CALGARY, Alberta - Total Energy Services Inc. (TSX:TOT) has announced its intention to launch a normal course issuer bid (NCIB), allowing the company to repurchase up to 5% of its outstanding common shares. The buyback program is set to commence on October 21, 2024, and will run until October 20, 2025, through the facilities of the Toronto Stock Exchange and other Canadian alternative trading systems.
The company has received approval from the TSX to proceed with the buyback, which is expected to enhance shareholder value by increasing the proportionate equity of remaining shareholders. Total Energy may repurchase up to 1,909,732 shares, subject to a daily maximum of 7,620 shares, based on the average daily trading volume over the past six months.
This announcement follows a previous NCIB that concluded on October 18, 2024, during which Total Energy acquired nearly 2 million shares at an average price of $9.58 per share. The company emphasizes capital stewardship and has returned approximately $323 million to shareholders through dividends, distributions, and share buybacks since its inception.
Total Energy Services, headquartered in Calgary, offers a range of services to the energy sector, including contract drilling, equipment rentals, transportation, well servicing, and compression and process equipment and services. The information for this buyback program is based on a press release statement from Total Energy Services Inc.
InvestingPro Insights
Total Energy Services Inc.'s decision to launch a new normal course issuer bid aligns with its history of shareholder-friendly capital allocation. According to InvestingPro data, the company has been aggressively buying back shares, which is consistent with its recent announcement and previous NCIB activities.
The company's financial health appears solid, with InvestingPro Tips indicating that Total Energy Services operates with a moderate level of debt and has been profitable over the last twelve months. This financial stability supports the company's ability to continue its share repurchase program.
Interestingly, the stock is currently trading near its 52-week low, which could make the timing of this buyback program particularly advantageous for the company. The P/E Ratio (Adjusted) for the last twelve months as of Q4 2024 stands at 51.56, while the Price to Book ratio is at a modest 0.7, suggesting the stock might be undervalued relative to its book value.
It's worth noting that Total Energy Services has maintained dividend payments for 48 consecutive years, demonstrating a long-term commitment to returning value to shareholders. This track record, combined with the new buyback program, reinforces the company's focus on shareholder returns.
For investors seeking more comprehensive analysis, InvestingPro offers additional tips and insights on Total Energy Services. There are 10 more InvestingPro Tips available, providing a deeper understanding of the company's financial position and market performance.
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