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Summary
- The High Court of Justice of England and Wales has approved the cancellation of i3 Energy's share premium account, paving the way for the maiden dividend.
- After getting confirmation from the Registrar of Companies final Ex-dividend date, Record Date, and Payment Date of the dividend would be announced.
- i3 Energy Plc has executed a binding sales and purchase agreement to acquire 230 boe/d of Wapiti production.
i3 Energy Plc (LON: I3E) (TSX:ITE), an AIM-listed energy company with a diverse asset portfolio constituting of large contiguous investments in Alberta, Canada, is all set to announce the date for its maiden dividend as the High Court of Justice of England and Wales has approved the cancellation of i3 Energy's share premium account.
The London-listed oil-and-gas company has a low-cost, diversified, growing production base, which provides it with greater scope to deliver future growth to the shareholders through the optimisation of its existing asset base as well as through the further acquisition of long life, low decline conventional production assets by means of bi-annual shareholder distributions of up to 30 per cent of free cash flow (FCF), with next twelve month (NTM), NOI (Net Operating Income), which is predicted to be US $44 million.
Go-ahead for dividend
On 29 June, a final confirmation hearing at the High Court of Justice of England and Wales was held, where the court gave the final approval to i3 Energy's share premium account, confirming that the cancellation can proceed.
Now, it is expected that within the next few days, the Capital Reduction will finally be effective after getting the registration of the court order by the Registrar of Companies, for which the company has already approached the Registrar of Companies with the court order together with the court approved statement of capital.
Once the final confirmation is received, the Ex-dividend date, Record Date and Payment Date for the maiden dividend will be announced. As per the company’s estimations, the Ex-dividend date could fall somewhere during the week starting 12 July.
Also Read: i3 Energy Plc, a powerhouse for multiple opportunities
Production Acquisition of Wapiti
There has been another important development. Recently, the company informed that it has now binding sales and purchase agreement to acquire 230 boe/d of synergistic Cardium and Dunvegan production in the Wapiti area of Alberta, Canada.
For the seller, the Wapiti production is a non-core asset, and i3 Energy, with a 1 April effective date, is expecting the acquisition to get completed in the third quarter of 2021. After that, the company is planning to conduct six-well reactivations to bring NTM production to an estimated 310 boe/d from the current production levels of around 230 boe/d.
This development will be at a total acquisition and capital cost of US $ 410k, which comes to an acquisition cost of merely 0.56x of expected NTM NOI.
Share price performance
i3 Energy Plc has a strong foothold in the Western Canadian Sedimentary Basin, backed by a team of proven portfolio builders. The successful and on-time operational delivery and incremental acquisitions are driving share price appreciation, maximising the shareholders’ value.
The stock price of the company was in the jubilant mood with the clearance for the maiden dividend, hovering around the 52-weeks high level at GBX 13.75. With 30 June’s price surge, the stock has given over 150 per cent return to the shareholders on a year-to-date basis.
Listed on the AIM market in 2017, i3 Energy, in just four years has proved that it has extraordinary growth potential in the oil and gas sector. It has established itself as a trusted business proposition, with valuable, profitable, and timely acquisitions in strategic areas. The company’s aim is to deliver high return value to its shareholders by investing in new opportunities through divestment, strategic acquisition, farm-ins, farm-outs. Its business model includes high-quality assets that can provide high-technical and economic opportunities. With the strengthening commodity backdrop, especially of oil and gas in the post covid era, and the dividend payment, i3 Energy becomes an apt case of re-rating over the course of 2021.
