13. Stockholders’ Equity

Earnings Per Share The Company’s basic earnings per share (EPS) is computed based on the average number of shares of common stock outstanding for the period and includes the effect of any participating securities and TEUs as appropriate. Diluted EPS includes the effect of the Company’s outstanding stock options, restricted stock awards, restricted stock units, TEUs, and WES Series A Preferred units, if the inclusion of these items is dilutive.

The following provides a reconciliation between basic and diluted EPS attributable to common stockholders:



	Three Months Ended September 30,						Nine Months Ended September 30,
millions except per-share amounts	2017			2016			2017			2016
Net income (loss)
Net income (loss) attributable to common stockholders	$	(699	)	$	(830	)	$	(1,432	)	$	(2,556	)
Income (loss) effect of TEUs	(2		)	(2		)	(6		)	(5		)
Less distributions on participating securities	—			1			—			1
Basic	$	(701	)	$	(833	)	$	(1,438	)	$	(2,562	)
Income (loss) effect of TEUs	—			—			(1		)	(1		)
Diluted	$	(701	)	$	(833	)	$	(1,439	)	$	(2,563	)
Shares
Average number of common shares outstanding—basic	553			517			552			512
Average number of common shares outstanding—diluted	553			517			552			512
Excluded due to anti-dilutive effect	11			11			11			11
Net income (loss) per common share
Basic	$	(1.27	)	$	(1.61	)	$	(2.60	)	$	(5.00	)
Diluted	$	(1.27	)	$	(1.61	)	$	(2.61	)	$	(5.00	)

Common Stock Repurchase Program In September 2017, the Company announced a $2.5 billion share-repurchase program under which shares of the Company’s common stock may be repurchased either in the open market or through private transactions. The program is authorized to extend through the end of 2018. In October 2017, Anadarko entered into an accelerated share-repurchase agreement (ASR Agreement) with an investment bank (Bank) to repurchase $1.0 billion of the Company’s common stock as part of the share-repurchase program. Under the terms of the ASR Agreement, the Company paid $1.0 billion in cash and received an initial delivery of shares of the Company’s common stock. At the conclusion of the term of the ASR Agreement, the Company and the Bank will enter into a final share settlement with the settlement price determined by applying a percentage discount to the volume-weighted average price of the shares during the term. The ASR Agreement is subject to customary adjustment and termination provisions, and final settlement is expected to occur prior to year end. All of the shares acquired by Anadarko under the ASR Agreement will be classified as treasury stock.