El Paso Corporation announced that, in light of the improved cash flow and business prospects of the company, its Board of Directors has approved a $300-million share repurchase program. The Board also intends to increase the annual dividend on its common stock from $.16 per share to $.20 per share, commencing with the dividend to be paid in the fourth quarter of 2008.
"We have made great progress in recent years, and increasing the dividend is tangible evidence of our confidence in the long term outlook for our company," said Doug Foshee, president and chief executive officer for El Paso Corporation. "We're on track for an outstanding year in 2008, and if current commodity prices hold, we expect to generate significantly more cash flow than our original 2008 guidance. We are blessed to have two business units with great inventories of internal growth prospects. In addition, the authorization by our Board of $300 million in share repurchases gives us one more tool in our toolkit to create value for our shareholders. In combination these two actions reflect both our view that our stock is a great investment and that we are laser-focused on taking the actions necessary to maximize the long term value of this enterprise."
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