
(Source: Michael Vi/ Shutterstock.com)
Chevron Corp.’s board declared a 6% increase to its quarterly dividend and a $75 billion buyback of shares a day ahead of its earnings report, the company said on Jan. 26.
Chevron said it would pay a quarterly dividend of $1.51 per share, an $0.09 per share increase on March 10. The increase puts Chevron on track to make 2023 the 36th consecutive year to increase the annual dividend payout per share.
Chevron’s board also authorized the repurchase of the company’s shares of common stock. The $75 billion authorization — triple its last authorization — takes effect on April 1 and does not have a fixed expiration date. The buyback replaces the company’s previous repurchase authorization of $25 billion from January 2019, which ends on March 31 after the completion of the company’s repurchases in first-quarter 2023.
Tudor, Pickering, Holt & Co. analyst Matt Murphy said the dividend was in-line with expectations, while the $75 billion buyback “may suggest upside to the high-end of the company’s previously guided $5 billion-$15 billion through-the-cycle range, albeit having been noted as without expiration.”
Murphy wrote in a Jan. 26 report that the company’s prior $25 billion authorization had been open for approximately four years, with the high-end of the company’s prior $5 billion to $15 billion range suggesting a five-year authorization completion.
“We’ll look for further color on the outlook with results tomorrow, with our earnings ($4.51/share vs. Street $4.26/share) and cash flow ($6.31/share vs. Street $6.11/share) projections both slightly ahead of consensus.
Recommended Reading
Market Watchers: Oil, Gas Demand to Overtake Supply by Year’s End
2023-03-23 - Dennis Kissler, senior vice president of BOK Financial’s trading division, discusses supply and demand and the gambles ahead for the market.
Capstone Secures Follow-on Order for Microturbines
2023-03-23 - Horizon Power Systems commissioned two microturbines from Capstone Green Energy to power a remote natural gas compression facility in Wyoming’s Green River Basin.
Freehold Promotes Rob King to COO, Susan Nagy to VP Business Development
2023-03-22 - Freehold Royalties’ Susan Nagy will replace Rob King as vice president of business development following King’s promotion to COO.
Venezuela’s Maduro Taps PDVSA Head for Petroleum Ministry
2023-03-22 - Venezuela’s President Nicolás Maduro tapped PDVSA President Pedro Rafael Tellechea Ruiz as the OPEC country’s new petroleum minister to replace Tareck El Aissami.
Q&A: EnCap’s Thielemann: Private Equity ‘Survivors’ Poised to Thrive
2023-03-21 - EnCap private equity veteran Brad Thielemann discusses the role of private equity in traditional oil and gas investing — including the need to ramp up investments to meet demand — as well as its trajectory for financing the transitions ahead.