Chevron approves $ 15 billion ‘low-end’ capital budget, increases share buyback program

Wednesday night, Chevron Corp. unveiled “low-end” capital of $ 15 billion and an exploratory budget for 2022 and said it plans to increase its share buyback program through a “lasting commitment to capital discipline.”

CVX chevron stock
rose less than 1% in after-hours trading after finishing the regular trading day down 0.7%.

The energy giant said the $ 15 billion plan was in the lower end of forecasts, between $ 15 billion and $ 17 billion, and up more than 20% from expected 2021 levels.

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“This investment program supports Chevron’s goal of higher returns and reduced carbon emissions, including approximately $ 800 million in reduced carbon spending,” the company said.

Managing Director Mike Wirth said the capital budget “reflects Chevron’s enduring commitment to the discipline of capital.” The company is scaling the program in accordance with “plans to support and grow the business as the global economy continues to recover,” he said.

Chevron also raised its share buyback forecast to a range of $ 3 billion to $ 5 billion per year, from a previous forecast of a range of $ 2 to $ 3 billion.

“We’re a better company than just a few years ago. We are more profitable and more profitable, guided by a clear and consistent goal of generating higher returns and less carbon, “enabling the company to return more money to shareholders, said Wirth.

Chevron stock has gained 34% this year, compared to gains of around 20% for the S&P 500 Index. SPX

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