(San Francisco) - PG&E Corporation (NYSE:
PCG) announced its intention to repurchase up to $975
million of its common stock that will likely take the
form of an accelerated share repurchase with Goldman,
Sachs & Co. early next year. The stock buy back
program was authorized by the company’s Board
of Directors last week.
The proceeds to purchase the stock will come primarily
from cash following the refinancing of part of Pacific
Gas and Electric Company’s balance sheet, which
is expected to occur early next year. The Corporation’s
previously issued earnings guidance for 2005 already
reflects the impact of these projected share repurchases.
Additionally, the Corporation has repurchased $350
million in common stock with cash on hand since November,
retiring over 10 million shares.
Today the Corporation filed a $1 billion common equity
shelf registration statement with the U.S. Securities
and Exchange Commission. The registration statement by
itself does not affect the Corporation’s number
of shares outstanding. It will enable the company to
offer shares of its common stock from time to time in
order to retire debt or for other general corporate purposes,
such as providing the flexibility to settle obligations
under any current or future accelerated share repurchase
transactions with either cash or stock.
“PG&E Corporation continues to focus on returning
value to shareholders through common stock dividends
and share repurchases,” said Robert D. Glynn, Jr.,
Chairman, CEO and President of PG&E Corporation. “As
we previously said, it is our intention to return as
much as $1.75 billion to shareholders by the end of next
year through dividends and stock repurchases.”
The company announced earlier this year its plans
to re-establish a common stock dividend in 2005,
with a target annual dividend of $1.20 per share.