OMAHA, Neb.,
Nov. 17, 2016
/PRNewswire/ -- Union Pacific Corporation
(NYSE: UNP) announced that its Board of Directors today approved
the early renewal of its share repurchase program, authorizing the
repurchase of up to 120 million common shares by December 31, 2020. This new authorization is
effective January 1, 2017 and
replaces the current authorization, which will now expire on
December 31, 2016, one year earlier
than its original expiration date. The new four year
authorization allows for the repurchase of another 15 percent of
current outstanding shares.
In addition, the Board also voted to increase the
quarterly dividend on the Company's common shares by 10 percent to
60.5 cents per share. The
increased dividend is payable December 29,
2016, to shareholders of record as of November 30, 2016. Union Pacific has paid
dividends on its common stock for 117 consecutive years.
"This new share repurchase authorization, along with the
dividend increase, demonstrates Union Pacific's continued long-term
commitment to increasing shareholder value, while maintaining our
strong, investment grade credit ratings," said Rob Knight, Union Pacific chief financial
officer. "Since the authorization of the current program in
November 2013, the company's strong
cash flow has enabled us to increase our declared dividend over 50
percent and return almost $9 billion
to shareholders through our repurchase program. We have confidence
in our continued ability to earn reinvestible returns on our
diverse franchise opportunities. We expect to continue generating
strong cash from operations to support our strategic growth capital
investments, maintain balance sheet strength, and reward
shareholders with strong returns."
Since announcing its initial program in January 2007, the Company has repurchased
approximately 28 percent of its outstanding shares at a total cost
of nearly $18.2 billion, with an
average purchase price of $59.63 per
share.
The timing and volume of share repurchases may be executed
at the discretion of management on an opportunistic basis, or
pursuant to trading plans or other arrangements. Any share
repurchase under this program may be made in the open market, in
privately negotiated transactions, or otherwise.
ABOUT UNION PACIFIC
Union Pacific Railroad is the principal operating company
of Union Pacific Corporation (NYSE: UNP). One of America's most
recognized companies, Union Pacific Railroad connects 23 states in
the western two-thirds of the country by rail, providing a critical
link in the global supply chain. From 2006-2015, Union Pacific
invested approximately $33 billion in
its network and operations to support America's transportation
infrastructure. The railroad's diversified business mix includes
Agricultural Products, Automotive, Chemicals, Coal, Industrial
Products and Intermodal. Union Pacific serves many of the
fastest-growing U.S. population centers, operates from all major
West Coast and Gulf Coast ports to eastern gateways, connects with
Canada's rail systems and is the
only railroad serving all six major Mexico gateways. Union Pacific provides value
to its roughly 10,000 customers by delivering products in a safe,
reliable, fuel-efficient and environmentally responsible
manner.
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SOURCE Union Pacific Corporation