Genesis Energy, L.P. Authorizes Common Unit Repurchase Program Of Up To 10% Of Its Outstanding Class A Common Units
Portfolio Pulse from Happy Mohamed
Genesis Energy, L.P. (NYSE:GEL) has announced a common equity repurchase program authorizing the repurchase of up to 10% of its outstanding Class A common units. The company plans to fund the repurchases with a portion of its cash flow and liquidity. The repurchase program is in addition to the company's opportunistic repurchases of its outstanding Class A Convertible Preferred units and open market bond purchases. The program will be reviewed no later than December 31, 2024, and may be suspended or discontinued at any time prior thereto.
August 08, 2023 | 1:04 pm
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Genesis Energy's announcement of a common equity repurchase program could potentially increase the value of its outstanding Class A common units in the short term.
Repurchase programs often lead to an increase in the stock's price as they reduce the number of shares in circulation, thereby increasing earnings per share and often leading to a higher stock price. Furthermore, repurchase programs are often viewed as a sign that the company's management believes the stock is undervalued.
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