06/17/2015 09:52 EDT | Updated 06/17/2016 05:59 EDT

Calfrac cuts dividend in half, raises 2015 capital budget by $12 million

CALGARY - Calfrac Well Services Ltd. (TSX:CFW) says its quarterly dividend will be cut by half with the next payment, reflecting the impact of low oil and gas prices on North American demand for its services.

The next dividend will be 6.25 cents per common share, payable July 15, down from 12.5 cents paid in April.

Calfrac says the reduction gives it flexibility to expand its operations in Latin America and to increase its 2015 capital budget by $12 million to buy equipment.

The company's stock opened at $7.59 on the Toronto Stock Exchange, down three per cent from the previous close, but recovered to $7.89 in later trading.