Canadian operators cut nearly $2.5 billion from 2020 budgets

Kevin Orland March 15, 2020

CALGARY (Bloomberg) - Canadian oil and gas companies are cutting C$2.4 billion to C$3.5 billion ($1.7 billion-$2.5 billion) from their budgets for this year as low prices make most production unprofitable.

The latest producers to release capital spending cuts include Crescent Point Energy Corp., NuVista Energy Ltd., Vermilion Energy Inc. and Enerplus Corp.

Here is a summary of how companies are responding to the slump:

Husky Energy

Cutting spending plan by C$1 billion and reducing production forecast by about 5%

Cenovus EnergyReducing spending 32% to a range of C$900 million to C$1 billion and lowering production outlook by about 5%

MEG Energy

Slashing capital spending by 20% to C$200 million

Crescent Point

Cutting capital spending by about 35% to a range of C$700 million to $800 million, switching from quarterly dividend of 1 cent a share to dividend that equates to 1 cent a share per year, reducing production forecast about 7% to range of 130,000 to 134,000 barrels a day


Reducing capital spending about 20% to C$240 million, lowering monthly dividend to 2 cents a share from 11.5 cents, cutting production forecast about 5.9% to the equivalent of 94,000 to 98,000 barrels of oil a day


Slashing capital spending about 40% to C$325 million and reducing production forecast about 7.7% to equivalent of 89,000 to 92,000 barrels a day

ARC Resources

Lowering capital budget 40% to as much as C$300 million and cutting monthly dividend 60% to 2 cents a share. After March, company will switch to a quarterly dividend of 6 cents

Seven Generations

Trimming capital budget 18% to C$900 million and reducing production forecast 7.4%, to equivalent of 185,000 to 190,000 barrels a day

Birchcliff Energy

Reducing 2020 capital spending plan by 19% to a range of C$275 million to C$295 million


Cutting capital spending about 24% to C$240 million and reducing low end of production guidance to equivalent of 54,000 barrels a day, from 57,000

Surge Energy

Deferring some capital spending from the first quarter into the second half of the year and cutting dividend to 1 cent a share per year, from 10 cents

Pipestone Energy

Cutting capital spending 60% to a range of C$55 million to C$65 million

Gran Tierra

Lowering capital budget 67% to range of C$60 million to C$80 million

Bonterra Energy

Suspending monthly dividend, starting in April. Setting capital budget of C$25 million, a 53% from last year

Gear Energy

Reducing capital spending 74% to C$13 million

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