RSPP Rsp Permian, Inc. (delisted)

The board of directors of Anadarko Petroleum Corp. (APC) announced an impressive 50% hike in the quarterly dividend rate. The new quarterly dividend comes to 27 cents per share, up from 18 cents per share in the prior quarter. The dividend is payable on Jun 25, 2014 to shareholders of record at the close of business on Jun 11, 2014.

On an annualized basis, Anadarko Petroleum’s dividend rate will come to $1.08 per share. The new hike comes on the heels of Anadarko Petroleum’s strong performance in the first quarter 2014 thanks to the upbeat production results from its U.S. onshore plays.

This is the second consecutive dividend hike by the company in less than a year. Anadarko Petroleum’s commitment to add value to shareholders is reflected in its stable dividend payment history in the past four years. In Aug 2013, the company doubled its quarterly dividend rate to 18 cents from 9 cents.

Meanwhile, the current hike does not come as a surprise given the company’s robust financial position aided by cash balance growth of 60.2% to nearly $5.9 billion as of Mar 31, 2014 from $3.7 billion at year-end 2013. This will help Anadarko Petroleum to fund its dividend payments.

The coming quarters could see Anadarko Petroleum riding high on the current shale boom in the U.S. The company’s premium shale properties, the Eagleford and Wattenberg, will likely prove to be the key production drivers. In addition, advancement of the Lucius prospect in the deepwater Gulf of Mexico will add to the positive momentum.

Currently, Anadarko Petroleum carries a Zacks Rank #3 (Hold). Other better-ranked oil and gas stocks include Encana Corp. (ECA), Matador Resources Company (MTDR) and RSP Permian, Inc. (RSPP), each carrying a Zacks Rank #1 (Strong Buy).

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ANADARKO PETROL (APC): Free Stock Analysis Report
 
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