Investor FAQ

Dividend Frequently Asked Questions

How often is Penn West's dividend distributed?

As announced in our September 1, 2015 news release, our Board of Directors has decided to suspend our dividend until further notice following the payment on October 15, 2015 of the most recently declared dividend. The $0.01 per share dividend declared by our Board of Directors on July 30, 2015 will still be paid on October 15, 2015 to shareholders of record at the close of business on September 30, 2015.

What is the taxability of Penn West's distributions/dividends?

Please click here for current and historical Canadian tax information.

Please click here for current and historical U.S. tax information.

How are dividends paid out and whom do I contact if I have not received my dividends?

Dividends are sent out on the dividend payment date either directly to the shareholder (in the form of a cheque) if the shares are registered in the name of the shareholder, or to the brokerage house or investment firm that manages the account of a beneficial shareholder. Your brokerage house or investment firm then deposits the funds into your account.

If you are a registered shareholder and you did not receive your dividends, please contact our transfer agent, CST Trust Company at 1-800-387-0825. If you hold your shares with a brokerage house or investment firm, please contact your account manager/broker.

What do the terms dividend date, record date and ex-dividend date refer to?

The dividend payment date is the date the company sends cash dividends to shareholders (either directly to the shareholder if they are the registered shareholder, or to the brokerage or investment company that manages the beneficial shareholders' account).

The record date is the date by which a person must be on record as being a shareholder in order to receive the next dividend. As it typically takes three business days for a trade to settle in your account, you must purchase the shares three business days prior to the record date to ensure you are a shareholder of record.

The ex-dividend date is generally two business days prior to the record date. Shareholders who have purchased their shares before the ex-dividend date are entitled to the declared dividend paid on the dividend date the following month.

DRIP Frequently Asked Questions

We have set out some questions and answers below to explain the main points of the Penn West Dividend Reinvestment and Optional Share Purchase Plan (the "Plan"). Shareholders should carefully read the circular which follows these answers before making any decisions regarding the Plan.

What is the Penn West Dividend Reinvestment and Optional Common Share Purchase Plan (the "Plan")?

The Plan provides eligible holders of Penn West shares the advantage of acquiring additional shares by reinvesting their dividends at potentially lower prices without paying any commissions, service charges or brokerage fees. At the discretion of Penn West Petroleum Ltd., the administrator of Penn West, shares will be acquired with dividends either at prevailing market rates or issued from treasury at 95% of the Average Market Price.

Canadian resident shareholders enrolled in the Plan may also make optional cash payments of a minimum of $500 and up to a maximum of $15,000 per quarter to purchase additional shares. Shares purchased with optional cash payments will be acquired at prevailing market rates or issued from treasury at the Average Market Price (without a discount).

What are the advantages of the Plan?

  • Existing shareholders can purchase new shares of the Company each quarter by automatically reinvesting cash dividends.
  • Participants will likely receive a 5% discount off the purchase price when reinvesting cash dividends.
  • Canadian resident shareholders enrolled in the Plan can also make optional cash payments each quarter to purchase additional shares. The optional cash payments can be a minimum of $500 up to a maximum of $15,000.
  • No commissions, service charges or brokerage fees are payable in conjunction with the Plan.

What is the "Average Market Price"?

The Average Market Price is an average price calculated over 10 trading days. It also takes into account the number of shares that traded at a certain price, and so is also called a weighted average trading price. This is intended to give a better reflection of the market price.

Who is eligible to participate in the Plan?

Holders of at least one (1) Penn West share, who are Canadian or U.S. residents, may participate in the dividend reinvestment component of the Plan at any time. Beneficial owners of shares whose shares are not registered in their own names may participate in the dividend reinvestment component of the Plan by either having their shares transferred to their own name or, if the shares are held in an account with a broker, financial institution, investment dealer or other nominee, directing that nominee to enroll for them.

