Anadarko Petroleum’s stock performance
Anadarko Petroleum’s (APC) 1Q18 earnings were released on May 1 after the markets closed. Anadarko Petroleum stock fell 1.4% the next day. The stock fell despite better-than-expected 1Q18 earnings. To learn more about Anadarko Petroleum’s 1Q18 performance, read Anadarko Petroleum’s 1Q18 Earnings: Must-Knows. The drop could be due to lower revenues YoY (year-over-year) in 1Q18 and lower production, as we discussed in the previous part.
As you can see above, Anadarko Petroleum’s performance has mainly been driven by crude oil prices (USO) (UCO). Crude oil prices have also been driving the Energy Select Sector SPDR ETF (XLE)—the energy sector benchmark ETF. Anadarko Petroleum stock has increased 27% YoY.
XLE has increased ~9% YoY, while crude oil prices have increased ~43% YoY.
Anadarko Petroleum has overperformed the SPDR S&P 500 ETF (SPY), which has risen ~10% YoY.
1Q18 financial highlights
During 1Q18, Anadarko Petroleum entered into an accelerated share repurchase program to complete its expanded $3.0 billion share buyback program, which was funded by ~$1.9 billion of cash on hand. The company plans to complete the expanded $3.0 billion share buyback program by the end of 2Q18.