CALGARY, AB - Veren Inc. (TSX: VRN) (NYSE: VRN), a company listed on both the Toronto Stock Exchange and New York Stock Exchange, has declared a quarterly cash dividend of $0.115 per share. The dividend is scheduled to be paid on January 2, 2025, to shareholders who are on record as of December 15, 2024.
The company has specified that these dividends are classified as "eligible dividends" for Canadian income tax purposes, which may offer tax advantages for Canadian residents. Similarly, for U.S. shareholders, Veren's dividends are considered "qualified dividends," potentially providing a favorable tax treatment under U.S. tax regulations.
Veren Inc. has made this announcement as part of its regular financial disclosures to shareholders and the broader investment community. The declaration of dividends is a common practice for publicly traded companies, signaling a distribution of profits back to shareholders. It is a decision made by the company's Board of Directors and reflects the company's financial health and outlook.
Investors often view regular dividend payments as a sign of a company's stability and profitability, and they can be a critical component of an investor's return on investment. The dividend yield, calculated by dividing the annual dividends per share by the stock's price per share, is a key metric for investors comparing the income potential of different stocks.
The information provided in this announcement is based on a press release statement from Veren Inc. It is intended to give shareholders and potential investors insight into the company's financial practices and commitments. Dividend announcements are also a way for companies to communicate their confidence in their financial position and future earnings prospects.
The announcement of the dividend does not include any promotional content or statements about Veren's market position or future prospects. It is a factual report of the company's declared dividend for the specified quarter.
In other recent news, Veren Inc. has secured a strategic partnership with Pembina Gas Infrastructure involving a $400 million asset deal in the Alberta Montney region. This partnership grants Veren operatorship of additional oil battery sites and priority access at the Patterson Creek Gas Plant. The deal is expected to aid Veren in reducing its debt by $1.3 billion by 2024. The company has also revised its 2024 production guidance to 192,500 to 197,500 barrels of oil equivalent per day, with the development capital expenditures budget remaining at $1.4 to $1.5 billion.
In other developments, Veren has set a quarterly dividend at $0.115 per share, demonstrating its commitment to investors. The company is also expecting to benefit from a surge in activity in the U.S. energy sector, which has seen $68 billion in deals in the early months of 2024. The closing of Veren's transaction with Pembina Gas Infrastructure is anticipated in the fourth quarter of 2024, subject to standard closing conditions, with CIBC Capital Markets and BMO Capital Markets advising on the deal. These are some of the recent developments shaping Veren Inc.'s strategic decisions and operations.
InvestingPro Insights
Veren Inc.'s recent dividend declaration aligns with its strong track record of shareholder returns. According to InvestingPro data, the company boasts a current dividend yield of 5.85%, which is notably attractive in the current market environment. This high yield is complemented by a 17.32% dividend growth over the last twelve months, demonstrating Veren's commitment to increasing shareholder value.
InvestingPro Tips reveal that Veren has maintained dividend payments for an impressive 22 consecutive years, underscoring the company's financial stability and consistent approach to rewarding shareholders. This long-standing dividend history is particularly relevant to income-focused investors looking for reliable cash flows.
Despite recent market challenges, with the stock trading near its 52-week low, Veren's fundamentals appear solid. The company's revenue growth of 25.23% over the last twelve months and a strong gross profit margin of 67.19% suggest a robust business model capable of sustaining its dividend policy.
For investors seeking a more comprehensive analysis, InvestingPro offers 7 additional tips that could provide deeper insights into Veren's financial health and market position. These additional tips could be particularly valuable for those considering the stock's current valuation in light of its dividend policy and growth prospects.
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