DNOW Announces a New $160 Million Share Repurchase Program Authorization
DNOW has announced a new $160 million share repurchase program, doubling the size of its successfully completed $80 million inaugural program. The Board of Directors has authorized this program effective immediately, allowing the Company to purchase its common stock through Rule 10b5-1 trading plans.
President and CEO David Cherechinsky emphasized that this expanded program reflects the company's confidence in its continued cash flow generation capabilities and improved earnings profile. The initiative complements DNOW's acquisition focus and demonstrates commitment to disciplined capital allocation strategy.
The program's execution will depend on various factors including share price, business conditions, and alternative investment opportunities. The company maintains flexibility to suspend or discontinue the program at its discretion, with no obligation to repurchase shares.
DNOW ha annunciato un nuovo programma di riacquisto di azioni da 160 milioni di dollari, raddoppiando la dimensione del suo programma inaugurale di 80 milioni di dollari, che ha avuto successo. Il Consiglio di Amministrazione ha autorizzato questo programma con effetto immediato, consentendo all'azienda di acquistare le proprie azioni ordinarie attraverso piani di trading secondo la Regola 10b5-1.
Il Presidente e CEO David Cherechinsky ha sottolineato che questo programma ampliato riflette la fiducia dell'azienda nelle sue capacità di generare flussi di cassa continuativi e nel suo miglior profilo di utili. L'iniziativa integra il focus di acquisizione di DNOW e dimostra un impegno verso una strategia di allocazione del capitale disciplinata.
L'esecuzione del programma dipenderà da vari fattori, tra cui il prezzo delle azioni, le condizioni di mercato e le opportunità di investimento alternative. L'azienda mantiene la flessibilità di sospendere o interrompere il programma a sua discrezione, senza alcun obbligo di riacquistare azioni.
DNOW ha anunciado un nuevo programa de recompra de acciones por 160 millones de dólares, duplicando el tamaño de su exitoso programa inaugural de 80 millones de dólares. La Junta Directiva ha autorizado este programa con efecto inmediato, lo que permite a la empresa comprar sus acciones ordinarias a través de planes de negociación según la Regla 10b5-1.
El Presidente y CEO David Cherechinsky enfatizó que este programa expandido refleja la confianza de la empresa en su capacidad continua para generar flujo de efectivo y en su perfil de ganancias mejorado. La iniciativa complementa el enfoque de adquisición de DNOW y demuestra un compromiso con una estrategia de asignación de capital disciplinada.
La ejecución del programa dependerá de diversos factores, incluidos el precio de las acciones, las condiciones del negocio y las oportunidades de inversión alternativas. La empresa mantiene flexibilidad para suspender o interrumpir el programa a su criterio, sin obligación de recomprar acciones.
DNOW는 새로운 1억 6천만 달러 규모의 자사주 매입 프로그램을 발표하며, 성공적으로 완료된 8천만 달러의 첫 번째 프로그램 규모를 두 배로 늘렸습니다. 이사회는 즉시 이 프로그램을 승인하였으며, 회사가 규칙 10b5-1 거래 계획을 통해 자사 보통주를 매입할 수 있도록 합니다.
사장兼CEO인 David Cherechinsky는 이 확장된 프로그램이 회사의 지속적인 현금 흐름 창출 능력과 개선된 수익 프로필에 대한 신뢰를 반영한다고 강조했습니다. 이 이니셔티브는 DNOW의 인수 중심 전략을 보완하고, 규율 있는 자본 할당 전략에 대한 헌신을 보여줍니다.
프로그램 실행은 주가, 사업 조건, 대체 투자 기회 등 다양한 요인에 따라 달라질 것입니다. 회사는 자의적으로 프로그램을 중단하거나 종료할 수 있는 유연성을 유지하며, 주식을 재매입할 의무는 없습니다.
DNOW a annoncé un nouveau programme de rachat d'actions de 160 millions de dollars, doublant la taille de son programme inaugural réussi de 80 millions de dollars. Le Conseil d'administration a autorisé ce programme avec effet immédiat, permettant à la société d'acheter ses actions ordinaires par le biais de plans de négociation conformément à la règle 10b5-1.
Le président et PDG David Cherechinsky a souligné que ce programme élargi reflète la confiance de l'entreprise dans sa capacité à générer un flux de trésorerie continu et à améliorer son profil de bénéfices. L'initiative complète l'orientation d'acquisition de DNOW et démontre l'engagement envers une stratégie d'allocation de capital disciplinée.
La mise en œuvre du programme dépendra de divers facteurs, y compris le prix des actions, les conditions commerciales et les opportunités d'investissement alternatives. L'entreprise maintient la flexibilité de suspendre ou d'interrompre le programme à sa discrétion, sans obligation de racheter des actions.
