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by Stockwatch Business Reporter

West Texas Intermediate crude for February delivery lost $1.91 to $26.55 on the New York Merc, while Brent for March lost 88 cents to $27.88 (all figures in this para U.S.). Western Canadian Select traded at a discount of $14.60 to WTI ($11.95), unchanged. Natural gas for February added 2.7 cents to $2.118. The TSX energy index lost 1.76 points to close at 133.64.

Li Ka-Shing's Husky Energy Inc. (HSE) reached an intraday low of $11.33 before closing at $12.76, down 44 cents, on 8.01 million shares. It has suspended its dividend and lowered its 2016 budget and production guidance. The 30-cent quarterly dividend yielded 9.1 per cent as of yesterday's close and had been in place since early 2009. Husky had tried hard to keep it alive over the last several months. In late October, it decided to try paying the dividend in shares instead of cash, an unpopular move that helped send the stock down to $17.67 from $20.27 on Oct. 30. At the time, this was the stock's first close below $20 in a decade. Now, times are even tougher -- the stock is just $12 -- and Husky simply cannot justify the dividend, which has been scrapped. The company made sure to dangle the possibility of a dividend resurrection by promising to review its policy every quarter. Making this promise costs nothing, and nothing is all it will come to, investors seem to reckon. Meanwhile, Husky has also reduced its 2016 guidance. It said six weeks ago that it would spend $2.9-billion to $3.1-billion and produce 330,000 to 360,000 barrels of oil equivalent a day. Now the budget is $2.1-billion to $2.3-billion and the production guidance is 315,000 to 345,000 barrels a day. Production will go even lower if Husky makes progress on hoped-for asset sales to reduce its net debt, which was $6.8-billion as of Sept. 30.

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