PDC/Chevron merger to result in layoffs in Evans

EVANS — The merger of PDC Energy Inc. into Chevron USA Inc. will result in about a third of the employees at the Evans facility at 4000 Burlington Ave. losing their jobs.

Chevron gave notice to the state Department of Labor and Employment Friday that it would lay off about a third of the workers at Evans and about a third of the workers at the company’s facility at 1099 18th St. in Denver.

Exact numbers of workers to be terminated was not clear Friday. CDLE said it had requested information from the company of the total number of workers at those two locations so it could calculate the maximum potential impact. 

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“Since the layoffs are related to an acquisition, they (employees) will be involved in a selection process and will continue to work for Chevron if selected. It is hard for us and for them to know at this point how many will be left without jobs at the end of the process,” Karen Hoopes, WARN coordinator for the labor department, said in an email response to a BizWest question. WARN is an acronym for Worker Adjustment and Retraining Notification Act.

Paula Beasley, communications adviser for Chevron’s Colorado unit, said the layoffs are part of integration of the two companies. “We are committed to bringing our companies together in a thoughtful, respectful, and transparent manner.”

“We are excited about the opportunity to welcome PDC Energy employees into Chevron. We have more than 500 open positions in the Rockies Business Unit for PDC Energy employees to post their interest and participate in a selection process. The PDC Energy employees are critical to our success as we continue to operate in the DJ Basin. Both companies have very comparable cultures that focus on safe and reliable operations, and benefiting the communities where we operate.” Kimberly McHugh, vice president of the Rockies Business Unit, said in a written response to BizWest questions.

In early August, Chevron completed its acquisition of PDC, one of the largest players in the Denver Julesburg Basin. The assets acquired include 275,000 net acres in the basin adjacent to Chevron’s operations; the $7.6 billion deal added more than a billion barrels of oil to the company’s reserves. 

In its notice to the state, Chevron said it had met with employees Thursday and sent written notices Friday. Layoffs are expected to be permanent, and employees will not have bumping rights, although there may be some opportunity for affected workers to interview for other vacancies.

Layoffs will begin Oct. 31, McHugh said.