The oil crisis hit a McAlester energy firm in recent weeks as STEP Energy announced the layoff of 15 workers.
The Calgary, Alberta-based company notified the Oklahoma Office of Workforce Development of the move. It was part of the Canadian company’s decision to cut its 2020 planned capital program by 50% to $23.5 million.
In an announcement, STEP Energy said it had reduced general and administrative and operations overheard by 50% through “headcount reductions” and salary rollback for the remaining workers. It also reduced Board compensation by 20%.
STEP is an oilfield service company that provides stand-alone and fully integrated fracturing, coiled tubing and wireline solutions. It expanded operations into Oklahoma in 2018 when it acquired Tucker Energy Services in a $275 million cash deal.
Tucker was a privately owned and geographically focused provider of fracturing and completion solutions operating primarily in the SCOOP/STACK and Woodford plays in Oklahoma.
STEP made the acquisition as rig count in the SCOOP and STACK plays had increased more than 100% during the two previous years. The Tucker senior leaders also agreed to join STEP and continue operating the business. STEP expected at the time to leverage new business from its existing coiled tubing client relations in the Permian and Eagle Ford plays with Tucker’s fracturing and coiled tubing clients in Oklahoma.
Source: STEP Energy