- Two oil-related dividend cuts provoked sharply different responses in today's trade: San Juan Basin Royalty Trust (NYSE:SJT) slumped 9% after announcing it would have no cash distribution for April, but Legacy Reserves (LGCY) jumped 9% after finally caving in to pressure to cut its dividend.
- At SJT, a distribution normally would be made in April based principally upon production during February, but the Trust said no cash distributions would be distributed until future net proceeds are sufficient to pay then-current Trust liabilities and replenish cash reserves.
- In contrast, LGCY cut its Q1 dividend to $0.35 from $0.61 in Q4 but it also reaffirmed its $30M capital spending budget for the year and said it is realizing better than expected reductions in operating and capital costs - plus, a bit of straight talk from the CEO may have helped reassure investors.