Chevron announced that it will target share buybacks of USD10-20bn/year, said the company.
The company's “high return production growth” was supporting growing shareholder distributions, the US energy and chemicals major said.
“We’re growing energy supply, lowering carbon intensity and returning more cash to shareholders,” said CEO Mike Wirth.
Last month, Chevron’s board authorised a USD75bn share buyback programme, effective 1 April, with no fixed expiration date. The programme replaced a previous share repurchase authorisation of USD25bn.
The Biden administration has been critical of share buybacks, and in his recent State of the Union address President Biden proposed quadrupling the tax on corporate stock buybacks.
The government wants oil companies to invest in raising production to help bring down oil and gasoline prices, rather than buying back shares.
We remind, Chevron Corp. posted a record USD36.5 bn profit for 2022 that was more than double year-earlier earnings but fell shy of Wall Street estimates, undercut by an asset writedowns and a retreat in oil and gas prices.
The second largest U.S. oil producer's adjusted net profit for 2022 beat by about USD10 billion its previous record set in 2011. But USD1.1 B in writedowns in its international oil and gas operations in the fourth quarter left earnings short of forecasts for adjusted net profit of USD37.2 B.
mrchub.com