The S&P 500’s top gainers on September 21, 2017, were:
Anadarko Petroleum, a natural gas and petroleum explorer and producer, was the S&P 500’s top gainer on Thursday. The stock rose as Anadarko Petroleum announced its stock buyback plan.
According to the announcement made by Anadarko Petroleum’s management on September 20, the board of directors authorized $2.5 billion worth of share buybacks. The plan aims to buy back $2.5 billion worth of shares through the end of 2018. The buybacks are made according to the market conditions. The company can discontinue the buybacks at any time. Initially, the company plans to buy back $1 billion worth of shares by the end of 2017. According to Anadarko Petroleum’s president and CEO, the targeted buyback is worth 10% of the company’s total outstanding shares at the current market price. Management thinks that share buybacks are a good way to use the company’s reserve cash.
The company also reaffirmed its guidance that was announced in July. For 2017, Anadarko Petroleum is targeting a production rate of 130,000 bpd (barrels per day) in wells in the Gulf of Mexico and 150,000 bpd from the Delaware Basin and DJ Basin’s onshore assets by the end of 2017. The announcement of the share buyback program and reassurance of the guidance for 2017 boosted the stock price on Thursday.
On September 21, Anadarko Petroleum rose 8.2% and closed the day at $48.49—the highest close since June 13.
In the next part, we’ll discuss the S&P 500’s top losers on September 21.