Canadian integrated oil and natural gas company
Cenovus Energy Inc. (TSX: CVE) announced on Thursday that it will temporarily suspend its dividend and is reducing its planned 2020 capital spending by
$150 million.
Coupled with the
$450 million reduction announced March 9th, 2020, this is a $600 million decrease from the budget released in December 2019. The company now expects to spend between $750 million and $850 million this year. CVE had paid a quarterly dividend of 6.25 cents per share.
Cenovus President & Chief Executive Officer Alex Pourbaix stated that the move was in response to the low global oil price environment that is expected to continue for an unknown amount of time.
“Consistent with our commitment to balance sheet strength, we’re exercising our flexibility to reduce discretionary capital while maintaining our base business and delivering safe and reliable operations.”
The news release added that CEO Pourbaix will have his annual base salary reduced by 25% effective May 1st 2020, other executives will take a 15% cut, while vice-presidents and their equivalents in technical positions will see a 12% reduction and board will have their compensation cut by 25%.
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