Devon Energy Announces Industry-First Variable Cash Dividend for Common Stockholders
February 16 2021 - 04:05PM
Devon Energy Corp. (NYSE: DVN) announced today that its board of
directors has declared a $128 million variable cash dividend in the
amount of $0.19 per share based on the company’s pro forma
fourth-quarter 2020 financial results. The variable dividend is in
addition to Devon’s previously declared fixed quarterly dividend of
$0.11 per share. Both the fixed and variable dividends are payable
on Mar. 31, 2021 to shareholders of record at the close of business
on Mar. 15, 2021.
“We are excited to reward shareholders and
differentiate ourselves from peers by declaring an industry-first
variable dividend,” said Rick Muncrief, president and CEO. “With
our business scaled to consistently generate free cash flow, this
innovative ‘fixed plus variable’ dividend framework is uniquely
designed to enhance our ability to return meaningful and
appropriate amounts of cash to shareholders across a variety of
market conditions.”
The company’s “fixed plus variable” dividend
framework was implemented following closing of the merger with WPX
Energy on Jan. 7, 2021. This cash-return strategy is designed to
pay a sustainable fixed dividend and evaluate a variable dividend
on a quarterly basis. After the fixed dividend is funded, up to 50
percent of the remaining excess free cash flow in each quarter may
be distributed to shareholders through a variable dividend.
ABOUT DEVON ENERGY
Devon Energy is a leading oil and gas producer
in the U.S. with a premier multi-basin portfolio headlined by a
world-class acreage position in the Delaware Basin. Devon’s
disciplined cash-return business model is designed to achieve
strong returns, generate free cash flow and return capital to
shareholders, while focusing on safe and sustainable operations.
For more information, please visit www.devonenergy.com.
Investor Contacts |
|
Media
Contact |
Scott Coody, 405-552-4735 |
|
Lisa Adams, 405-228-1732 |
Chris Carr, 405-228-2496 |
|
|
FORWARD LOOKING STATEMENTS
This press release contains “forward-looking
statements” within the meaning of the federal securities laws. Such
statements are subject to a number of assumptions, risks and
uncertainties, many of which are beyond the control of Devon. These
risks include, but are not limited to: the risk that Devon may
reduce, suspend or totally eliminate dividend payments in the
future, whether variable or fixed, due to insufficient liquidity or
other factors; and the other risks identified in Devon’s 2020
Annual Report on Form 10-K and its other filings with the
Securities and Exchange Commission. Investors are cautioned that
any such statements are not guarantees of future performance and
that actual results or developments may differ materially and
adversely from those projected in the forward-looking statements.
The forward-looking statements in this press release are made as of
the date hereof, and Devon does not undertake, and expressly
disclaim, any duty to update or revise our forward-looking
statements based on new information, future events or
otherwise.
Devon Energy (NYSE:DVN)
Historical Stock Chart
From Feb 2024 to Mar 2024
Devon Energy (NYSE:DVN)
Historical Stock Chart
From Mar 2023 to Mar 2024