Continental Resources Inc said on Tuesday it would suspend its quarterly dividend and cut its production for April and May 2020 by about 30%, as it grapples with a plunge in oil prices and demand amid the novel coronavirus pandemic.
This follows the oil and gas producer's decision to slash its budget by about 55% to $1.2 billion last month and expectations that the cut would knock off less than 5% from its full-year production.
With global crude oil and product demand estimated to have been impacted by 30% due to COVID-19, Continental will continue to take decisive action to maximize cash flow generation and accomplish cost savings initiatives, Chief Executive Officer Bill Berry said in a statement.
North American shale producers have cut planned expenditures and dividends, trying to shore up cash, as crude prices fall following a slump in demand due to the virus outbreak coinciding with moves by Saudi Arabia and Russia to flood markets with extra supply.
Peers Occidental Corp and Apache Corp are among the drillers that have announced dividend cuts.
(Reporting by Shanti S Nair in Bengaluru; Editing by Shailesh Kuber) ((ShantiS.Nair@thomsonreuters.com; +1 646 223 8780 Ext: 7208; Twitter: https://twitter.com/shanti_2594;))
