Share buyback! Pipestone Energy (TSX: PIPE) evidently feels it is rather undervalued. The oil and gas firm this morning announced the launch of its first ever stock buyback program, with the firm looking to repurchase up to 5% of its common shares outstanding.
Under the normal course issuer bid, Pipestone is eligible to repurchase up to 9.6 million shares of its equity. The program is set to begin November 25, and expire on November 24, 2022. The firm currently has 191.97 million common shares outstanding.
Pipestone is permitted to repurchase up to 55,099 common shares per day, with shares to be cancelled upon repurchase. The program is set to be funded via its free cash flow allocation strategy.
Pipestone Energy last traded at $3.50 on the TSX.
Opps sorrry wrong board. Hexo has no free cash flow that is not going to happen