Birchcliff Energy Ltd. has announced a special dividend as the company nears its goal of zero total debt.
The payment of $0.20 per common share will be paid to investors on Oct. 28, Birchcliff said in a press release after markets closed Thursday. It also boosted this year’s capital spending budget by $80 million to a range of $355 million to $365 million.
“This further capital investment in our business will help to ensure the most efficient execution of our 2023 capital program and will not increase our 2022 annual average production,” Birchcliff Chief Executive Officer Jeff Tonken said in the release.
Birchcliff said that as a result of the special dividend and a lower commodity-price outlook, it’s expecting to end this year with debt of $60 million to $70 million. It previously anticipated being in a surplus position at year-end.
The company also reiterated its plan to have an annual dividend of $0.80 per share by 2023. Birchcliff currently pays a regular quarterly dividend of $0.02 per share.
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