Another Company cuts costs and suspends dividend. Another Company cuts costs and suspends dividend.
Penn West announced this morning that it will cut its 2015 capex for the second time in just over a month with a 13% reduction.
Penn West will be adjusting go-forward capex to equal cash flow, which given current prices implies a further major reduction in expenditures.
What does this tell investors? The world is not looking very bright. Kicking Horse is no Penn West, but what it is saying a major producer is having to cut costs substantially, that is not a good indicator for the KCK.