces Cost Reduction Initiatives in Response to Current Market Conditions
08 Abril 2020 - 8:00PM
Business Wire
Nuverra Environmental Solutions, Inc. (NYSE American: NES)
(“Nuverra” or the “Company”) today announced that in response to
the market uncertainty created by the COVID-19 virus and the recent
decline in crude oil prices, the Company has implemented a number
of initiatives to adjust the Company’s cost structure in
anticipation of reduced revenue for the remainder of 2020,
including:
- Reduced Board and CEO compensation by 25%
- Reduced select other executive salaries by 20%
- Adjusted all other exempt and non-exempt non-contracted
salaries by between 10% and 20%
- Effected headcount reduction, including changes made earlier in
the first quarter, of approximately 100 employees
- Materially scaled back operations in two completions-related
businesses and closed one location
- Reduced other non-critical operating expenses
These changes will save the company approximately $11 million in
annual costs and allow Nuverra to be more competitive across its
business lines.
In addition to these initiatives, the Company is targeting a 25%
to 30% reduction in its capital expenditure budget and is actively
reviewing its organizational structure and taking additional steps
to further streamline its operations. The ultimate goal of these
actions is to improve liquidity while still retaining the ability
to deliver safe and reliable service to our customers.
“In these unprecedented times, we are focused foremost on
protecting our employees and customers from the threat posed by
COVID-19,” stated Charlie Thompson, Chief Executive Officer. “At
the same time, we have made difficult but important decisions to
counteract the rapid decline in commodity prices. We have asked a
lot of our employees to help the Company weather this storm. We
will continue to review the business and act aggressively to match
our costs to activity levels. These actions will help Nuverra
navigate this difficult market environment.”
About Nuverra
Nuverra Environmental Solutions, Inc. provides water logistics
and oilfield services to customers focused on the development and
ongoing production of oil and natural gas from shale formations in
the United States. Our services include the delivery, collection,
and disposal of solid and liquid materials that are used in and
generated by the drilling, completion, and ongoing production of
shale oil and natural gas. We provide a suite of solutions to
customers who demand safety, environmental compliance and
accountability from their service providers. Find additional
information about Nuverra in documents filed with the U.S.
Securities and Exchange Commission (“SEC”) at
http://www.sec.gov.
Forward-Looking Statements
This press release may contain forward-looking statements within
the meaning of Section 27A of the United States Securities Act of
1933, as amended, and Section 21E of the United States Securities
Exchange Act of 1934, as amended. These statements relate to our
expectations for future events and time periods. All statements
other than statements of historical fact are statements that could
be deemed to be forward-looking statements, and any forward-looking
statements contained herein are based on information available to
us as of the date of this press release and our current
expectations, forecasts and assumptions, and involve a number of
risks and uncertainties. Accordingly, forward-looking statements
should not be relied upon as representing our views as of any
subsequent date. Future performance cannot be ensured, and actual
results may differ materially from those in the forward-looking
statements. The Company undertakes no obligation to update any such
forward-looking statements, whether as a result of new information,
future events, changes in expectations or otherwise.
The statements contained herein are also subject generally to
various risks and uncertainties that are described from time to
time in the Company’s filings with the SEC, including our Annual
Reports on Form 10-K, Quarterly Reports on Form 10-Q, and Current
Reports on Form 8-K.
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Nuverra Environmental Solutions, Inc. Investor Relations
602-903-7802 ir@nuverra.com
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