During Thursday’s Morning trade, Shares of NiSource Inc. (NYSE:NI), lost -4.42% to $17.07, hitting its lowest level.
NiSource Inc., approved a quarterly dividend payment of 15.5 cents per share, payable August 20, 2015, to common stockholders of record at the close of business on July 31, 2015.
This payment will be the first dividend payment made following the separation of Columbia Pipeline Group, Inc. (NYSE:CPGX) from NiSource, which was accomplished on July 1, 2015. While the payout amount declared recently is lower than preceding quarters due to the separation, it is consistent with the company’s intention to enhance the combined (NiSource and Columbia Pipeline Group) dividend declared on May 12. As declared formerly, going forward NiSource will target a dividend growth rate of 4 to 6 percent annually.
“The Board’s action recently delivers on one of our core commitments to shareholders following the separation,” said NiSource President and Chief Executive Officer Joseph Hamrock. “Our business plan, supported by about $30 billion in predictable long-term customer-focused system-enhancement opportunities offers a compelling growth investment proposition with noteworthy clarity and scale, and a track record of proven execution.”
NiSource Inc., an energy holding company, provides natural gas, electricity, and other products and services in the United States. It operates through three segments: Gas Distribution Operations, Columbia Pipeline Group Operations, and Electric Operations.
Shares of Comstock Resources Inc. (NYSE:CRK), declined -11.29% to $2.36, during its current trading session, hitting its lowest level.
Comstock Resources, declared that it has reached a definitive purchase and sale agreement with a private company to sell Comstock`s oil and gas properties in and around Burleson County, Texas for a sale price of about $115.0 million, subject to customary adjustments. The sale, which is subject to customary closing conditions, is predictable to close in July 2015 and will have an effective date of May 1, 2015. Comstock intends to use the proceeds from the sale to fund its 2015 drilling program and to enhance the Company`s liquidity in addition to for other corporate purposes.
The properties being sold are producing about 1,900 barrels of oil per day and 5.5 million cubic feet (“MMcf”) per day of natural gas. At December 31, 2014, Comstock`s proved reserves comprised of about 3.7 million barrels of oil and 3.9 billion cubic feet of natural gas related to the interests being sold. The Company anticipates to realize a pre-tax loss on the divestiture ranging from $100.0 to $110.0 million. Taking the divestiture into account, Comstock revised its 2015 oil production guidance to 9,000 to 9,500 barrels per day and its natural gas production guidance to 125 to 150 MMcf per day. Additionally, the Company declared that it has recently added about 10 MMcf per day of natural gas hedges at $3.20 per MMcf for the twelve months starting on July 1, 2015. The Company presently intends to continue to add additional hedges as opportunities develop.
BMO Capital Markets served as exclusive financial advisor and Locke Lord LLP served as legal advisor to Comstock on the transaction.
Comstock Resources, Inc., an independent energy company, acquires, develops, explores, and produces oil and natural gas properties in the United States. Its oil and gas operations are primarily located in East Texas/North Louisiana and South Texas.
Finally, Frontline Ltd. (NYSE:FRO), lost -6.40%, and is now trading at $2.42.
Frontline Ltd., and Frontline 2012 Ltd. have reached a contract and plan of merger following which the two companies have agreed to enter into a merger transaction, with Frontline as the surviving legal entity and Frontline 2012 as a wholly-owned partner. Subsequent to the merger, this partner is predictable to merge into the Surviving Company which will retain the Frontline Ltd. name.
Commenting on the transaction, Chairman of Frontline Ltd. and Frontline 2012 Ltd., John Fredriksen stated: “By merging Frontline and Frontline 2012 we will regain Frontline’s position as a leading tanker Company. The Combined Company will have a large fleet and a strong balance sheet which puts us in a position to gain further market share through acquisitions and consolidation opportunities. With the current strong tanker market and attractive cash break even rates, we believe the Combined Company will generate noteworthy free cash. The intention is to pay out excess cash as dividends at the Board’s discretion. I am very happy with this merger and I am determined to develop and grow the Company further.”
After the merger is accomplished the Combined Company anticipates to become one of the world’s leading tanker companies with a total fleet of about 90 vessels, comprising of about 25 VLCCs, 17 Suezmax tankers, 16 MR product tankers and 10 LR2 Aframax tankers. This comprises about 20 vessels on time charter in or under commercial administration. The Combined Company will also have a newbuilding program of about 22 vessels, which are planned to be delivered in the period 2015 - 2017.
Frontline Ltd., a shipping company, through its auxiliaries, owns and operates oil tankers and oil/bulk/ore carriers. The company provides seaborne transportation of crude oil and oil products. Its very large crude carriers (VLCCs) primarily transport crude oil from the Middle East Gulf to the Far East, Northern Europe, the Caribbean, and the Louisiana Offshore Oil Port, in addition to Suezmax tankers trade in the Atlantic Basin, the Middle East, and Southeast Asia.
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