DNOW Inc. (NYSE: DNOW) has announced a significant development with the authorization of a new share repurchase program. The company's board of directors has given the green light for the repurchase of up to $160 million of DNOW Inc.'s common stock, effective immediately. This represents a doubling in size from the previous $80 million repurchase program that has been successfully executed.
David Cherechinsky, President and CEO of DNOW Inc., highlighted the company's confidence in its continued cash flow generation capabilities and improved earnings profile, attributing the substantial increase in the share repurchase program to the strength of DNOW's business. This move is seen as complementing the company's acquisition focus and underlining its commitment to a disciplined capital allocation strategy aimed at delivering attractive full cycle returns and maximizing value for shareholders.
The program is designed to provide a highly flexible, shareholder-friendly avenue for the direct return of capital to shareholders. It is important to note that the company may, from time to time, enter into rule 10b5-1 trading plans to facilitate the repurchase of its common stock pursuant to the repurchase program. However, the actual repurchase of shares will depend on various factors, including share price, general business and market conditions, and alternative investment opportunities.
DNOW Inc., with a legacy of over 160 years, is a supplier of energy and industrial products as well as packaged, engineered process and production equipment. Headquartered in Houston, Texas, the company has approximately 2,500 employees and a network of locations, offering a broad set of supply chain solutions combined with digital offerings branded as digitalnow®.
This announcement reflects DNOW Inc.'s continued commitment to enhancing shareholder value and confidence in its future cash flow generation capabilities and improved earnings profile. It will be interesting to track the company's periodic reports on Form 10-Q and 10-K filed with the Securities and Exchange Commission to assess the progress of the share repurchase program in the coming quarters. As a result of these announcements, the company's shares have moved 9.2% on the market, and are now trading at a price of $15.07. Check out the company's full 8-K submission here.
