Alberta is boosting the drilling industry by exempting new conventional oil wells from output curtailment. CALGARY – One of Canada’s largest drilling companies slashed its dividend in half after posting a quarterly loss as provincial government attempts to ease pain in the oilfield services sector do not appear to be working yet. Shares in Ensign Energy Services Inc. fell 14 per cent, or 38 cents, Tuesday to $2.30 each after the Calgary-based company announced it would cut its quarterly dividend to six cents per share from 12 cents and also cancel its dividend reinvestment plan “in recognition of prevailing industry conditions.” Conditions in the drilling industry continue to be bleak as spending by oil and gas companies declines as a result of low oil and natural gas commodity prices. The number of rigs actively drilling in Canada has fallen 29 per cent over the last year, to 140 from 196, according to Baker Hughes data. Ensign said it would look to use the money it saves from a lower dividend “to pursue alternative uses of available cash” as oilfield activity continues to slow. “Quite simply, the board decided to address the dilution and eliminate the DRIP while at the […]
