Oklahoma City’s Continental Resources Inc. has suspended its quarterly dividend because of what it calls the “demand destruction” caused by COVID-19 pandemic.
In an announcement this week, Bill Berry, Chief Executive Officer said the company will continue taking “decisive” action to maximize cash flow generation, accomplish cost savings initiatives and prioritize the strength of the company’s balance sheet.
“Global crude oil and product demand is estimated to have been impacted by 30% due to COVID-19. Accordingly, we are reducing our production for April and May 2020 in a similar range.”
Furthermore, the Board of Directors has made the decision to suspend the quarterly dividend until further notice. This is part of the Company’s proactive strategy to manage cash flow in a challenging commodity price environment.
Source: Continental Resources