Canadian Energy Companies Slash Billions In Spending on Oil Glut

Kevin Orland

14 Mar 2020, 06:04 PM IST

(Bloomberg) -- Canadian energy companies are slashing their spending plans for this year as low oil prices make most production unprofitable, straining their cash flow.

Here is a summary of how companies are responding to the slump:

Company	Response
Husky Energy	Cutting spending plan by C$1 billion ($720 million) and reducing production forecast by about 5%
Cenovus Energy	Reducing spending 32% to a range of C$900 million to C$1 billion and lowering production outlook by about 5%
MEG Energy	Slashing capital spending by 20% to C$200 million
ARC Resources	Lowering capital budget 40% to as much as C$300 million and cutting monthly dividend 60% to 2 cents a share. After March, company will switch to a quarterly dividend of 6 cents
Seven Generations	Trimming capital budget 18% to C$900 million and reducing production forecast 7.4%, to 185,000 to 190,000 boe/d
Birchcliff Energy	Reducing 2020 capital spending plan by 19% to a range of C$275 million to C$295 million
Surge Energy	Deferring some capital spending from the first quarter into the second half of the year and cutting dividend to 1 cent a share per year, from 10 cents
Pipestone Energy	Cutting capital spending 60% to a range of C$55 million to C$65 million.
Gran Tierra	Lowering capital budget 67% to range of C$60 million to C$80 million.
Bonterra Energy	Suspending monthly dividend, starting in April. Setting capital budget of C$25 million, a 53% from last year.
Gear Energy	Reducing capital spending 74% to C$13 million

To contact the reporter on this story: Kevin Orland in Calgary at korland@bloomberg.net

To contact the editors responsible for this story: Simon Casey at scasey4@bloomberg.net, Derek Decloet