Noble Energy Cuts Spending, Dividend to Preserve Cashby
Noble Energy Inc. said it will cut spending and investor payouts to save cash as oil has slumped about 70 percent since mid-2014.
The Houston-based producer is reducing its capital spending program 50 percent for 2016 to $1.5 billion, according to a statement Tuesday. Its quarterly cash dividend will be reduced by 8 cents to 10 cents per common share.
“The decision to adjust the quarterly dividend, along with a substantially reduced and flexible capital program for 2016, is part of a comprehensive effort to spend within cash flow and manage the Company’s balance sheet,” Chief Financial Officer Kenneth M. Fisher said in the statement. “We also intend to reduce leverage in this environment.”
The investment level the producer is planning for 2016 is expected to deliver annual sales volumes of approximately 390,000 barrels of oil equivalent per day, which is consistent with the full-year 2015 pro-forma amount, the company said.