The Successful Investor Hotline – Friday, September 4, 2015

Article Excerpt

PENGROWTH ENERGY CORP., $1.58, Toronto symbol PGF, continues to cut costs as low oil and natural gas prices hurt its earnings and cash flow. This week, the company said it would pay its final monthly dividend of $0.02 a share on September 15, 2015. It will then shift to a quarterly payout of $0.01 a share starting in December 2015. The new annual rate of $0.04 a share, down 83.3% from $0.24, yields 2.5%. Pengrowth will also suspend its dividend reinvestment plan with the December 2015 payment. Participants will then receive their dividends in cash until the company reinstates the plan. In the meantime, the company’s hedging plan should continue to help shield it from depressed oil and gas prices. For the remainder of 2015, it has hedged 78% of its oil production at $93.68 (Canadian) a barrel, compared to today’s spot price of $46.02 U.S. The company has also hedged 64% of its 2016 oil output at $89.08 (Canadian) a barrel. Hedges also…