Continental Resources announced a new share repurchase program and dividend, sending its shares up +14% Tuesday.
The oil & natural gas exploration company will embark on a $1 billion share buyback program from the second quarter of 2019, and will continue through 2020.
The company also announced a quarterly dividend of 5 cents per share, payable on November 21, to shareholders of record on November 7. On an annualized basis, the dividend will distribute about $75 million to shareholders.
Chairman and CEO Harold Hamm perceives the current value of Continental Resources’ equity to be “unreasonably low” – something that makes share buybacks using excess cash an opportune strategy, as indicated by Hamm.