UPDATE 2-Cenovus Energy to lower capex in 2016; no changes to dividend

Thu Dec 10, 2015 2:13pm EST
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article | Single Page
[-] Text [+]

* Expects to spend between C$1.4 bln and C$1.6 bln in 2016

* Has no plan to change dividend in 2016 - CEO

* Expects OK for advanced phase of Christina Lake project soon (Adds CEO comments, conference call details; updates share activity)

By Sneha Banerjee

Dec 10 (Reuters) - Canadian oil producer Cenovus Energy Inc said it expects its capital spending to be 19 percent less next year than in 2015 but has no plans to change its dividend.

Oil producers are tightening spending following a 60 percent drop in crude prices since June last year. Prices hit near seven-year lows this week after OPEC's decision to keep its high output target unchanged.

ConocoPhillips and Chevron Corp announced cuts to their 2016 budgets earlier this week.

Cenovus said it expects to spend between C$1.4 billion and C$1.6 billion ($1.03 billion and $1.18 billion) in 2016, down from C$1.8 billion-C$1.9 billion this year.

The company has already cut 700 jobs and slashed its dividend by 40 percent this year to 16 Canadian cents per share.   Continued...