ProPetro Holding Corp.’s board is increasing the company’s share repurchase program by $100 million, bringing its total buybacks to $200 million worth of common shares.
The repurchase program is also being extended by a year, to May 31, 2025.
Since buybacks began in May 2023, ProPetro has repurchased 8%, or approximately $74 million, of its outstanding common stock. With the new expansion of the program, another $126 million is authorized for future common share repurchases, or 14% of ProPetro’s market capitalization based on the current share price.
"We are pleased to announce the expansion of our share repurchase program, which reflects the strong support of our board of directors in our strategy and ability to execute," said CEO Sam Sledge in the press release. "We are confident we have the right strategy in place to benefit from our position as a sophisticated service provider. Our proven discipline and transformed, bifurcated fleet give us confidence in our strategy and earnings potential.”
The company plans to buy shares opportunistically, taking into account market conditions, the company’s business outlook, its capital position and liquidity, the company said in the press release.
The company plans to use different methods to repurchase, including in open market transactions, block trades, accelerated share repurchases, privately negotiated transactions and derivative transactions. Repurchases will be funded using cash on hand and expected free cash flow.
ProPetro is not obligated to purchase any shares under the repurchase program, and the program may be suspended, modified or discontinued at any time without prior notice.
Recommended Reading
Analyst: Exxon Mobil, Pioneer Deal Close Likely ‘Imminent’
2024-05-01 - With approval from the Federal Trade Commission, Exxon Mobil could close its $59.5 million acquisition of Pioneer Natural Resources after more than six months of review.
Oil, Gas Production Fee Set to Hit Colorado Producers
2024-05-01 - The deal reached this week will eliminate several proposed ballot measures targeting the fossil fuel industry ahead of this year's election, including one that would have halted drilling in summer months.
Guyana’s Stabroek Boosts Production as Chevron Watches, Waits
2024-04-25 - Chevron Corp.’s planned $53 billion acquisition of Hess Corp. could potentially close in 2025, but in the meantime, the California-based energy giant is in a “read only” mode as an Exxon Mobil-led consortium boosts Guyana production.
US Interior Department Releases Offshore Wind Lease Schedule
2024-04-24 - The U.S. Interior Department’s schedule includes up to a dozen lease sales through 2028 for offshore wind, compared to three for oil and gas lease sales through 2029.
Utah’s Ute Tribe Demands FTC Allow XCL-Altamont Deal
2024-04-24 - More than 90% of the Utah Ute tribe’s income is from energy development on its 4.5-million-acre reservation and the tribe says XCL Resources’ bid to buy Altamont Energy shouldn’t be blocked.