Group 1 - MRC Global Inc. has seen significant activity in the options market, particularly with the February 21, 2025 $12.50 Put option exhibiting high implied volatility, indicating potential for a major price movement [1] - Implied volatility reflects market expectations for future stock movement, suggesting that investors anticipate a significant event that could lead to either a rally or a sell-off [2] - MRC Global holds a Zacks Rank 2 (Buy) in the Steel - Pipe and Tube industry, which is in the top 16% of the Zacks Industry Rank, indicating a positive outlook [3] Group 2 - Over the past 60 days, one analyst has raised the earnings estimate for MRC Global's current quarter from 7 cents per share to 8 cents, with no downward revisions from other analysts [3] - The high implied volatility may present trading opportunities, as seasoned options traders often seek to sell premium on such options, hoping the stock does not move as much as expected by expiration [4]

Group 1: Company Performance and Strategy - MRC Global Inc. is experiencing growth in the DIET sector due to increased energy transition projects and a strong pipeline of customer projects in refining, chemical, and mining [1] - The company has paid dividends of $18 million and repurchased shares worth $5 million in the first nine months of 2024, with a buyback program authorized for up to $125 million [2] - MRC generated a free cash flow of $174 million in the first nine months of 2024, a significant increase from $82 million in the same period last year [3] Group 2: Debt Management - Reducing debts is a priority for MRC, which repaid $276 million in borrowings under revolving credit facilities in the first nine months of 2024, following a repayment of $882 million in 2023 [4] - The company's leverage ratio was 0.1x at the end of the third quarter, marking the lowest level in its history [4] Group 3: Market Performance - MRC's shares have gained 38.7% over the past year, outperforming the industry's growth of 28.5% [6] - However, the company is facing challenges in the Gas Utilities and Production & Transmission Infrastructure (PTI) sectors, with revenues from Gas Utilities declining by 6% year over year and PTI revenues decreasing by 14% year over year in the third quarter [7][8]

Group 1: Shareholder Rewards and Buyback Program - MRC Global Inc. has announced a share buyback authorization of up to $125 million, aligning with its commitment to reward shareholders [1][2] - The buyback program is set to begin in the second quarter and will remain valid until January 2, 2028 [3] - In the first nine months of 2024, MRC Global paid $18 million in dividends and repurchased $5 million in shares, compared to $24 million in dividends and $4 million in share buybacks in 2023 [4] Group 2: Financial Performance - MRC Global generated a free cash flow of $174 million in the first nine months of 2024, a significant increase from $82 million in the same period the previous year [5] - The company has a market capitalization of $1.1 billion and currently holds a Zacks Rank of 3 (Hold) [6] Group 3: Market Position and Challenges - MRC Global's diverse presence across various end markets, including upstream production and energy transition, allows it to capitalize on opportunities while mitigating risks [6] - The company is facing challenges in the Gas Utilities and Production & Transmission Infrastructure sectors due to customer destocking and decreased rig counts in the U.S. oil field [7] Group 4: Stock Performance - MRC's shares have increased by 4.1% over the past three months, while the industry has grown by 11.6% [9] - The Zacks Consensus Estimate for MRC's 2025 earnings has risen by 3.2% in the last 60 days, with a trailing four-quarter average earnings surprise of 60.5% [9]

Core Points - MRC Global Inc. has authorized a new $125 million share repurchase program, set to expire on January 2, 2028, allowing the company to buy back its outstanding common shares through various means [1] - The company's President & CEO, Rob Saltiel, expressed confidence in the company's future and financial flexibility, highlighting a capital allocation strategy targeting a net debt leverage ratio of less than 1.5x, returning cash to shareholders, and investing in future growth [2] - MRC Global is a leading global distributor of pipe, valves, fittings, and other infrastructure products, serving diversified end-markets including gas utilities, industrial, and energy transition sectors, with over 100 years of experience [3] Company Overview - MRC Global is headquartered in Houston, Texas, and operates a worldwide network of over 200 locations, including valve and engineering centers, providing innovative supply chain solutions and technical product expertise [3] - The company offers over 300,000 SKUs from more than 8,500 suppliers, simplifying the supply chain for approximately 10,000 customers [3]

