Nov. 21, 2013
/PRNewswire/ -- Union Pacific Corporation (NYSE: UNP) announced that its Board of Directors today approved the early renewal of its share repurchase program, authorizing the repurchase of up to 60 million common shares by
December 31, 2017
. This new authorization is effective
January 1, 2014
and replaces the current authorization, which will now expire on
December 31, 2013
, three months earlier than its original expiration date. The new four year authorization allows for the repurchase of another 13 percent of current outstanding shares.
In addition, the Board has declared a quarterly dividend of
per share on the Company's common stock, payable
January 2, 2014
, to shareholders of record as of
, 2013. Union Pacific has paid dividends on its common stock for 114 consecutive years.
"This new share repurchase authorization demonstrates Union Pacific's continued long-term commitment to increasing shareholder value, while maintaining our strong, investment grade credit ratings," said
, Union Pacific chief financial officer. "Since the inception of our current authorization program in
, the growing profitability of the franchise has allowed us to increase our declared dividend over two-fold and return more than
to shareholders through our repurchase program. We have confidence in our continued ability to earn reinvestible returns on our diverse franchise opportunities. We expect to generate strong cash from operations to support our strategic growth capital investments, maintain a strong balance sheet, and reward shareholders with increasing returns."
Since announcing its initial program in
, the Company has repurchased approximately 19 percent of its outstanding shares at a total cost of nearly
, with an average purchase price of
The timing and volume of share repurchases may be executed at the discretion of management on an opportunistic basis, or pursuant to trading plans or other arrangements. Any share repurchase under this program may be made in the open market, in privately negotiated transactions, or otherwise.