ChampionX (CHX) Announces $250M Share Buyback

ChampionX Corporation (NASDAQ: CHX) (“ChampionX” or the “Company”) today announced that its Board of Directors has approved a new $250 million share repurchase program (“2022 Share Repurchase Program”). Under the 2022 Share Repurchase Program, shares of the Company’s common stock may be repurchased periodically, including in the open market or privately negotiated transactions. The actual timing, manner, number, and value of shares repurchased under the program will depend on a number of factors, including the availability of excess free cash, the market price of the Company’s common stock, general market and economic conditions, applicable requirements, and other business considerations.

“With our disciplined capital allocation approach and demonstrated strong free cash flow generation capability, we expect to continue to maintain a strong financial position and balance sheet. We are committed to shareholder returns and have recently initiated a regular quarterly cash dividend of $0.075 per share of common stock,” said Sivasankaran “Soma” Somasundaram, President and Chief Executive Officer of ChampionX. “This new share repurchase authorization reflects our commitment to return excess cash to shareholders. It is consistent with our broader capital allocation framework which includes investing in attractive organic growth initiatives, strategic tuck-in acquisition opportunities, and paying a sustainable dividend which we expect to grow with free cash flow, all while maintaining our target debt leverage ratio through industry cycles.”

ChampionX expects to fund share repurchases from cash generated from operations. The 2022 Share Repurchase Program has no time limit and does not obligate the Company to acquire any particular amount of shares of the Company’s common stock.

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