The stock of Birchcliff Energy is down 9% after the company announced that it is cutting its quarterly dividend in half.
The Calgary-based company said that, going forward, it will pay a quarterly dividend to stockholders of $0.10 per share, down from $0.20 per share previously.
Before the cut, Birchcliff had an annual dividend yield of 15%, among the highest of any company listed on the Toronto Stock Exchange.
The dividend cut comes as Birchcliff lowers its outlook for both capital spending and oil production in 2024.
The company says that it now expects $240 million to $260 million in capital spending this year, while its production is forecast to remain flat at 74,000 to 77,000 barrels of oil equivalent per day.
Chris Carlsen, chief executive of Birchcliff, said in an interview with BNN Bloomberg that the 50% dividend cut makes the shareholder payout “sustainable for the long term.”
Birchcliff’s stock has now declined 42% over the last 12 months to trade at $5.22 per share.
