CALGARY, Alberta, Dec 8 (Reuters) - Trilogy Energy Corp said on Monday it would end its monthly dividend and slash capital spending next year as the Western Canadian oil and gas producer looks to weather low commodity prices.
The company said it will end its 3.5 Canadian cents per share monthly payout after the planned Dec. 15 dividend in order to preserve cash for operations. However it plans to launch a share buyback program for about 6 percent of its 105 million outstanding shares over the 12 months following exchange approval for the offer.
The company also cut its capital budget next year to C$250 million ($218 million), down 38 percent from the C$400 million budget it set for 2104, as it looks to keep production flat next year at about 35,000 barrels of oil equivalent per day.
Trilogy is the latest Canadian energy company to cut back on capital spending to cope with oil prices that have dropped by more than a third since June. Precision Drilling Corp Canada’s No.1 oilwell driller, said on Monday it would cut its capital spending next year by 44 percent as its customers adjust to lower oil prices.
Shares in Trilogy were down 11 percent to C$7.98 by midafternoon on the Toronto Stock Exchange ($1 = 1.1457 Canadian dollars) (Reporting by Scott Haggett; Editing by Meredith Mazzilli)