ProPetro Holding shares rose 14% in midday trading Wednesday after the oilfield services company said its board approved a $100 million share buyback plan.
Shares of the Midland, Texas-based company traded as high as $7.57 Wednesday and are on pace for their largest daily percentage increase since July 2020, according to FactSet.
The share repurchase plan, which represents about 13% of ProPetro’s market capitalization, runs through May 31, 2024.
Chief Executive Sam Sledge said ProPetro plans to opportunistically repurchase shares based on market conditions and the company’s business outlook, capital position and liquidity.
“We believe that our stock presents a unique investment opportunity due to the substantial discrepancy between our equity value and our strong financial performance,” Mr. Sledge said.