S&P: Anadarko Petroleum unaffected

Standard & Poor's said Anadarko Petroleum Corp.'s (BBB+/stable/A-2) announcement that it will reallocate $150 million to $200 million to additional share repurchase from its 2005 capital budget will not immediately affect its rating or outlook on the company.

Anadarko embarked on a large-scale asset sales program in 2004, with proceeds fairly evenly split between debt reduction and share buybacks.

S&P said the decision to funnel capital previously earmarked for drilling raises some concern about the company's ability to deliver long-term growth at competitive costs and rates, particularly in light of the company's previously stated expected 2005 finding and development costs of between $9 and $11 per barrel.

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