MasTec, Inc. (NYSE: MTZ) today announced that its Board of Directors has authorized the repurchase of up to $150 million of MasTec common stock. This authorization is in addition to $129 million in open share repurchase authorization plans as of December 31, 2019, under which to date, MasTec has completed share repurchases approximating $110 million during the first quarter of 2020.
José Mas, MasTec's CEO, commented, "During this challenging and unprecedented period, I'd first like to thank the men and women of MasTec who are tirelessly working to make sure our customers are well served. I am also proud of their efforts as millions of families throughout the U.S. rely on the power, communications, entertainment and other services we help our customers provide."
Mr. Mas continued, "We are focused on managing our capital structure and maintaining a strong balance sheet, which in periods like these gives us a significant competitive advantage. We expect share repurchases made during the first quarter will be funded by first quarter cash flow from operations and we currently anticipate ending the first quarter with ample liquidity approximating $900 million dollars. This new authorization will allow us to continue being opportunistic relative to share buybacks. We will monitor current conditions and act prudently, however, we believe this period offers a significant and unique opportunity to create value for our shareholders. We are optimistic that our diversified business model provides us fundamental long-term opportunities for growth as we build and maintain the nation's critical infrastructure."
The new additional authorization does not obligate MasTec to repurchase any particular amount of common stock during any period and the program may be modified or suspended at any time at the Company's discretion. Stock repurchases may be made from time to time and the actual amount repurchased will depend on a variety of factors including market conditions, regulatory and legal requirements, cash flow and liquidity needs and other factors. The stock repurchases may be made in both open market and privately negotiated transactions, and may include the use of derivative contracts, structured share repurchase agreements and Rule 10b5-1 and Rule 10b-18 trading plans. Repurchases would be funded from cash on hand and availability under the Company's revolving credit facility. Liquidity is defined as cash on hand and borrowing capacity under our revolving credit facility.
MasTec, Inc. is a leading infrastructure construction company operating mainly throughout North America across a range of industries. The Company's primary activities include the engineering, building, installation, maintenance and upgrade of communications, energy and utility infrastructure, such as: wireless, wireline/fiber, and customer fulfillment activities; petroleum and natural gas pipeline infrastructure; electrical utility transmission and distribution; power generation; heavy civil; and industrial infrastructure. MasTec's customers are primarily in these industries. The Company's corporate website is located at www.mastec.com. The Company's website should be considered as a recognized channel of distribution, and the Company may periodically post important, or supplemental, information regarding contracts, awards or other related news and webcasts on the Events & Presentations page in the Investors section therein.
