InterOil Corporation will buy back up to US$ 50 million of its own common shares over the next year.
The company board has authorized the buy-back to be carried out periodically on the open market, based on the stock price and other market factors.
Commenting on the move, InterOil CEO, Michael Hession, said it made strategic sense at current share valuations.
“In the past six months, we have signed a multi-billion-dollar LNG development program with Total, secured our highly prospective exploration acreage for up to another 11 years, and divested our refinery and downstream assets so we can fully focus on exploration and LNG development.
"At the same time, we have strengthened our balance sheet and have more than US$ 580 million in cash, an undrawn credit facility of US$ 300 million, and only the US$ 70 million Convertible Notes due 2015 outstanding.
"With our drilling campaign fully funded through to the end of 2015 and significant growth prospects in our development and exploration program, we fully expect this buy-back to deliver long-term shareholder value."
Macquarie Capital will act for InterOil during the buy-back process.
Adapted from press release by Katie Woodward
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