Joining other energy companies’ attempts to reassure investors, Anadarko Petroleum Corp. Tuesday said it has completed the first phase of its planned $5 billion share buyback program and it also has retired some of its debt a year ahead of schedule.

Anadarko’s board in August authorized a $5 billion share repurchase plan, $600 million of which was to be completed before the end of this year. The company at the end of September had completed the $600 million share repurchase, and it also retired about $350 million of floating rate notes that were due Sept. 15, 2009.

“We anticipate meeting our year-end debt-to-capitalization target range of 25% to 35%, and, should [oil and natural gas] prices stay at or above current levels, use our free cash flow above capital spending to repurchase additional shares in 2009,” said CFO Al Walker. “The outstanding capital efficiency of our assets is the primary driver for building a cash balance of approximately $1.9 billion at the end of September.” The sale of Anadarko’s Peregrino field offshore Brazil is expected to be done by year’s end, and the net proceeds would be used to further reduce debt.

Anadarko’s expanded 2009 capital program would build upon the success of the company’s exploration and development results, which include its lower-risk onshore U.S. properties and recent discoveries in the deepwater Gulf of Mexico at Caesar/Tonga, offshore Ghana at the Jubilee field and offshore Brazil, Walker said.

“Our financial and operating profiles are very strong,” said Walker. “In addition to the outstanding cash our operations produce, we have an undrawn $1.3 billion revolving credit facility. As for our various derivatives positions, we monitor these very closely and have no material counterparty risk at this time.”

Anadarko plans to provide additional details on its financial and operating results during a quarterly earnings conference call on Nov. 4.

“Anadarko is one of few free cash flow positive firms with a low enough debt to cap to be able to make share repurchases while equity prices are at two-to-three-year lows, which should provide some stability for the stock,” energy researcher Simmons & Co. International said in a note to clients.

Energy analysts with SunTrust Robinson Humphrey/the Gerdes Group (STRH) reiterated their “buy” recommendation on Anadarko in a note.

“Dramatic energy-related stock weakness continues to favor well diversified large-cap exploration and production (E&P) business models, namely XTO Energy, EOG Resources and Anadarko Petroleum,” STRH analysts wrote. “All the aforementioned E&Ps have superior capital productivity and spend within cash generation. With the continued weakness in the sector, E&P equities currently reflect upper $6 gas and mid $60 oil, significantly below our expected ’09 averages of $8 gas and $90 oil.”

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