Longview Announces Cash Dividend for January 2013 and Updates Crude Oil Hedging Program
CALGARY, Jan. 15, 2013 /CNW/ - Longview Oil Corp. ("Longview" or the "Corporation") announces that the January 2013 monthly cash dividend will be $0.05 per share and will be paid on February 15, 2013. The record date for the dividend is January 31, 2013, and the ex-dividend date is January 29, 2013. The dividend is considered an "eligible dividend" for Canadian tax purposes.
Crude Oil Hedging for 2013
Longview has hedged approximately 57% of our current crude oil production (net of royalties) at an average price of Cdn$91.59/bbl (approximately US$93.00/bbl) for the 2013 calendar year. The average price of the crude oil hedged is above our internal 2013 budget crude oil price forecast of US$89.50/bbl. These crude oil hedges will reduce cash flow volatility during 2013 and help protect our funds from operations which enhances our ability to fund dividend payments and capital expenditures.
|Term of Contract||Volume||Fixed Price|
|Crude oil - WTI|
|January 2013 to December 2013||1,000 bbls/d||Cdn$90.29/bbl|
|February 2013 to December 2013||1,000 bbls/d||Cdn$93.00/bbl|
Longview's business strategy is to provide shareholders with attractive long term returns that combine both income and moderate growth by exploiting its assets in a financially disciplined manner and by acquiring additional long-life oil assets of a similar nature. Longview's asset base is comprised mainly of operated oil-weighted resource plays with high working interests in the Western Canadian Sedimentary Basin.
The payment and the amount of dividends declared in any month will be subject to the discretion of the board of directors and will depend on the board of director's assessment of the Corporation's outlook for growth, capital expenditure requirements, funds from operations, potential acquisition opportunities, debt position and other conditions that the board of directors may consider relevant at such future time, including applicable restrictions that may be imposed under the Corporation's Credit Facilities and on the ability of the Corporation to pay dividends. The amount of future cash dividends, if any, may also vary depending on a variety of factors, including fluctuations in commodity prices, production levels, capital expenditure requirements, debt service requirements, operating costs, royalty burdens and foreign exchange rates.
All dollar amounts in this press release are Canadian dollars unless otherwise indicated.
The information in this press release contains certain forward-looking statements. These statements relate to future events or our future intentions or performance. All statements other than statements of historical fact may be forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "forecast", "seek", "anticipate", "plan", "continue", "estimate", "demonstrate", "expect", "may", "will", "project", "predict", "potential", "targeting", "intend", "could", "might", "should", "believe", "would" and similar expressions and include statements relating to, among other things, expected benefits as a result of the crude oil commodity price hedges; Longview's hedging program; and the anticipated effect of the hedge position on cash flow volatility in 2013, funds from operations and ability to fund dividend payments and capital expenditures. Longview's actual decisions, activities, results, performance or achievement could differ materially from those expressed in, or implied by, such forward-looking statements and, accordingly, no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur or, if any of them do, what benefits that Longview will derive from them.
These statements involve substantial known and unknown risks and uncertainties, certain of which are beyond Longview's control, including: the impact of general economic conditions, including changes in commodity prices; industry conditions; actions by governmental or regulatory authorities including increasing taxes, changes in investment or other regulations; changes in tax laws, royalty regimes and incentive programs relating to the oil and gas industry; Longview's success at acquisition, exploitation and development of reserves; unexpected drilling results, changes in commodity prices, currency exchange rates, capital expenditures, reserves or reserves estimates and debt service requirements; the occurrence of unexpected events involved in the exploration for, and the operation and development of, oil and gas properties; hazards such as fire, explosion, blowouts, cratering, and spills, each of which could result in substantial damage to wells, production facilities, other property and the environment or in personal injury; changes or fluctuations in production levels; competition from other producers; credit risk; individual well productivity; changes in laws and regulations including the adoption of new environmental laws and regulations and changes in how they are interpreted and enforced; fluctuations in commodity prices and foreign exchange and interest rates; stock market volatility and market valuations; volatility in market prices for oil and natural gas; liabilities inherent in oil and natural gas operations; uncertainties associated with estimating oil and natural gas reserves; competition for, among other things, capital, acquisitions of reserves, undeveloped lands and skilled personnel; incorrect assessments of the value of acquisitions; geological, technical, drilling and processing problems and other difficulties in producing petroleum reserves; obtaining required approvals of regulatory authorities and ability to access sufficient capital from internal and external sources. Many of these risks and uncertainties and additional risk factors are described in the Corporation's Annual Information Form which is available at www.sedar.com and www.longviewoil.com. Readers are also referred to risk factors described in other documents Longview files with Canadian securities authorities.
With respect to forward-looking statements contained in this press release, Longview has made assumptions regarding: conditions in general economic and financial markets; commodity prices; effects of regulation by governmental agencies; royalty regimes; future exchange rates; royalty rates; future operating costs; availability of skilled labor; availability of drilling and related equipment; timing and amount of capital expenditures; and the impact of increasing competition.
These forward-looking statements are made as of the date of this press release and Longview disclaims any intent or obligation to update publicly any forward-looking statements, whether as a result of new information, future events or results or otherwise, other than as required by applicable securities laws.
SOURCE: Longview Oil Corp.For further information:
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