Chevron OKs ‘low finish’ $15 billion capital funds, will increase share buyback program
Chevron Corp. has a “low-end” capital and exploratory budget of $ 15 billion as of late Wednesday.
Chevron stock CVX, -0.68% rose less than 1% in after-hours trading after falling 0.7% in the regular trading day.
The energy giant said the $ 15 billion plan is on the lower end of the forecast, between $ 15 billion and $ 17 billion, and more than 20% above expected levels for 2021.
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“This capital program supports Chevron’s goal of higher returns and lower carbon emissions, including approximately $ 800 million in carbon spending,” the company said.
Chief Executive Mike Wirth said the capital budget “reflects Chevron’s continued commitment to capital discipline.” The company measures the program in line with “plans to maintain and grow the company as the world economy continues to recover,” he said.
Chevron also raised its share buyback forecast to a range between $ 3 billion and $ 5 billion annually, compared to an earlier forecast of $ 2 billion to $ 3 billion.
“We are a better company than we were a few years ago. We are more capital and cost efficient, guided by a clear and consistent goal of achieving higher returns and fewer CO2 emissions, ”said Wirth.
Chevron stock is up 34% that year, compared to around 20% for the S&P 500 index. SPX, -1.18%