ASX-listed natural gas producer Senex Energy has completed the $87.5-million sale of its South Australian Cooper Basin business to Beach Energy, satisfying the condition for payment of a special 0.5c apiece dividend to shareholders, in addition to the 0.5c a piece distribution for the 2021 financial year half-year.
The completion strengthens Senex’s balance sheet, now in a proforma net cash position of $33-million, and supports acceleration of the development of its low-cost, high-return and long-life natural gas assets in Queensland’s Surat basin.
Further, the completion comes just a week after Senex’s 2021 financial year results showed “strong production growth and a material step change in earnings and cashflow from the Surat basin”, the company states.
Senex MD and CEO Ian Davies says the sale marked an important milestone for Senex as it builds an exciting future in the Surat basin as a material new entrant in a strong domestic natural gas market. “We have successfully delivered our $400-million Surat basin natural gas development projects, with new investments underway to accelerate production from our extensive 780 PJ 2P natural gas reserves.”
He adds that the sale proceeds received reinforce Senex’s balance sheet and position the company strongly for the low-risk high-return growth opportunities within its portfolio.
“The sale proceeds and the cash flow resilience of our natural gas portfolio also support the commencement of dividends for our shareholders."