Chevron last month reported its second-highest quarterly profit ever.
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energy giant Chevron announced a $75 billion share buyback program and dividend increase on Wednesday night.
Chevron shares rose more than 2% in extended trading.
The buyback program will take effect on April 1, with no set expiration date, the company said in a press release. The dividend increase increases Chevron’s pay per share to $1.51 from $1.42, and will be distributed on March 10.
Chevron’s market capitalization was about $350 billion as of Wednesday’s close, meaning the buyback would represent more than 20% of the company’s shares at current prices.
This buyback plan follows a $25 billion plan enacted in 2019. The previous plan will end at the end of March. For the third quarter of 2022, the most recent quarter that Chevron has reported, the company repurchased $3.75 billion of shares.
The new buyback plan comes after a massive year for energy stocks, as the US economy reopened and Russia’s invasion of Ukraine combined to boost oil and gas prices in 2022. Chevron reported more than $12 billion of free cash flow and $11 billion of net income. only in the third quarter.
Chevron shares are up more than 50% in 2022, even as the broader stock market fell.
Chevron was a hot stock in 2022.
The financial success of energy companies has drawn criticism from politicians, including US President Joe Biden, who threatened higher taxes on energy companies last year for their “war speculation” .
Chevron CEO Mike Wirth told CNBC in December that the company was “in touch” with the Biden administration on a variety of issues.
“Our goal of stable markets and affordable prices for the economy is something we share. How we get there, we sometimes have different ideas,” Wirth said on “Squawk Box.”