July 10, 2018
Anadarko Petroleum‘s board has given the go-ahead to expand the company’s share repurchase program to $4 billion dollars, meaning there will be an extra $1 billion for buybacks right away.
The Houston-area up- and midstreamer recently finished a $3 billion series of share repurchases, and on Tuesday also announced a $500 million debt reduction program.
“We aggressively completed the previously announced $3.0 billion share-repurchase program in just over nine months,” Executive Vice President, Finance and CFO Bob Gwin said Tuesday.
Financial discipline is a top priority at Anadarko, the company said, and because of its good performance in the Permian Basin, the company is growing production but has no plans to increase CapEx.
According to analyst Todd Akin at Wall St. Stock Solutions, Anadarko is finding success in its new strategy of operating pads without on-site storage tanks.
Using regional oil treating facilities, the company is using 200 miles of strategically-laid pipelines to send hydrocarbons directly to the treatment centers, saving money and greatly reducing carbon emissions and regulatory risks.