Continental Resources, Inc. CLR has decided to curb production volumes and suspend dividend payouts in the wake of weak global energy demand owing to the coronavirus pandemic.
The upstream energy firm has estimated that the global demand for crude oil and products will get affected by 30%, thanks to the unfavorable business scenario. Henceforth, the company has decided to lower production volumes for the month of April and May by 30%.
Until further notice, the oil producer also got affiliation from the board of directors to suspend quarterly dividend payments. Thus, the company will maximize its cashflows during the pandemic when fuel demand has fallen drastically and oil prices have plunged. Continental added that its prime intention is to minimize costs, maximize cashflows and strengthen financials.
Notably, other energy players that opted for dividend cuts are Apache Corporation APA and Occidental Petroleum Corporation OXY.
Continental also cut its capital budget for 2020 by 55% since the crude pricing environment continues to remain weak. With the curtailment in capital spending, the company expects production volumes to decline less than 5% year over year. Another energy firm that reduced capital budgets to combat the pandemic is Cimarex Energy Co. XEC.
Continental Resources, Inc. Price
Continental Resources, Inc. price | Continental Resources, Inc. Quote
Based in Oklahoma City, Continental currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Apache Corporation (APA) : Free Stock Analysis Report
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