North American Energy Partners (NYSE: NOA) reported Q2 EPS of ($0.16), $0.07 worse than the analyst estimate of ($0.09). Revenue for the quarter came in at $24.2 million versus the consensus estimate of $44.51 million.

Normal Course Issuer Bid in Canada

The company today announced that it intends to commence a normal course issuer bid ("NCIB") through the facilities of the Toronto Stock Exchange ("TSX"), to purchase up to 1,075,968 voting common shares in the capital of the Company. Under the NCIB, the Company has received the approval of the TSX to purchase these voting common shares which represents 3.9% of the public float (as defined in the TSX Company Manual). Under the Company's previously announced U.S. share purchase program the Company has purchased an aggregate of 1,657,514 voting common shares primarily through the facilities of the New York Stock Exchange at a volume weighted average price of $2.2683 USD per share. The Company has completed its purchases under the U.S. share purchase program and it has not purchased any other shares in the preceding 12-month period, other than 532,520 voting common shares purchased through the facilities of the TSX under its previous NCIB at a volume weighted average price of $2.8348. Accordingly, as at July 31, 2016, the Company had 31,501,827 voting common shares issued and outstanding. The shares purchased under the U.S. share purchase program, when combined with the shares to be purchased under the NCIB, would represent approximately 8.7% of the issued and outstanding voting common shares, and 10% of the public float, as of July 31, 2016.

The Company believes that the current market price of its shares does not fully reflect their underlying value. In the Company's view, a repurchase of shares would be an effective use of its cash resources and would be in the best interests of the Company and its shareholders. It would both increase liquidity for shareholders seeking to sell and provide an increase in the proportionate interests of shareholders wishing to maintain their positions.

The NCIB will commence on or about August 8, 2016 and will terminate no later than August 7, 2017. All purchases of shares on the TSX will be made in compliance with the TSX rules. The average daily trading volume of the voting common shares on the TSX for the six calendar months preceding August 1, 2016 is 30,362 voting common shares. In accordance with the TSX rules and subject to the exemption for block purchases, a maximum daily repurchase of 25% of this average may be made, representing 7,590 voting common shares. The price per share will be based on the market price of such shares at the time of purchase in accordance with regulatory requirements.

The Company will enter into an agreement with a broker to establish an automatic share purchase plan (the "Plan") in respect of the NCIB. The Plan will be established to provide standard instructions regarding how the Company's voting common shares are to be purchased under the program, subject to pre-established parameters. Concurrent with the establishment of the Plan, the Company will confirm to the broker that it is then not aware of any material undisclosed or non-public information with respect to the Company or any securities of the Company. During the term of the Plan, the Company will not communicate any material undisclosed or non-public information to the trading staff of the broker; accordingly, the broker may make purchases regardless of whether a trading blackout period is in effect or whether there is material undisclosed or non-public information about the Company at the time that purchases are made under the Plan. Pursuant to the terms of the Plan, provided that the Company is neither in possession of material undisclosed or non-public information relating to the Company nor in a trading blackout period, the Company will have the ability to authorize the broker to make purchases outside of the pre-established price limits. In the event that the Plan is materially varied, suspended or terminated, the Company will issue a press release advising of such variation, suspension or termination, as applicable. Shares purchased pursuant to the NCIB will be cancelled.

For earnings history and earnings-related data on North American Energy Partners (NOA) click here.