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Stockholders' Equity
 6 Months Ended
Jun. 30, 2011
Stockholders' Equity

12. Stockholders’ Equity

Cash Dividends — The Company paid cash dividends during the six months ended June 30, 2010 and 2011 as follows:

 

2010:    Per Share      Total  
        (in thousands ) 

Paid on March 30, 2010

    $ 0.05       $ 7,677   

Paid on June 30, 2010

      0.05         7,706   
                 

Total cash dividends

    $ 0.10       $ 15,383   
                 

 

2011:    Per Share      Total  
        (in thousands ) 

Paid on March 30, 2011

    $ 0.05       $ 7,708   

Paid on June 30, 2011

      0.05         7,772   
                 

Total cash dividends

    $ 0.10       $ 15,480   
                 

On July 27, 2011, the Company’s Board of Directors approved a cash dividend on its common stock in the amount of $0.05 per share to be paid on September 30, 2011 to holders of record as of September 15, 2011. The amount and timing of all future dividend payments, if any, is subject to the discretion of the Board of Directors and will depend upon business conditions, results of operations, financial condition, terms of the Company’s credit facilities and other factors.

On August 1, 2007, the Company’s Board of Directors approved a stock buyback program authorizing purchases of up to $250 million of the Company’s common stock in open market or privately negotiated transactions. During the six months ended June 30, 2011, 8,025 shares were purchased under the program at a cost of approximately $242,000. As of June 30, 2011, the Company is authorized to purchase approximately $113 million of the Company’s outstanding common stock under the program. Shares purchased under the program are accounted for as treasury stock.

The Company purchased 130,768 shares of treasury stock from employees during the six months ended June 30, 2011. These shares were purchased at fair market value upon the vesting of restricted stock to provide the employees with the funds necessary to satisfy payroll tax withholding obligations. The total purchase price for these shares was approximately $4.0 million. These purchases were made pursuant to the terms of the Patterson-UTI Energy, Inc. 2005 Long-Term Incentive Plan and not pursuant to the stock buyback program.