GOM, Delaware, DJ producer targets $1 billion in share buybacks during 2017; expects 2018 capital program to be within cash flow
Anadarko Petroleum Corporation’s (ticker: APC) board of directors has authorized a $2.5 billion share-repurchase program through the end of 2018, the company announced Wednesday.
“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,” said Anadarko Chairman, President and CEO Al Walker.
“At the current share price, this represents approximately 10 percent of the company’s outstanding common shares, and we will initially target $1 billion of share repurchases prior to year-end 2017.
Reaffirms guidance for GOM, DJ and Delaware
“Separately, we want to highlight and reaffirm the guidance we have previously provided for the deepwater Gulf of Mexico (GOM), DJ and Delaware basin assets,” added Walker.
The company said in the Gulf it expects to achieve average production rates approaching 130,000 barrels of oil per day (BOPD) for the full-year 2017. In the Delaware and DJ basins, Anadarko targets a combined projected exit rate of approximately 150,000 BOPD in 2017.
“Our 2018 upstream investment plan is anticipated to produce substantial free cash flow, assuming an average oil price of $50 per barrel, while total capital spending, including midstream investments, should be approximately break-even to discretionary cash flow from operations,” Walker said.
