Petrus Resources Announces Declaration of Special Dividend
October 10 2023 - 5:05PM
Petrus Resources Ltd. (“Petrus” or the “Company”) (TSX: PRQ) is
pleased to announce the declaration of a special dividend on its
common shares.
GROWTH & RETURN OF
CAPITAL
Through the success of the 2022 capital program
and the execution of the 2023 capital program year to date, Petrus
has realized significant growth and produced strong financial and
operating results. Petrus’ previously announced capital budget for
2023 is designed to prioritize strategic investments while also
allowing the Company to generate considerable free cash flow. This
strategy has positioned Petrus to further reduce debt and return
capital to shareholders.
SPECIAL DIVIDEND
Due to the Company’s performance and the
resulting free cash flow, Petrus’ board of directors has declared a
special cash dividend of $0.03 per common share. The dividend will
be payable on November 9, 2023 to shareholders of record at the
close of business on October 26, 2023. The dividend has been
classified as an eligible dividend for the purposes of
the Income Tax Act (Canada).
While Petrus continues to enjoy abundant
opportunities to invest capital and generate excellent returns,
this special dividend serves as a tangible reward for Petrus’
shareholders, directly reflecting the Company’s success and helping
to address the lack of liquidity in the markets. Through its
risk-managed strategy focused on investing in the Company’s quality
assets and prioritizing high-return projects that unlock meaningful
value, Petrus expects to be able to generate sustainable long-term
results that will allow for the continued return of capital to
shareholders.
ADVISORIES
Forward-Looking
StatementsCertain information regarding Petrus set forth
in this press release contains forward-looking statements within
the meaning of applicable securities law, that involve substantial
known and unknown risks and uncertainties. The use of any of the
words “anticipate”, “continue”, “estimate”, “expect”, “may”,
“will”, “project”, “should”, “believe” and similar expressions are
intended to identify forward-looking statements. Such statements
represent Petrus’ internal projections, estimates, beliefs, plans,
objectives, assumptions, intentions or statements about future
events or performance. These statements are only predictions and
actual events or results may differ materially. Although Petrus
believes that the expectations reflected in the forward-looking
statements are reasonable, it cannot guarantee future results,
levels of activity, performance or achievement since such
expectations are inherently subject to significant business,
economic, competitive, political and social uncertainties and
contingencies. Many factors could cause Petrus’ actual results to
differ materially from those expressed or implied in any
forward-looking statements made by, or on behalf of, Petrus. In
particular, forward-looking statements set forth in this press
release include, but are not limited to, statements with respect
to: our view that our 2023 capital budget will prioritize strategic
investments and allow the Company to generate considerable free
cash flow; our belief that our strategy has positioned us to
further reduce debt and return capital to shareholders; our belief
that we continue to enjoy abundant opportunities to invest capital
and generate excellent returns; our belief that through our
risk-managed strategy focused on investing in our quality assets
and prioritizing high-return projects that unlock meaningful value,
we expect to be able to generate sustainable long-term results that
will allow for the continued return of capital to shareholders.
These forward-looking statements are subject to
numerous risks and uncertainties, most of which are beyond the
Company’s control, including: the risk that our future free cash
flow is lower than anticipated and that as a result we have little
or no cash to return to shareholders or use to reduce debt; the
risk that the amount of future cash dividends paid by us and/or
shares repurchased for cancellation by us, if any, will be subject
to the discretion of our Board of Directors and may vary depending
on a variety of factors and conditions existing from time to time,
including, among other things, fluctuations in commodity prices,
production levels, capital expenditure requirements, debt service
requirements, operating costs, royalty burdens, foreign exchange
rates, contractual restrictions contained in our debt agreements,
and the satisfaction of the liquidity and solvency tests imposed by
applicable corporate law for the declaration and payment of
dividends and/or the repurchase of shares – depending on these and
various other factors, many of which will be beyond our control,
our dividend policy and/or share buyback policy and, as a result,
future cash dividends and/or share buybacks, could be reduced or
suspended entirely; the impact of general economic conditions;
volatility in market prices for crude oil, NGL and natural gas;
industry conditions; currency fluctuation; changes in interest
rates and inflation rates; imprecision of reserve estimates;
liabilities inherent in crude oil and natural gas operations;
environmental risks; incorrect assessments of the value of
acquisitions and exploration and development programs; competition;
the lack of availability of qualified personnel or management;
changes in income tax laws or changes in tax laws and incentive
programs relating to the oil and gas industry; hazards such as
fire, explosion, blowouts, cratering, and spills, each of which
could result in substantial damage to wells, production facilities,
other property and the environment or in personal injury; stock
market volatility; ability to access sufficient capital from
internal and external sources; and the other risks and
uncertainties described in our most recently filed annual
information form. With respect to forward-looking statements
contained in this press release, Petrus has made assumptions
regarding: future dividend levels; future commodity prices and
royalty regimes; availability of skilled labour; timing and amount
of capital expenditures; future exchange rates; the impact of
increasing competition; conditions in general economic and
financial markets; availability of drilling and related equipment
and services; effects of regulation by governmental agencies; the
effects of inflation on our profitability; future interest rates;
and future operating costs. Management has included the above
summary of assumptions and risks related to forward-looking
information provided in this press release in order to provide
investors with a more complete perspective on Petrus’ future
operations and such information may not be appropriate for other
purposes. Petrus’ actual results, performance or achievement could
differ materially from those expressed in, or implied by, these
forward-looking statements and, accordingly, no assurance can be
given that any of the events anticipated by the forward-looking
statements will transpire or occur, or if any of them do so, what
benefits that the Company will derive therefrom. Readers are
cautioned that the foregoing lists of factors are not
exhaustive.
These forward-looking statements are made as of
the date of this press release and the Company disclaims any intent
or obligation to update any forward-looking statements, whether as
a result of new information, future events or results or otherwise,
other than as required by applicable securities laws.
FOR FURTHER INFORMATION PLEASE CONTACT:Ken
GrayPresident and Chief Executive OfficerT: 403-930-0889E:
kgray@petrusresources.com
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