NOW Inc. Expands Capital Allocation Strategy with Inaugural Share Repurchase Program Authorization of $80 Million
03 August 2022 - 12:40PM
Business Wire
Board authorizes repurchase of up to $80
million of common stock
Company reaffirms continued priority and
commitment to its acquisition strategy
Repurchase program adds a highly flexible
avenue for the direct return of capital to shareholders
NOW Inc. (NYSE: DNOW) (“DistributionNOW” or the “Company”), a
worldwide leading provider of energy and industrial products and
packaged, engineered process and production equipment, announced
today that its Board of Directors authorized the Company’s
inaugural common stock repurchase program (“repurchase program”)
pursuant to which the Company may purchase up to $80 million of NOW
Inc.’s common stock, effective immediately and continuing through
December 31, 2024.
David Cherechinsky, President and CEO of NOW Inc., commented,
"The continued execution of our strategic business transformation
and top line growth initiatives strengthens our confidence in
DNOW’s improving cash flow generation capabilities. The
authorization of a share repurchase program complements our
acquisition strategy and illustrates an expanded commitment to
generating attractive full-cycle shareholder returns without
deviating from our disciplined approach to balance sheet
management. We will apply the same prudent philosophy with each
capital allocation decision and take a measured approach to the
repurchase of our shares whenever we see an opportunistic
disconnect between the intrinsic value and market valuation of our
shares.”
The Company achieved record profitability during the second
quarter of 2022 and exited the period with zero debt and $574
million in total liquidity, which includes $232 million in cash on
its balance sheet. This substantial liquidity position and newly
transformed earnings profile positioned the Company to establish
its inaugural share repurchase program and expands its options for
capital deployment, without impacting its continued priority for
acquisitions and organic growth opportunities.
Under this program, the Company may from time to time enter into
Rule 10b5-1 trading plans to facilitate the repurchase of its
common stock pursuant to its share repurchase program. The Company
cannot predict when or if it will repurchase any shares of common
stock as such stock repurchase program will depend on several
factors, including share price, general business and market
conditions, and alternative investment opportunities. Information
regarding share repurchases will be available in the Company’s
periodic reports on Form 10-Q and 10-K filed with the Securities
and Exchange Commission as required by the applicable rules of the
Exchange Act.
About NOW Inc.
DistributionNOW is a worldwide supplier of energy and industrial
products and packaged, engineered process and production equipment
with a legacy of 160 years. Headquartered in Houston, Texas, with
approximately 2,300 employees and a network of locations worldwide,
we offer a broad set of supply chain solutions combined with a
suite of digital solutions branded as DigitalNOW® that provide
customers world-class technology for digital commerce, data and
information management. Our locations provide products and
solutions to exploration and production companies, midstream
transmission and storage companies, refineries, chemical companies,
utilities, mining, municipal water, manufacturers, engineering and
construction companies as well as companies operating in the
decarbonization, energy transition and renewables end-markets.
Statements made in this press release that are forward-looking
in nature are intended to be "forward-looking statements" within
the meaning of Section 21E of the Securities Exchange Act of 1934
and may involve risks and uncertainties. These statements may
differ materially from actual future events or results. Readers are
referred to documents filed by NOW Inc. with the U.S. Securities
and Exchange Commission, which identify significant risk factors
which could cause actual results to differ from those contained in
the forward-looking statements.
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version on businesswire.com: https://www.businesswire.com/news/home/20220803005199/en/
Mark Johnson Senior Vice President and Chief Financial Officer
(281) 823-4754
DNOW (NYSE:DNOW)
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