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 and six-month periods ended June 30, 2014 and 2013 is presented in the table below.


	For the Quarter Ended June 30,
	2014								2013
	Income			Shares		Per Share			Income			Shares		Per Share
	(In millions, except per share amounts)
Basic:
Income from continuing operations	$	505			385	$	1.31		$	1,018			392	$	2.60
Loss from discontinued operations		—			385		—			(2	)		392		(0.01	)

Income attributable to common stock	$	505			385	$	1.31		$	1,016			392	$	2.59


Effect of Dilutive Securities:
Mandatory Convertible Preferred Stock	$	—			—				$	19			14
Stock options and other		—			2					—			2

Diluted:
Income from continuing operations	$	505			387	$	1.31		$	1,037			408	$	2.54
Loss from discontinued operations		—			387		—			(2	)		408		—

Income attributable to common stock	$	505			387	$	1.31		$	1,035			408	$	2.54


	For the Six Months Ended June 30,
	2014								2013
	Income			Shares		Per Share			Income			Shares		Per Share
	(In millions, except per share amounts)
Basic:
Income from continuing operations	$	1,258			390	$	3.23		$	1,777			392	$	4.53
Loss from discontinued operations		(517	)		390		(1.33	)		(63	)		392		(0.16	)

Income attributable to common stock	$	741			390	$	1.90		$	1,714			392	$	4.37


Effect of Dilutive Securities:
Mandatory Convertible Preferred Stock		—			—					38			14
Stock options and other		—			2					—			2

Diluted:
Income from continuing operations	$	1,258			392	$	3.21		$	1,815			408	$	4.45
Loss from discontinued operations		(517	)		392		(1.32	)		(63	)		408		(0.15	)

Income attributable to common stock	$	741			392	$	1.89		$	1,752			408	$	4.30

The diluted earnings per share calculation excludes options and restricted stock units that were anti-dilutive totaling 3.2 million and 6.7 million for the quarters ending June 30, 2014 and 2013, and 5 million and 7.4 million for the six months ended June 30, 2014 and 2013, respectively.

Common and Preferred Stock Dividends

For the quarters ended June 30, 2014 and 2013, Apache paid $97 million and $78 million, respectively, in dividends on its common stock. For the six months ended June 30, 2014 and 2013, Apache paid $176 million and $145 million, respectively.

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 applied to the dividend on common stock payable on May 22, 2014, to stockholders of record on April 22, 2014, and will apply to all subsequent dividends paid.

In the first six months of 2013, the Company also paid $38 million in dividends on its Series D Preferred Stock, which was converted to common stock in August 2013.

Stock Repurchase Program

Apache’s Board of Directors has authorized the purchase of up to 40 million shares of the Company’s common stock. 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 has since repurchased a total of 26.1 million shares at an average price of $86.75. For the six-months period ended June 30, 2014, the Company repurchased a total of 14.9 million shares at an average price of $85.14. The Company is not obligated to acquire any specific number of shares.