9. CAPITAL STOCK

Net Income per Common Share

A reconciliation of the components of basic and diluted net income per common share for the quarters ended March 31, 2014 and 2013 is presented in the table below.


	For the Quarter Ended March 31,
	2014								2013
	Income			Shares		Per Share			Income			Shares		Per Share
	(In millions, except per share amounts)
Basic:
Income from continuing operations	$	753			394	$	1.92		$	759			392	$	1.94
Loss from discontinued operations		(517	)		394		(1.32	)		(61	)		392		(0.16	)

Income attributable to common stock	$	236			394	$	0.60		$	698			392	$	1.78

Effect of Dilutive Securities:
Mandatory Convertible Preferred Stock	$	—			—				$	19			14
Stock options and other		—			2					—			2
Diluted:
Income from continuing operations	$	753			396	$	1.90		$	778			408	$	1.91
Loss from discontinued operations		(517	)		396		(1.30	)		(61	)		408		(0.15	)

Income attributable to common stock	$	236			396	$	0.60		$	717			408	$	1.76

The diluted earnings per share calculation excludes options and restricted stock units that were anti-dilutive totaling 5.8 million and 5.7 million for the quarters ending March 31, 2014 and 2013, respectively.

Common and Preferred Stock Dividends

For the quarters ended March 31, 2014 and 2013, Apache paid $79 million and $67 million, respectively, in dividends on its common stock. During the first quarter of 2014, Apache’s Board of Directors approved a 25 percent increase for the regular quarterly cash dividend on the Company’s common stock to $0.25 per share. This increase will apply to the dividend on common stock payable on May 22, 2014, to stockholders of record on April 22, 2014, and subsequent dividends paid.

In the first three months of 2013, the Company also paid $19 million in dividends on its Series D Preferred Stock, which was converted to common stock in August 2013.

Stock Repurchase Program

In May 2013, Apache’s Board of Directors authorized the purchase of up to 30 million shares of the Company’s common stock, valued at approximately $2 billion when first announced. Shares may be purchased either in the open market or through privately held negotiated transactions. The Company initiated the buyback program on June 10, 2013, and during 2013 repurchased a total of 11,221,919 shares at an average price of $88.88. An additional 5,919,083 shares were purchased in the first quarter of 2014 at an average price of $81.88. Subsequent to March 31, 2014, an additional 5,951,031 shares were purchased at an average price of $85.14. The Company anticipates that further purchases will primarily be made with proceeds from asset dispositions, but the Company is not obligated to acquire any specific number of shares.