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Anadarko Petroleum’s Recent Stock Drivers

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Apr. 30 2018, Published 12:11 p.m. ET

Anadarko Petroleum stock

Anadarko Petroleum (APC) stock has been on an uptrend since late last year. The stock has mirrored crude oil prices (USO) (UCO), which started rising in late September last year. Anadarko Petroleum is an oil-weighted producer. Crude oil accounted for 53% of Anadarko Petroleum’s 4Q17 production. As a result, the momentum in crude oil prices sent Anadarko Petroleum stock upwards.

On a YoY (year-over-year) basis, Anadarko Petroleum stock has increased ~12.6%. In comparison, the Energy Select Sector SPDR ETF (XLE) has increased ~8% during the same period. The S&P 500 ETF (SPY) has risen ~11.2% during the same period, as you can see in the above graph.

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What else could be supporting the stock?

In September 2017, Anadarko Petroleum announced a $2.5-billion share repurchase program, which was expanded by $500 million in February 2018. During 4Q17, Anadarko Petroleum executed ~$1.1 billion of its $2.5-billion share repurchase program. In February 2018, Anadarko Petroleum repurchased 8.5 million shares for another $500 million. Since September 2017, Anadarko Petroleum stock has risen 48%.

Also in February 2018, Anadarko Petroleum announced a 400% increase in its quarterly cash dividend to $0.25 per share. Anadarko Petroleum stock rose 2% after the announcement. Anadarko Petroleum intends to reduce its outstanding debt by more than $1.0 billion by retiring 2018 and 2019 debt maturities.

Upcoming earnings

Anadarko Petroleum’s upcoming earnings would also be a key stock mover in the coming weeks. Anadarko Petroleum’s earnings are expected to improve YoY despite lower anticipated revenue. The company’s higher earnings could be due to lower estimates for its operating costs and expenses this year.

To know learn more, read What to Expect from Anadarko Petroleum’s 1Q18 Earnings.

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