Chevron Kick-Starts 2023 With Another Buyback Program

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Founded back in 1879, Chevron Inc (CVX:US) is an energy company focused on the exploration, production, and distribution of crude oil and natural gas worldwide. Based in California, USA, the company’s stocks enjoyed a good rise in 2022, ending the year with a price of almost 55.93%. Presently, the company has a Market Cap of almost $363.1 billion.

Now at the end of Jan’23, it appears that Chevron has no intention of slowing down its growth.

New Year New Buyback

Less than two days ago, the Petroleum-producing giant announced a new repurchase program. Planned to take effect on April 1, 2023, the program is to buy back nearly $75 billion worth of CVX shares without a set expiration date.

CVX’s stock price closed at $180.83 on the day of the announcement; the following day it opened at $184.99 and later closed at $187.79. Comparing closing prices, this was a rise of 4.86% in a single day. The volume of shares on the market also rose significantly, amounting to 14,292,700 on the day after.

At the same time, Chevron also unveiled that it had raised its quarterly dividend by nearly 6% to $1.51 per share.

Chevron as well as many other energy stocks previously announced buyback schemes, most of which were covered in our Oct’22 blog. Chevron’s previous buyback program last reported buying back nearly 24 million shares at a total value of almost $3.75 billion until Sep’22. Their monthly purchases from Jul’22 to Sep’22 are detailed in the table below:

In comparison, other companies had bought back their own stocks in significant amounts, with Exxon Mobil Corp (XOM:US) and Marathon Petroleum (MPC:US) leading with almost $49.4 million and $43.9 million shares respectively, as evidenced by the following data:

Bullish Wave

On January 3, Chevron revealed that it had completed the acquisition of beyond6 CNG fueling network which was announced on November 17, 2022. This was the second acquisition Chevron announced last year; the other was the obtaining of Renewable Energy Group (REGI: US) which was completed later in Jun’22. In its last earnings report, Chevron disclosed $11.2 billion in earnings during the third quarter of 2022, leading to a rise of almost 83.78% year-on-year.

So far Chevron has not yet disclosed its Q4 and full-year results for 2022, and the earnings of other energy producers are still on the waiting list. But safe to say, Chevron is still riding the bullish wave but only time will tell how 2023 fares for CVX and other energy stocks.