The independent oil and gas company with assets and operations in the UK and Canada, I3 Energy (I3E ) will move from a bi-annual to a monthly schedule for its dividend payments.
I3 Energy, which has a production base in Canada’s most prolific hydrocarbon region, the Western Canadian Sedimentary Basin as well as further appraisal assets in the North Sea, will declare its first monthly dividend during the first half of February for payment in March.
I3 has forecasted robust cash flow generation from production following an intense period of accretive growth since its mid-2020 entry into the Western Canadian Sedimentary Basin. It said ‘predictable, low-decline assets’ continue to outperform management’s expectations.
Upon review of its corporate dividend policy, the firm’s board of directors has determined that moving to a monthly dividend payment will expedite the return of capital to its shareholders, enabling potential reinvestment and improved returns ‘during a time of market strengthening.’
Shares in I3 Energy were trading 3.69% higher at 15.32p following this morning’s news. Since the beginning of 2022, the stock has gradually increased in value, having gained around 11%.
As previously announced, during the course of 2022 i3 Energy will pay a minimum dividend totalling £11.827 million, representing a 7.1% yield at the closing price on 2 February 2022.
I3 said the dividend will be divided and paid in 10 equal increments while the board continues to monitor the quantum and scheduling of future distributions to ensure the Company remains aligned to its disciplined growth strategy while providing consistent shareholder returns.
Commenting on this morning’s news, Chief Executive of i3 Energy, Majid Shafiq, said: “We are confident in the predictability of our future cash flow, and a monthly dividend will appeal to investors seeking regular income and the option for reinvestment to improve returns.”
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