Pulse Seismic Inc. Announces $8.5 Million Seismic Data Licensing Agreement and Declares Special Dividend
December 06 2023 - 6:58PM
Pulse Seismic Inc. (TSX:PSD) (OTCQX:PLSDF) (“Pulse” or the
“Company”) is pleased to announce the signing of an $8.5 million
seismic data licensing sales agreement. In addition, the Company
has declared a special dividend of $0.20 per common share.
The licensing agreement announced today has two
components, with the first tranche comprising $5.2 million of data
being recognized as revenue today, bringing year to date revenue to
$37.3 million. The second tranche, comprising $3.3 million of data,
will be delivered to the client in January 2024 at which time the
related revenue will be recognized.
The special dividend, totaling approximately
$10.5 million based on Pulse’s 52,637,463 common shares outstanding
as of December 6, 2023, will be paid on January 8, 2024, to
shareholders of record on December 21, 2023. This dividend is
designated as an eligible dividend for Canadian income tax
purposes. For non-resident shareholders, Pulse’s dividends are
subject to Canadian withholding tax.
“This is the fourth material data licensing
agreement that Pulse has announced in 2023 and signifies a
momentous improvement over 2022 sales levels,” stated Neal Coleman,
the Company’s President and CEO. “Subsurface data is an extremely
valuable risk mitigation tool utilized in the energy industry, and
we are certainly pleased to contribute to our clients’ efforts to
maximize the value of their projects, while also increasing returns
on our asset, the largest licensable Canadian seismic data
library,” Coleman continued.
Pulse has a strong balance sheet, including
robust cash reserves and no debt. The Company continues to operate
with a lean cost structure, has high EBITDA margins and low ongoing
capital requirements. Significant sales such as the one announced
today, produce material incremental free cashflow for the Company
and allows the return of significant capital to shareholders.
In the second quarter of 2023 the Company
increased its regular quarterly dividend by 10%, to an annualized
dividend of $0.055 per share. Additionally, a special dividend of
$0.15 per share was paid in the third quarter of 2023. Including
the dividend announced today, a total of $0.40375 per common share
has been declared, representing a $21.4 million return of capital
from dividends to shareholders in 2023. The Company also utilizes a
normal course issuer bid to purchase its shares on the TSX and has
bought and cancelled 989,406 shares in 2023, contributing $1.9
million to the $23.3 million in total capital returned to
shareholders year to date.
CORPORATE PROFILE
Pulse is a market leader in the acquisition,
marketing and licensing of 2D and 3D seismic data to the western
Canadian energy sector. Pulse owns the largest licensable seismic
data library in Canada, currently consisting of approximately
65,310 square kilometres of 3D seismic and 829,207 kilometres of 2D
seismic. The library extensively covers the Western Canada
Sedimentary Basin where most of Canada’s oil and natural gas
exploration and development occur.
For further information, please
contact:Neal Coleman, President and CEO
OrPamela Wicks, VP Finance and CFO
Tel.: 403-237-5559Toll-free: 1-877-460-5559E-mail:
info@pulseseismic.com.Please visit our website at
www.pulseseismic.com
PDF
available: http://ml.globenewswire.com/Resource/Download/7bb30be2-afb1-4501-9d36-3cb7e7bfe0b8
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