Texaco Press Release - Texaco Announces Reorganization of North American Natural Gas Operations
FOR RELEASE: TUESDAY, NOVEMBER 17, 1998.
HOUSTON, Nov. 17 - Texaco announced today a reorganization of its North American natural gas business unit, Texaco Natural Gas (TNG), in a move designed to improve the company's competitive position, reduce operating costs, and improve focus in growth areas. The reorganization will result in the reduction of approximately 100 positions and some $20 million in annual cost savings, and is expected to be completed and operational by year-end.
In making the announcement, Terry F. Hudgens, President of Texaco Natural Gas - North America, said, "In order to operate profitably in the current business environment, we must reduce costs to allow us to compete effectively in the natural gas marketplace. TNG's reorganized business is designed to be a highly efficient and market responsive organization that will deliver quality products and services at competitive prices, resulting in benefits for our customers and our shareholders."
TNG's plan includes refocusing its asset-based and commercial businesses to improve efficiency as well as consolidating gas and liquids field activities under one operations unit.
TNG is comprised of three main business units: Commercial Energy Group, Plants and Pipelines, and Natural Gas Liquids Marketing which are responsible for natural gas and gas liquids gathering, processing, storage, fractionation, transportation, trading, marketing and risk management activities throughout North America.
TNG has 500 employees, with primary business offices located in Houston, Tulsa and New Orleans.
The projected reductions in employees and annual costs described is a forward-looking statement within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. No assurances can be given that these reductions will be achieved and they could differ materially as the result of certain factors discussed in the company's periodic reports filed with the Securities and Exchange Commission.
Updated: November 1998