DNOW hat ein neues Aktienrückkaufprogramm über 160 Millionen Dollar angekündigt, das die Größe seines erfolgreich abgeschlossenen ursprünglichen Programms von 80 Millionen Dollar verdoppelt. Der Vorstand hat dieses Programm mit sofortiger Wirkung autorisiert, wodurch das Unternehmen seine Stammaktien über Handelspläne gemäß Regel 10b5-1 kaufen kann.
Präsident und CEO David Cherechinsky betonte, dass dieses erweiterte Programm das Vertrauen des Unternehmens in seine fortlaufenden Cashflow-Generierungsfähigkeiten und das verbesserte Ertragsprofil widerspiegelt. Die Initiative ergänzt den Akquisitionsfokus von DNOW und zeigt das Engagement für eine disziplinierte Kapitalallokationsstrategie.
Die Umsetzung des Programms hängt von verschiedenen Faktoren ab, einschließlich des Aktienkurses, der Geschäftslage und alternativer Investitionsmöglichkeiten. Das Unternehmen behält sich die Flexibilität vor, das Programm nach eigenem Ermessen auszusetzen oder einzustellen, ohne zur Rückkauf von Aktien verpflichtet zu sein.
- Double-sized share repurchase program ($160M vs previous $80M)
- Successful completion of previous $80M buyback program
- Strong cash flow generation capabilities
- Improved earnings profile
- No guaranteed timeline or commitment for share repurchases
- Program execution dependent on market conditions and alternative opportunities
Insights
DNOW's bold move to double its share repurchase authorization to
The substantial increase signals management's strong conviction in DNOW's cash generation capabilities and future earnings potential. With a market cap of approximately
Three critical aspects stand out in this announcement:
- The program's discretionary nature provides valuable optionality, allowing management to opportunistically repurchase shares during market dislocations while maintaining flexibility to pursue strategic acquisitions.
- The successful completion of the previous program demonstrates effective execution capabilities and financial discipline.
- The commitment to maintain acquisition focus alongside buybacks indicates a balanced capital allocation approach, suggesting management sees multiple avenues for value creation.
From a financial strategy perspective, this dual-track approach of buybacks and acquisitive growth is particularly astute in the current market environment. It provides downside protection through share repurchases while preserving upside potential through strategic M&A. The program's open-ended timeline and Rule 10b5-1 trading plan provision add another layer of sophistication, enabling systematic execution while mitigating compliance risks.
This enhanced buyback program emerges at a strategic inflection point for DNOW, reflecting broader market dynamics and the company's competitive positioning. The timing and scale of this announcement carry several market implications:
First, doubling the program size to
The market impact could manifest in several ways:
- Enhanced trading liquidity through consistent buying presence
- Potential reduction in share price volatility
- Improved market perception of financial strength and management confidence
- Greater institutional investor interest due to demonstrated commitment to shareholder returns
The program's structure, particularly its flexibility and lack of time constraints, suggests a sophisticated approach to market dynamics. This optionality allows DNOW to adapt to changing market conditions while maintaining its strategic focus on growth initiatives, positioning the company well for various market scenarios.
The new share repurchase program is double in size from the successfully executed
DNOW reaffirms continued priority and commitment to its acquisition growth strategy coupled with organic investments
The program provides a highly flexible, shareholder friendly avenue for the direct return of capital to shareholders
David Cherechinsky, President and CEO of DNOW Inc., commented, “We are excited to announce our new share repurchase program, which is double in size from our previous program. The continued execution of our strategy and accompanying growth initiatives supports our confidence in DNOW’s continued cash flow generation capabilities and improved earnings profile. This substantial increase in the share repurchase program further demonstrates the strength in our business, complements our acquisition focus and illustrates our continued commitment to a disciplined capital allocation strategy, delivering attractive full cycle returns and maximizing value to our shareholders.”
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 repurchase program. The Company cannot predict when or if it will repurchase any shares of common stock as such repurchase program will depend on several factors, including share price, general business and market conditions and alternative investment opportunities. The share repurchase program does not obligate the Company to repurchase shares and may be suspended or discontinued at any time at the Company’s discretion. 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 DNOW Inc.
DNOW is a supplier of energy and industrial products and packaged, engineered process and production equipment with a legacy of over 160 years. Headquartered in
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 DNOW Inc. with the
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Mark Johnson
Senior Vice President and Chief Financial Officer
(281) 823-4754
Source: DNOW Inc.
FAQ
What is the size of DNOW's new share repurchase program?
How does DNOW's new buyback compare to its previous program?
When does DNOW's new share repurchase program begin?
Is DNOW obligated to complete the full $160M share repurchase?
How will DNOW implement its share repurchase program?
