Calfrac Well Services cuts dividend by 75% as it grapples with oil, gas downturn

CALGARY – Calfrac Well Services Ltd. (TSX:CFW) is cutting its dividend by 75 per cent, the second reduction this year in response to low oil and natural gas prices.

The Calgary-based company provides specialized oilfield services to increase production of wells drilled in western Canada, the United States, Russia, Argentina and Mexico.

Calfrac says its next payout to shareholders will be about 1.5 cents per common share, payable Oct. 15, down from 6.25 cents per share paid on July 15.

The dividend had been 12.5 cents per share from April 2014 to April 2015.

Calfrac also said Thursday that its dividend reinvestment plan will be suspended and all shareholders of record will receive dividends in cash on Oct. 15.

Calfrac said it’s continuing to reduce costs during the current downturn but didn’t provide details.