Pembina Pipeline Corp. announced plans on May 14 to continue the option to repurchase up to 5% of its issued and outstanding common shares on the Toronto Stock Exchange (TSX), New York Stock Exchange and alternative Canadian trading systems.

Pembina has been permitted by the TSX to buy back, under a normal course issuer bid (NCIB), up to 29,045,408 common shares out of its 580,908,170 common shares issued and outstanding.

The company said the market price of its common shares sometimes trade at prices lower than their underlying value. Cancellation of shares would boost their value and may be done depending on certain financial factors, including financial performance, excess cash flow and greater returns from repurchasing shares compared to capital investment opportunities or debt reduction.

The normal course issuer bid begins May 16 and lasts until May 15, 2026 or when Pembina has acquired the maximum number of common shares allowed.

Pembina plans to cancel the common shares it acquires under the bid.

Under the company’s last NCIB, Pembina repurchased no common shares.

Comments