Calima Energy (ASX: CE1) will launch a dividend and share repurchase program – The Market Herald

• Calima Energy (CE1) launches a six-month dividend program starting in the second half of 2022, after its production assets continue to operate
• The dividend payout will be $ 2.5 million, reflecting a half-year return of 2.4 percent on the current share price
• Kalima also intends to repurchase ordinary shares on the market in accordance with the Corporate Law of 2001, starting June 1 for up to 12 months
• The Board believes that the current share price of the company does not accurately reflect the base price of Calima’s assets, and the share buyback provides an opportunity to improve the value of the remaining shares issued.
• Shares of Calima Energy rose 8.33 percent and traded at 19.5 cents as of 11:45 a.m. Eastern European Standard

Calima Energy (CE1) has launched a six-month dividend program beginning in the second half of 2022, after its production assets continue to operate.

The dividend payment will be $ 2.5 million, reflecting a half-year yield of 2.4 percent at the current share price.

The date of payment of dividends, including the date of entry and the earlier date, will be announced in due course.

The company said the next distribution of dividends will be affected by capital expenditures, energy prices, well performance and the maturity date of the current hedge book, which begins in December this year.

Calima also intends to repurchase common stock in the market under the Corporate Law of 2001, which allows companies to repurchase up to 10 percent of issued capital in any 12-month period without shareholder approval.

The redemption of shares will start on June 1 for up to 12 months.

The Board believes that the current share price of the company does not accurately reflect the base value of Calima’s assets, and the share buyback provides an opportunity to improve the value of the remaining shares issued.

Share repurchases are also expected to improve return on equity, cash flow per share and earnings per share for all shareholders who continue to hold Calima shares.

In addition, the board will continue to evaluate options for allocating additional capital surplus, especially if the company is able to monetize Montney’s own asset value.

The company’s activities will not be limited to share repurchases and will be financed by operations, the company said.

Shares of Calima Energy rose 8.33 percent and traded up 19.5 cents as of 11:45 a.m. AEST.