retiredcf wrote: Given that all Canadian energy companies are in survival mode, this cut seems prudent. And with the reduction in SP, this still amounts to a 4.2% dividend. GLTA
Our roundup of Canadian small-caps of between $100-million and $2.5-billion in market capitalization making news and on the move today.
Cardinal Energy Ltd. (CJ-T) is cutting its dividend citing "volatility in Canadian oil price differentials, coupled with the recent decline in world oil prices." Cardinal said it will temporarily reduce its monthly dividend to a penny or 12 cents annually, starting in December. That's down from a monthly dividend of 3.5 cents in November, according to its website.
"During the fourth quarter, Canadian oil producers have received embarrassingly low prices due to lack of pipeline egress," the company stated. "Industry is looking to truck and rail solutions to move oil to market instead of transporting it through the safest most cost-effective way in pipelines. Our lack of provincial and federal government leadership and failure to act in getting new export pipelines built is costing not only Alberta, but all Canadians significant revenue and future investment in our country. This week's Alberta government announcement is a much needed short-term solution but will not solve the long-term takeaway capacity issue facing our industry."
It added that, "although we don't think that the current pricing differentials between Canadian barrels and U.S. barrels will be permanent, we are obligated to our shareholders to protect our business and our balance sheet until Canadian prices improve."