Pengrowth Energy: The Dividend Remains Intact For Now

Pengrowth Energy (NYSE: PGH) had one of its worst stretches in a long time in Q4 2014. As you may be aware of, oil prices have collapsed, down 55% in mere weeks, sending shares of anything energy related much lower. Pengrowth is no exception, down ~60% from its summer highs.PGH data by YChartsDividend kept at C$0.04 per shareDespite much lower oil prices, Pengrowth has yet to adjust its dividend level. On January 12, 2015, the company declared a cash dividend of C$0.04 per share, or around USD$0.034 per share (C$1.00 equals USD$0.838), good for the month of January. At current prices, Pengrowth's dividend yield is nearly 15%.Needless to say, this is a very good sign of Pengrowth's financial strength. Unlike some of its Canadian E&P peers, like Penn West (NYSE: PWE) and Baytex (NYSE: BTE), Pengrowth has not yet needed to lower its dividend. As I noted in a recent article, this is largely a result of Pengrowth's robust hedges for 2015, which essentially shield it from most of the oil price decline.Dividend may be cut at the upcoming Investor Day eventThat being said, I think Pengrowth is telegraphing a change in its dividend policy. The following quote is from the dividend declaration press release (emphasis added):Pengrowth's Board of Directors and management regularly review the level of dividends. Pengrowth's Board considers a number of factors, including expectations of future commodity prices, capital expenditure requirements and the availability of debt and... Read more