Chevron announces $75 billion stock buyback, dividend boost

Chevron final month reported its second-highest quarterly revenue ever.

Justin Sullivan | Getty Photographs Information | Getty Photographs

Vitality big Chevron introduced a $75 billion inventory buyback program and a dividend hike on Wednesday night.

Shares of Chevron had been up greater than 2% in prolonged buying and selling.

The buyback program will turn out to be efficient on April 1, with no set expiration date, the corporate mentioned in a press launch. The dividend hike will increase Chevron’s per share payout to $1.51 from $1.42, and that will likely be distributed on March 10.

Chevron’s market cap was roughly $350 billion as of Wednesday’s market shut, that means that the buyback would characterize greater than 20% of the corporate’s inventory at present costs.

This buyback plan follows a $25 billion plan enacted in 2019. The outdated plan will likely be terminated on the finish of March. For the third quarter of 2022 — the newest quarter that Chevron has reported — the corporate repurchased $3.75 billion of shares.

The brand new buyback plan comes after an enormous yr for power shares, as a reopened U.S. economic system and Russia’s invasion of Ukraine mixed to drive oil and gasoline costs increased in 2022. Chevron reported greater than $12 billion of free money circulation and $11 billion of internet revenue within the third quarter alone.

Shares of Chevron rose greater than 50% in 2022 even because the broader inventory market declined.

Chevron was a scorching inventory in 2022.

The monetary success of power firms has led to criticism from politicians, together with U.S. President Joe Biden, who threatened increased taxes on power firms final yr for his or her “battle profiteering.”

Chevron CEO Mike Wirth instructed CNBC in December that the corporate was “in touch” with the Biden administration on quite a lot of points.

“Our aim of secure markets and costs which can be reasonably priced for the economic system is one thing we share. How we get there, generally we now have totally different concepts,” Wirth mentioned on “Squawk Field.”

#Chevron #proclaims #billion #inventory #buyback #dividend #increase

Leave a Comment