Denver-based Crestone Peak Resources plans to lay off 159 workers in Denver, Weld, Douglas and Arapahoe counties, according to documents filed with the Colorado Department of Labor and Employment.
The department requires companies operating in Colorado to report large layoffs. In a “warn listing” filed last week, Crestone announced the 56 eliminated positions in Denver, 90 in Weld and 13 jobs in Arapahoe and Douglas counties were because of “acquisition of company.”
The employees were warned last week and the layoffs are effective Oct. 15.
Asked to discuss the move, a Crestone spokesman replied via email: “Crestone does not comment on personnel matters.”
Crestone, formed in 2016, works in the Greater Wattenberg Field of Colorado’s Denver-Julesburg Basin. The company has offices in Firestone and Watkins.
In June, newly formed Colorado oil and gas company Civitas Resources announced it was buying Crestone. That was on the heels of its May announcement it was merging with Bonanza Creek Energy and Extraction Oil & Gas with an “all-stock merger of equals.”
The new company will be one of, if not the, biggest player in the Denver-Julesberg Basin.
The new company will be valued at $4.5 billion, cover more than 500,000 acres and have the ability to produce some 160,000 barrels of “oil equivalent per day,” according to a news release.
Civitas described its new company model as “defined by operational discipline, a strong balance sheet, commitment to free cash flow generation, financial alignment with stakeholders, environmental and community leadership, and best-in-class governance,” according to the release.
“Civitas is also proud that, inclusive of the Crestone assets, it will be Colorado’s first carbon-neutral oil and gas producer (scope 1 and scope 2) upon closing, advancing its net-zero goals.”
According to Civitas, Crestone’s primary shareholder is Canada Pension Plan Investment Board. CPP Investments will become Civitas’ largest shareholder and will designate one member to the Civitas board.