Northern Trust sees dividend risk for some oil companies

April 2, 2015 4:14 PM

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HOUSTON, April 2 (Reuters) - U.S. exploration and production companies will likely cut or eliminate dividends if low crude oil prices persist through the second half of 2015, a Northern Trust Co analyst told a meeting of the bank's clients on Thursday.

Exploration and production companies typically plow most of their cash into drilling new wells and do not pay fat dividends, but those lower-yield payouts are at risk as companies look to conserve cash, said Jackson Hockley, an analyst at Northern Trust.

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