ProPetro Holding Corp. ("ProPetro" or "the Company") has recently announced the approval of a $100 million share repurchase program by its Board of Directors. This strategic move is aimed at creating value for shareholders and capitalizing on the substantial discrepancy between the company's equity value and its strong financial performance. ProPetro remains confident in its current and future financial and operational performance, making its stock an attractive investment opportunity.

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Details of the Share Repurchase Program

Under the approved share repurchase program, ProPetro has the authorization to repurchase up to $100 million of its outstanding common stock. This represents approximately 13% of the company's market capitalization based on the current share price. The program will be in effect until May 31, 2024.

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Flexible Repurchase Methods

ProPetro has the flexibility to repurchase shares through various methods during the program's duration. These methods include open market transactions, block trades, accelerated share repurchases, privately negotiated transactions, derivative transactions, or any other suitable means. The company may also adopt a trading plan meeting the requirements of Rule 10b5-1 under the Securities Exchange Act of 1934, as amended. Compliance with applicable state and federal securities laws will be ensured.

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Factors Influencing Repurchase Decisions

The timing, number, and value of shares repurchased under the program will be determined at the discretion of the Company. Multiple factors will be considered, including the intrinsic value of ProPetro's common stock as assessed by management, the prevailing market price of the stock, general market and economic conditions, available liquidity, compliance with debt and other agreements, legal requirements, alternative investment opportunities, and other relevant considerations.

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Flexibility and Discretion in the Program

ProPetro is not obligated to purchase any shares under the share repurchase program, and it reserves the right to suspend, modify, or discontinue the program at any time without prior notice. This provides the company with the necessary flexibility to adapt to changing market conditions and prioritize its capital allocation effectively.

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Funding the Repurchases

ProPetro plans to fund the share repurchases using its cash on hand and the expected free cash flow generated in the future. This approach ensures that the company maintains a robust balance sheet while optimizing its capital allocation strategies.

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Members of LevelFields received the alert of this event on May 17, 7:25 AM ET

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