#Canada #share buyback #Calgary #Canadian Pacific #CPKC

Canadian Pacific Kansas City's New Share Repurchase Program

In a significant announcement, Canadian Pacific Kansas City (CPKC) has received approval from the Toronto Stock Exchange (TSX) for its new share repurchase program. This decision paves the way for CPKC to buy back up to 37,348,539 common shares, representing approximately four percent of the company's total outstanding shares as of February 18, 2025. The buyback initiative is slated to commence on March 3, 2025, and will continue until March 2, 2026.

Financial Resilience and Strategic Goals

CPKC has emphasized the need for this program as a strategic move to bolster its financial standing following its recent merger with Kansas City Southern. According to President and CEO Keith Creel, the company's ability to generate substantial free cash flow and the multitude of upcoming growth opportunities have instilled confidence in the viability of the share buyback strategy. CPKC is committed to returning value to its shareholders in a responsible and opportunistic manner, which reflects its commitment to maintaining a robust balance sheet.

The shares will be acquired through various platforms, including the TSX and the New York Stock Exchange (NYSE), and can be purchased via open market transactions or other permitted means. Notably, any bought-back shares will be immediately canceled, demonstrating CPKC’s dedication to refining its capital structure.

Implementation of an Automatic Purchase Plan

In line with this initiative, CPKC plans to implement an automatic purchase plan in collaboration with its designated broker. This plan will facilitate share purchases during internal trading blackout periods, ensuring that the program can be executed smoothly without interrupting regular trading activities. The total amount of shares repurchased under this plan will contribute to the overall target set by the company for the buyback program.

The execution of this plan has been pre-approved by the TSX, and it is anticipated to commence alongside the buyback program on March 3, 2025. The automatic purchase plan is reported to align with both Canadian and U.S. securities regulations, reinforcing its compliance rigor.

Current Share Structure and Limitations

As of the announcement date, CPKC had approximately 933.7 million common shares issued and outstanding. Under TSX rules, the company has set specific limitations on daily share acquisitions to avoid market disruptions. For instance, it will not buy more than 351,655 shares in a single trading day via the TSX and will adhere to similar restrictions while making purchases on the NYSE.

Forward-Looking Statements

This announcement contains forward-looking statements that pertain to future expectations related to the share buyback program. CPKC urges stakeholders to consider the inherent risks and uncertainties associated with these projections, such as changes in business strategies, economic conditions, and regulatory changes.

Moving forward, CPKC aims to leverage this buyback program as both a tactical financial maneuver and as a testament to its growth trajectory, signaling a secure future for its investors and stakeholders.

About CPKC

Headquartered in Calgary, Alberta, CPKC operates as the first and only single-line transnational railway that connects Canada, the United States, and Mexico. With an expansive network covering roughly 20,000 route miles and employing around 20,000 personnel, CPKC is dedicated to providing exceptional rail services and strategic logistics solutions to enhance supply chain effectiveness across North America. For more information, visit cpkcr.com.