U.S. oil and gas producer Devon Energy said on Thursday its board had approved a $8 billion share repurchase program, a week after activist investorKimmeridge called for higher shareholder returns.
Last week, Kimmeridge, a well-known activist investor in the energy sector, urged Devon’s incoming board to swiftly pursue asset sales, improve capital allocation and revamp executive pay to boost shareholder returns once its $58 billion merger with Coterra Energy closes.
* The all-stock merger with Coterra closed earlier on Thursday.
* Devon said the share repurchase program represents nearly 15% of its combined market capitalization.
* CEO Clay Gaspar said the company would be active and opportunistic in its buyback program.
* The authorization expires on June 30, 2029, Devon Energy said.
* The shale producer also approved a quarterly dividend of $0.320 per share, representing a 33% increase over the prior quarter.
* Devon Energy’s shares were up 1.4% in extended trading.
(Reporting by Vallari Srivastava in Bengaluru; Editing by Sahal Muhammed)