US oil company Chevron Corporation on Tuesday raised its share buyback outlook to $10 billion to $20 billion a year and reaffirmed its output forecasts of more than 3% annual growth by 2027.
Shares of the company, which is scheduled to hold its annual investor meeting later in the day, were up 1.3% at $165 in premarket trading.
In January, Chevron tripled its budget for buybacks to $75 billion with no set expiration date. Last year, the company posted record profits that allowed it to authorize payment to the most ambitious shareholders among Western oil producers.
In 2022, major Western oil companies paid their investors a record $110 billion in dividends and share buybacks, prompting outraged calls for governments to impose extraordinary taxes on the industry to help consumers to cope with rising energy costs.
Chevron returned $26 billion in dividends and buybacks to its shareholders last year and invested $15.7 billion in operations.
On Tuesday, the oil company maintained its annual organic investments of between 13,000 million and 15,000 million dollars until 2027.
“Our guidance range remains unchanged as capex from subsidiaries is expected to decline further, leaving room for future capex increases of up to another $1 billion,” Chief Executive Mike Wirth said in his prepared remarks.
The company also said it would raise its annual share buyback target to $17.5 billion, starting in the second quarter. The previous annual buyback target for the No. 2 oil producer in the United States was $15 billion.
Chevron also said its goal was to reduce the carbon intensity of its oil and gas production to 24kg per barrel of oil equivalent by 2028.
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