Pembina Pipeline Corporation Announces Share Repurchase Program
CALGARY, AB, Feb. 25, 2021 /PRNewswire/ -- Pembina Pipeline Corporation ("Pembina" or the "Company") (TSX: PPL) (NYSE: PBA) announced today the acceptance by the Toronto Stock Exchange (the "TSX") of Pembina's notice to commence a normal course issuer bid (the "NCIB") to purchase up to five percent of its outstanding common shares.
Under the NCIB, purchases of common shares may be made through the facilities of the TSX, the New York Stock Exchange and/or alternative Canadian trading systems, commencing on March 2, 2021 and expiring on the earlier of March 1, 2022 and the date on which Pembina has acquired the maximum number of common shares allowable under the NCIB or the date on which Pembina otherwise decides not to make any further repurchases under the NCIB. As of February 16, 2021, Pembina had 549,949,384 common shares outstanding and is, therefore, permitted to repurchase up to 27,497,469 common shares, being five percent of its outstanding common shares, pursuant to the NCIB. Common shares purchased under the NCIB will be cancelled.
Pembina believes that, from time to time, the market price of its common shares trade at prices that may not adequately reflect their underlying value. The actual number of common shares that may be purchased, if any, and the timing of any such purchases, will be determined by Pembina based on a number of factors, including Pembina's financial performance and flexibility in the context of its financial guardrails, the availability of discretionary cash flow in excess of dividend and capital funding requirements, and the risk-adjusted returns of repurchasing common shares compared to other uses of cash including accretive capital investment opportunities and debt reduction.
The NCIB will be effected in accordance with the TSX's normal course issuer bid rules and/or Rule 10b-18 under the U.S. Securities Exchange Act of 1934, as amended, which contain restrictions on the number of common shares that may be purchased on a single day, subject to certain exceptions for block purchases, based on the average daily trading volumes of Pembina's common shares on the applicable exchange. Subject to exceptions for block purchases, Pembina will limit daily purchases of common shares on the TSX in connection with the NCIB to no more than 25 percent (551,928 common shares) of the average daily trading volume of the common shares on the TSX (2,207,713 common shares) during any trading day.