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ARC Resources Ltd. cut its capital budget and slashed its dividend to help deal with the plunge on commodity markets.

The oil and gas producer says it has reduced its capital budget for this year to no more than $300 million compared with an earlier plan to spend $500 million.

ARC also says it will start paying a quarterly dividend of six cents per share instead of a monthly dividend of five cents per share.

The majority of the capital spending that is being deferred in 2020 relates to drilling and completions activities in the greater Dawson and Ante Creek areas.

The company says that while the reduced capital program does reduce its 2020 production guidance modestly, the deferred drilling and completions are expected to have a larger impact on production in 2021.

ARC says the changes are consistent with its long-term strategy of maintaining a strong balance sheet, delivering a meaningful and sustainable dividend and investing in profitable growth.

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