Precision Drilling (TSX: PD) this morning announced the renewal of its share buyback program despite the weakness seen throughout the oil sector as of late. The program, which was initially set to expire August 26, is effectively being renewed for another year following the granting of approval by the Toronto Stock Exchange.
Under the buyback program, the company is currently permitted to purchase up to 23,997,668 common shares of the company, or what amounts to roughly 10% of the public float as of August 14. The buybacks are to be performed on both the TSX and NYSE, with the current daily maximum pegged at 390,304 common shares.
The previous program, which expires August 26, saw a total of 19,586,159 common shares purchased by the company for immediate cancellation, out of an eligible 29,170,887 shares that could of been purchased under the program. The average price came in at $1.59 per share, which equates to a spend of roughly $31.1 million.
Precision currently intends to enter into an automatic share purchase program in relation to the buyback program, enabling the company to purchase shares when normally it would not be permitted due to blackout provisions.
Precision Drilling last traded at $1.00 on the TSX.
Information for this briefing was found via Sedar and Precision Drilling. The author has no securities or affiliations with any of the mentioned securities. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
