Top Dividend Increases Last Quarter, Q2 FY 2023 - Energy companies Delivering Value to Shareholders

Last quarter, Q2 FY 2023, Ovintiv increased their dividend to 20%. These 10 other energy companies announced similar plans.



Industry: Oil & Gas E&P

Ovintiv has exciting news for its shareholders. The Board of Directors recently declared a generous quarterly dividend of $0.30 per share of common stock. This dividend will be payable on June 30, 2023, to all shareholders of record as of June 15, 2023. What's more, this dividend increase represents a substantial 20% growth in the Company's base dividend payment on an annualized basis. This marks the second dividend increase announced by Ovintiv in the last 12 months, reaffirming the company's commitment to delivering value to its investors.

The acquisition aligns with Ovintiv's strategy of unlocking value from non-core assets while extending its inventory runway in core areas. Furthermore, the sale of its Bakken assets in North Dakota for cash proceeds of approximately $825 million further strengthens Ovintiv's portfolio. Ovintiv's focus will be on four premier North American basins, including the Permian Basin, where it has a competitive operating advantage. Ovintiv expects the transaction to drive higher cash returns per share in the next twelve months and anticipates maintaining a strong balance sheet with investment-grade ratings.

In terms of future outlook, Ovintiv plans to moderate drilling activity in its acquired assets, moving from seven operated rigs to two, while maintaining a total of five rigs across its combined Permian acreage. Ovintiv anticipates delivering average oil and condensate production volumes of over 200 Mbbls/d in 2024 with a total capital investment ranging from $2.1 billion to $2.5 billion.

Ovintiv Inc., an energy company, recently announced its plans to acquire leasehold interest and related assets from Black Swan Oil & Gas, PetroLegacy Energy, and Piedra Resources. The cash and stock transaction, valued at approximately $4.275 billion, will expand Ovintiv's Permian inventory and increase its acreage in the core of the Midland Basin. The acquisition is expected to be immediately accretive and enhance Ovintiv's financial metrics and shareholder returns. As part of its capital allocation framework, Ovintiv increased its base dividend payment by 20% on an annualized basis. Ovintiv remains committed to delivering durable returns to its shareholders through stock buybacks and/or variable dividends. With these developments and the expected increase in cash returns per share, Ovintiv is well-positioned to convert the acquired high-quality resource into significant value.


Industry: Oil & Gas E&P

SandRidge Energy, Inc. has recently made significant announcements regarding its dividend and stock buyback program. The company's Board of Directors has declared a one-time dividend of $2.00 per share, amounting to a total payout of approximately $74 million. This dividend will be payable on June 7, 2023, to shareholders of record on May 24, 2023.

Furthermore, the Board has planned an ongoing quarterly dividend of $0.10 per share, starting after the second quarter of 2023. The estimated first payment of this quarterly dividend is scheduled for August 2023, with subsequent payments to be made each quarter thereafter until noticed.

In addition to the dividend announcements, SandRidge Energy, Inc. has authorized a stock buyback program worth $75 million. This program will involve purchasing shares on the open market using SandRidge Energy's available cash.

SandRidge Energy, Inc. engages in the exploration, development, and production of oil, natural gas, and natural gas liquids primarily in the Mid-Continent and North Park Basin of the United States. As of December 31, 2019, it had 1,013 net producing wells; and approximately 511,000 net acres under lease, as well as total estimated proved reserves of 89.9 million barrels of oil equivalent. SandRidge Energy is headquartered in Oklahoma City, Oklahoma. On May 16, 2016, SandRidge Energy, Inc. and its direct and indirect subsidiaries filed voluntary petitions for reorganization under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the Southern District of Texas.


Industry: Oil & Gas Midstream

Pembina Pipeline Corporation recently announced its financial results for the first quarter of 2023. Pembina Pipeline reported earnings of $369 million and adjusted EBITDA of $947 million for the quarter. In addition, Pembina increased its common share cash dividend for the second quarter of 2023 by 2.3 percent to $0.6675 per share. This dividend increase reflects Pembina's commitment to delivering value to its shareholders.

Several factors contributed to Pembina's dividend increase. One significant development was the completion of the sale of Pembina Gas Infrastructure's interest in the Key Access Pipeline System (KAPS). This transaction likely generated additional cash flow for Pembina, enabling it to increase its dividend. Furthermore, Pembina's Cedar LNG project received its Environmental Assessment Certificate, indicating progress in its liquefied natural gas (LNG) initiatives. These positive developments and Pembina's strong financial and operational performance supported the decision to raise the dividend.

