Contura Announces $100 Million Stock Repurchase Plan
BRISTOL, Tenn., August 29, 2019 – Contura Energy, Inc. (NYSE: CTRA), a leading U.S. coal supplier, today announced that its Board of Directors has approved a stock repurchase plan (the “Company Repurchase Plan”) to acquire up to $100 million in the aggregate of the company’s common stock at prices as set forth in such plan over a specified period, in accordance with the guidelines specified in Rule 10b-18 and Rule 10b5-1 of the Securities Exchange Act of 1934.
“Based on our confidence in Contura’s robust asset portfolio and strong position in both domestic and international markets, our board believes that the company’s stock is significantly undervalued at current trading prices,” said chairman and chief executive officer, David Stetson. “We have heard our shareholders loud and clear, and are executing this stock buyback as a first step in the previously announced strategic capital allocation program focused on enhancing shareholder value.”
The Company Repurchase Plan is designed to allow the company to repurchase its common stock at times when it otherwise might be prevented from doing so under insider trading laws. Once the Company Repurchase Plan is established, a designated agent will repurchase shares of common stock on Contura’s behalf, without the company’s further input, when the market price per share and other conditions specified in the plan are met. The agent will increase the volume of purchases made in the event the price of the company’s common stock declines, subject to volume restrictions. No assurance can be given that any particular amount of common stock will be repurchased, or when.
Contura will designate an agent to facilitate the repurchases of the company’s common stock on Contura’s behalf, pursuant to the terms set forth in the Company Repurchase Plan and all applicable laws and regulations, including Rule 10b-18 and Rule 10b5-1, and Regulation M, which may prohibit purchases under certain circumstances.
ABOUT CONTURA ENERGY
Contura Energy (NYSE: CTRA) is a Tennessee-based coal supplier with affiliate mining operations across major coal basins in Pennsylvania, Virginia and West Virginia. With customers across the globe, high-quality reserves and significant port capacity, Contura Energy reliably supplies both metallurgical coal to produce steel and thermal coal to generate power. For more information, visit www.conturaenergy.com.
This news release includes forward-looking statements. These forward-looking statements are based on Contura’s expectations and beliefs concerning future events and involve risks and uncertainties that may cause actual results to differ materially from current expectations. These factors are difficult to predict accurately and may be beyond Contura’s control. Forward-looking statements in this news release or elsewhere speak only as of the date made. New uncertainties and risks arise from time to time, and it is impossible for Contura to predict these events or how they may affect Contura. For additional discussion of risks, please refer to Contura’s Quarterly Report on Form 10-Q and other filings that Contura makes from time to time with the Securities and Exchange Commission (the “SEC”), which are available on the SEC’s website (www.sec.gov). Except as required by law, Contura has no duty to, and does not intend to, update or revise the forward-looking statements in this news release or elsewhere after the date this release is issued. In light of these risks and uncertainties, investors should keep in mind that results, events or developments discussed in any forward-looking statement made in this news release may not occur.