Pull Forward Repurchases?

tpltblogger4 Comments

With $25MM* of the current $100MM repurchase authorization complete, it will be interesting to see if the team accelerates repurchases into the end of ‘22. On Jan 1, 2023 all future repurchases come with the added baggage of a 1% excise tax thanks to the Inflation Reduction Act. Plenty of cash on the balance sheet now, to be sure. Maybe we could even increase the buyback authorization?

*These shares could have have been purchased much more cheaply over the past 4 years but we all know the story of the carpetbagger egos that got in the way.

4 thoughts on “Pull Forward Repurchases?”

  2. I echo pepere42’s sentiment about the disdain for repurchased shares being put in Treasury instead of retired. This process really takes the luster off share buybacks and has me preferring special dividend payouts instead. Can anyone make the case any longer for why buybacks are beneficial to the shareholders? Do repurchased shares put into Treasury actually decrease the total number of shares outstanding and, therefore, improve the EPS?

    I’m glad to see the PE ratio now settling into the mid-30s again, though that’s still double of the average PE of stocks. But psychologically I think when the PE was in the 40’s that was spooking many potential investors.

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    • From an accounting side: Yes, putting shares into treasury still reduces shares outstanding. If you look at the equity roll forward in footnote 10 of the 10-Q you can see the movement of shares with 7.754M in common stock agreeing to shares outstanding (reduced by 1,633 in repurchases during the quarter).

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  3. I would wait now as we are capable of working with DRLL to get favorable anti ESG treatment of our finances. We need to understand this as we are now kowtowing to ESG which is a mistake for our stock price as many other energy companies have discovered
    We should stop spending money on ESG junk like burying carbon and gambling with bitcoin mining which is going to be regulated by the Biden administration,IMHO.
    Let me know what you know about DRLL and TPL first.. as this innovative STRIVE ETF anti ESG effort

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