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by Stockwatch Business Reporter

West Texas Intermediate crude for September delivery lost 27 cents to $48.52 on the New York Merc, while Brent for September lost seven cents to $53.31 (all figures in this para U.S.). Western Canadian Select traded at a discount of $16.00 to WTI ($32.52), down from a discount of $15.90. Natural gas for September lost 11.8 cents to $2.768. The TSX energy index added 5.28 points to close at 188.14.

More second quarter results rolled in from the oil patch. Some were good, some were not, and there was one especially bright spot in the form of Suncor Energy Inc. (SU: $36.81), up $2.19 on $36.81 on 13.1 million shares. Suncor used the opportunity to raise its quarterly dividend to 29 cents from 28 cents, for a yield of 3.1 per cent. It also raised its production guidance slightly while simultaneously trimming its budget. Another market-pleaser was Cenovus Energy Inc. (CVE), which added 39 cents to $19.00 on 6.32 million shares, as its surprisingly good financials offset news of a large dividend cut. The company posted a profit for the first time in three quarters. As well, that profit was larger than analysts had predicted, at 18 cents a share rather than 10. Cenovus was pleased, but also noted that persistently low oil prices (as well as its recent $3.3-billion sale of its royalty business) will take a toll on its future financial results. For that reason it has lowered its quarterly dividend to 16 cents from 26.62 cents. The 26.62-cent dividend had been in place since the beginning of 2014, and even after oil prices collapsed Cenovus was not keen on a cut, with president and CEO Brian Ferguson declaring during the first quarter conference call, "I do not want a variable dividend." Ultimately, though, the desire to have cash flow cover both the dividend and the $1.9-billion budget (which remains intact) won out. The new 16-cent dividend yields 3.3 per cent. In other cost-cutting news, Cenovus plans to lay off 300 to 400 more people before year-end, on top of the 800 layoffs announced in February. It also says its operating costs at its core oil sands assets have gone down by nearly one-third compared with the second quarter of last year. Over all, it expects to exceed its target of reducing total costs by $218-million in 2015, although it does not say by how much.

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