CPKC announces TSX acceptance of new share repurchase program

Core Viewpoint - Canadian Pacific Kansas City (CPKC) has announced a normal course issuer bid (NCIB) to repurchase up to 37,348,539 common shares, representing approximately 4% of its outstanding shares as of February 18, 2025, with the program set to commence on March 3, 2025, and end on March 2, 2026 [1][2]. Group 1: Share Buyback Program - The NCIB aims to strengthen the balance sheet and reduce leverage following the merger of Canadian Pacific and Kansas City Southern into CPKC [2]. - CPKC's management expresses confidence in the company's ability to generate strong free cash flow and sees a pipeline of growth opportunities as a basis for reinstituting the share buyback program [2]. - The shares will be purchased through various means, including open market transactions and automatic purchase programs, with the price determined by the market at the time of purchase [2][3]. Group 2: Automatic Purchase Plan - CPKC plans to enter into an automatic purchase plan with a designated broker to facilitate share purchases during internal quarterly blackout periods [3]. - The timing and amount of purchases under this plan will be at the broker's discretion, based on parameters set by CPKC [3]. - The plan is expected to be implemented on March 3, 2025, and will be included in the total shares repurchased under the NCIB [3]. Group 3: Shareholder Returns - As of February 18, 2025, CPKC had 933,713,487 common shares issued and outstanding, with a daily purchase limit of 351,655 shares on the TSX, which is 25% of the average daily trading volume [4]. - The actual number of shares repurchased will depend on market conditions and regulatory limits, with no guarantees on the total shares acquired [5]. - CPKC believes that repurchasing shares is a beneficial use of its funds, reflecting a commitment to returning cash to shareholders [5]. Group 4: Company Overview - CPKC is the first and only single-line transnational railway linking Canada, the United States, and Mexico, providing extensive access to major ports across North America [12]. - The company operates approximately 20,000 route miles and employs 20,000 railroaders, offering a range of freight transportation services and logistics solutions [12].