OIL JU­NIORS CUT DIV­I­DENDS, OUT­PUT ON LOW CRUDE PRICE

National Post (National Edition) - - FINANCIAL POST -

A pair of junior Cal­gary oil com­pa­nies are cut­ting pay­outs to share­hold­ers and re­duc­ing pro­duc­tion be­cause of cur­rent steep dis­counts on west­ern Cana­dian oil prices. Both Car­di­nal En­ergy Ltd. and Gran­ite Oil Corp. say they can’t af­ford to wait and see if pro­duc­tion cuts im­posed by the Al­berta gov­ern­ment start­ing Jan. 1 will work to drain a glut of oil and thus al­low prices to re­cover. Car­di­nal shares fell by more than six per cent in early trad­ing on the Toronto Stock Ex­change af­ter it an­nounced it would tem­po­rar­ily cut its monthly div­i­dend from 3.5 cents to a penny per share in view of “em­bar­rass­ingly low prices” in the fourth quar­ter. Gran­ite stock fell as much as 4.7 per cent af­ter it an­nounced it would sus­pend its monthly div­i­dend of 2.3 cents per share.

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