Beware! Further Dividend Cuts Expected For These 5 Stocks

High yielding dividend days of the companies on our list appear to be over

SmallCapPower | April 27, 2016: Moody’s recently downgraded Alberta’s credit rating from triple-A to double-A1, which will have a lasting impact on oil producers and their ability to pay interest. For investors this likely means dividend cuts, which could come from the companies on our list today.

Pengrowth Energy Corp. (TSE:PGF) – $1.87
Oil & Gas Exploration and Production

Pengrowth Energy Corporation is engaged in the production, development, exploration and acquisition of oil and natural gas assets. The Company is focused on further developing the Lindbergh Thermal Project, located in East Central Alberta, near Cold Lake. The Company’s principal conventional operations include Greater Olds/Garrington Area, where the Company holds a continuous land base with over 800 gross sections of Cardium-access rights, infrastructure and operatorship.

• Market Cap: $1,790,728,391
• Operating Income (LTM): -$955,400,000
• Price Performance YTD: 75%
• Change in Dividends (last 3 quarters): -87%

Enerplus Corp. (TSE:ERF) – $6.65
Oil & Gas Exploration and Production

Enerplus Corporation is a Canada-based energy producer. Its capital program is focused on the development of its crude oil and natural gas core areas of operation, which includes its North Dakota and Montana crude oil assets in the Williston Basin, and its natural gas interests in northeast Pennsylvania. The Company’s properties consist of approximately 42% crude oil and natural gas liquids (NGLs) and 58% natural gas properties.

• Market Cap: $1,354,898,858
• Operating Income (LTM): -$1,592,291,000
• Price Performance YTD: 38%
• Change in Dividends (last 3 quarters): -52%

Bonavista Energy Corp. (TSE:BNP) – $2.87
Oil & Gas Exploration and Production

Bonavista Energy Corporation is a resource company engaged in the acquisition, exploration, development and production of oil and natural gas assets. The Company’s West Central Core Area is characterized by natural gas and light oil resources. West Central Core Area is located within the Western Canadian Sedimentary Basin (WCSB) between Calgary and Drayton Valley, Alberta.

• Market Cap: $664,573,725
• Operating Income (LTM): -$788,996,000
• Price Performance YTD: 61%
• Change in Dividends (last 3 quarters): -46%

Surge Energy Inc. (TSE:SGY) – $2.29
Oil & Gas Exploration and Production

Surge Energy Inc. is a Canada-based oil and gas exploration, development and production company focused on and operated gravity crude oil properties, primarily in Alberta, Saskatchewan and Manitoba, characterized by oil in place crude oil reservoirs. The Company’s principal oil and natural gas producing properties are located in Alberta, Saskatchewan and Manitoba.

• Market Cap: $506,196,508
• Operating Income (LTM): -$280,897,000
• Price Performance YTD: 9%
• Change in Dividends (last 3 quarters): -33%

Bonterra Energy Corp. (TSE:BNE) – $26.93
Oil & Gas Exploration and Production

Bonterra Energy Corp. (Bonterra) is an oil and gas company engaged in the exploration, acquisition, development and production of oil and natural gas reserves in the provinces of Alberta, British Columbia and Saskatchewan. The Company’s development efforts are focused in the Cardium zone of the Pembina and Willesden Green fields located in west central Alberta. Bonterra operates 85% of its production with an average land working interest of 77%.

• Market Cap: $874,323,815
• Operating Income (LTM): $16,181,000
• Price Performance YTD: 53%
• Change in Dividends (last 3 quarters): -23%

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