HCA Holdings, Inc. (HCA) announced today that it intends, subject to applicable legal and contractual restrictions, to declare and pay a special cash dividend of $2.50 per share to stockholders during the fourth quarter of 2012. With the stock trading at $31.88, the special dividend will be a 7.85% dividend yield.
HCA anticipates revenues for the third quarter will approximate $8.062 billion, compared to $7.258 billion in the third quarter of 2011. Net income attributable to HCA Holdings, Inc. for the third quarter of 2012 is anticipated to be approximately $360 million, compared to $61 million in the third quarter of 2011. Earnings per share (EPS) is estimated to be $0.78 for the third quarter of 2012 compared to $0.11 per share in the third quarter of 2011.
HCA has an equity summary score of 9.8 out of 10 for a VERY Bullish outlook. HCA has a 12-month target price of $38.
Murphy Oil Corp. (MUR) declared a $500 million special dividend and a stock repurchase plan of up to $1 billion. It plans to pay the special $2.50 dividend on, or about, Dec. 3, to shareholders of record as of Nov. 16. With the stock trading at $59.00, the special dividend will be a 4.24% dividend yield.
Murphy Oil Corp.’s board approved the spinoff of its U.S. downstream unit, Murphy Oil USA Inc., as the company intends to focus on exploration and production activities in the U.S.,Canada and Malaysia.
Earlier this month, Murphy Oil said it was meeting with Third Point LLC–a hedge fund run by Dan Loeb that had accumulated a “significant stake” and had recently filed for regulatory approval to increase that position, if it desired.
Third Point had spelled out a four-step process for the energy company that included a spinoff of the retail business, selling its Canadian Natural Gas assets, completely exiting the U.K. refining business and selling its 5% stake in Syncrude oil sands projects.
Murphy Oil said it expects to complete the spinoff of Murphy USA in 2013. Murphy USA’s business will consist of retail marketing of petroleum products, a chain of retail gasoline stations, seven product distribution terminals and two ethanol production facilities inNorth Dakota and Texas.
Murphy Oil has an equity summary score of 8.3 out of 10 for a Bullish outlook. Murphy Oil has a 12-month target price of $63.60.