Just days after ConocoPhilips became the first major to slash its dividend, moments ago Anadarco followed suit and announced, just one week after it reported earnings that, it too would virtually halt distribution to shareholders, when it said that it would cut its dividend – the first such action in decades – from 27 cents to just 5 cents per share, an 81% cut, and far above the more modest expected reduction of 14 cents.
The Board of Directors of Anadarko Petroleum Corporation (APC) today declared a quarterly cash dividend on the company’s common stock of 5 cents per share, payable March 23, 2016, to stockholders of record at the close of business on March 9, 2016. The quarterly dividend represents a 22-cent reduction from the prior level of 27 cents per share.
“We believe this adjustment to our dividend is the appropriate action to take in the current environment,” said Al Walker, Anadarko Chairman, President and CEO. “On an annualized basis, this action provides approximately $450 million of additional cash available to enhance our operations and financial flexibility. Our Board will continue to evaluate the appropriate dividend on a quarterly basis.”
Expect most other energy companies to follow suit, citing the “current environment” as the reason for halting distributions to shareholders.
via Zero Hedge http://ift.tt/1o0XFWh Tyler Durden