Buyback

[ebster123]

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News for 'IOC' - (*DJ InterOil to Buy Back up to $50 Mln of Class A Common Shares Within 12 Months)

  (END) Dow Jones Newswires (212-416-2800)

  July 21, 2014 21:59 ET (01:59 GMT)

  Copyright © 2014 Dow Jones & Company, Inc.- - 09 59 PM EDT 07-21-14

[ebster123]

InterOil to Buy Back Shares

Current valuation creates long-term opportunity
July 21, 2014: 09:57 PM ET


SINGAPORE and PORT MORESBY, Papau New Guinea, July 21, 2014 /PRNewswire/ -- InterOil Corporation (NYSE: IOC; POMSoX: IOC) will buy up to US$50 million of its own Class A common shares within the next 12 months.
The InterOil board has authorised the buy-back to be done periodically on the open market, based on the stock price and other market factors.
InterOil's Chief Executive Officer, Dr Michael Hession, said the move 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," Dr Hession said.
"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.
Growth prospects make buy-back a good investment
"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 has been appointed to act for the Company during the buy-back process.

[Dr. Wu]

InterOil to Buy Back Shares Current valuation creates long-term opportunity July 21, 2014: 09:57 PM ET SINGAPORE and PORT MORESBY, Papau New Guinea, July 21, 2014 /PRNewswire/ -- InterOil Corporation (NYSE: IOC; POMSoX: IOC) will buy up to US$50 million of its own Class A common shares within the next 12 months. The InterOil board has authorised the buy-back to be done periodically on the open market, based on the stock price and other market factors. InterOil's Chief Executive Officer, Dr Michael Hession, said the move 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," Dr Hession said. "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. Growth prospects make buy-back a good investment "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 has been appointed to act for the Company during the buy-back process.

Well, either Big Mike really like what he sees in Bobcat/Raptor (because no way they announce this alone if they're a problem with the well) or the board is getting nervous with a $54 stock and all the positive prospects.. I think its both.  Love the cajones Mike - way to man up..

[admin]

Yes, it looks like a few prayers here have found a willing ear and Mike thinks the company can afford it, which is a positive in and by itself.

[Putncalls]

That is what I call insider trading!

[jdeo1969]

This is my first experience with a share buyback. Can anyone please give some color on what this typically means? I know per the release it will be over the next 12 months, but what it says to me is this:

They are confident they have enough cash going forward. They are finally trying to support the stock price???? This is an anti-dilutive move.

Thanks in advance for the expertise.

Good luck longs
Jdeo

[Palm]

Has been talked about for a long time as a "remedy" and about time action is finally being taken. Usually brings a near term pop on announcement but really needs to followed through on or little will happen that sustains pps. Would be nice if management would also follow up with buying shares on open market. That shows real confidence.

[Putncalls]

Palm? Doesn't McGuire get the IOC share on the open market?

[Palm]

Usually the shares are acquired on the open market and then they go into the shareholder equity section of the balance sheet as Treasury Shares. This reduces shares available on the open market. Macquarie will "act for the company" in buying back the shares.

[Palm]

If they buy shares at avg of $53, that takes 943k+ shares out of circulation and plops them into treasury. IOC currently has just over 50 million shares issued and outstanding, so this move (over time) would take approx 1.9% of shares out of the market. Not huge, but it's at least a strategic move. As I said above, it would also be nice to see Hession and others make some purchases in the open market to support this move. And a real topper would be some sort of nice PR with positive drilling news on one or more of the exploration wells and/or more detailed news on the mention by OSH of Ant 4 and 5 planned Q3 spudding.