CALGARY, Alberta, June 12 Enerplus Corp
said on Tuesday it will cut its monthly dividend by half as the
Canadian oil and gas producer looks to cope with weak commodity
Enerplus said it would chop the monthly payout to 9 Canadian
cents from 18 Canadian cents beginning next month.
"We believe this reduction will strike a better balance
between yield and growth, allowing continued investment into our
asset base in a more sustainable manner," the company said in a
Weakening oil prices and natural gas prices near decade lows
are cutting into producer cash flows and lowering profits.
However, Enerplus said it still intends to spend about C$800
million ($777 million) on drilling this year, with 40 percent of
that going to the prolific Bakken shale-oil field in North
Dakota as it looks to double production there this year.
Enerplus shares rose 35 Canadian cents to C$13.52 on the
Toronto Stock Exchange on Tuesday. It announced the dividend cut
after trading ended for the day.