Bonterra Reduces December Cash Dividend
Bonterra has announced that the monthly cash dividend to all holders of common shares for the month of December will be reduced to $0.16 from the previous amount of $0.20 (reduction of 20 percent) and will be paid on January 30, 2009. The record date for the dividend is January 15, 2009, and the ex-dividend date is January 13, 2009.
The dividend level is paid monthly and is subject to commodity prices and production levels. During 2008, Bonterra was able to increase the dividend (formerly paid as a distribution) due to the substantial increase in commodity prices, most notably in crude oil. However, the continuing significant decrease in oil and natural gas prices has resulted in a decrease in cash flow. This reduction is necessary to preserve balance sheet strength.
The Board of Directors will continue to monitor commodity prices and production volumes and will adjust dividend levels up or down in accordance with cash flow. Bonterra currently intends to continue to pay out between 75 and 80 percent of its cash flow and retain the remainder for capital expenditures.