Alvopetro Energy Ltd (TSX-V:ALV, OTC:ALVOF) announced that its board has approved a quarterly cash dividend and a special dividend, as part of the company’s ongoing capital return strategy.
The Calgary-headquartered oil and gas producer declared a base quarterly dividend of US$0.10 per common share and a special dividend of US$0.02 per share.
Both dividends will be paid in cash in January 2026, to shareholders of record as of the close of business on December 31, 2025.
“As we strive to maintain our balanced capital allocation and stakeholder return model, we are pleased to announce a special dividend this quarter, representing a 20% increase in our total quarterly dividend,” Alvopetro CEO Corey Ruttan said in a statement.
The company said both the base and special dividends are designated as eligible dividends for Canadian income tax purposes. Dividend payments to non-residents of Canada will be subject to a 25% withholding tax, although shareholders may qualify for a reduced rate under an applicable tax treaty between Canada and their country of residence.
Alvopetro said the dividend declaration aligns with its balanced capital allocation framework, under which it aims to reinvest approximately half of its cash flow into organic growth initiatives while returning the remaining portion to shareholders.
The company currently concentrates its capital investment in Canada and Brazil, building on production from its Caburé and Murucututu natural gas fields and associated midstream infrastructure.
"Based mainly off the strength of our 100% owned Murucututu project in Brazil, Alvopetro has generated significant year-over-year production growth,” Ruttan highlighted. “With the recent addition of production from our 183-D4 well, we've been posting near-record sales levels.”