Anadarko Petroleum Corporation (NYSE: APC) has authorized a rather large stock buyback plan, and it appears to be onbe of the larger buybacks we have seen in the sector on a relative basis and nominal basis alike. The company will spend up to $5 billion buying back stock out to August 2011 in a new plan that replaces existing plans. To put this in perspective with current prices, this represents approximately 18% of its outstanding common shares. The company said that it intends to repurchase approximately $600 million worth of shares prior to year-end 2008 and the share repurchases will be funded from free cash flow generated from operations.
The company also anticipates increasing its Cap-ex in 2009 and beyondto accelerate the value of its substantial unbooked resourcepotential. The company targeting a debt-to-cap ratio of between 25%and 35% even after the buybacks are considered. Proceeds frompreviously announced property sales will continue to be directed todebt reduction.
The company is also approaching a milestone of 600,000 barrels of oilequivalent (BOE) per day of net production. Assuming no significantweather-related challenges, it also now expects third-quarterproduction to be above the mid-point of its guidance range of 51 to 54million BOE. While certain aspects are subject to board approval,this seems like a lock considering the company’s plans versus peers.
Shares closed down about 1.4% today at $57.84, and its 52-week tradingrange is $47.09 to $81.36. With a $27 Billion market cap, that is morethan a substantial share repurchase plan for an oil company.
Jon C. Ogg
August 25, 2008
The Average American Has No Idea How Much Money You Can Make Today (Sponsor)
The last few years made people forget how much banks and CD’s can pay. Meanwhile, interest rates have spiked and many can afford to pay you much more, but most are keeping yields low and hoping you won’t notice.
But there is good news. To win qualified customers, some accounts are paying almost 10x the national average! That’s an incredible way to keep your money safe and earn more at the same time. Our top pick for high yield savings accounts includes other benefits as well. You can earn up to 3.80% with a Checking & Savings Account today Sign up and get up to $300 with direct deposit. No account fees. FDIC Insured.
Click here to see how much more you could be earning on your savings today. It takes just a few minutes to open an account to make your money work for you.
Our top pick for high yield savings accounts includes other benefits as well. You can earn up to 4.00% with a Checking & Savings Account from Sofi. Sign up and get up to $300 with direct deposit. No account fees. FDIC Insured.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.
You can follow him investing $500,000 of his own money on our top AI stocks for free.