Canacol Energy - Returning value to shareholders through dividend

Canacol Energy presented a 22% increase in natural gas production compared to Q219 following the achievement of one of its 2019 milestones – the Jobo to Cartagena 100mmscfd pipeline. 2019 is proving to be a transformational year for the company, with an increase in production to 215mmscfd and advanced negotiations to expand export capacity to 315mmscfd by the end of 2023. Given the forecast of stable free cash flows for the coming years, Canacol’s board of directors decided to declare a recurring quarterly dividend, starting in Q419 at US$7m. Our 2P + risked exploration NAV is in line with our previous note at C$6.35/share, a 1% decrease, reflecting a 4% decrease in our 2019 production estimate.