Pembina's dividend increase demonstrates its commitment to rewarding shareholders and its positive outlook for the future. Pembina's solid financial results, including the adjusted EBITDA of $947 million, reflect its strong position in the energy transportation sector. With continued growth expected in the Western Canadian Sedimentary Basin (WCSB) and ongoing commercial successes, Pembina is well-positioned to deliver value to its investors.

Pembina Pipeline Corporation, headquartered in Calgary, Canada, is a leading provider of transportation and midstream services for the energy industry in North America. With three segments - Pipelines, Facilities, and Marketing & New Ventures - Pembina operates a vast network of conventional, transmission, oil sands, and heavy oil pipelines, catering to markets and basins across the continent. Additionally, Pembina offers natural gas and natural gas liquid services through processing and fraction facilities, boasting substantial storage and terminalling capacities. Their Marketing & New Ventures segment actively trades hydrocarbon liquids and natural gas from various basins, showcasing their comprehensive expertise in the energy sector since their establishment in 1997.


Industry: Oil & Gas Midstream

Energy Transfer LP (ET) recently announced an increase in its quarterly cash distribution for the first quarter of 2023. The distribution has been raised to $0.3075 per Energy Transfer common unit, equivalent to an annualized basis of $1.23. This represents a slight increase from the previous quarter's distribution of $0.305 per unit. The distribution will be paid on May 22, 2023, to unitholders of record as of May 8, 2023.

The decision to increase the dividend reflects Energy Transfer's commitment to providing value to its investors. While future performance cannot be guaranteed,Energy Transfer LP anticipates quarterly increases of $0.0025 per unit, targeting an annual distribution growth rate of 3% to 5%. This demonstrates Energy Transfer's dedication to delivering consistent returns to its shareholders.

Energy Transfer LP is a Dallas-based company offering diverse energy-related services. With a vast network comprising approximately 9,400 miles of natural gas transportation pipelines and three natural gas storage facilities in Texas, along with 12,500 miles of interstate natural gas pipelines, Energy Transfer caters to electric utilities, independent power plants, distribution companies, and industrial end-users by selling natural gas. Furthermore, Energy Transfer LP operates natural gas gathering and NGL pipelines, processing plants, and conditioning facilities in multiple states, providing water transportation to natural gas producers in Pennsylvania. Alongside its energy operations, Energy Transfer LP is involved in retail sales of gasoline and refined products, operates convenience stores, and distributes motor fuels and other petroleum products. With a rich history since its founding in 2002, Energy Transfer LP remains a significant player in the energy sector.


Industry: Oil & Gas Refining & Marketing

PBF Energy Inc. recently declared a dividend increase of $0.20 per share of Class A common stock. This decision comes in light of PBF Energy Inc.'s impressive first-quarter 2023 results, with income from operations reaching $532.4 million, a significant increase compared to the previous year. The company's net income for the quarter was $385.9 million, indicating a substantial improvement over the net loss experienced in the first quarter of 2022. PBF Energy also demonstrated its commitment to financial health by reducing consolidated debt by $525 million during the quarter and repurchasing over 8.8 million shares for approximately $346 million. These positive developments have contributed to PBF Energy Inc.'s decision to increase its dividend.

Tom Nimbley, Chairman and CEO of PBF Energy, highlighted PBF Energy Inc.'s focus on operational excellence and financial improvement. He mentioned that extensive turnaround work was conducted, resulting in further gross debt reductions and ongoing execution of the stock buyback program. Nimbley also expressed optimism about future market opportunities, expecting potential market dislocations that can benefit PBF Energy Inc. The company's strong business outlook and the anticipation of better-than-mid-cycle financial results in 2023 have supported the decision to increase shareholder returns through dividends.

PBF Energy Inc., together with its subsidiaries, engages in refining and supplying petroleum products. PBF Energy operates in two segments, Refining and Logistics. It produces gasoline, ultra-low-sulfur diesel, heating oil, diesel fuel, jet fuel, lubricants, petrochemicals, and asphalt, as well as unbranded transportation fuels, petrochemical feedstocks, blending components, and other petroleum products. PBF Energy sells its products in the Northeast, Midwest, Gulf Coast, and West Coast of the United States, as well as in other regions of the United States, Canada, and Mexico. It also offers various rail, truck, and marine terminaling services, as well as pipeline transportation and storage services. PBF Energy owns and operates five oil refineries and related assets. PBF Energy Inc. was founded in 2008 and is based in Parsippany, New Jersey.


Industry: Oil & Gas Midstream

Targa Resources Corp. (TRGP) recently announced a significant increase in its quarterly cash dividend, demonstrating the company's commitment to delivering value to its shareholders. The board of directors has declared a dividend of $0.50 per common share for the first quarter of 2023, equivalent to $2.00 per share on an annualized basis. This marks a substantial 43 percent rise compared to the dividend declared in the same period last year.

