(Reuters) - Continental Resources Inc (N:CLR) said on Tuesday it would suspend its quarterly dividend and cut its production for April and May 2020 by about 30%, as it grapples with a plunge in oil prices and demand amid the novel coronavirus pandemic.
This follows the oil and gas producer's decision to slash its budget by about 55% to $1.2 billion last month and expectations that the cut would knock off less than 5% from its full-year production.
With global crude oil and product demand estimated to have been impacted by 30% due to COVID-19, Continental will continue to take decisive action to maximize cash flow generation and accomplish cost savings initiatives, Chief Executive Officer Bill Berry said in a statement
North American shale producers have cut planned expenditures and dividends, trying to shore up cash, as crude prices fall following a slump in demand due to the virus outbreak coinciding with moves by Saudi Arabia and Russia to flood markets with extra supply.
Peers Occidental Corp (N:OXY) and Apache Corp (N:APA) are among the drillers that have announced dividend cuts.