Precision Drilling cuts monthly cash distribution 39% to 19 cents a unitadmin
Precision Drilling Trust is reducing its monthly cash distribution 39 per cent, to 19 cents a unit from 31 cents, citing a “persistent decline in natural gas and oil price trends.”
The payout for January will be payable Feb. 15 to unitholders of record as of Jan. 31.
Units of the trust fell $1.54, 5.6 per cent, to $26.08 in morning trading on the Toronto Stock Exchange.
The decrease “reflects the persistent decline in natural gas and oil price trends and the impact these conditions have on demand for Precision’s services,” the Calgary-based oil and gas services firm said Friday.
“As lower commodity prices are realized by natural gas and oil producers, their ability to fund exploration and development activities may become impaired. This has resulted in a reduction in equipment utilization on a seasonally adjusted basis for Precision.
The trust previously announced that its distribution reinvestment plan had been suspended until further notice.
Precision is Canada’s largest energy services trust. It provides access to an extensive fleet of contract drilling rigs, service rigs, camps, snubbing units, wastewater treatment units and rental equipment, backed by technical support services