Add to balance / Manage account | User: | Log out |
Prospect News home > News index > List of issuers S > Headlines for Sanchez Energy Corp. > News item |
Sanchez Energy elects to pay dividends on convertibles in common stock
By Angela McDaniels
Tacoma, Wash., May 23 – Sanchez Energy Corp. will pay 100% of the next dividend payment on its two series of convertible perpetual preferred stock in shares of common stock, according to a company news release.
The board of directors declared a quarterly dividend of $0.609375 per share on the company’s 4.875% convertible perpetual preferred stock, series A, and $0.812500 per share on its 6.5% convertible perpetual preferred stock, series B.
The quarterly dividends on the convertibles will be payable on July 1 to holders of record on June 15.
The company will pay 100% of the dividends on the convertibles in common stock to the extent permitted by the certificate of designations for each series of the convertibles.
“We place a premium on liquidity in today's more challenging commodity price environment,” chief executive officer Tony Sanchez III said in the news release.
“Paying common stock dividends on our convertible perpetual preferred stock increases our discretionary cash flow by approximately $4 million per quarter, or approximately $16 million on an annualized basis, which equates to roughly 6% of our 2016 upstream capital spending guidance at midpoint.
“This option provides us with additional financial flexibility as we execute our 2016 program and plan for future development and other opportunities that may emerge as a result of distress in the industry.”
Sanchez Energy is an oil and natural gas exploration and production company based in Houston.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.