Pengrowth Energy Corporation (PGH) (TSX: PGF) (NYSE: PGH) has announced that on October 15, 2014 the cash dividend will be Cdn $0.04 per common share. The ex-dividend date is on September 18, 2014 and the dividend will be payable to all its shareholders who presently hold Pengrowth shares at the close of business on the record date of September 22, 2014. This dividend per common share is equal to approximately the US $0.036 per common share using a Canadian/US dollar exchange rate of Cdn $1.00:US $0.9065.
The actual US dollar equivalent of this dividend will be finally based on the actual US/Canadian dollar exchange rate in effect on the payment date net of applicable Canadian withholding taxes for the US residents who presently hold their Pengrowth shares in taxable accounts. This dividend is an “eligible dividend” for Canadian income tax purposes. The company’s dividends are also designated as “qualified dividends” for US income tax purposes. Pengrowth does offer a Dividend Reinvestment Program (DRIP) that provides eligible shareholders in Canada and the US with the opportunity to reinvest their dividends in newer shares at a 5% discount to the average trading price as calculated pursuant to the DRIP plan.
Pengrowth’s DRIP plan affords several things. It allows shareholders to reinvest cash dividends by purchasing additional shares at a 5% discount without paying any brokerage fees, have the option to buy up to $1,000 per month in additional shares, at 5% discount again without paying brokerage fees, shares are priced at 5% discount to the average trading price as mentioned calculated pursuant to the DRIP on the applicable dividend payment date.
Their 2014 guidance expects $755 million of capital expenditures to generate an annual average production of between 71,000 and 73,000 barrels of oil that is equivalent per day (boe/d) in 2014 that is fully funded by a combination of operating funds flow that proceeds from the non-core asset dispositions that were executed in 2013.
Pengrowth Energy Corporation is a dividend paying, intermediate Canadian producer in the oil, natural gas industries. Headquartered in Calgary, Alberta its assets include, Cardium light oil, Lindbergh thermal bitumen, Swan Hills light oil projects. Their shares trade on both the Toronto Stock exchange “PGF” and on the New York Stock Exchange “PDH”.