Noble Energy Inc. said Tuesday that it will cut its dividend by 44% and slash capital spending in half this year as it faces a prolonged slump in commodity prices.

The Houston oil-and-gas producer will now pay out a quarterly dividend of 10 cents a share on Feb. 22, down from its previous dividend of 18 cents. Chief Executive Kenneth M. Fisher said Noble's board will evaluate its dividend on a quarterly basis.

The company is also aiming for capital spending of $1.5 billion this year, about 50% below its 2015 capital spending level when adjusting for its merger with Rosetta Resources Inc.

Noble joins a growing list of energy companies that have slashed their payouts and muted their capital spending as commodity prices have cratered.

Noble expects annual sales of about 390,000 barrels of oil equivalent a day, matching its 2015 level. The company said it also plans to reduce its debt.

Noble shares closed up 5.5% at $28.76 a share, down 39% in the past year.

Write to Chelsey Dulaney at Chelsey.Dulaney@wsj.com

(END) Dow Jones Newswires

January 26, 2016 17:35 ET (22:35 GMT)

Copyright (c) 2016 Dow Jones & Company, Inc.
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