February 23, 2024

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Chevron announces $75 billion share buyback and dividend increase

Chevron announces $75 billion share buyback and dividend increase

Last month, Chevron reported its second-highest quarterly profit ever.

Justin Sullivan News Getty Images | Getty Images

energy giant chevron He announced a $75 billion share buyback program and dividend increase Wednesday night.

Shares of Chevron rose more than 2% in extended trade.

The company said in a press release. The dividend increase increases Chevron’s payout per share to $1.51 from $1.42, and will be distributed on March 10.

Chevron’s market capitalization was about $350 billion as of the market close Wednesday, which means the buyback would represent more than 20% of the company’s stock at current prices.

This buyback plan follows a $25 billion plan that was activated in 2019. The old plan will be terminated at the end of March. For the third quarter of 2022 — the most recent quarter reported by Chevron — the company repurchased $3.75 billion in shares.

The new buyback plan comes after a huge year for energy stocks, as the reopening of the US economy and Russia’s invasion of Ukraine combined to raise oil and gas prices in 2022. Chevron reported more than $12 billion in free cash flow and $11 billion in net income. in Third quarter Alone.

Chevron shares are up more than 50% in 2022 even as the broader stock market drops.

Chevron was a hot stock in 2022.

The financial success of energy companies has led to criticism from politicians, including US President Joe Biden, who threatened higher taxes on energy companies last year.War profiteering. “

Chevron CEO Mike Wirth said CNBC in December that the company has been “in touch” with the Biden administration on a variety of issues.

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“Our goal of stable markets and reasonable prices for the economy is something we share. How do we get there, sometimes we have different ideas,” Wirth said.squawk box. “