Oil and natural gas giant Chevron (CVX) is boosting its quarterly dividend and launching a new $75 billion U.S. stock buyback program.
California-based Chevron said it is raising its dividend payment to $1.51 U.S. per share from $1.42 U.S. previously beginning with its March 10 distribution to shareholders.
The company’s new stock buyback program comes into effect on April 1 of this year and has no set expiration date.
Chevron’s market capitalization is currently $350 billion U.S., meaning that the buybacks will represent more than 20% of the company’s stock at current levels.
The new share repurchase program follows a $25 billion U.S. plan that began in 2019. The old plan will be terminated at the end of March this year, the company said in a news release.
The dividend increase and stock buybacks come following an exceptionally strong year for energy companies and their stocks.
With crude oil prices topping $120 U.S. per barrel in 2022, Chevron reported more than $12 billion U.S. of free cash flow and $11 billion U.S. of net income in last year’s third quarter alone.
Chevron’s stock rose more than 50% in 2022 as all the major U.S. indices finished the year in the red. Chevron’s share price currently sits at $179.08 U.S.
