Razor Energy Corp. Provides Dividend Update
February 05 2020 - 6:00PM
Razor Energy Corp. (“Razor” or the “Company”) (TSXV: RZE) provides
an update regarding its dividend policy.
Significant price volatility for crude products
in the Canadian energy sector has had a major impact on the
industry, the province and the country. The volatility is a result
of slowing international economic growth and Canada’s lack of
access to international markets outside of the United States. These
and other factors have significantly impacted West Texas
Intermediate (“WTI”) prices, down nearly $15 USD per barrel since
the beginning of 2020, and Canadian oil price differentials.
While Razor expects improvement in both WTI and
Canadian oil pricing through the second half of 2020, the Company
believes it is fiscally prudent to take decisive steps to maximize
the strength and flexibility of the Company over the long-term. To
this end, management and the Board of Directors of Razor have
unanimously decided to suspend the payment of dividends effective
February 2020 until further notice. Razor views its monthly cash
dividend as a component of its business strategy and a key part of
its total return offering to shareholders; as such, Razor will
continue to monitor the broader commodity price environment and
resultant corporate cash flows and contemplate dividend
reinstatement when prices warrant and a more balanced supply-demand
picture improves industry stability.
In the interim, the Company will prudently
manage cash outflows and reallocate this capital to debt repayment,
thereby enhancing the Company’s balance sheet and better position
the Company to capture acquisition opportunities and improving
economics as commodity prices recover. The revised dividend
strategy will provide Razor with the flexibility in the event that
low prices persist for longer than anticipated. Razor will continue
to utilize its existing Normal Course Issuer Bid (“NCIB”) to
buyback shares when the Company believes the Common Shares are
undervalued in the market.
ABOUT RAZORRazor is a
publicly-traded junior oil and gas development and production
company headquartered in Calgary, Alberta, concentrated on
acquiring, and subsequently enhancing, producing oil and gas
properties primarily in Alberta. The Company is led by experienced
management and a strong, committed Board of Directors, with a
long-term vision of growth and distributions to shareholders,
focused on efficiency and cost control in all areas of the
business. Razor currently trades on TSX Venture Exchange under the
ticker “RZE”.
For additional information please
contact:
Doug BaileyPresident and Chief Executive Officer |
OR |
Kevin BraunChief Financial Officer |
|
|
|
Razor Energy Corp.800, 500-5th
Ave SWCalgary, Alberta T2P 3L5Telephone: (403)
262-0242www.razor-energy.com |
|
Alliance Capital PartnersGordon
Aldcornwww.alliancecapitalpartners.ca403-618-6507 |
READER ADVISORIES
FORWARD-LOOKING STATEMENTS:
This news release contains forward-looking statements. More
particularly, this news release contains statements concerning, but
not limited to, the Company’s dividend policy and the suspension of
future dividend payments, potential share repurchases under the
NCIB, acquisition opportunities, WTI and Canadian oil pricing,
growth plans and corporate strategy. In addition, the use of any of
the words “anticipate”, “believe”, “intend”, “may”, “is”, “will”
and similar expressions are intended to identify forward-looking
statements.
The forward-looking statements are based on
certain key expectations and assumptions made by the Company,
including but not limited to expectations and assumptions
concerning the availability of capital, current legislation,
receipt of required regulatory approvals, the timely performance by
third-parties of contractual obligation, the success of future
drilling and development activities, the performance of existing
wells, the performance of new wells, the Company’s growth strategy,
general economic conditions, availability of required equipment and
services prevailing commodity prices, price volatility, price
differentials and the actual prices received for the Company's
products. Although the Company believes that the expectations and
assumptions on which the forward-looking statements are based are
reasonable, undue reliance should not be placed on the
forward-looking statements because the Company can give no
assurance that they will prove to be correct. Since forward-
looking statements address future events and conditions, by their
very nature they involve inherent risks and uncertainties. Actual
results could differ materially from those currently anticipated
due to a number of factors and risks. These include, but are not
limited to, risks associated with the oil and gas industry and
geothermal electricity projects in general (e.g., operational risks
in development, exploration and production; delays or changes in
plans with respect to exploration or development projects or
capital expenditures; variability in geothermal resources; as the
uncertainty of reserve estimates; the uncertainty of estimates and
projections relating to production, costs and expenses, and health,
safety and environmental risks), electricity and commodity price
and exchange rate fluctuations, changes in legislation affecting
the oil and gas and geothermal industries and uncertainties
resulting from potential delays or changes in plans with respect to
exploration or development projects or capital expenditures. Please
refer to the risk factors identified in the annual information form
and management discussion and analysis of the Company which are
available on SEDAR at www.sedar.com. The forward-looking statements
contained in this press release are made as of the date hereof and
the Company undertakes no obligation to update publicly or revise
any forward-looking statements or information, whether as a result
of new information, future events or otherwise, unless so required
by applicable securities laws.
This press release contains future-oriented
financial information and financial outlook information
(collectively, "FOFI") about Razor's prospective results of
operations, production, sales volumes, balance sheet, debt
repayment, dividend policy and NCIB, all of which are subject to
the same assumptions, risk factors, limitations, and qualifications
as a set forth in the above paragraph. FOFI contained in this
document was approved by management as of the date of this document
and was provided for the purpose of providing further information
about Razor's future business operations. Razor disclaims any
intention or obligation to update or revise any FOFI contained in
this document, whether as a result of new information, future
events or otherwise, unless required pursuant to applicable law.
Readers are cautioned that the FOFI contained in this document
should not be used for purposes other than for which it is
disclosed herein.
Neither the TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this news release.
Razor Energy (TSXV:RZE)
Historical Stock Chart
From Jun 2024 to Jul 2024
Razor Energy (TSXV:RZE)
Historical Stock Chart
From Jul 2023 to Jul 2024