Mexican energy company announces dividend and stock buyback plan

NEW YORK – Independent oil and gas company Energia Mexico (NYSE: MXC) announced on Tuesday that it will pay a regular annual cash dividend of $0.10 per share on June 4, 2024 to shareholders of record as of May 21, 2024.

In addition to the dividend, the company's board of directors approved a stock repurchase program of up to $1 million to purchase shares for its financial account, replacing the previous repurchase program with a remaining balance of $414,964.

During the last fiscal year ended March 31, 2024, the Mexican company repurchased 50,101 shares at an average price of $11.68 per share. The company, headquartered in Midland, Texas, focuses primarily on the acquisition, exploration and development of properties in the Permian Basin.

Dividend and repurchase authorizations reflect the discretion of the Board of Directors and take into account a variety of factors, including the Company's liquidity, capital resources, operating performance and expected future performance. Energia Mexico said future dividends and the exact amount are not guaranteed and will depend on the company's financial condition and capital needs at the time of assessment.

This repurchase program is subject to securities laws, has no fixed expiration date, and may be adjusted, suspended or terminated at any time at the discretion of the Board of Directors.

This financial strategy is part of Energia Mexico’s ongoing efforts to manage its capital and deliver value to shareholders. This information is based on a press release from Energia México.

Investment Professional Insights

Energia Mexico (MXC) recently announced a regular annual cash dividend and a new share repurchase program, demonstrating the company's commitment to returning value to shareholders. To further understand Mexico's financial health and investor value potential, here are some insights from InvestingPro.

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one of the outstanding Investment Professional Tips For MXC, it has the ability to hold more cash than debt on its balance sheet. This indicates a strong liquidity position, which is critical to repaying short-term debt and potentially funding dividend payments and share buybacks. Additionally, MXC's liquid assets exceed its short-term debt, further demonstrating its solid financial fundamentals.

In terms of performance, MXC matcha has performed strongly, with an increase of 24.39% last month and 25.3% in the past three months. Investment professional data.

Although the company's revenue fell by 26.42% in the past 12 months as of the third quarter of 2024, its gross profit margin remained at a high level of 77.83%, showing that the company can maintain profitability despite revenue fluctuations. In addition, the company's operating profit margin remained at a healthy level of 33.48%.

For those investors looking for more comprehensive analysis and more information Investment Professional Tips, 7 more tips for MXC on InvestingPro. These techniques provide a deeper understanding of a company's long-term performance, cash flow sustainability and profitability over the trailing twelve months.To access these tips and more, use the coupon code PRONEWS24 Annual or biennial Pro and Pro+ subscriptions receive an additional 10% discount.

Investors should also note that MXC does not pay a dividend to shareholders, which is consistent with its recently announced stock buyback program rather than a dividend increase. This could be a strategic move aimed at increasing shareholder value through potentially increasing earnings per share and share price.

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Finally, MXC Matcha's InvestingPro fair value is currently $13.59, which may be a useful benchmark for investors considering the company's shares in light of their near-term financial strategies.

This article was generated with the support of artificial intelligence and reviewed by an editor. For more information, please see our terms and conditions.

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