Despite the soaring price of oil currently, it appears that Crescent Point Energy (TSX: CPG) views its best use of capital is still share buybacks. The firm this morning indicated that it has seen its request for a normal course issuer bid be approved by the Toronto Stock Exchange.
The share buyback program will see the company repurchase up to 10% of its currently outstanding float over the course of the next year. In share terms, it amounts to up to 57.3 million shares being repurchased between March 9, 2022, and March 8, 2023.
The program will be facilitated via both the Toronto Stock Exchange and the New York Stock Exchange, and is limited to a maximum of 1.4 million share repurchases per day. An automatic share purchase plan is to be put in place to enable repurchases during internal blackout periods.
Under the current program in place, the firm has repurchased 8,076,800 common shares, at an average price of $7.43 per each, amounting to roughly $60.0 million in capital outlay. The company has previously indicated it intends to conduct up to $150 million in share repurchases by the midpoint of the year.
Crescent Point Energy last traded at $9.22 on the TSX.
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