HOUSTON, TX--(Marketwired - May 06, 2015) - Miller Energy Resources, Inc. (NYSE: MILL) ("Miller Energy" or the "Company") announced today that its Board of Directors has voted to defer the cash payment of the quarterly dividend ("Dividend") on the Company's 10.75% Series C Cumulative Redeemable Preferred Stock ("Series C Preferred Stock") and its 10.5% Series D Fixed Rate / Floating Rate Cumulative Redeemable Preferred Stock ("Series D Preferred Stock").
Miller Energy believes that it has substantial asset value. Additionally, with its reduced debt and increased production as well as the recent improvement in oil prices, the Company believes its fundamental outlook has improved.
The structure of the Company's current debt, however, has become increasingly constraining. Accordingly, Miller Energy believes that repositioning its capital structure in a more sustainable and appropriate manner will maximize its asset value in a manner that best serves the interests of all Miller Energy stakeholders, including the holders of Series C Preferred Stock and Series D Preferred Stock. The deferral of the cash payment of the Dividend, along with the Company's on-going capex discipline and cost efficiency measures, will facilitate the Company's capital repositioning efforts and help ensure sufficient liquidity and maximize asset value.
The Charter of Miller Energy that governs the Series C Preferred Stock and Series D Preferred Stock provides the Company the flexibility to defer the cash payment of Dividends. The amount of deferred cash payments of Dividends will accrue, and any future cash payments made to the holders of Series C Preferred Stock and Series D Preferred Stock will first go to retire the amount of the accrued but unpaid Dividends.
The Company's Board of Directors will consider the cash payment of future Dividends in due course.
The Series C Preferred Stock and Series D Preferred Stock are listed on the New York Stock Exchange and trade under the symbols "MILLprC" and "MILLprD," respectively.
About Miller Energy Resources
Miller Energy Resources, Inc. is an oil and natural gas production company focused on Alaska. The Company has a substantial acreage, reserve, and resource position in the State, significant midstream and rig infrastructure to support production, and 100% working interest in and operatorship of most of its assets. Miller Energy has two over-arching objectives: first, to be a long-term participant in the State's E&P industry and in responsibly developing Alaska's oil and gas resources; second, as the only public pure-play Alaska E&P, to be a straightforward vehicle for investors to participate in that development. Miller Energy manages its operations from Anchorage with additional administrative offices in the lower 48. The Company's common stock is listed on the NYSE under the symbol MILL. More information on Miller Energy can be found at www.millerenergyresources.com.
Statements Regarding Forward-Looking Information
Certain statements contained herein are forward-looking statements including, but not limited to, statements that are predications of or indicate future events, trends, plans or objectives. Undue reliance should not be placed on such statements because, by their nature, they are subject to known and unknown risks and uncertainties. Forward-looking statements are not guarantees of future activities and are subject to many risks and uncertainties. Due to such risks and uncertainties, actual events may differ materially from those reflected or contemplated in such forward-looking statements. Forward-looking statements can be identified by the use of the future tense or other forward-looking words such as "believe," "expect," "anticipate," "intend," "plan," "should," "may," "will," "continue," "strategy," "position," "opportunity," statements regarding the "flexibility" of the Company or the negative of any of those terms or other variations of them or by comparable terminology. A discussion of these risk factors is included in the Company's periodic reports filed with the SEC.
Source: Marketwired (Canada)
(May 6, 2015 - 8:00 AM EDT)
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