Not surprised that a dividend is being paid but actually thought it would be .10.
"NEWPORT ANNOUNCES SPECIAL $0.06 CASH DIVIDEND
Newport Exploration Ltd.'s board of directors has declared a special cash dividend of six cents per share to its shareholders of record at the close of business on Sept. 25, 2019. The Dividend payment date will be September 30, 2019. The Dividend, fully approved by the Board of Directors, is not subject to any changes and has been designated as an "eligible dividend" for Canadian income tax purposes.
The Board of Directors has declared the Dividend based on a persistently low value being placed on the Company's shares despite Beach Energy Ltd ("Beach") reporting both increased 2P reserves and increased production from the Western Flank Permits (which includes ex PEL's 91, 106 and 107) over which the Company holds its 2.5% Gross Overriding Royalty ("GOR"). The Company has an advantageous business model with a GOR over permits in the Cooper Basin with strong technical fundamentals and excellent operators. Management believes that based on the recent exploration and development of the licenses in the Cooper Basin as reported by the Company and Beach, shareholders will be rewarded with dividend continuity, further dividend growth, as well as capital appreciation.
Management has demonstrated good stewardship of shareholder capital and believes that stability, profitability, and paying an annual shareholder dividend has been a responsible corporate strategy which has enabled shareholders of Newport to avoid severely reduced or cancelled dividends, forced asset sales, share consolidations and a decline in share price that has occurred with several other Canadian energy companies in recent years.
The Company's ability to pay dividends is very important to existing shareholders and potential investors. The current strategy of the Company is to continue to maintain a strong balance sheet to help it weather potential industry downturns. Notwithstanding the substantial dividend yields since 2014, the Company retains a margin of safety to maintain dividend payouts, and reserves the right to increase dividend payments from time to time if Management considers it appropriate.
Any future cash dividend policy is subject to the Board's review, and decisions will be made based on royalty receipts at that time and always with the best interests of Newport shareholders in mind. This disciplined approach has resulted in market-beating returns compared to most other Canadian royalty paying energy stocks in recent years."
