Anadarko Petroleum Corporation has provided updated information regarding its activities in the debt and equity capital markets.
"During the third quarter, we completed a $600 million share repurchase and retired approximately $350 million of floating-rate notes due Sept. 15, 2009," Anadarko Sr. Vice President, Finance and Chief Financial Officer Al Walker said. "The outstanding capital efficiency of our assets is the primary driver for building a cash balance of approximately $1.9 billion at the end of September. We expect to close the previously announced divestiture of the Peregrino field offshore Brazil by year end and apply the net after-tax proceeds to additional debt reduction. We anticipate meeting our year-end debt-to-cap target range of 25 to 35 percent and, should prices stay at or above current levels, use our free cash flow above capital spending to repurchase additional shares in 2009."
The expanded 2009 capital program is expected to be focused on building upon the success of the company's exploration and development results. This includes our lower-risk onshore U.S. properties and recent oil discoveries in the deepwater Gulf of Mexico at Caesar/Tonga, offshore Ghana at the Jubilee field and most recently offshore Brazil where Anadarko announced a significant discovery in the Campos Basin.
"Our financial and operating profiles are very strong. In addition to the outstanding cash our operations produce, we have an undrawn $1.3 billion revolving credit facility. As for our various derivatives positions, we monitor these very closely and have no material counter-party risk at this time," Walker added.
Anadarko will provide additional details on its financial and operating results for the third-quarter 2008 during its earnings conference call on Nov. 4, 2008.
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