MRC Global Inc. Authorizes $125 Million Share Repurchase Program Through 2028

MRC Global Inc. announces a $125 million share repurchase program authorized by its Board of Directors, effective until 2028.

Quiver AI Summary

MRC Global Inc. has announced a new $125 million share repurchase program authorized by its Board of Directors, set to expire on January 2, 2028. The company intends to repurchase its outstanding shares through various methods, in compliance with federal securities laws. CEO Rob Saltiel expressed confidence in the company’s financial strength and outlined their capital allocation strategy, which includes maintaining a net debt leverage ratio under 1.5x, returning cash to shareholders, and investing in future growth. The share repurchase program is slated to commence in the second quarter of 2025, with MRC Global emphasizing that the actual execution will depend on market conditions and other factors. MRC Global is a leading global distributor specializing in pipe, valves, fittings, and related services for various sectors.

Potential Positives

• The Board of Directors authorized a new $125 million share repurchase program, reflecting confidence in the company's financial health.
• The share repurchase program is part of a three-pronged capital allocation strategy, which prioritizes returning cash to shareholders, indicating a strong commitment to shareholder value.
• The program's potential to enhance share value through strategic repurchases demonstrates sound financial management and an efficient operating model.
• The company anticipates executing the repurchase program in the second quarter, signaling proactive measures to manage capital effectively.

Potential Negatives

• The announcement may raise concerns among investors about the company's reliance on share repurchases as a method to enhance shareholder value rather than focusing on potential growth opportunities.
• There is potential uncertainty regarding the execution timing and effectiveness of the repurchase program, as it is subject to various market and economic conditions, which may lead to skepticism about the company's financial strategies.
• The press release highlights significant business risks and uncertainties, which could deter investor confidence and raise fears about the company's future performance amidst volatile market conditions.

FAQ

What is the new share repurchase program announced by MRC Global?

MRC Global announced a $125 million share repurchase program effective until January 2, 2028, to buy back its common shares.

When will MRC Global start repurchasing shares?

The execution of the repurchase program is anticipated to begin in the second quarter of 2025.

Why did MRC Global initiate this share repurchase program?

The program reflects MRC Global's confidence in its future and aims to return cash to shareholders.

What factors will influence share repurchases under the program?

The timing, manner, number, and value of shares repurchased will depend on market conditions and management's discretion.

Where can I find more information about MRC Global?

More details about MRC Global and its products can be found on their official website at www.mrcglobal.com.

Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.

$MRC Insider Trading Activity

$MRC insiders have traded $MRC stock on the open market 4 times in the past 6 months. Of those trades, 2 have been purchases and 2 have been sales.

Here’s a breakdown of recent trading of $MRC stock by insiders over the last 6 months:

• DANIEL J CHURAY (See Remarks) sold 16,975 shares.
• LEONARD M ANTHONY sold 40,000 shares.
• ROBERT J. SALTIEL (President and CEO) has traded it 2 times. They made 2 purchases, buying 20,000 shares and 0 sales.

To track insider transactions, check out Quiver Quantitative's insider trading dashboard.

$MRC Hedge Fund Activity

We have seen 86 institutional investors add shares of $MRC stock to their portfolio, and 96 decrease their positions in their most recent quarter.

Here are some of the largest recent moves:

• FIRST TRUST ADVISORS LP added 1,217,651 shares (+inf%) to their portfolio in Q3 2024
• ENGINE CAPITAL MANAGEMENT, LP removed 1,212,081 shares (-38.7%) from their portfolio in Q3 2024
• AMERICAN CENTURY COMPANIES INC added 720,102 shares (+59.8%) to their portfolio in Q3 2024
• GOLDMAN SACHS GROUP INC added 706,522 shares (+77.9%) to their portfolio in Q3 2024
• CRAMER ROSENTHAL MCGLYNN LLC added 608,647 shares (+inf%) to their portfolio in Q3 2024
• ARROWSTREET CAPITAL, LIMITED PARTNERSHIP added 506,738 shares (+72.3%) to their portfolio in Q3 2024
• BALYASNY ASSET MANAGEMENT L.P. added 490,035 shares (+596.4%) to their portfolio in Q3 2024

To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.

Full Release

HOUSTON, Jan. 03, 2025 (GLOBE NEWSWIRE) -- MRC Global Inc. (NYSE: MRC) announced today that its Board of Directors authorized a new $125 million share repurchase program, which expires on January 2, 2028. Under the repurchase program, the Company may purchase its outstanding common shares through various means, including open market transactions, block purchases, privately negotiated transactions or otherwise in accordance with applicable federal securities laws, including Rule 10b-18 and Rule 10b5-1 of the Securities Exchange Act of 1934, as amended. The program may be modified, discontinued or suspended at any time without prior notice.

