Anadarko Petroleum Corporation yesterday announced its board of directors has authorised an expansion of the company's share-repurchase programme to US$4.0 billion, representing a US$1.0 billion increase. The company completed the first $3.0 billion of this program on 29 June 2018. In addition, Anadarko announced a US$500 million increase to its debt-reduction programme, bringing the total planned to US$1.5 billion. These measures raise the aggregate equity and debt-buyback programmes to US$5.5 billion, in addition to the recent increase of approximately US$400 million (annualised) to the company's common dividend. The board authorisation extends through the end of June 2019, and share repurchases will be made in accordance with applicable securities laws from time to time in open market or private transactions, depending on market conditions, and may be discontinued at any time.
"Today's announcement further reinforces our commitment to our durable strategy of delivering attractive, capital-efficient growth and applying our free cash flow in a balanced manner to fund the repurchase of stock and debt, along with dividend increases over time," said Bob Gwin, Anadarko Executive Vice President, Finance and CFO. "We aggressively completed the previously announced US$3.0 billion share-repurchase programme in just over nine months. We also retired US$100 million of debt at maturity in May with an additional US$900 million expected to be retired upon maturity in the first half of 2019. Combined with healthy, returns-focused growth, these actions materially enhance debt-adjusted per-share performance and create meaningful shareholder value."
Anadarko Petroleum Corporation's mission is to deliver a competitive and sustainable rate of return to shareholders by exploring for, acquiring and developing oil and natural gas resources vital to the world's health and welfare. As of year-end 2017, the company had 1.44 billion boe of proved reserves, making it one of the world's largest independent exploration and production companies.
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