Throughout 2015, Pengrowth has made five key changes to the company’s overall strategy to “live within” their cash flow and combat a poor commodity price environment.
The company issued in a press release today the following:
“Pengrowth remains committed to taking actions to ensure the Company lives within its cash flow and looking at all options to reduce its overall indebtedness. Today’s dividend reduction is consistent with all of the measures the Company has taken in 2015 to counter the impact of falling prices and preserve its financial liquidity.
These measures include:
– A 78 percent reduction in anticipated 2015 capital spending compared to 2014.
– Targeted non-core asset sales of $600 million in 2015.
– Continued focus on capital cost reductions, resulting in a 20 to 25 percent reduction for most types of services.
– Ongoing staffing re-alignments with a seven percent reduction in head office full-time staff in the last nine months.
– Commitment to ongoing hedging efforts to protect future cash flows and capital programs.
In the absence of stronger oil prices, Pengrowth would expect 2016 capital spending to be under $100 million.”