Denver-Based E&P Company Ceases Operations; Lays Off 106 Employees
Denver-based Fidelity Exploration & Production Co. is exiting the exploration and production (E&P) business and eliminating 106 jobs.
Fidelity acquires, explores, develops and produces oil and natural gas, with a majority of the company’s production coming from the Bakken.
“MDU Resources made a strategic business decision to exit the E&P business altogether,” Rick Matteson, director of communications and public affairs for Fidelity’s parent company MDU Resources, told Rigzone. “The E&P business will cease to exist and we’re selling all of Fidelity’s assets.”
Matteson said “everything will be closed” with the bulk of the cuts in Denver at Fidelity’s downtown headquarters, and also offices operating in Montana, Wyoming, Texas and Utah.
“Some [Fidelity] employees, depending on where they are located, may be hired by acquiring companies,” said Matteson. “Others will be offered a severance package.”
Matteson said the company has laid off people over the last two years, but hasn’t begun the most recent round of layoffs – though employees have been notified. He said the layoffs will most likely begin in near the end of 2015.
In a Jan. 9 press release, MDU Resources said it would delay plans to market Fidelity’s business because of steep decline in oil prices.
“We believe marketing Fidelity is the right strategic decision for the company and our shareholders, but it makes sense to delay our plans in light of the recent volatility of oil prices,” David L. Goodin, president and CEO of MDU Resources, stated in the release.