Chevron (CHVX34) pledges $75 billion in share buybacks as cash builds

THE chevron (CHVX34) said on Wednesday it would triple its share buyback budget to $75 billion in the oil industry’s most ambitious shareholder payout to date, as high oil prices Petroleum It’s from gas increase the company’s profits.

The oil industry has been urged by investors and the White House to allocate last year’s record earnings from high energy prices towards more drilling and acquisitions or lower prices for consumers.

Chevron is expected to report a profit of $37.2 billion for 2022 on Friday, doubling what it posted in 2021, according to estimates by the Refinitiv.

The oil company has budgeted US$17 billion for new oil and gas projects this year, an increase of US$2 billion from last year.

Chevron’s disclosure of the share buyback and a 6% increase in its quarterly dividend signaled that the company will earmark a large portion of its earnings to reward shareholders.

The company has not set a timeline for the buybacks.

The Chevron and the Exxon Mobil are on track to post record annual profits for 2022 of nearly $100 billion combined, analysts predict.

US oil producers are generally increasing their budgets for new energy projects this year, but spending will be dampened by shareholder payouts.

The White House criticized the measure in a statement.

Last year, the administration of President Joe Biden asked oil producers to invest in production to reduce energy prices to consumers and increase investments in renewable energy.

“For a company that claimed not long ago that it was ‘working hard’ to increase oil production, handing out $75 billion to executives and wealthy shareholders is an odd way to show it,” said the White House spokesman. , Abdullah Hasan.