The Toronto Stock Exchange (TSX) has approved a stock buyback program for Saturn Oil & Gas (TSX:SOIL), allowing them to repurchase up to 11,306,825 of their outstanding common shares from August 27, 2024, to August 26, 2025.
Saturn Oil & Gas is a Canadian energy company that operates free-cash-flowing assets in Saskatchewan and Alberta. The company’s stock has experienced a 0.39% decrease year-over-year but has seen a 5.83% increase since 2019.
The TSX rules dictate that Saturn can buy back a maximum of 46,032 shares per day, equivalent to 25% of the stock’s average daily trading volume for the six months leading up to the approval of the buyback. The company plans to conduct these purchases through Ventum Financial using available cash on its balance sheet.
The board of Saturn Oil & Gas sees the buyback as accretive to shareholder value, ensuring that purchases are made when the market price of the common shares does not fully reflect their underlying value.
There are several reasons to consider investing in Saturn Oil & Gas at its current price. The company has steadily increased production, improved profitability, and demonstrated operational efficiency. Despite the stock currently being undervalued, the potential for significant gains based on reserves is substantial.
While short-term market volatility may impact the stock, Saturn’s long-term track record suggests strong potential for growth and value creation for shareholders.
Saturn Oil & Gas is trading at C$2.54 per share, with a 3.25% increase. Investors can join discussions and find more information about the company on the Saturn Oil & Gas Inc. Bullboard and Stockhouse’s stock forums.
Please note that the information provided in this article is for informational purposes only and should not be considered investment advice. For a full disclaimer, please refer to the provided link.
