Dividend Declared Press release from CNW Group
Longview Announces Cash Dividend for January 2013 and Updates Crude Oil Hedging Program
Tuesday, January 15, 2013
(TSX: LNV)
CALGARY, Jan. 15, 2013 /CNW/ - Longview Oil Corp. ("Longview" or the "Corporation") announces that the January 2013 monthly cash dividend will be $0.05 per share and will be paid on February 15, 2013. The record date for the dividend is January 31, 2013, and the ex-dividend date is January 29, 2013. The dividend is considered an "eligible dividend" for Canadian tax purposes.
Crude Oil Hedging for 2013
Longview has hedged approximately 57% of our current crude oil production (net of royalties) at an average price of Cdn$91.59/bbl (approximately US$93.00/bbl) for the 2013 calendar year. The average price of the crude oil hedged is above our internal 2013 budget crude oil price forecast of US$89.50/bbl. These crude oil hedges will reduce cash flow volatility during 2013 and help protect our funds from operations which enhances our ability to fund dividend payments and capital expenditures.
| Term of Contract |
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Volume |
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Fixed Price |
| Crude oil - WTI |
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| January 2013 to December 2013 |
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1,000 bbls/d |
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Cdn$90.29/bbl |
| February 2013 to December 2013 |
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1,000 bbls/d |
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Cdn$93.00/bbl |
Longview's business strategy is to provide shareholders with attractive long term returns that combine both income and moderate growth by exploiting its assets in a financially disciplined manner and by acquiring additional long-life oil assets of a similar nature. Longview's asset base is comprised mainly of operated oil-weighted resource plays with high working interests in the Western Canadian Sedimentary Basin.
Advisory
The payment and the amount of dividends declared in any month will be subject to the discretion of the board of directors and will depend on the board of director's assessment of the Corporation's outlook for growth, capital expenditure requirements, funds from operations, potential acquisition opportunities, debt position and other conditions that the board of directors may consider relevant at such future time, including applicable restrictions that may be imposed under the Corporation's Credit Facilities and on the ability of the Corporation to pay dividends. The amount of future cash dividends, if any, may also vary depending on a variety of factors, including fluctuations in commodity prices, production levels, capital expenditure requirements, debt service requirements, operating costs, royalty burdens and foreign exchange rates.
https://www.theglobeandmail.com/globe-investor/news-sources/?date=+20130115&archive=cnw&slug=C6214