Core Viewpoint - MRC Global Inc. has entered into a deal to divest its Canada business to Emco Corporation, aiming to focus on core businesses and enhance capital allocation priorities [1][2]. Group 1: Transaction Details - The financial terms of the divestment have not been disclosed [1]. - The transaction is expected to close in the first half of 2025, pending necessary approvals [3]. Group 2: Strategic Implications - The divestment will allow MRC Global to concentrate on key regions and product offerings with the highest growth potential [2]. - MRC plans to use the cash proceeds from the transaction to reduce its debt, which is expected to positively impact adjusted gross margins and adjusted EBITDA margin [2]. Group 3: Market Performance - MRC Global's stock has increased by 21.5% over the past year, outperforming the industry growth of 17.2% [4]. - The company is currently ranked 3 (Hold) by Zacks, indicating a stable outlook [4]. Group 4: Sector Performance - MRC Global is benefiting from increased activities in the energy transition sector, particularly in Downstream, Industrial, and Energy Transition areas [4]. - However, the company faces challenges from weaknesses in the Gas Utilities and Production & Transmission Infrastructure sectors due to customer destocking and reduced rig counts in the U.S. oil field [5].

HOUSTON, Dec. 17, 2024 (GLOBE NEWSWIRE) -- MRC Global Inc. (NYSE:MRC) will release its fourth quarter and full year 2024 results on February 11, 2025, after the market closes. In conjunction with the release, the company will host a conference call and webcast: What:MRC Global Fourth Quarter and Full Year 2024 Earnings Conference Call and Webcast  When:Wednesday, February 12, 2025, at 10:00 a.m. Eastern / 9:00 a.m. Central  How:Via phone – Dial 201-689-8261 and ask for the MRC Global call prior to the start ...

HOUSTON, Dec. 17, 2024 (GLOBE NEWSWIRE) -- MRC Global Inc. (NYSE: MRC) will release its fourth quarter and full year 2024 results on February 11, 2025, after the market closes. In conjunction with the release, the company will host a conference call and webcast: What:MRC Global Fourth Quarter and Full Year 2024 Earnings Conference Call and Webcast When:Wednesday, February 12, 2025, at 10:00 a.m. Eastern / 9:00 a.m. Central How:Via phone – Dial 201-689-8261 and ask for the MRC Global call prior to the star ...

HOUSTON, Dec. 16, 2024 (GLOBE NEWSWIRE) -- MRC Global Inc. (NYSE:MRC), announced today that its subsidiary, MRC Global (Canada) ULC, has entered into a definitive agreement to sell its Canada operations to Emco Corporation. Rob Saltiel, MRC Global President & CEO stated, "This divestiture will reposition our strategic focus and future capital investment decisions on our core geographies and product offerings that provide the strongest growth and profit potential. The sale of our Canada business is expected ...

MRC Global Inc. (MRC) has failed to impress investors with its recent operational performance due to weakness in the Gas Utilities and Production & Transmission Infrastructure (PTI) sectors. Also, foreign currency headwind is an added uncertainty.Houston, TX-based MRC Global is one of the leading distributors of pipes, valves and fittings, and related products and services. The company’s products are used across upstream, midstream and downstream sectors of the oil and gas industry. MRC currently carries a ...

HOUSTON, Nov. 12, 2024 (GLOBE NEWSWIRE) -- MRC Global Inc. (NYSE: MRC), announced today that it has amended its asset-based revolving loan facility (“ABL”), extending its maturity to November 2029. The amended ABL has a committed borrowing capacity of $750 million. The terms of the ABL are substantially the same as the previous facility with a borrowing rate of Term SOFR plus a margin ranging from 1.25% to 1.75%, based on the company’s fixed charge coverage ratio. Rob Saltiel, MRC Global President & CEO sta ...