Chesapeake Energy Corporation (NYSE:CHK)’s board of directors approved $0.0875 per share quarterly dividend to be paid on October 31, 2013 to common shareholders of record on October 15, 2013. Chesapeake has approximately 665 million common shares outstanding.
The dividend declared by the company is in line with all previous distributions since July 2011. Before 2011, Chesapeake was not so generous, and the dividend was $0.075 per share.
Chesapeake also announced preferred stock dividends
Along with the dividends, the company announced the distributions for its convertible preferred stock issues. The 4.50 percent issue is to receive $1.125 per share, which will be distributed on December 16 to holders of record as of December 2. The 5 percent will receive $1.25, while both the 5.75 percent and the 5.75 percent Series A issues are to be paid $14.375 a piece. Date for all three is decided on November 15 for holders in possession of their stock as of November 1.
Layoffs, a part of restructuring process
Recently, the company (under its restructuring process) has decided on slashing the entire natural gas vehicle team indicating more layoffs in the future. New, CEO Lawler reinstated that Chesapeake Energy Corporation (NYSE:CHK) will look into a “comprehensive review of all areas” by November 1st this year.
In a statement, Lawler said, “future staffing adjustments will likely be necessary to properly align resources and improve our overall operating and competitive performance. Chesapeake Energy Corporation (NYSE:CHK) is aiming towards increasing shareholders value and ensuring that things are “return-centric.”
For the second quarter of the current fiscal year, the energy company posted better-than-expected results. Earnings came in at 52 cents per share, which was higher than analysts’ estimates of 41 cents on revenue of $3.21 billion. However, on the profit front, Chesapeake suffered a hit of 40 percent due to one-time charges. Chesapeake Energy Corporation (NYSE:CHK) posted their first quarterly result after the new CEO Doug Lawler took over in June. Stocks were impacted by the exit of former CEO and co-founder Aubrey McClendon.
Investors and shareholders were skeptic about the management style of McClendon and could not stand the wrong decisions and declining performance of the company.
The company has been selling off the assets to revive its cash flow and pay debts. It earned $2.4 billion in asset sales during the first half of the year, and the process is expected to continue for the rest of the year.