Anadarko Petroleum Corp. will spend approximately 70% of its 2019 capital budget on operations in "oil-levered" U.S. onshore assets, the company announced Nov. 15. Anadarko will also add $1 billion to its stock repurchase program and increase the quarterly dividend by 20%.

In a Nov. 15 statement, Anadarko said it anticipates its 2019 capital investment program to be between $4.3 billion and $4.7 billion, which would be a decrease from 2018. The company said it would use a baseline of $50-per-barrel oil and $3/Mcf gas for the year, with as much as $1.6 billion in adjusted free cash flow in a scenario where West Texas Intermediate crude averages $60/bbl, Brent crude averages $70/bbl and the Henry Hub price remains at $3/Mcf.

Anadarko said it expects to increase its oil sales volume by 10% in 2019, even with less capital being spent.

Approximately $3.15 billion would be spent on Anadarko's U.S. onshore plays in 2019, with the Gulf of Mexico receiving $500 million.

With the additional $1 billion added to the share repurchase program, Anadarko now intends to spend $5 billion by midyear 2020 on stock repurchases. The company said it will also add $500 million to its debt reduction program in the coming year, pushing that total amount to $2 billion.

"Our 2019 investment plan further demonstrates the capital efficiency of our portfolio," said Anadarko Chairman and CEO Al Walker. "We believe our peer-leading ability to attractively grow oil volumes within cash flow in a $50 oil environment while delivering significant free cash flow above this break-even point, positions our company very well to execute on our expanded shareholder-return commitments in the near term and in a durable fashion well into the future."

Anadarko also announced leadership changes at the company and its midstream partnerships Western Gas Partners LP and Western Gas Equity Partners LP on Nov. 15.

Anadarko CFO Bob Gwin was named president. Benjamin Fink, president and CEO of the general partners of Western Gas Partners, will succeed Gwin. Fink will also be chairman of the boards of Western Gas Partners and Western Gas Equity Partners. Gwin, who had chaired the partnerships, will continue to serve on the boards.

Robin Fielder will succeed Fink as president and CEO of the partnerships. She has served as vice president for investor relations.