The shares of Anadarko Petroleum (APC: sentiment, chart, options) are nearly 7% higher this morning after the company announced that it will repurchase up to $5 billion of its shares over the next 3 years. By the end of this year, APC intends to buy back $600 million worth of stock. In a statement, CEO Jim Hackett asserted, "Our company's substantial net asset value is not reflected in our stock price."

The buyback plan will be funded with free cash flow from the company's exploration and production operations. Additionally, APC said that its third-quarter production will be above the midpoint of its previously forecast range of 51 million to 54 million barrels of oil equivalent.

Anadarko is buying its shares at a respectable discount -- the stock has shed nearly 12% year-to-date. Recently, the security has mounted the beginnings of a comeback, using fresh support from its 10-day and 20-day moving averages to gain nearly 11% from its August 5 low.

However, today's rally hasn't pushed APC high enough to challenge resistance from its 10-week moving average. Plus, analysts' consensus 12-month price target for the shares looms even further north. Thomson Financial pegs the average target at $91.39, a premium of 58% to the stock's closing price on Monday.