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Husky Energy CEO Asim Ghosh attends the company's annual meeting in Calgary in 2013.Jeff McIntosh/The Canadian Press

The squeeze on Canada's oil patch grows ever tighter amid the collapse in oil prices.

Two more companies, Husky Energy Inc. and Penn West Petroleum Ltd., announced Wednesday cuts to capital spending.

Penn West went even further, slashing its dividend amid new crude price assumptions.

The Calgary company said it would cut the quarterly payout to just 3 cents from 14 cents beginning next quarter. That's a reduction of some $160-million.

At the same time, Penn West said it will cut capital spending by some $215-million to $625-million.

"In November 2014, when Penn West announced its 2015 capital budget, the forward strip for crude oil was in the range of the company's Canadian per-barrel modeling assumption of $86.50," the company said.

"Since that time, however, crude oil prices have declined significantly. Reflecting this reduction in the outlook for crude oil prices, the company has reduced its Canadian crude oil pricing assumption for 2015 by approximately 25 per cent to $65 per barrel."

Husky, meanwhile, said it will cut capital spending next year to $3.4-billion from the $5.1-billion forecast this year amid the plunge in oil prices and the near competition of two big projects.

"We continue to steer a steady ship through stormy waters," chief executive officer Asim Ghosh said in a statement.

"Our strong financial position and resilient portfolio are helping weatherproof our business against current market conditions."

Husky projected average production at 325,000 to 355,000 barrels of oil equivalent a day.