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Shares of Continental Resources (CLR - Get Report)  were soaring Tuesday after the oil and gas company announced a new share buyback program and new dividend.

The Oklahoma City-based company initiated a quarterly dividend of 5 cents per share, payable on Nov. 21, to shareholders of record on Nov.  7. The dividend will pay out about $75 million on an annualized basis. 

The company also announced a share repurchase program of $1 billion beginning in the second quarter of 2019 and continuing through 2020. The company expects the majority of the initial program to be completed by the end of the year. 

"Today marks another milestone in Continental's history as we initiate a total shareholder return strategy," said Harold Hamm, chairman and CEO. "This demonstrates the confidence we have in the quality and sustainability of our assets and our commitment to maximizing shareholder value. We see the current value of our equity as being unreasonably low, making the acquisition of our stock the best use of excess cash at this time."

The stock rose 13.8% to $39.84.