Retail Supplier Holding Company Resumes Quarterly Dividend On Common Stock
Board Authorizes Buyback of Preferred Shares
February 9, 2022 Email This Story Copyright 2010-21 EnergyChoiceMatters.com
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The board of directors of Genie Energy Ltd. announced the resumption of a regular dividend on its common stock, declaring a cash dividend of $0.075 per share of common stock for the fourth quarter of 2021, and authorized the gradual repurchase of its Series 2012-A Preferred Stock (GNEPRA).
"Approximately one year ago, we suspended our regular common stock dividend in light of the financial impacts of Winter Storm Uri in Texas and announced a recovery plan," said Genie's CEO, Michael Stein. "In the past year, we generated strong operational results across our businesses, refocused our retail supply business on robust cash generation, and significantly strengthened our balance sheet. In light of these developments, Genie's board of directors has resumed payment of a quarterly dividend to our common stockholders and authorized a gradual repurchase of our preferred shares."
The fourth quarter's common stock dividend will be paid on or about March 1, 2022 to Class A and Class B Common stockholders of record as of the close of business on February 22nd. The distribution will be treated as an ordinary dividend for tax purposes.
In addition, the board of directors has authorized the company to repurchase shares of its Series 2012-A Preferred Stock. The authorization is to purchase up to $1.0 million per quarter at the liquidation preference of $8.50 per share beginning in the second quarter of 2022. There are approximately 2.3 million shares of Series 2012-A Preferred Stock outstanding with an aggregate liquidation preference of $19.7 million. Holders of Series 2012-A Preferred Stock will be provided with details of the liquidation process. The preferred stockholders' rights to dividends on outstanding shares will not change during the buyback period.