THE DIVIDEND IS PAID TODAY!!
("Newport" or "the Company") is pleased to announce the payment of its fourth quarterly cash dividend ("the Dividend") in 2020 of $0.03 per share to its shareholders of record at the close of business on November 26, 2020. As previously disclosed, the Company proposes to continue with the payment of quarterly dividend distributions, with the next payment scheduled for March, 2021.
Newport Exploration Ltd. logo (CNW Group/Newport Exploration Ltd.)
Annual Dividend and 2020 Share Price Performance
The $0.01/share dividend paid in September 2020 and the $0.03/share dividend paid today will be recorded in the Financial Year ended July 31, 2021, along with further dividends to be paid in early 2021. The Company's ability to return cash to shareholders is attributed to the recurring free cash flow generated by its Gross Overriding Royalty ("GOR") from licences in the Cooper Basin, Australia, operated by Beach Energy Ltd ("Beach").
Newport's dividend payout ratio, being the cash dividend per share of common stock divided by the earnings per share of common stock, compares favorably with that of other yield stocks, particularly those in the energy sector. Since 2015 the Company has paid an average Annual Yield of 21%.
With Beach's exploration success, reported oil reserves and low production costs, Management is confident that shareholders of the Company should continue to be rewarded with dividend continuity.
With respect to the Company's share price performance, Newport has been able to regain the lost ground from the March 2020 low and since mid-November has been trading at prices above the 2020 opening value, and at 6-year highs.
Investors are cautioned that historical results are no guarantee of future performance.
M&A activity has increased in 2020 as many companies facing liquidity pressures become forced sellers of assets. Management continues to evaluate opportunities that arise and are confident that if necessary, funds could be raised through equity financing, and most importantly for shareholders, without affecting the current dividend policy.
About Newport
Newport holds a 2.5% GOR on several oil and gas licences and permits in the Cooper Basin in Australia. These licences and permits are currently being operated and explored by Beach and Santos Ltd ("Santos"), both major Australian oil and gas producers.
The Company receives its GOR from Beach which is not a reporting issuer in Canada, therefore Newport is not able to confirm if the disclosure satisfies the requirements of NI 51-101 - Standards of Disclosure for Oil and Gas Activities, or other requirements of Canadian securities legislation.
The Company recommends that shareholders and potential investors access material information relevant to the Company as released independently by Beach and Santos in order to keep current during exploration, development and potential production of all the licences subject to the Company's GOR.
The Company currently has 105,579,874 common shares issued and outstanding and $5.8 million in the Treasury (comprised of cash, cash equivalents and short-term investments), and no debt."
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