Chevron reported its second-highest quarterly profit on record last month.
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Energy giant Chevron announced a $75 billion share repurchase program and a dividend increase Wednesday night.
Shares of Chevron rose more than 2% during extended trading.
The buyback program will take effect April 1, with no set expiration date, the company said in a press release. The dividend increase raises Chevron’s payout per share from $1.42 to $1.51 and will be paid March 10.
Chevron’s market cap was about $350 billion as of Wednesday’s close, meaning the buyback would represent more than 20% of the company’s stock at current prices.
This buyback plan follows a $25 billion plan introduced in 2019. The old plan will be terminated at the end of March. For the third quarter of 2022 — the most recent quarter Chevron has reported — the company has repurchased $3.75 billion worth of stock.
The new buyback plan comes after a huge year for energy stocks, in which a reopened US economy and the Russian invasion of Ukraine combined to push oil and gas prices higher into 2022. Chevron reported more than $12 billion in free cash flow and $11 billion in net income in the third quarter alone.
Shares of Chevron rose more than 50% in 2022, even as the broader stock market fell.
Chevron was a popular stock in 2022.
The financial success of energy companies has led to criticism from politicians, including US President Joe Biden, who last year threatened higher taxes on energy companies because of their “war profits”.
Chevron CEO Mike Wirth told CNBC in December that the company was “in contact” with the Biden administration on several issues.
“Our goal of stable markets and prices that are affordable to the economy is something we share. How we get there, sometimes we have different ideas,” Wirth said on “Squawk Box.”