Southwestern Energy Co. of Houston, the largest operator in Arkansas’ Fayetteville Shale Play, said Thursday that it has laid off 80 workers there.
In a statement, the publicly traded oil and natural gas company said cited commodity prices, which have been falling.
“A reduction in operations and shifting capital budgets across Southwestern Energy related to commodity prices, unavoidably led to a lower number of employees being required in certain areas,” the company said.
Southwestern said it laid off 102 employees companywide. It said that “in many cases,” it gave employees the chance to transfer to other locations.
Commodities prices have fallen through the first half of the year, putting pressure on energy companies.
According to the Associated Press, U.S. natural gas futures have averaged $2.77 per thousand cubic feet through, 40 percent lower than last year, amid strong domestic production. Crude oil prices have averaged $53 a barrel through July, down 48 percent compared with the same period last year and on track for its lowest annual average since 2004.
Companies have been drilling for natural gas in the Fayetteville Shale for a decade. The now-mature field propelled Arkansas to the No. 8 producer of natural gas in the country, according to figures last year from the Energy Information Administration.
Southwestern, once based in Fayetteville, has remained a major player in the field even as others have reduced their holdings. It has a regional headquarters in Conway.
Last month, the company reported a second-quarter net loss of $815 million, or $2.13 a share, down from a profit of $207 million, or 59 cents a share, in the same quarter last year. Revenue was $764 million, down 26 percent.
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