Denver-based DCP Midstream, LP, plans to lay off 136 employees, according to a Jan. 25 WARN notice the company sent to the Colorado Department of Labor and Employment and the City of Denver. 

The company expects the layoffs to be permanent and to start on March 31, according to the letter from Lisa Mora, DCP’s senior human resources business partner. 

“There will not be any bumping rights for the affected employees,” Mora wrote. “The affected employees are not represented by a union.”

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WARN is Colorado’s Worker Readjustment and Retraining Notification Act. Companies must warn state and city officials before layoffs. 

DCP Midstream (NYSE: DCP), 6900 E. Layton, Denver, is a Fortune 500 natural gas company “dedicated to meeting the energy and consumer needs of our society. With a focus on technology and innovation, we safely and reliably operate a strong and diversified portfolio of logistics, marketing, gathering and processing assets across nine states,” according to its website. 

The company is currently Colorado’s largest oil and gas employer at 1,800 employees, according to the Denver Business Journal. 

It was recently acquired by Phillips 66 (NYSE: PSX) for $3.8 billon worth of options. 

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According to Phillips 66 fourth quarter earnings report, released in January, the deal was to “acquire all of the publicly held common units representing limited partner interests in DCP Midstream for cash consideration of $41.75 per common unit, increasing its economic interest in DCP Midstream to 86.8%.”

It’s also owned by Enbridge, a Canadian oil and gas pipeline business.

“We are delivering on our commitment to grow our NGL (natural gas liquids) business,” Phillips 66 President and CEO Mark Lashier said in a release. “Our wellhead-to-market platform captures the full NGL value chain. As we continue integrating DCP Midstream, we are unlocking significant synergies and growth opportunities.”

Phillips 66 expects to “capture operational and commercial synergies of at least $300 million by integrating DCP Midstream into its existing midstream business,” according to the release.

According to a company spokesperson in a statement to The Denver Gazette:

“In August, Phillips 66 announced the realignment of its economic and governance interests in DCP Midstream, which resulted in Phillips 66 becoming responsible for conducting, directing and managing the business of DCP Midstream and its general partner entities. As a result, Phillips 66 has been working toward an integration of DCP Midstream’s assets and operations into its Midstream segment.”

The layoffs are part of the company reorganization.

“In light of this integration, some employees have been given new assignments in their current location while some have been offered positions at other sites, and some positions have been eliminated,” said Eunice Bridges, Phillips 66 media relations, in an email statement. “This has resulted in a reduction in force at various locations.”

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