CALGARY, Alberta, Nov. 25, 2020 (GLOBE NEWSWIRE) -- Steel Reef Infrastructure Corp. (“Steel Reef” or the “Company”) today announced its Board of Directors (“Board”) has determined to discontinue the Company’s dividend and reallocate free cash flow toward profitable investments that will contribute to long-term value for shareholders.
Throughout the COVID-19 pandemic, Steel Reef has maintained a strong base business and expanded its portfolio of potential growth opportunities despite challenging energy market conditions. The Company’s new capital allocation approach enhances Steel Reef’s ability to capitalize on potential investments as industry activity resumes. Steel Reef has approximately doubled in size over the past year and since inception has deployed approximately $950 million in capital to high-quality natural gas gathering, processing and sales infrastructure assets in the Western Canadian Sedimentary Basin and the Bakken formation of the Williston Basin.
“Our long-standing philosophy of disciplined capital allocation is even more important during this unprecedented time,” said Scott Southward, President and Chief Executive Officer. “In this capital-constrained environment, it is most prudent to allocate our free cash flow to developing and executing highly accretive projects that will maximize shareholder returns over the long term.”
The Board believes this decision enhances the Company’s flexibility and resources to increase value for investors, while expanding its distinctive service offering for its many stakeholders who rely on Steel Reef’s flaring reduction expertise. The Company is grateful for the ongoing support of its shareholders as it continues to invest in growth.
About Steel Reef
Formed in 2012, Steel Reef is a privately held midstream company which owns and operates high-quality oil and gas processing and transportation facilities. The Company is focused on strategically partnering with exploration, development and production companies to develop a portfolio of midstream assets through acquisition or construction, with a view to maximizing shareholder return. Since inception, Steel Reef has deployed approximately $950 million into a cohesive portfolio of assets.
President and Chief Executive Officer
Chief Financial Officer
Certain statements contained in this release are forward-looking in nature, including with respect to the anticipated benefits of the Company’s reallocation of capital in the future, including expectations regarding the Company’s ability to capitalize on potential investments and increase value for investors. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or are not statements of historical fact should be viewed as “forward-looking statements”. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Steel Reef to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.
There can be no assurance that such forward-looking statements will prove to be accurate as actual results and future events could vary or differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements contained in this release. The forward-looking statements contained herein are expressly qualified by this cautionary statement.
Forward-looking statements are made based on management’s beliefs, estimates and opinions on the date the statements are made and Steel Reef undertakes no obligation to update forward-looking statements if these beliefs, estimates and opinions or other circumstances should change, except as required by applicable law.