NRG NRG Energy Inc

NRG Energy Inc. and Consol Energy Inc. on Monday said they would slash their dividends, the latest energy firms to alter their payout to shareholders amid a continued slump in commodities prices.

Consol said it agreed to sell its Buchanan mine and other coal assets in the Virginias and southwestern Pennsylvania to a private-equity group in a $420 million deal, the proceeds of which would go toward reducing debt. In conjunction with the sale, Consol said it would suspend its quarterly dividend of a penny a share.

NRG, meanwhile, said it would cut its annual dividend to 12 cents a share from 58 cents, a move it said would provide the company with an extra $145 million annually.

Energy companies have been halting or reducing their dividends recently to buoy their cash reserves amid a rout in commodities. Some investors say a dividend cut can help improve a company's overall health.

Energy companies in the S&P 500 cut about $6.2 billion in dividends last year, the highest number of companies in a single sector in the S&P 500 to have reduced their dividend in 2015.

Write to Joshua Jamerson at joshua.jamerson@wsj.com

(END) Dow Jones Newswires

February 29, 2016 08:35 ET (13:35 GMT)

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