Business
Ensign Announces Reductions in 2020 Capital Expenditure Plans and Implementation of Cost Reductions
Ensign Announces Reductions in 2020 Capital Expenditure Plans and Implementation of Cost R...
About this update from Ensign Energy Services Inc.
[{"type":"text","content":"\n\n\n\nEnsign Announces Reductions in 2020 Capital Expenditure Plans and Implementation of Cost Reductions\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n\n\n\n\n\n\n\nCanada NewsWire\nCALGARY, March 23, 2020\n\n\n\nCALGARY, March 23, 2020 /CNW/ - Ensign Energy Services Inc. (\"Ensign\" or the \"Company\") is, along with the balance of the oil and natural gas services industry, facing challenges in these extraordinary times. Oil demand losses due to the impact of COVID-19 virus combined with a market share and price war between Russia, Saudi Arabia and other global producers has pushed oil prices to levels not seen since early 2002. \nDuring this period of uncertainty and commodity price weakness the Company continues to focus on the safe operations of our rigs, keeping our employees safe and healthy, recognizing customer priorities, and protecting our liquidity and balance sheet. \nEnsign's Board of Directors and management has been monitoring the recent challenges mentioned above and is responding to mitigate their negative impacts. \nAs a result the Company has reduced our capital expenditure plans for the 2020 fiscal year.  The revised capital expenditure budget for 2020 is reduced from the previously announced 2020 budget of $100 million  to $60 million and will be comprised largely of maintenance capital items.\nEnsign has taken further steps to reduce our costs, by reducing the salaries of the Company's named executive officers by 40%  for the Chairman, 20% for the President and Chief Operating Officer and 12.5% for the other named executive officers, all effective April 1, 2020. In addition, the Board of Directors' compensation has been reduced, also effective April 1, 2020, by 20% for cash retainers and 40% for equity compensation. Such reductions reflect the Company's belief in the importance of cost control in light of the current oilfield services industry outlook. These steps were taken notwithstanding, Ensign's low general and administrative costs relative to industry benchmarks. It goes without staying the Company will continue to monitor the environm...