Shares of Birchcliff Energy Ltd. fell more 10 per cent in early trading after the company cut its quarterly dividend in half and lowered its expectations for capital spending and production for the year.
Birchcliff chief executive Chris Carlsen says the company is reducing its payment to shareholders in order to protect its balance sheet during what he says is a current period of low natural gas prices.
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The company says it will pay a quarterly dividend of 10 cents per share, down from 20 cents per share.
Birchcliff also says it now plans $240 million to $260 million in finding and development capital spending for the year, while annual average production is expected to remain relatively flat in 2024 at 74,000 to 77,000 barrels of oil equivalent per day.
The outlook compares with Birchcliff’s preliminary estimate released in November for $260 million to $280 million in finding and development capital spending and annual average production of 77,000 to 79,000 boe/d for 2024.
Shares in the company were down 68 cents at $5.06 in trading on the Toronto Stock Exchange.