ProPetro Holding Corp. has unveiled an expansion and extension of its share repurchase program in a press release on April 25. The announcement was made following approval by the Company's Board of Directors. The expansion and extension allows for the repurchase of up to an additional $100 million of the company's common shares, doubling the total authorization to $200 million.
"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 ProPetro Chief Executive Officer Sam Sledge in the release. Sledge emphasized the company's confidence in its strategy and earnings potential and highlighted the benefits of its industrialized business model.
"We view share repurchases and the overall return of capital to shareholders as an important part of our strategy demonstrating our conviction in the future of the company while creating value for shareholders," said Sledge. "We plan to opportunistically execute the share repurchase program, taking into consideration market conditions, our business outlook, capital position, and liquidity, all while maintaining our robust balance sheet."
According to the release, ProPetro has repurchased approximately $74 million or 8% of its outstanding common stock since its inception in May 2023. With the expanded program, the total remaining authorization for future common share repurchases is approximately $126 million or 14% of ProPetro’s market capitalization based on the current share price.
During the course of the share repurchase program, ProPetro may repurchase shares through different methods, including open market transactions, block trades, and privately negotiated transactions, among others. The timing and volume of repurchases will be determined by the company based on factors, such as market conditions and available liquidity, according to the release.
The expiration date of the program has been extended by one year to May 31, 2025.
ProPetro Holding Corp. is a provider of premium completion services to leading upstream oil and gas companies engaged in the exploration and production of North American unconventional oil and natural gas resources. For more information, visit www.propetroservices.com.