Upon enrolling in the dividend reinvestment component of the Plan, registered holders and beneficial owners who are Canadian residents may also participate in the optional share purchase component of the Plan directly by completing the appropriate Optional Cash Payment Authorization Form B (for registered holders) or Form C (for beneficial owners), as applicable, identifying the broker, investment dealer, financial institution or other nominee who holds the shares on behalf of the beneficial owner. Registered holders or beneficial holders who are U.S. residents are not eligible to participate in the optional share purchase component of the Plan.

 

What is the difference between a registered holder and a beneficial owner?

A registered holder is a shareholder who is shown on Penn West's records as owning the securities of Penn West and holds the stock certificates in his or her own name.

A beneficial owner is a shareholder who enjoys the benefits of ownership even though the title is kept in the name of a brokerage house, financial institution or other nominee.

Can a shareholder who resides outside of Canada participate in the Plan?

Yes, U.S. resident shareholders are eligible to participate in the dividend reinvestment component of the Plan; however, U.S. residents are not eligible to participate, directly or indirectly, in the optional share purchase component of the Plan. Unless otherwise determined by Penn West, shareholders who are not residents of Canada or the United States are not entitled to participate, directly or indirectly, in the Plan.

How do I become a participant in the Plan?

If you are a registered holder and wish to participate in the Dividend Reinvestment component of the Plan, please complete Form A - Dividend Reinvestment Authorization.

If you are a Beneficial owner of shares, and wish to participate in the Dividend Reinvestment component of the Plan, please contact your broker, investment dealer, financial institution or other nominee who holds your shares to provide instructions on how you would like to participate in the Plan.

If you are a broker, investment dealer, financial institution or other nominee holding shares on behalf of one or more beneficial owners of the shares who wish to participate in the dividend reinvestment component of the Plan, please contact the Canadian Depository for Securities or The Depository Trust Company in the United States.

Once you have enrolled, your participation in the Plan continues automatically until terminated by you or until the Plan is terminated by the Company. No further action is required unless you wish to change the terms of your participation in the Plan.

How can I make optional cash payments?

If you are a Canadian resident registered holder and have enrolled in the Dividend Reinvestment component of the Plan, you can participate in the Optional Share Purchase component of the Plan by enclosing a certified personal cheque in Canadian dollars payable to "The CIBC Mellon Trust Company c/o CST Trust Company" with the completed Form B - Optional Cash Payment Authorization - Registered Holder and the Participant Declaration Form.

If you are a Canadian resident beneficial owners of shares, who has enrolled in the Dividend Reinvestment component of the Plan through your nominee, you may directly participate in the Optional Share Purchase component of the Plan by completing Form C - Optional Cash Payment Authorization - Beneficial Owner with a certified personal cheque as well as the Participant Declaration Form. Please note that a separate account will be set up for you by the Agent to hold the shares purchased through the optional cash payment plan and you will become a "registered holder" of those shares.

Thereafter, optional cash payments may be made by using the portion of your plan statement sent to you each quarter, or with Form B, which may be obtained at any time from the Agent or from Penn West’s website. The same amount of money need not be sent each quarter and there is no continuing obligation to make cash payments. Optional cash payments may be made at any time but may not be less than $500 or more than $5000 per remittance. No interest will be paid on optional cash payments received by the Agent and therefore it is recommended that you make such payments as close as possible to the five business days prior to the dividend payment date.

U.S. residents are not eligible to participate, directly or indirectly, in the optional common share purchase component of the Plan.

When does my participation in the Plan begin?

You will become a participant under the Plan as of the first dividend record date following the receipt by the Agent of a duly completed Authorization Form for registered holders, or upon enrolment by your broker or other nominee if you are a beneficial owner. Dividend record dates are normally on or about the last day of each quarter. Dividend payment dates are normally about 15 days after the dividend record dates.

A Canadian resident shareholder wishing to make optional cash payments will, so long as a payment is received five business days before the dividend payment date, become a participant of the Optional Share Purchase component of the Plan for such dividend payment date.

How will the Plan purchase new shares for me?

