OIL JUNIORS CUT DIVIDENDS, OUTPUT ON LOW CRUDE PRICE
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.