The decision to increase the dividend stems from Targa Resources Corp.'s positive financial performance and its confidence in the company's future prospects. Targa Resources Corp. is a leading provider of midstream energy services, operating in the gathering, processing, and transportation segments of the energy industry. With its strategic position in key energy markets and a diverse portfolio of assets, Targa Resources is well-positioned to capitalize on favorable market conditions and sustain its growth trajectory.

Targa Resources Corp. is a leading North American midstream energy company with a diverse portfolio of assets. Through its subsidiary, Targa Resources Partners LP, Targa Resources Corp. engages in various operations, including gathering, processing, transporting, and selling natural gas and natural gas liquids (NGL). Additionally, Targa Resources provides storage, terminaling, and distribution services for crude oil and refined petroleum products. Targa Resources operates an extensive network of pipelines, processing plants, and storage facilities, making it a significant player in the industry. Established in 2005 and headquartered in Houston, Texas, Targa Resources Corp. is committed to delivering reliable energy solutions across the region.


Industry: Oil & Gas Integrated

Shell plc has announced its strategy to create more value with fewer emissions and deliver increased shareholder returns through a balanced energy transition. Shell's focus on performance and capital discipline will result in higher shareholder distributions, with 30-40% of Cash Flow From Operations (CFFO) being allocated through a combination of dividends and stock buybacks. Shell plans to raise the dividend per share by 15% starting from the second quarter of 2023, while also initiating stock buybacks of at least $5 billion for the second half of the year, pending Board approval.

The decision to increase the dividend and enhance shareholder distributions reflects Shell's commitment to providing secure energy supplies while actively working to reduce carbon emissions. As part of its strategy, Shell aims to grow its Integrated Gas business and maintain leadership in the liquefied natural gas (LNG) market. Additionally, Shell will focus on stabilizing liquids production until 2030, optimizing the value from investments in Downstream and Renewables & Energy Solutions, and strengthening its Marketing business by expanding its low-carbon fuels and electric vehicle charging offerings.

Furthermore, Shell is making significant strides toward becoming a net-zero emissions energy business by 2050. It aims to achieve near-zero methane emissions by 2030 and eliminate routine flaring from its Upstream operations by 2025. Shell plans to invest $10-15 billion from 2023 to 2025 in low-carbon energy solutions such as biofuels, hydrogen, electric vehicle charging, and carbon capture and storage (CCS).

Shell's CEO, Wael Sawan, emphasized the importance of creating profitable business models that can scale rapidly to contribute to the decarbonization of the global energy system. Shell intends to invest in models with the highest returns that align with Shell's strengths.

Shell plc, headquartered in The Hague, the Netherlands, is a global energy and petrochemical company. Shell operates across Integrated Gas, Upstream, Oil Products, and Chemicals segments. Shell explores, extracts, and markets crude oil, natural gas, and natural gas liquids, as well as engages in gas-to-liquids fuel production and trading of various energy products. Shell also plays a significant role in the LNG market, selling LNG as fuel for heavy-duty vehicles and marine vessels. Additionally, Shell refines crude oil and produces petrochemicals, including ethylene, propylene, and aromatics, catering to industrial use. Founded in 1907, Shell was formerly known as Royal Dutch Shell plc and changed its name to Shell plc in January 2022.


Industry: Oil & Gas E&P

ConocoPhillips (COP) recently reported its first-quarter 2023 earnings, showcasing a decrease compared to the previous year. Despite this, ConocoPhillips remains committed to its value proposition and demonstrated strong performance in various areas. Notably, ConocoPhillips achieved record production, advanced joint ventures, received positive decisions for key projects, and expanded its ownership position. Furthermore, ConocoPhillips accelerated its greenhouse gas emissions-intensity reduction target, emphasizing its commitment to operational sustainability.

In light of these developments and to further reward its shareholders, ConocoPhillips increased its dividend. ConocoPhillips announced a quarterly ordinary dividend of $0.51 per share, payable on June 1, 2023, and a variable return of cash (VROC) of $0.60 per share, payable on July 14, 2023. The dividend increase reflects ConocoPhillips' confidence in its future prospects and its dedication to providing value to its investors.

ConocoPhillips explores for, produces, transports, and markets crude oil, bitumen, natural gas, liquefied natural gas (LNG), and natural gas liquids worldwide. ConocoPhillips primarily engages in conventional and tight oil reservoirs, shale gas, heavy oil, LNG, oil sands, and other production operations. Its portfolio includes unconventional plays in North America; conventional assets in North America, Europe, Asia, and Australia; various LNG developments; oil sands assets in Canada; and an inventory of conventional and unconventional exploration prospects. ConocoPhillips was founded in 1917 and is headquartered in Houston, Texas.


