Chevron sets $75 billion share buyback program, raises dividend

Chevron sets $75 billion share buyback program, raises dividend

By Sabrina Valle

(Reuters) -Chevron Corp on Wednesday said it would triple its share buyback program to $75 billion, the oil industrys most ambitious shareholder payouts to date, as high oil and gas prices pad profits.

The oil industry has been facing calls from investors and the White House to put last years record quarterly earnings from sky high energy prices into more drilling, acquisitions, or to reduce prices for consumers.

Chevron and Exxon Mobil are preparing to report record annual profits for 2022, nearly $100 billion combined. Those unprecedented earnings led analysts at Citi on Wednesday to ask whether Chevron and Exxon could use the proceeds to buy rivals such as Europeans BP, Shell or TotalEnergies.

Chevrons disclosure signaled it will allocate a big chunk of those profits to reward shareholders. The industry last year was one of the top sectors in the S&P 500 index after trailing the broader market for years.

The White House last year criticized oil producers for distributing cash to shareholders instead in investing in production to reduce energy prices for consumers. It also pressed oil producers to raise investments in renewable energy.

The U.S. oil producer also raised its quarterly dividend by 6% to $1.51 per share. The $75 billion buyback program has no expiration deadline. It replaces the boards previous repurchase authorization of $25 billion from January 2019 until March 31 this year.

(Reporting by Sabrina Valle, in Houston, Arshreet Singh; Editing by Maju Samuel and Daniel Wallis)

EUR/USD Forecast – Euro Continues to Grind Back and ForthS&P 500 Price Forecast – Trend Line Holds AgainNatural Gas Triggers Bearish Trend ContinuationBoeing‘s Quarterly Loss Contributing to Dow’s 400 Point Tumble3 Top Retail Stocks Under Accumulation in 2023Gold Price Forecast – Gold Markets Continue to Find Buyers on Dips Yet AgainLoadingLoadingLoading