Board authorizes repurchase of up to $80 million of common stock
The company reaffirms its continued priority and commitment to its acquisition strategy
The buyback program adds a very flexible avenue for the direct return of capital to shareholders
HOUSTON, August 03, 2022–(BUSINESS WIRE)–NOW Inc. (NYSE: DNOW) (“DistributionNOW” or the “Company”), a leading global supplier of energy and industrial products and packaged process and production equipment, today announced that its Board of Directors has authorized the Company’s inaugural common stock repurchase program (“Buyback Program”) under which the Company may purchase up to $80 million of common stock of NOW Inc., effective immediately and through December 31, 2024.
David Cherechinsky, President and CEO of NOW Inc., said, “The continued execution of our strategic business transformation and revenue growth initiatives reinforces our confidence in improving cash flow generation from DNOW. The authorization of a share buyback program complements our acquisition strategy and illustrates a broader commitment to generating attractive returns for shareholders throughout the cycle without detracting from our disciplined approach to balance sheet management. We will apply the same cautious philosophy with every capital allocation decision and will take a measured approach to buying back our shares whenever we see an opportunistic mismatch between the intrinsic value and the market valuation of our shares.”
The company achieved record profitability in the second quarter of 2022 and ended the period with zero debt and $574 million in total liquidity, including $232 million in cash on its balance sheet. This substantial liquidity position and recently transformed earnings profile have positioned the Company to establish its inaugural share buyback program and expand its capital deployment options, without affecting its continued focus on acquisitions and organic growth opportunities.
As part of 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 common stock, as this stock repurchase program will depend on several factors, including the stock price, general business and market conditions and investment opportunities. alternatives. Information regarding stock repurchases will be available in the Company’s periodic reports on Forms 10-Q and 10-K filed with the Securities and Exchange Commission, as required by applicable rules of the Exchange Act.
About NOW Inc.
DistributionNOW is a global supplier of packaged and engineered energy and industrial products and process and production equipment with a 160-year heritage. Headquartered in Houston, Texas, with approximately 2,300 employees and a network of locations worldwide, we offer a wide range of supply chain solutions combined with a suite of DigitalNOW®-branded digital solutions that provide customers with a world-class technology for digital commerce, data and information management. Our sites provide products and solutions to exploration and production companies, midstream transmission and storage companies, refineries, chemical companies, utilities, mines, municipal water, manufacturers, engineering and construction companies as well as companies operating in the fields of decarbonization, energy transition and renewable energies. -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 encouraged to review NOW Inc.’s filings with the United States Securities and Exchange Commission, which identify important risk factors that could cause actual results to differ from those contained in the forward-looking statements.
See the source version on businesswire.com: https://www.businesswire.com/news/home/20220803005199/en/
Senior Vice President and Chief Financial Officer