How Anadarko’s 4Q17 Results Could Affect Its Stock



Anadarko Petroleum stock

Since late 2017, Anadarko Petroleum (APC) stock has mostly followed an uptrend, like most energy stocks. Year-to-date, Anadarko Petroleum’s stock has fallen ~16.6%. In comparison, the Energy Select Sector SPDR ETF (XLE) has risen ~3%, and the S&P 500 SPDR ETF (SPY) (SPX-INDEX) has risen 24%.

Anadarko Petroleum stock has been driven primarily by crude oil price (UCO) movements, as the graph above notes. Crude oil prices and natural gas prices (UGAZ) have also driven movements of the Energy Select Sector SPDR ETF (XLE). Year-over-year, crude oil prices have risen ~22%, while natural gas prices have fallen ~5.3%.

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Key highlights in 2017

In September 2017, APC announced a $2.5 billion share repurchase program, representing ~10% of the company’s outstanding common shares at the time. According to APC management, in 2018, “performance objectives will now include cash return on invested capital.” The company expects to generate free cash flow of more than $700 million at current strip prices.


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