Arkansas-based Murphy Oil said Wednesday that it will cut 23 percent of its workforce after reporting a $1.59 billion third quarter net loss.

The company said it expects staffing levels to be reduced by about 23 percent by the end of the year compared to the end of 2014.

Murphy Oil said the cuts are in response to low commodity prices but did not disclose how many staff members will be affected.

“Over the course of the year, the company has announced and implemented key organizational changes. The overall savings is currently expected to be reflected as a reduction in 2015 G&A expense by approximately 18 percent from 2014 levels, or $64 million, and will be fully realized in 2016,” the company said.

The company reported a third quarter net loss of $1.59 billion, or a loss of $9.26 per diluted share, including a $2.30 billion non-cash impairment of oil and natural gas properties, or $1.53 billion net of taxes.

“The non-cash impairment is caused by the low market price for future production, as demonstrated by oil prices that declined between $8 and $15 per barrel compared to three months earlier,” the company said.

The property impairments are tied to the Seal heavy oil field in Western Canada, and oil and natural gas fields offshore Malaysia and the deepwater Gulf of Mexico.

Net loss from continuing operations in the third quarter was $1.58 billion, or $9.22 per diluted share.

Earnings before interest, taxes, depreciation and amortization (EBITDA) from continuing operations in the third quarter 2015 totaled $356.8 million, or $18.68 per barrel of oil equivalent (boe) sold.

Third quarter 2015 production averaged nearly 207,600 barrels of oil equivalent per day (boepd), slightly ahead of the company’s 200,000 boepd guidance.

Murphy Oil boosted its full-year 2015 production guidance to a range of 205,000 to 209,000 boepd and expects fourth quarter production to be 199,000 boepd.

Capital expenditure guidance for full-year 2015 was reaffirmed at $2.3 billion.


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