Reportedly, Chevron Corporation (CVX) plans to boost its share buyback to as much as $5 billion per year, as the oil giant uses higher commodities prices to step up returns to investors and not invest in production growth., as the company is wary of plowing that cash back into new production at a time when crude prices have sharply pulled back and the emergence of the omicron variant has raised concerns about global oil-demand recovery.
The repurchases are now seen at $3 billion to $5 billion a year, about 60% higher than previous guidance. Capital spending next year will be $15 billion, the low end of a previous forecast and 25% below pre-pandemic levels. The company generated the free cash flow in its 142-year history during a third-quarter in which oil and gas prices surged.
Despite the tight goals, Chevron will invest $3 billion in the world’s largest shale basin in West Texas and New Mexico, the Permian, $800 million, or 5% of the total budget, will go to low carbon investments, and around $2 billion to giant Tengiz project in Kazakhstan.
Dow 30 component Chevron Corporation (CVX), through its subsidiaries, engages in integrated energy, chemicals, and petroleum operations worldwide. To learn more about Chevron (CVX) and to track their progress please visit the Vista Partners Chevron Page.
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