As per reports, Chevron Corporation (CVX) announced that it will double its share buyback to as much as $10 billion a year. The San Ramon, California-based company is looking to buy back between $5 billion and $10 billion of stock each year, an increase from previous guidance of $3 billion to $5 billion, it also expects operating cash flow to grow 10% per year through 2026. Oil surge to $100 a barrel and record-high cash flows have allowed the company to raise the repurchase target, followed by a more than expected dividend raise earlier this year.
Chevron plans mean repurchasing shares at elevated price levels. The stock reached a record high after Russia’s invasion of Ukraine sent crude surging. Chief Executive Officer Mike Wirth assured that the company will maintain the buyback even if oil prices dip. Chevron is also using its rising cash flow to invest in the energy transition, recently it announced the $3.1 billion purchase of biofuel maker Renewable Energy a deal that will make it one of North America’s biggest producers of renewable fuels.
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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