Chevron to Buy Back $75 Billion in Stock After Record Profit – Yahoo Finance

(Bloomberg): Chevron to buy back $75 billion in shares, pay dividends after a year of record profits when soaring energy prices weighed on consumers and sparked angry outcry from politicians around the world We are planning to increase the amount of money.

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The share buyback program will begin on April 1 and will be three times the size of the previous approval announced in early 2019, the company said in a statement Wednesday. The program represents nearly a quarter of the company’s market value and five times its current annual repurchase level.

Chevron’s plans pale in comparison to the $89 billion Apple has allocated for buybacks over the past year, but the oil industry is profiting from the war after Russia’s invasion of Ukraine sent energy prices skyrocketing. It could infuriate critics who accused

President Joe Biden has lashed out at oil prospectors for spending cash on shareholder-friendly initiatives such as dividends and buybacks, rather than funding more drilling to expand oil supplies. People were one. Chevron rose as much as 3.9% in after-hours trading.

Abdullah Hassan, a White House spokesman, said: “For a company that claimed to be working hard to increase oil production, distributing $75 billion to management and wealthy shareholders shows it. It’s definitely a weird way,” he said in a statement Wednesday night. “We will continue to press oil companies to use their record profits to increase supplies and reduce costs for the American people.”

The company also plans to pay investors a dividend of $1.51 per share on March 10, up 6.3% from the previous quarter.

Energy prices have fallen since the early stages of Russia’s attack on Ukraine, but analysts say U.S. oil companies’ profits will remain strong as they curb capital spending, unlike previous boom cycles. Expect. Instead, the windfall has been used to pay off debt and increase returns for investors.

Chevron made a number of share buybacks last year as oil prices rose, but Chief Financial Officer Pierre Brebert has pledged to maintain the buyback rate even as commodity prices fall. is below the company’s target range, Brever said last year, Chevron is willing to raise borrowing levels to continue buying back shares if necessary.

The company announced last year that its 2023 capital spending will be at the high end of its guidance range of $17 billion. Chevron said he plans to report fourth quarter results on January 27th.

–With help from Tom Contiliano and Justin Sink.

(Updates to add White House response in fifth paragraph.)

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