Razor Energy Corp. (ticker: RZE) said it will pay a September 2018 monthly cash dividend will be $0.0125 per share which will be paid on October 31, 2018. The record date for the dividend is October 15, 2018 and the ex-dividend date is October 12, 2018. The dividend is scheduled to be paid monthly and is subject to commodity prices, production levels and other factors. The dividend is considered an “eligible dividend” for tax purposes.

Razor said it has transitioned to a dividend and growth model able to support sustainable yield to shareholders and also provide continuing annual per share growth.

In a statement, Razor said it contributes its transition to a dividend and growth model as:

  • Capital efficiencies – light oil focused development plan has demonstrated capital efficiencies of under $10,000 per BOEPD. Razor focuses on light oil because of stronger economics compared to natural gas. Small improvements in the price of oil have affected the company’s revenue.

  • Decline rates – base decline rates have proven to be between 10% and 12%. Development activities enhancing production levels primarily consist of reactivations, stimulations, and other reservoir optimization initiatives.

  • Hedging program – over the following 12 months, 40% to 85% of its forecasted light oil production is hedged at floor prices ranging from US$54.50/bbl to US$57.00/bbl.

  • Debt position – term debt with the Alberta Investment Management Corporation (or “AIMCo”) due to be repaid in January 2021. AIMCo is also a major shareholder owning approximately 14% of the outstanding common shares of Razor.


Razor started operations in the first quarter of 2017, through an acquisition of producing assets in the Swan Hills area.  In the second quarter of 2017, Razor added to its base with the acquisition of complementary assets in the Kaybob area. These predominantly light oil assets provide a foundation for strong economic returns through abundant low risk operations. Razor plans to concurrently grow Swan Hills and Kaybob, and execute on similar acquisitions and amalgamations, using its experience to extract upside value.

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