CALGARY, July 15, 2014 /CNW/ - Journey Energy Inc. (JOY – TSX) ("Journey" or the "Company") is pleased to announce that it has adopted a dividend payment policy and in connection therewith has also adopted a dividend reinvestment plan (the "DRIP") and a stock dividend program (the "SDP"). Eligible shareholders may elect to participate in the DRIP and/or the SDP commencing with the dividend to be paid on August 15, 2014 to shareholders of record as of July 31, 2014. Participation in the DRIP and the SDP is optional and will not affect shareholders' cash dividends unless they elect to participate in the DRIP or the SDP.
Journey's board of directors (the "Board") has approved a current dividend policy of $0.06 per common share and restricted voting share, per month for the third quarter of 2014. Journey's long-term objective is to set a dividend policy at prudent levels while withholding sufficient funds to finance capital expenditures required to grow its production base by a target rate of 7% to 10% annually. This in turn, is expected to provide a solid cash flow base which will support its future dividends. Journey's dividend policy is reviewed monthly and is based on a number of factors including current and future commodity prices, foreign exchange rates, the Company's hedging program, current operations including production levels, operating costs, royalty burdens and debt service requirements, available investment opportunities and the satisfaction of applicable corporate liquidity and solvency tests for the declaration and payment of dividends.
Journey has declared its first monthly dividend of $0.06 per common share and restricted voting share to be paid on August 15, 2014 to shareholders of record on July 31, 2014 with an ex-dividend date of July 29, 2014. The Board has declared the dividend payable in either cash or common shares at the election of the shareholder. In order to receive the dividend in common shares, an eligible shareholder must elect to participate in the DRIP and/or the SDP by delivering the requisite form to Computershare Trust Company of Canada (the "Plan Agent") no later than 3:00 p.m. (Calgary time) on July 30, 2014, as more particularly described below. The dividend has been designated as an "eligible dividend" for Canadian income tax purposes.
The third quarter dividend payment schedule has been established as follows:
Dividend Reinvestment and Stock Dividend Plans
Dividend per Share
July 31, 2014
August 15, 2014
August 31, 2014
September 15, 2014
September 30, 2014
October 15, 2014
The DRIP and the SDP are dated effective June 19, 2014
and will apply to the dividend to be paid on August 15, 2014
to shareholders of record as of July 31, 2014
The following is a summary of the key attributes of the DRIP and the SDP. Copies of the DRIP and the SDP are available on Journey's website at www.journeyenergy.ca
and on SEDAR atwww.sedar.com
. Shareholders should carefully read the complete text of the DRIP and the SDP before making any decisions regarding their participation in the plans. For further information regarding the DRIP or the SDP, please contact the Plan Agent at 1-800-564-6253.
The DRIP allows eligible shareholders of Journey to reinvest their cash dividends into additional common shares of Journey, which when issued from treasury, will be issued at 98% of the Average Market Price (as defined in the DRIP) on the applicable dividend payment date. Registered and beneficial owners of common shares who are not a resident in Canada
are not eligible to participate in the DRIP. While it is currently the intention of Journey to issue the required additional common shares from treasury, Journey may, from time to time, in its discretion, direct that such common shares be purchased through the facilities of the Toronto Stock Exchange at prevailing market prices not exceeding 115% of the volume weighted average trading price. No assurances can be made that if the determination is made to purchase additional common shares on the market that a sufficient number of additional common shares will be available for purchase on the market. In such an event, dividends will be paid out in cash. No commissions, service charges or brokerage fees are payable by DRIP participants in connection with the purchase of common shares from treasury under the DRIP. Beneficial shareholders (i.e. owners of common shares that are held through a nominee) who wish to participate in the DRIP indirectly through the broker or other nominee through which their common shares are held should consult such broker or nominee to confirm what fees (if any) such broker or other nominee may charge to enroll or participate in the DRIP on their behalf.
Participation in the DRIP does not relieve shareholders of any liability for taxes that may be payable in respect of dividends that are reinvested in new common shares under the DRIP. Shareholders should consult their tax advisors concerning the tax implications of their participation in the DRIP having regard to their particular circumstances. To participate in the DRIP, registered shareholders must deliver a properly completed authorization form to the Plan Agent before 3:00 p.m.
time) on the business day immediately preceding a dividend record date. Registered shareholders who wish to participate in the DRIP for the July 2014
dividend must deliver a properly completed authorization form to the Plan Agent no later than 3:00 p.m.
time) on Thursday, July 30, 2014
. Beneficial shareholders who wish to participate in the DRIP should contact the broker, investment dealer, financial institution or other nominee who holds their common shares to inquire about the applicable enrolment deadline and to request enrollment in the DRIP.
