Canadian Energy Companies Slash Billions In Spending on Oil Glut


(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:

Husky EnergyCutting spending plan by C$1 billion ($720 million) and reducing production forecast by about 5%
Cenovus EnergyReducing spending 32% to a range of C$900 million to C$1 billion and lowering production outlook by about 5%
MEG EnergySlashing capital spending by 20% to C$200 million
ARC ResourcesLowering 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 GenerationsTrimming capital budget 18% to C$900 million and reducing production forecast 7.4%, to 185,000 to 190,000 boe/d
Birchcliff EnergyReducing 2020 capital spending plan by 19% to a range of C$275 million to C$295 million
Surge EnergyDeferring 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 EnergyCutting capital spending 60% to a range of C$55 million to C$65 million.
Gran TierraLowering capital budget 67% to range of C$60 million to C$80 million.
Bonterra EnergySuspending monthly dividend, starting in April. Setting capital budget of C$25 million, a 53% from last year.
Gear EnergyReducing capital spending 74% to C$13 million

©2020 Bloomberg L.P.

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