![ProPetro Announces $100 Million Share Repurchase Program](/sites/default/files/styles/hart_news_article_image_640/public/image/2023/05/propetro-announces-100-million-share-repurchase-program.jpg?itok=5yLZzXff)
ProPetro Holding Corp.’s board of directors approved a $100 million share repurchase program, announced May 17 in a press release. (Source: Shutterstock.com)
ProPetro Holding Corp.’s board of directors approved a $100 million share repurchase program, announced May 17 in a press release.
Under the program, ProPetro may repurchase outstanding common stock until May 31, 2024. The $100 million authorization represents approximately 13% of the company’s market capitalization based on current share price.
“We remain confident in the company's current and future financial and operational performance, and we believe that our stock presents a unique investment opportunity due to the substantial discrepancy between our equity value and our strong financial performance,” said Sam Sledge, CEO of ProPetro.
Repurchase methods include open market transactions, block trades, accelerated share repurchases, privately negotiated transactions and derivative transactions. ProPetro plans to fund the program using cash on hand and expected free cash flow.
The timing, number and value of shares repurchased will be determined at ProPetro management’s discretion, “taking into consideration market conditions, our business outlook, capital position and liquidity, all while maintaining our robust balance sheet,” Sledge said. The repurchase program may be discontinued or modified at any time.
In addition to the share repurchase program, ProPetro also plans to explore other methods of capital allocation, Sledge said in the press release.
ProPetro is a Midland, Texas-based oilfield services company.
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