Chevron last month reported its second-highest quarterly profit ever.
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huge energy letter V announced a $75 billion stock buyback program and dividend hike Wednesday night.
Shares of Chevron rose 3% in extended trading.
The buyback program will take effect April 1, with no expiration date, the company said in a statement. Press Release. The dividend increase increases Chevron’s payout per share ratio to $1.51 per share from $1.42 and will be paid out on March 10.
Chevron’s market capitalization is around $350 billion at market close on Wednesday, meaning the acquisition would represent more than 20% of the company’s stock at current prices.
This acquisition plan follows a $25 billion plan enacted in 2019. The old plan will be terminated at the end of March. During the third quarter of 2022 — the most recent quarter for which Chevron reported — the company repurchased $3.75 billion in stock.
The new share buyback scheme comes after a boom year for energy stocks, as the reopening of the US economy and Russia’s invasion of Ukraine combined to boost oil and gas prices in the coming weeks. in 2022. Chevron reports free cash flow of more than $12 billion and net income of $11 billion inside third quarter alone.
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. Because “war profiteering.”
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