Under the Plan, the Agent will purchase shares for each Participant's account, including fractions computed to four decimal places, equal to the amount of the dividend for each Participant invested under the Plan. Purchases are made following each dividend payment date.

The Agent will purchase shares with optional cash payments following each dividend payment date at prevailing market prices through the facilities of the Toronto Stock Exchange (no discount) or from treasury at the Average Market Price (without a discount).

What will the price be of the new shares purchased under the Plan?

The price of shares purchased with dividends will, at the discretion of the Corporation, be either 95% of the Average Market Price for shares issued from treasury or the prevailing market rates on the Toronto Stock Exchange. While the Company currently intends that shares will be issued from treasury at a discount to satisfy the dividend reinvestment component of the Plan, no assurances can be made that the Company will not exercise its discretion at a future time to acquire shares in the open market at prevailing market prices.

The price of shares purchased with optional cash payments will, at the discretion of the Corporation, be either purchased at prevailing market rates through the facilities of the Toronto Stock Exchange (no discount) or issued from treasury at the Average Market Price (without a discount).

Will certificates be issued for the shares purchased under the Plan?

Shares purchased and held under the Plan will be registered in the name of the Agent or its nominee, as agent for the Participants, and certificates for such shares will not normally be issued to Participants unless specifically requested in writing. You may request a certificate for any number of whole shares held by the Agent for your account by writing to the Agent. Certificates normally will be forwarded within three weeks of receipt of the request.

How do I terminate participation in the Plan?

You may terminate your participation in the Plan at any time by providing written notice to the Agent, however, you must do so three business days prior to a dividend record date if you don’t want shares purchased for you for the following dividend payment date.

When you terminate participation in the Plan, or upon termination of the Plan by the Company, a certificate for whole shares held for you under the Plan will be issued and a cash payment will be made for any fraction of a share (based on the market price as of the termination date) and any uninvested optional cash payments received. Normally certificates and cheques will be forwarded within three weeks of receipt by the Agent of the request. However, if the notice of termination is received by the Agent between a dividend record date and a dividend payment date, settlement of your account will not be made until after the dividend payment date and certificates and cheques will normally be forwarded within three weeks thereafter.

What statements will I receive under the Plan?

With each dividend, unaudited statements will be mailed to you. The statements will be your continuing record of purchases made and should be kept for tax purposes. In addition, you will receive annually the appropriate tax information for reporting dividends paid on shares subject to the Plan.

What are the income tax implications of participation in the Plan?

Generally, dividends that are invested in additional shares do not relieve you of any liability for taxes that may be payable on the amount of such dividends. To the extent that a dividend from the Company would be included in the income of shareholders, such amount will be included in the income of shareholders who elect to reinvest such amount. The amount reinvested by shareholders (plus any withholding taxes) will be added to the adjusted cost base of their shares for the purpose of computing any subsequent gain or loss thereon. You should consult your tax advisors concerning the tax implications of your participation in the Plan.

U.S. residents who are participants in the Plan should be aware that the amount of any dividend designated for reinvestment under the Plan will be reduced by the non-resident withholding tax applicable thereto. For further tax implications of a U.S. resident's participation in the Plan, please consult your tax advisor.

Where can I get further information of the Plan?

Authorization Forms are available for download on this website. You may also request Authorization Forms or direct any further questions regarding the Plan to:

CST Trust Company
600 The Dome Tower, 333 - 7th Avenue S.W.
Calgary, AB T2P 2Z1
Attention: Dividend Reinvestment Services
Telephone: (416) 682-3860
Fax (Canada/USA): 1-888-249-6189
Fax (Outside Canada/USA): (514) 985-8843
Website: www.canstockta.com

or

Penn West
Suite 200, 207 - 9th Avenue SW
Calgary, AB T2P 1K3
Attention: Investor Relations
Toll Free: 1-888-770-2633
Fax: (403) 777-2699
E-mail: investor_relations@pennwest.com