Cenovus launching share buyback, doubling dividend
BNN Bloomberg
Cenovus Energy Inc. is rewarding patient shareholders as surging cash flow puts the oil and gas producer on track to hit its debt target.
Cenovus Energy Inc. is rewarding patient shareholders as surging cash flow puts the oil and gas producer on track to hit its debt target.
In a release early Wednesday, Cenovus announced it will double its quarterly dividend to 3.5 cents per share as of the fourth quarter, and said its board also approved a plan to repurchase up to 10 per cent of its common shares.
It's equipped to do so after higher oil prices and a 71 per cent year-over-year increase in production helped push the company’s cash from operating activities to $2.14 billion, up 192 per cent from a year earlier when $732 million was generated.
In the release, Cenovus said it's poised to achieve its target of sub-$10 billion in net debt "imminently."
"Our free funds flow capacity will support swiftly advancing toward our longer-term net debt target of less than $8 billion, while balancing growth in shareholder returns," said Cenovus President and Chief Executive Officer Alex Pourbaix in a release.
