DALLAS–(BUSINESS WIRE)–Pioneer Natural Resources Company (NYSE:PXD) (“Pioneer” or “the Company”) today announced that its Board of Directors authorized a common stock repurchase program that will allow the Company to repurchase up to $2 billion of its common stock. Based upon Pioneer’s current share price, this represents approximately 8% of the Company’s market capitalization.
President and CEO Timothy L. Dove stated, “The announced share repurchase program demonstrates our commitment to returning capital to shareholders, consistent with the priorities of our ten-year plan. Pioneer’s deep Permian Basin inventory generates best in class well returns and is expected to provide increasing levels of free cash flow to support the Company’s plan to return capital to shareholders. Execution of this authorization offers an opportunity to deliver long-term value to our shareholders by repurchasing shares at attractive prices, which will enhance per-share metrics, including cash flow, production growth, net asset value and corporate returns, while maintaining one of the best balance sheets in the industry.”
Under the stock repurchase program, the Company may repurchase shares from time to time at management’s discretion in accordance with applicable securities laws, including through open market transactions, privately negotiated transactions or any combination thereof. In addition, shares may also be purchased pursuant to a trading plan meeting the requirements of Rule 10b5-1 under the Securities Exchange Act of 1934, which would permit shares to be repurchased when Pioneer might otherwise be precluded from doing so under insider trading laws. The amount and timing of repurchases are subject to several factors, including stock price, trading volume, general market conditions, legal requirements, general business conditions, and corporate considerations determined by Pioneer’s management, such as liquidity and capital needs. The stock repurchase program has no time limit and may be modified, suspended or terminated at any time by Pioneer’s Board of Directors. The Company intends to fund repurchases under the program from existing cash and cash equivalents and future cash flow.
This share repurchase program replaces and terminates Pioneer’s prior $100 million share repurchase program announced in February 2018.
Pioneer is a large independent oil and gas exploration and production company, headquartered in Dallas, Texas, with operations in the United States. For more information, visit www.pxd.com.