Magnolia Oil and Gas Corp. announced Jan. 31 it will be distributing a cash dividend of $0.115 per share of class A common stock and a cash distribution of $0.115 per class B common stock to shareholders on record as of Feb. 10, payable on March 1.
The distribution is a 15% increase to the company’s quarterly dividend rate and is a payout rate of $0.46 per share annualized.
Magnolia’s business model principles maintain low leverage and limit capital spending to generate consistent cash flow and volume growth, said Chris Stavros, Magnolia president and CEO in a Jan. 31 press release.
“Magnolia’s philosophy toward dividends is meant to appeal to long-term investors who seek dividend safety, consistent dividend growth, and a dividend that is paid out of actual earnings generated by the business,” said Stavros. “We believe that our dividend is secure at product prices below mid-cycle levels and expect the dividend to grow annually as we continue to execute our business plan.”
The company plans on reducing outstanding shares by 1% per quarter and anticipates total production in 2023 to grow by approximately 10%. Total production growth exceeded 14% in 2022.
“Our ongoing efforts toward reducing our outstanding shares and delivering moderate annual production growth are expected to support annual dividend growth of approximately 10% over time, which is an important component of Magnolia’s total shareholder return proposition,” said Stavros in the press release.
Magnolia is an oil and gas E&P company operating primarily in Texas’ Eagle Ford and Austin Chalk.
Recommended Reading
NOV's AI, Edge Offerings Find Traction—Despite Crowded Field
2024-02-02 - NOV’s CEO Clay Williams is bullish on the company’s digital future, highlighting value-driven adoption of tech by customers.
TechnipFMC Eyes $30B in Subsea Orders by 2025
2024-02-23 - TechnipFMC is capitalizing on an industry shift in spending to offshore projects from land projects.
Flame Acquisition Holders Approve Merger with Sable Offshore
2024-02-14 - The business combination among Flame Acquisition Corp., Sable Offshore Holdings and Sable Offshore Corp. will be renamed Sable Offshore Corp.
SLB’s ChampionX Acquisition Key to Production Recovery Market
2024-04-21 - During a quarterly earnings call, SLB CEO Olivier Le Peuch highlighted the production recovery market as a key part of the company’s growth strategy.
W&T Offshore Adds John D. Buchanan to Board
2024-04-12 - W&T Offshore’s appointment of John D. Buchanan brings the number of company directors to six.