Chevron final month reported its second-highest quarterly revenue ever.
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Power big Chevron introduced a $75 billion inventory buyback program and a dividend hike on Wednesday night.
Shares of Chevron have been up 3% in prolonged buying and selling.
The buyback program will grow 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 per share from $1.42, and shall be payable on March 10.
Chevron’s market cap was roughly $350 billion as on Wednesday’s market shut, which means that the buyback would symbolize greater than 20% of the corporate’s inventory at present costs.
This buyback plan follows a $25 billion plan enacted in 2019. The previous plan shall 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. financial system and Russia’s invasion of Ukraine mixed to drive oil and fuel costs rent in 2022. Chevron reported greater than $12 billion of free money circulation and $11 billion of web earnings 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 increased taxes on power firms final yr for his or her “conflict profiteering.”
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