Crescent Point cuts capital spending and dividend
The cuts are the result of recent drops in commodity prices
CALGARY – Crescent Point Energy Corp. is cutting its capital spending plan by about 35% and slashing is dividend due the recent drop in commodity prices.
The company said it is now planning for $700 million to $800 million in capital spending.
That’s compared with earlier capital spending plans for between $1.1 billion and $1.2 billion.
Crescent Point also said that after payment of its first quarter dividend of a penny per share, it will reduce its payment to shareholders to a quarterly cash payment that equates to a penny per share per year.
It is also deferring share repurchases under its normal course issuer bid with flexibility for it to be resumed as market conditions warrant.
Crescent Point said production this year is expected to average between 130,000 and 134,000 barrels of oil equivalent per day, down from earlier expectations for between 140,000 and 144,000.