CALGARY - CanElson Drilling Inc. said Monday it will reduce its quarterly dividend by 50%, defer the completion of three new drilling rigs, and reduce its capital budget by 80% as a result of low crude oil and natural gas prices.
On June 11, Trinidad Drilling Ltd. and CanElson Drilling Inc. announced an combination worth $505 million. However, while the value of the deal is over half a billion dollars, just a small fraction of that will be paid in cash.
In its first results since taking over rival CanElson Drilling Inc. in a cash and shares deal in August, Trinidad chopped its quarterly dividend to a penny per share from five cents, a move expected to save $36 million annually.
Trinidad has proposed the $505-million takeover of Calgary rival CanElson Drilling Inc., expected to close by Monday. On Friday, CanElson reported a second-quarter net loss of $1.7 million on revenue of $35 million compared with a profit of $5.5 ...
The company is also in the midst of combining its business with CanElson Drilling Inc., which will create one of the newest and largest fleets of oil and gas drilling rigs in North America with a combined 163 gross land drilling rigs.
On Tuesday, Trinidad Drilling Ltd. and CanElson Drilling Inc. finalized a $505 million deal they announced in June, but other companies are too worried about jeopardizing their own balance sheets to prey on weaker rivals.
CanElson Drilling Operations Manager Jamie Hopaluk tells CTV News the crew officially learned they were millionaires on Saturday morning, when the site's rig manager went to check their ticket at an Edson gas station.