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Stockholders' Equity
 12 Months Ended
Dec. 31, 2016
Equity [Abstract]  
Stockholders' Equity

10. Stockholders’ Equity

Cash Dividends – The Company paid cash dividends during the years ended December 31, 2016, 2015 and 2014 as follows:

 

  

 

Per Share

 

 

Total

 

 

 

 

 

 

 

(in thousands)

 

2016

 

 

 

 

 

 

 

 

Paid on March 24, 2016

 

$

0.10

 

 

$

14,712

 

Paid on June 23, 2016

 

 

0.02

 

 

 

2,953

 

Paid on September 22, 2016

 

 

0.02

 

 

 

2,953

 

Paid on December 22, 2016

 

 

0.02

 

 

 

2,961

 

Total cash dividends

 

$

0.16

 

 

$

23,579

 

 

 

 

 

 

 

 

 

 

2015

 

 

 

 

 

 

 

 

Paid on March 25, 2015

 

$

0.10

 

 

$

14,640

 

Paid on June 24, 2015

 

 

0.10

 

 

 

14,712

 

Paid on September 24, 2015

 

 

0.10

 

 

 

14,712

 

Paid on December 24, 2015

 

 

0.10

 

 

 

14,711

 

Total cash dividends

 

$

0.40

 

 

$

58,775

 

 

 

 

 

 

 

 

 

 

2014

 

 

 

 

 

 

 

 

Paid on March 27, 2014

 

$

0.10

 

 

$

14,456

 

Paid on June 26, 2014

 

 

0.10

 

 

 

14,562

 

Paid on September 24, 2014

 

 

0.10

 

 

 

14,634

 

Paid on December 24, 2014

 

 

0.10

 

 

 

14,636

 

Total cash dividends

 

$

0.40

 

 

$

58,288

 

 

On February 8, 2017, the Company’s Board of Directors approved a cash dividend on its common stock in the amount of $0.02 per share to be paid on March 22, 2017 to holders of record as of March 8, 2017.  The amount and timing of all future dividend payments, if any, are 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 debt agreements and other factors.  The merger agreement prohibits the Company (unless consented to in advance by SSE, which consent may not be unreasonably withheld, delayed or conditioned) from paying dividends to holders of the Company’s common stock in excess of $0.02 per share per quarter until the earlier of the effective time of the SSE merger and the termination of the merger agreement in accordance with its terms.

On January 27, 2017, the Company completed an offering of 18.2 million shares of its common stock and it intends to use the net proceeds from this offering of approximately $470 million to fund the repayment of SSE’s outstanding net indebtedness upon closing of the SSE merger.  If the SSE merger is not consummated, the Company intends to use the net proceeds of the offering for general corporate purposes, which may include repayment of outstanding indebtedness or investments in working capital.

On September 6, 2013, the Company’s Board of Directors approved a stock buyback program that authorizes purchase of up to $200 million of the Company’s common stock in open market or privately negotiated transactions.  As of December 31, 2016, the Company had remaining authorization to purchase approximately $187 million of the Company’s outstanding common stock under the 2013 stock buyback program.  Shares purchased under a buyback program are accounted for as treasury stock.  

The Company acquired shares of stock from directors during 2016 and from employees during 2016, 2015 and 2014 that are accounted for as treasury stock.  Certain of these shares were acquired to satisfy the exercise price in connection with the exercise of stock options.  The remainder of these shares was acquired to satisfy payroll tax withholding obligations upon the exercise of stock options, the settlement of performance unit awards and the vesting of restricted stock.  These shares were acquired at fair market value.  These acquisitions were made pursuant to the terms of the Patterson-UTI Energy, Inc. 2005 Long-Term Incentive Plan (the “2005 Plan”) or the Patterson-UTI Energy, Inc. 2014 Long-Term Incentive Plan (the “2014 Plan”) and not pursuant to the stock buyback program.  

Treasury stock acquisitions during the years ended December 31, 2016, 2015 and 2014 were as follows (dollars in thousands):

 

 

 

2016

 

 

2015

 

 

2014

 

 

 

Shares

 

 

Cost

 

 

Shares

 

 

Cost

 

 

Shares

 

 

Cost

 

Treasury shares at beginning of period

 

 

43,207,240

 

 

$

907,045

 

 

 

42,818,585

 

 

$

899,035

 

 

 

42,268,057

 

 

$

880,888

 

Purchases pursuant to 2013 stock buyback program:

 

 

8,488

 

 

 

183

 

 

 

8,618

 

 

 

180

 

 

 

13,898

 

 

 

466

 

Acquisitions pursuant to long-term incentive plans

 

 

176,889

 

 

 

3,866

 

 

 

380,037

 

 

 

7,830

 

 

 

536,630

 

 

 

17,681

 

Treasury shares at end of period

 

 

43,392,617

 

 

$

911,094

 

 

 

43,207,240

 

 

$

907,045

 

 

 

42,818,585

 

 

$

899,035