Chevron Announces $75 Billion Share Buyback

Energy giant Chevron The company announced Wednesday night a $75 billion stock purchaseback program and a dividend rise.

Chevron shares rose more than 2% during extended trading.

The company stated in a statement that the buyback program will be effective from April 1st and has no expiration date. press release. Chevron’s per-share dividend payout has increased to $1.51 (from $1.42) with the dividend hike. This will be distributed on March 10th.

Chevron’s current market cap is approximately $350billion. The buyback would therefore represent more than 20% the stock price at current prices.

This buyback plan is a continuation of a $25 billion plan that was enacted in 2019. The old plan will expire at the end March. For the third quarter of 2022 — the most recent quarter that Chevron has reported — the company repurchased $3.75 billion of shares.

The new buyback program comes after an enormous year for energy stocks. A reopened U.S. Economy and Russia’s invasion Ukraine combined to push oil and gas prices higher in 2022. Chevron posted more than $12 billion in free cash flow and $11 million of net income for the year. third quarter alone.

Chevron shares rose by more than 50% in 2022, despite the decline of the wider stock market.

Political critics have criticized the financial success achieved by energy companies. This includes Joe Biden, U.S. President, who threatened to increase taxes on energy businesses last year in order to “tax their profits.”war profiteering.”

Mike Wirth, Chevron CEO told CNBC in December That the company was “in contact” With the Biden administration on various issues.

“Our goal of stable markets and prices that are affordable for the economy is something we share. How we get there, sometimes we have different ideas,” Wirth spoke on “Squawk Box.”