DENVER, April 13, 2020 (GLOBE NEWSWIRE) -- 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, LP
DCP 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 STATEMENTS
This 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 Relations
Sarah Sandberg
303-605-1626
scsandberg@dcpmidstream.com