Chevron final month reported its second-highest quarterly revenue ever.
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Vitality large 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 grow to be efficient on April 1, with no set expiration date, the corporate stated in a press launch. The dividend hike will increase Chevron’s per share payout to $1.51 from $1.42, and that will probably 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 The outdated plan will probably be terminated on the finish of March. For the third quarter of 2022 — the latest quarter that Chevron has reported — the corporate repurchased $3.75 billion of shares.
The brand new buyback plan comes after a large yr for power shares, as a reopened U.S. economic system and Russia’s invasion of Ukraine mixed to drive oil and gasoline costs rent in 2022. Chevron reported greater than $12 billion of free money movement and $11 billion of internet revenue within the third quarter alone.
The monetary success of power firms has led to criticism from politicians, together with U.S. President Joe Biden, who threatened greater taxes on power firms final yr for his or her “conflict profiteering.”
Chevron CEO Mike Wirth informed CNBC in December that the corporate was “in touch” with the Biden administration on a wide range of points.
“Our objective of secure markets and costs which are inexpensive for the economic system is one thing we share. How we get there, typically we have now completely different concepts,” Wirth stated on “Squawk Field.”
That is breaking information. Please examine again for updates.
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