Rob Saltiel, MRC Global President & CEO commented, “Today’s announcement reflects our confidence in the company’s future and the financial flexibility that we enjoy through the strengthening of our balance sheet over the past few years. Our three-pronged capital allocation strategy consists of targeting a net debt leverage ratio of less than 1.5x, returning cash to shareholders, and investing in our company’s future growth. Our streamlined capital structure, efficient operating model, and anticipated ability to deliver consistent cash flow generation make this the right time to introduce a share repurchase program. We anticipate beginning the execution of the repurchase program in the second quarter.”

The actual timing, manner, number and value of shares repurchased under the program will be determined by management at its discretion and will depend on a number of factors, including the market price of MRC Global common stock, general market and economic conditions, applicable requirements and other business considerations.

About MRC Global Inc.

Headquartered in Houston, Texas, MRC Global (NYSE: MRC) is the leading global distributor of pipe, valves, fittings (PVF) and other infrastructure products and services to diversified end-markets including the gas utilities, downstream, industrial and energy transition, and production and transmission infrastructure sectors. With over 100 years of experience, MRC Global has provided customers with innovative supply chain solutions, technical product expertise and a robust digital platform from a worldwide network of over 200 locations including valve and engineering centers. The company’s unmatched quality assurance program offers over 300,000 SKUs from over 8,500 suppliers, simplifying the supply chain for approximately 10,000 customers. Find out more at www.mrcglobal.com.

Forward-Looking Statements

This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act. Words such as “will,” “expect,” “target,” “anticipate” and similar expressions are intended to identify forward-looking statements.

Statements about the company’s business, including its capital allocation strategy, its anticipated execution of its share repurchase program and the company’s expectations, beliefs, plans, strategies, objectives, prospects and assumptions are not guarantees of future performance. These statements are based on management’s expectations that involve a number of business risks and uncertainties, any of which could cause actual results to differ materially from those expressed in or implied by the forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors, most of which are difficult to predict and many of which are beyond MRC Global’s control, including the factors described in the company’s SEC filings that may cause the company’s actual results and performance to be materially different from any future results or performance expressed or implied by these forward-looking statements.

These risks and uncertainties include (among others) decreases in capital and other expenditure levels in the industries that the company serves; U.S. and international general economic conditions; geopolitical events; decreases in oil and natural gas prices; unexpected supply shortages; loss of third-party transportation providers; cost increases by the company’s suppliers and transportation providers; increases in steel prices, which the company may be unable to pass along to its customers which could significantly lower the company’s profit; the company’s lack of long-term contracts with most of its suppliers; suppliers’ price reductions of products that the company sells, which could cause the value of its inventory to decline; decreases in steel prices, which could significantly lower the company’s profit; a decline in demand for certain of the products the company distributes if tariffs and duties on these products are imposed or lifted; holding more inventory than can be sold in a commercial time frame; significant substitution of renewables and low-carbon fuels for oil and gas, impacting demand for the company’s products; risks related to adverse weather events or natural disasters; environmental, health and safety laws and regulations and the interpretation or implementation thereof; changes in the company’s customer and product mix; the risk that manufacturers of the products that the company distributes will sell a substantial amount of goods directly to end users in the industry sectors that the company serves; failure to operate the company’s business in an efficient or optimized manner; the company’s ability to compete successfully with other companies; the company’s lack of long-term contracts with many of its customers and the company’s lack of contracts with customers that require minimum purchase volumes; inability to attract and retain employees or the potential loss of key personnel; adverse health events, such as a pandemic; interruption in the proper functioning of the company’s information systems; the occurrence of cybersecurity incidents; risks related to the company’s customers’ creditworthiness; decisions to undertake significant mergers or acquisitions; the success of acquisition strategies; the potential adverse effects associated with integrating acquisitions and whether these acquisitions will yield their intended benefits; impairment of the company’s goodwill or other intangible assets; adverse changes in political or economic conditions in the countries in which the company operates; the company’s significant indebtedness; the dependence on the company’s subsidiaries for cash to meet parent company obligations; changes in the company’s credit profile; potential inability to obtain necessary capital; the sufficiency of the company’s insurance policies to cover losses, including liabilities arising from litigation; product liability claims against the company; pending or future asbestos-related claims against the company; exposure to U.S. and international laws and regulations, regulating corruption, limiting imports or exports or imposing economic sanctions; risks relating to ongoing evaluations of internal controls required by Section 404 of the Sarbanes-Oxley Act; risks related to changing laws and regulations including trade policies and tariffs; and the potential share price volatility and costs incurred in response to any shareholder activism campaigns.

For a discussion of key risk factors, please see the risk factors disclosed in the company’s SEC filings, which are available on the SEC’s website at www.sec.gov and on the company’s website, www.mrcglobal.com. MRC Global’s filings and other important information are also available on the Investors page of the company’s website at www.mrcglobal.com.

Undue reliance should not be placed on the company’s forward-looking statements. Although forward-looking statements reflect the company’s good faith beliefs, reliance should not be placed on forward-looking statements because they involve known and unknown risks, uncertainties and other factors, which may cause the company’s actual results, performance or achievements or future events to differ materially from anticipated future results, performance or achievements or future events expressed or implied by such forward-looking statements. The company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, changed circumstances or otherwise, except to the extent required by law.

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