Saturday, March 27, 2021

Devon: Announces Industry-First Variable Cash Dividend -- March 27, 2021

Incredible! All that SPAC talk but this really caught my attention -- Devon Energy announces industry-first variable cash dividend for common stockholders. Yeah, so there it is. I'm just a "common" stockholder. LOL. Common. Link here. Pretty cool.

  • Board declares $0.19 per share variable cash dividend based on fourth-quarter results

  • Variable dividend is in addition to previously declared fixed quarterly dividend of $0.11 per share

  • Both fixed and variable dividends are payable on Mar. 31, 2021

    The company’s “fixed plus variable” dividend framework was implemented following closing of the merger with WPX Energy on Jan. 7, 2021. This cash-return strategy is designed to pay a sustainable fixed dividend and evaluate a variable dividend on a quarterly basis. After the fixed dividend is funded, up to 50 percent of the remaining excess free cash flow in each quarter may be distributed to shareholders through a variable dividend.

Hoping to see other oil companies do the same. 

4 comments:

  1. Both CLR and PXD have had a variable dividend for a while. Perhaps the DVN dividend is notable for being fixed plus variable. Or the variable portion being a set ratio. But def not the first variable dividend in oil.

    CLR and PXD were pretty specific about wanting an explicitly variable dividend so there was no commitment to keeping it when/if oil prices crashed.

    For that matter even the "fixed" dividends are obviously changeable. See OXY, COP, etc. In some cases, making public announcements about defending the dividend until shortly before drastically reducing it. But certainly, a fixed dividend (like XOM, or DD) is more of an expectation for the shareholder.

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    Replies
    1. I'm expecting precision. ;-)

      https://www.youtube.com/watch?v=DcHbMBMqGG4

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    2. At my age, just being close is good enough for me.

      In fact, on another note, we lived in Turkey for two years -- our daily saying about how things turned out in Turkey -- "not quite right."

      The Turks were incredible people and would do anything for us, but things never quite turned out quite right, but never bothered us. LOL. Even when snakes -- yes, live snakes -- fell through the ceiling into the operating room.

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