In an effort to return at least 50% of excess free cash flow, NOV Inc. authorized a share repurchase program for up to $1 billion of its common stock over 36 months, according to an April 25 press release.
Under the program, NOV may repurchase shares through open market purchases, in privately negotiated transactions or through the use of trading plans that qualify under Rule 10b5-1 of the Securities and Exchange Act.
The company also expects to increase its quarterly cash dividend on its common stock by 50% to $0.075 per share from $0.05 per share.
The dividend is set to be paid out during the quarter ended June 30.
NOV said it intends to declare a supplemental dividend during the second-quarter 2025. The amount is anticipated to be a minimum of 50% of the company’s excess free cash flow.
Recommended Reading
What's Affecting Oil Prices This Week? (May 6, 2024)
2024-05-06 - Stratas Advisors forecast that oil demand for 2024 will increase by 1.41 MMbbl/d in comparison to 2023 and that oil demand will increase by 810,000 bbl/d in comparison to 2Q23.
TC Energy Preparing for Natural Gas Demand Surge
2024-05-06 - TC Energy executives expect data centers in Wisconsin and Virginia to drive as much as 8 Bcf/d of natural gas demand for power generation.
It’s Complicated: E&Ps Find Some Financial Tailwinds, But It’s Not All Smooth Sailing
2024-05-03 - Relatively stable WTI prices in the $80s/bbl provide some breathing room as companies allocate cash for operations, and pragmatism is seeping into the energy transition movement.
Pitts: US, Qatar Face off in LNG ‘Olympics’
2024-05-03 - In the LNG exporting space, the U.S. is squaring off with its fiercest competitor, Qatar, with both countries expected to outpace Australia
Chesapeake Stockpiles DUCs as Doubts Creep in Over Southwestern Deal
2024-05-02 - Chesapeake Energy is stockpiling DUCs until demand returns through growth from LNG exports, power generation and industrial activity.