Devon Energy Corp. (NYSE: DVN) reported that its board of directors has declared a record high dividend of USD 1.00 per share based on its fourth quarter financial performance. The dividend is payable on March 31st, 2022 to shareholders of record at the close of business on March 14th, 2022. The board has approved the increase in the fixed dividend of 45% or USD 0.05 per share. After the fixed dividend is funded, up to 50% of the excess free cash flow each quarter shall be distributed to shareholders through the variable dividend.
The company has accelerated cash returns through execution of its share repurchase program. In the fourth quarter, the company has repurchased 14 million shares at a total value of USD 589 Million. The board has expanded the company’s share repurchase authorization by 60% to USD 1.6 Billion that is equivalent to 5% of Devon’s market capitalization. “Today’s announcements further demonstrate Devon’s commitment to lead the energy industry in cash returns and reflects the confidence we have in our underlying business and financial strength as we head into 2022,” said Rick Muncrief, president and CEO. Management will determine the timing and volume of share repurchases. The share repurchases will be made through numerous methods such as open market purchases of private transactions. This stock repurchase program can be discontinued at any time.