Jan 12 (Reuters) - Shares of NAL Energy Corp fell 8 percent on Thursday after the Canadian oil and gas producer lowered its 2012 capital budget and cut its monthly dividend, prompting at least four brokerages to slash their price targets on the stock.
NAL reduced its dividend to 5 Canadian cents a share from 7 Canadian cents a share in view of the weak natural gas prices.
The company also set a lower capital budget for 2012 of C$200 million, compared with C$200-C$230 million projected for 2011.
BMO Capital Markets, Macquarie Research, RBC Capital Markets and National Bank Financial cut their price targets on the stock.
Macquarie Research said the company’s capital spending program is too conservative for it to reach its production goals.
Shares of the company were down 5 percent at C$7.11 in morning trading on the Toronto Stock Exchange. They had touched a one-month low of C$6.98 earlier in the session. (Reporting by Maneesha Tiwari in Bangalore; Editing by Maju Samuel)