Chevron Corporation Authorizes $75B Share Repurchase Program

Chevron Corporation

(Credit: Chevron)

by | Mar 1, 2023

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Chevron Corporation

(Credit: Chevron)

In January, Chevron Corporation increased its dividend per share by 6%, and its Board authorized a new $75 billion share repurchase program.

“Chevron intends to be a leader in both traditional and new energy businesses,” said Mike Wirth, chairman, and CEO. “We’re growing energy supply, lowering carbon intensity, and returning more cash to shareholders.” 

Chevron expects to maintain capital and cost discipline to deliver higher returns while growing energy supplies. In line with these objectives, the company announced it is maintaining its guidance for annual organic capital expenditures of $13 billion to $15 billion through 2027, and affirming its oil and gas production guidance of more than 3% annual growth by 2027

High-return production growth supports growing shareholder distributions. The company expects annual free cash flow growth greater than 10% at $60 Brent and is raising its share buyback guidance range to $10 to $20 billion per year. In addition, the company will raise its targeted annual share buyback rate to $17.5 billion starting in the second quarter.

Chevron updated investors on progress toward achieving its target to reduce the carbon intensity of its oil and gas production to 24 kg per barrel of oil equivalent by 2028, partly through the execution of carbon abatement projects. Also, the company provided updates on its new energy business lines with the company halfway to its 2030 renewable fuels target and taking steps to build businesses in carbon capture, offsets, and hydrogen.

Chevron, through its Chevron New Energies business, and JERA, a joint venture between two Japanese power companies, started a collaboration on multiple lower carbon opportunities in 2022 – including production; carbon capture, utilization, and storage; and new technology commercialization – focused on the US and Asia Pacific region.

The companies have signed a Joint Study Agreement to explore the potential co-development of lower carbon fuel in Australia and will conduct a feasibility study expected to be completed in 2023. 

The company also signed a Joint Study Agreement (JSA) with Pertamina Power Indonesia and Keppel Infrastructure, through Keppel New Energy, to explore the development of selected green hydrogen and green ammonia projects using renewable energy located primarily in Sumatra, Indonesia. 

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