Anadarko To Spend $2.5B On Massive Share Buyback
HOUSTON, Sept 20 (Reuters) - U.S. oil producer Anadarko Petroleum Corp said on Wednesday it would spend $2.5 billion to buy back its own stock, a plan worth roughly 10 percent of its outstanding shares at current prices.
Anadarko, like many U.S. oil producers, has seen its stock languish in 2017 as crude prices have stayed at or below $50 per barrel, depressing profits. Anadarko's shares have dropped 35 percent since January.
In after-hours trading on Wednesday, the company's stock jumped 3.6 percent to $46.40.
Stock buybacks decrease the number of a company's outstanding shares, boosting earnings per share. They have been controversial among some investors who have pushed for higher dividends instead.
Anadarko, which has a 5 cent dividend that is far below peers, said it would spend $1 billion by December on buybacks and the remaining $1.5 billion by the end of next year.
"We believe this is a very attractive use of our cash given the value of our assets and the highly accretive nature of this program," Chief Executive Al Walker said in a statement.
The company had $6 billion in cash as of June 30.
Anadarko also expects to pump 130,000 barrels per day (bpd) this year in its Gulf of Mexico operations and end the year pumping a combined 150,000 bpd in the Permian and Denver-Julesburg shale basins, it said.
Going into 2018, Anadarko said it should produce substantial cash flow with an average oil price of $50 per barrel.
(Reporting by Ernest Scheyder in Houston; Additional reporting by Yashaswini Swamynathan in Bengaluru; Editing by Maju Samuel and Peter Cooney)
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
- Weatherford CEO's Rebound Plan Relies On Getting Smaller
- Iran Says Oil Market Is Too Tight For US Zero Exports Target
- China's Squeezed 'Teapots' Eye Petchem Path To Riches
- Baker Hughes: US Drillers Add Oil Rigs For Second Week In Three
- Venezuela Hands China More Oil Presence, But No Mention Of New Funds
- Falcon Oil Declares Commercial Flow Test Results for Shenandoah Well
- Japan Failing to Meet Corporate Demand for Clean Power: Amazon
- Macquarie Strategists Expect Brent Oil Price to Grind Higher
- UK Oil Regulator Publishes New Emissions Reduction Plan
- PetroChina Posts Higher Annual Profit on Higher Production
- Pennsylvania County Joins List of Local Govts Suing Big Oil over Climate
- McDermott Settles Reficar Dispute
- US, SKorea Launch Task Force to Stop Illicit Refined Oil Flows into NKorea
- Russian Navy Enters Warship-Crowded Red Sea Amid Houthi Attacks
- USA Commercial Crude Oil Inventories Increase
- New China Climate Chief Says Fossil Fuels Must Keep a Role
- Equinor Makes Discovery in North Sea
- Standard Chartered Reiterates $94 Brent Call
- India Halts Russia Oil Supplies From Sanctioned Tanker Giant
- DOI Announces Proposal for Second GOM Offshore Wind Auction
- Centcom, Dryad Outline Recent Moves Around Red Sea Region
- PetroChina Set to Receive Venezuelan Oil
- Czech Conglomerate to Buy Major Stake in Gasnet for $917MM
- US DOE Offers $44MM in Funding to Boost Clean Power Distribution
- Oil Settles Lower as Stronger Dollar Offsets Tighter Market
- Chinese Mega Company Makes Major Oilfield Discovery
- VIDEO: Missile Attack Kills Crew Transiting Gulf of Aden
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Another Major Oilfield Discovery
- New China Climate Chief Says Fossil Fuels Must Keep a Role
- What Is the Biggest Risk to Offshore Oil and Gas Personnel in 2024?
- Vessel Sinks in Red Sea After Missile Strike
- Exxon Rights in Stabroek Do Not Apply to Hess Merger with Chevron: Hess
- Analysts Reveal Latest Oil Price Outlook Following OPEC+ Cut Extension
- Equinor Makes Discovery in North Sea