NEW YORK (TheStreet) -- Energy Partners (EPL) shares were surging Monday morning after the independent oil and natural gas exploration and production company announced a $20 million stock repurchase program.
Shares were spiking 8.2% to $13.27.
"This new repurchase program underscores our commitment to maximizing shareholder value," the company's CEO Gary Hanna said in a press release.
The repurchase will take place in the open market on the New York Stock Exchange and in privately-negotiated transactions.
Energy Partners -- with about $85 million of cash on hand, an undrawn $150 million credit facility and no change to its strong cash flow outlook -- announced that the company will fund the stock repurchases with cash on hand.
Based on Energy Partners' closing price of $12.26 a share on the New York Stock Exchange on Aug. 26, a $20 million buyback would represent about 4% of the company's 40.2 million outstanding shares of common stock.
The repurchased shares could be used by the company to provide shares for possible resale in future public or private offerings and its employee benefit plans.
-- Written by Andrea Tse in New York.
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