Calgary's Stampede Drilling Renews Share Buyback Amidst Evolving Energy Landscape
Strategic Move for Shareholder Value
Calgary-based Stampede Drilling Inc. (TSXV: SDI) has received approval from the TSX Venture Exchange to renew its Normal Course Issuer Bid (NCIB), a strategic move aimed at enhancing shareholder value amidst a dynamic energy market. Announced via PR Newswire on December 3, 2025, the renewed NCIB signals management's confidence, particularly as local economic outlooks project headwinds for Canadian upstream oil and gas capital spending, including a forecasted 5.6% drop by late 2025.
Investing in Itself: Details of the Bid
The new NCIB is set to commence on December 9, 2025, and will run until December 8, 2026, or until the maximum shares are acquired. Stampede Drilling, under the leadership of President & CEO Lyle Whitmarsh, intends to purchase and cancel up to 18,602,144 Common Shares, representing 10% of the Company's Public Float. This decision reflects the company's belief that its shares may, at times, trade below their intrinsic value. Peters & Co. Limited has been engaged as the broker for this initiative.
A History of Repurchase and Resiliency
This isn't Stampede Drilling's first foray into share buybacks. Their previous NCIB, which expired on June 2, 2025, authorized the purchase of over 20 million shares, ultimately seeing the company repurchase 14,017,500 Common Shares at an approximate total cost of $2,660,858, averaging $0.19 per share. This consistent use of an NCIB highlights a familiar tool for Calgary's energy sector, often employed during cyclical 'boom and bust' patterns to manage capital and signal long-term commitment.
Local Context and Policy Shifts
The renewal arrives as Calgary's energy sector navigates significant policy shifts. Recent developments, including a landmark agreement between Prime Minister Mark Carney and Alberta Premier Danielle Smith in late November 2025, aim to foster a more predictable investment climate by adjusting certain climate rules. Such policy stability could indirectly support companies like Stampede Drilling in their strategic financial planning, even as the sector continues to adapt to broader economic and environmental pressures.
