Wednesday, September 19, 2012
Discounted Energy Firms Buying Back Own Shares
CALGARY — Low stock prices have convinced many Calgary energy companies that their best investments are in their own stocks.
And analysts say shareholders should welcome the trend.
On Tuesday, Suncor Energy Inc. said it repurchased and cancelled $1.5-billion worth of shares over the past year through its normal course issuer bid and noted it has stock exchange approval — but no obligation — to buy back another $1 billion worth of shares this year.
In a similar announcement on Monday, PetroBakken Energy Ltd. said it has regulatory approval to buy back up to 8.7 million shares this year, about five per cent of its float, after spending $52 million to buy and cancel 3.8 million shares at an average of $13.75 per share over the past year.
Posted by Devon Shire at 5:02 AM