Trading Symbol: NWX (TSX-V)
VANCOUVER, Feb. 10, 2020 /CNW/ - Newport Exploration Ltd
("Newport" or "the Company") is pleased to announce, its first
quarterly cash dividend ("the Dividend") of $0.01 per share to its shareholders of record at
the close of business on February
24th, 2020. The Dividend payment date is
March 9th, 2020.
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.
Management believes that based on Beach Energy Ltd.'s ("Beach")
recent exploration success and development of the licenses in the
Cooper Basin over which the Company has its 2.5% Gross Overriding
Royalty ("GOR"), shareholders should be rewarded with dividend
continuity, potential dividend growth, as well as capital
appreciation. Also, the Company's strong balance sheet ensures that
Newport has the ability to
maintain regular quarterly dividend payments with a reduced
likelihood that the quarterly dividend payout would be cut during
any sector downturn.
About Newport
Newport holds a 2.5% GOR on
several oil and gas licences and permits in the Cooper Basin in
Australia. These permits are
currently being operated and explored by Beach and Santos Ltd.
("Santos"), both major Australian oil and gas producers.
Newport's dividend payout
ratio, being the cash dividends per share of common
stock divided by the earnings per share of common stock,
compares favorably with that of other yield stocks and the Company
has paid out more than 85% of after tax royalty receipts in
dividends. Furthermore, the dividend payments have been
covered by free cash flow with no dilution, incurring no debt, and
without selling any assets. Investors are cautioned that historical
results are no guarantee of future performance.
The Company continues to strongly encourage shareholders and
potential investors to access information 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 104,429,874 common shares issued and
outstanding and $5.1 million in the
Treasury, comprised of cash, cash equivalents and
investments.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the accuracy or
adequacy of this news release.
SOURCE Newport Exploration Ltd.