The SDP delivers increased optionality for eligible Journey shareholders. While it is similar to the DRIP, the SDP is expected to have certain favorable income tax attributes and is available to both eligible Canadian and non-Canadian shareholders, except that shareholders resident in the State of California
are not eligible to participate in the SDP. The SDP enables Journey to issue common shares as payment of all or a portion of dividends declared on the common shares for those shareholders who elect to receive stock dividends instead of cash dividends. Such stock dividends will be issued at the Average Market Price (as defined in the SDP) on the applicable dividend payment date. Journey may discontinue the declaration and payment of stock dividends at any time. Common shares issued pursuant to the SDP will be issued directly by Journey to the Plan Agent on behalf of SDP participants. No commissions, service charges or brokerage fees are payable by SDP participants in connection with the issue of common shares under the SDP. Eligible shareholders who wish to participate in the SDP indirectly through the broker or other nominee through which their common shares are held should consult such broker or nominee to confirm what fees (if any) such broker or other nominee may charge to enroll or participate in the Program on their behalf. Participation in the SDP will not relieve shareholders of any liability for taxes that may be payable on dividends. Shareholders should consult their own tax advisors concerning the tax implementation of their participation in the SDP having regard for their own personal circumstances. To participate in the SDP, registered shareholders must deliver a properly completed stock dividend confirmation notice to the Plan Agent before 3:00 p.m.
time) on the business day immediately preceding a dividend record date in order to receive stock dividends. Registered shareholders who wish to receive the July 2014
dividend as a stock dividend pursuant to the SDP must deliver a properly completed stock dividend confirmation notice to the Plan Agent no later than 3:00 p.m.
time) on Thursday, July 30, 2014
. Beneficial shareholders who wish to participate in the SDP should contact the broker, investment dealer, financial institution or other nominee who holds their common shares to inquire about the applicable enrolment deadline and to request enrollment in the SDP.About the Company
Journey is a Canadian exploration and production company focused on conventional, oil-weighted operations in western Canada
. Journey's strategy is to become a growth plus sustainable yield company focused on drilling on its existing core lands, implementing water flood projects, executing on accretive acquisitions and growing its production base. Journey seeks to optimize its legacy oil pools on existing lands through the application of best practices in horizontal drilling and, where feasible, with water floods.
This press release is not for distribution, directly or indirectly, in or into the United States
(including its territories and possessions, any State of the United States
and the District of Columbia
) or any other jurisdiction outside Canada
. This press release does not constitute or form a part of any offer or solicitation to buy or sell any securities in the United States
or any other jurisdiction outside of Canada
. The common shares have not been and will not be registered under the United States Securities Act of 1933, as amended, (the "U.S. Securities Act
") or the securities laws of any state of the United States
and may not be offered or sold within the United States
other than pursuant to an available exemption from the registration requirements of the U.S. Securities Act and applicable state securities laws. There will be no public offer of the common shares in the United States
.AdvisoriesInformation in this press release that is not current or historical factual information may constitute forward-looking information within the meaning of securities laws, which involves substantial known and unknown risks and uncertainties, most of which are beyond the control of Journey, including, without limitation, those listed under "Risk Factors" and "Forward Looking Statements" in the final long form prospectus of Journey dated June 12, 2014 (the "Prospectus").Forward-looking information may relate to our future outlook and anticipated events or results and may include statements regarding the business strategy and plans and objectives. Particularly, forward-looking information in this press release includes, but is not limited to, information concerning Journey's dividend policy, long-term objectives and the declaration and payment of dividends. Journey cautions investors in Journey's securities about important factors that could cause Journey's actual results to differ materially from those projected in any forward-looking statements included in this press release. Forward-looking information contained in this press release is based on our current estimates, expectations and projections, which we believe are reasonable as of the current date. No assurance can be given that the expectations set out in the Prospectus or herein will prove to be correct and accordingly, you should not place undue importance on forward-looking information and should not rely upon this information as of any other date. While we may elect to, we are under no obligation and do not undertake to update this information at any particular time except as required by applicable securities law.No securities regulatory authority has either approved or disapproved of the contents of this press release.
SOURCE Journey Energy Inc.