The economic toll of the spreading coronavirus pandemic, combined with travel restrictions and bans on large gatherings, is forcing Dallas-Fort Worth companies to conserve cash to weather the pandemic.
Here are some of the actions taken Tuesday by North Texas companies:
EnLink Midstream LLC
The Dallas-based company said it’s reducing capital spending and deferring growth plans this year by 30% to save $90 million to $140 million. It attributed the move to several of its key energy customers “decreasing drilling and completions activity in response to the current oil price environment.”
EnLink said it expects to be able to pay for its planned $225 million to $285 million in projects this year without having to seek financing. That’ll allow it to focus on customers that it believes will remain active players, including Exxon Mobil subsidiary XTO Energy Inc. and Venture Global LNG Inc.
“We believe these actions will preserve our financial liquidity and flexibility while protecting our balance sheet,” said CEO Barry E. Davis in a statement.
Midstream firms assist extraction companies in moving natural gas, crude oil and condensate to refineries and chemical plants.
EnLink, the region’s 22nd largest public company, closed out 2019 with $1.4 billion available on its credit line and no near-term debt maturities. It had $6 billion in revenue last year and 1,355 employees.
Kosmos Energy
The Dallas-based deepwater oil and gas company will cut an unspecified number of jobs and eliminate employee bonuses this year as part of a plan to reduce operating expenses by $60 million.
It also will suspend its quarterly dividend payments, saving an additional $75 million.
Kosmos also is reducing capital spending by 30%, mainly by foregoing $100 million of exploration activities in the Gulf of Mexico, and is pushing phased projects in Mauritania and Senegal back to later in the year.
The company ended 2019 with $1.5 billion in revenue and 360 employees. It reported a $55 million loss for the year.
Sabre
Southlake-based airline booking company Sabre Corp. suspended its regular dividend on Tuesday and said it would temporarily stop repurchasing stock “to better manage its cash position in light of current market conditions caused by the novel coronavirus (COVID-19),” according to a regulatory filing.
Sabre, which helps ticketing and scheduling for major carriers, also warned that it may not meet financial stress tests required by its lenders.
It had revenue of $3.9 billion last year and 9,250 employees.
Movie theaters
Add movie theaters to the list of places shutting down in response to COVID-19. That includes:
- AMC Theatres, 21 locations in Dallas-Fort Worth: Closed at midnight Monday until further notice. “We are ever so disappointed for our moviegoing guests and for our employee teams,” said AMC chief executive Adam Aron. “Still, the health and well-being of AMC guests and employees, and of all Americans, takes precedence above all else.”
- Cinemark, 345 locations in the U.S.: The Plano-based company said it’s closing its theaters “as a proactive measure in support of the health and safety of its employees, guests and communities.”
- Regal Cinemas, two D-FW locations: Announced the immediate closure of all cinemas indefinitely starting Tuesday, “as a precaution amid the current circumstances.”
- Alamo DraftHouse, six locations in North Texas: The Austin-based company Tuesday announced closings across the nation, with the exception of one franchise in Virginia. “This news — this situation — is devastating,” the company said.
- Studio Movie Grill, 10 theaters in North Texas: The Dallas-based company originally intended to remain open under a reduced seating arrangement but since has followed other movie chains in shutting down operations.
- Landmark Movie Theatres, two D-FW locations: The Magnolia and Inwood theaters are temporarily closed as of Monday night, said Hugh Wronski, senior regional publicist for the Los Angeles-based company.