Industry: Oil & Gas Integrated

National Fuel Gas Company (NFG) recently announced a 4.2% increase in the dividend on its common stock, marking the 53rd consecutive year of dividend growth. This increase raises the quarterly rate from 47.5 cents to 49.5 cents per share, resulting in an annual rate of $1.98 per share. With a dividend payout history spanning 121 years, National Fuel Gas Company has a strong track record of rewarding its shareholders.

The decision to increase the dividend reflects the company's commitment to delivering value to its stockholders. National Fuel Gas Company's consistent dividend growth demonstrates its confidence in its financial performance and prospects. The company's solid financial position, including approximately 91.8 million shares of common stock outstanding and no preferred stock, enables it to sustain and increase its dividend payments.

National Fuel Gas Company is a diversified energy company with four operating segments: Exploration and Production, Pipeline and Storage, Gathering, and Utility. National Fuel Gas explores for and produces natural gas and oil in California and the Appalachian region of the United States. It also provides interstate natural gas transportation and storage services through an extensive pipeline system and owns multiple underground gas storage fields. Additionally, National Fuel Gas Company operates natural gas processing and pipeline gathering facilities in the Appalachian region and serves over 743,400 customers with natural gas sales and transportation in various locations. Founded in 1902, National Fuel Gas is headquartered in Williamsville, New York.


Industry: Thermal Coal

NACCO Industries® has recently made an encouraging announcement for its shareholders. The company's Board of Directors has decided to increase its regular cash dividend from 20.75 cents to 21.75 cents per share. This move reflects NACCO Industries' commitment to delivering value to its investors.

The decision to increase the dividend can be attributed to NACCO Industries' strong financial performance and positive outlook. NACCO Industries has been experiencing steady growth and generating solid profits, allowing them to share their success with their shareholders. The new dividend of 21.75 cents per share translates to an annual rate of $0.87 per share, providing investors with an attractive return on their investment.

NACCO Industries, Inc. is a holding company, which engages in the management of surface mines that supply coal to power generation companies. NACCO Industries is headquartered in Cleveland, Ohio and currently employs 2,400 full-time employees. The firm's principal business includes mining. The firm operates through the NACoal segment. The firm's subsidiary includes The North American Coal Corporation (NACoal). The firm's NACoal segment mines coal for use in power generation and provides mining services for other natural resources companies. Coal is surface mined from NACoal's mines in North Dakota, Texas, Mississippi, Louisiana, and the Navajo Nation in New Mexico. NACoal's operating coal mining subsidiaries include Bisti Fuels Company, LLC (Bisti), Caddo Creek Resources Company, LLC (Caddo Creek), Camino Real Fuels, LLC (Camino Real), The Coteau Properties Company (Coteau), Coyote Creek Mining Company, LLC (Coyote Creek), Demery Resources Company, LLC (Demery), The Falkirk Mining Company (Falkirk), Liberty Fuels Company, LLC (Liberty), Mississippi Lignite Mining Company (MLMC), and The Sabine Mining Company (Sabine).


Industry: Oil & Gas Midstream

Delek Logistics Partners, LP (DKL) recently announced a 0.5 percent increase in its quarterly cash distribution for the first quarter of 2023. The distribution amounts to $1.025 per common limited partner unit, or $4.10 per unit on an annualized basis. This increase demonstrates Delek Logistics Partners' commitment to providing value to its shareholders.

The decision to increase the dividend can be attributed to a variety of factors. Firstly, Delek Logistics Partners has likely experienced positive financial performance, enabling them to distribute higher returns to investors. Additionally, the company's growth and stability in the market have likely contributed to the confidence in increasing the dividend.

Delek Logistics Partners, LP owns and operates logistics and marketing assets for crude oil, and intermediate and refined products in the United States. It operates in two segments, Pipelines and Transportation, and Wholesale Marketing and Terminalling. The Pipelines and Transportation segment includes pipelines, trucks, and ancillary assets that provide crude oil gathering, crude oil intermediate and finished products transportation, and storage services primarily in support of the Tyler, El Dorado, and Big Spring refineries, as well as offer crude oil and other products transportation services to third parties. This segment operates approximately 700 miles of crude oil gathering system. The Wholesale Marketing and Terminalling segment provides wholesale marketing, transporting, storage, and terminalling services related to refined products to independent third parties. Delek Logistics GP, LLC serves as the general partner of the company. Delek Logistics Partners, LP was founded in 2012 and is headquartered in Brentwood, Tennessee. Delek Logistics Partners, LP is a subsidiary of Delek US Holdings, Inc.

All data was sourced from LevelFields AI

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