Genie Energy Ltd., (NYSE: GNE) today announced a quarterly dividend of $0.05 per share of common stock, and said that its Board of Directors has authorized the repurchase of up to $20 million of its Class B common stock.
“Genie Energy has a strong balance sheet with ample resources to exploit exciting growth opportunities at both its retail energy business and unconventional fuels initiatives,” said Genie Energy’s Chairman, Howard Jonas.
“Results from the first quarter fiscal 2012 confirmed the cash generation power of our retail energy business, and Genie’s Board concluded that, with the cash on hand and the strength of the retail energy business, a moderate quarterly dividend was appropriate. In addition, the Board provided the Company with the flexibility to repurchase stock as warranted by the Company’s position and market conditions,” Mr. Jonas added.
The first quarterly dividend will be paid on January 5, 2012 to shareholders of record of Genie Energy Ltd. Class A and Class B common stock as of the close of business on December 22, 2011. The ex-dividend date is December 20, 2011.
"Genie Energy's Board is committed to continue paying dividends commensurate with the Company’s financial results, available resources and strategic goals," Mr. Jonas said.
Under the stock repurchase program, Genie Energy may expend up to $20 million to purchase outstanding shares of its Class B common stock depending upon share prices, prevailing economic and market conditions and corporate considerations. The stock repurchases may be made on the open market, in block trades or privately negotiated transactions, or otherwise. The repurchase program may be accelerated, suspended, delayed or discontinued at any time.
Any repurchases would be paid from the Company’s cash. As of October 31, 2011, Genie Energy reported $92.3 million in cash, $137.3 million in current assets including cash and an $11.9 million receivable due from IDT Corporation (NYSE: IDT), $21.4 million in current liabilities, and no long term debt.