Chevron increases spending budget and share buybacks | Invest News

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HOUSTON (Reuters) – U.S. oil producer Chevron Corp said on Wednesday it plans to increase spending on new oil and gas projects in 2022 by 20% to $ 15 billion, while increasing shareholder returns.

Big oil companies are responding to increased profits this year due to rising oil and gas prices, and have signaled that they plan to boost spending on drilling and carbon reduction measures.

Chevron has increased its range of share buyback forecasts to $ 3 billion to $ 5 billion per year, from $ 2 billion to $ 3 billion set in July.

The new level brings its investor-friendly buyback program back to pre-pandemic levels. He was distributing $ 5 billion a year before the pandemic forced a suspension.

However, it continues to spend on projects below the $ 20 billion originally slated for 2020, months before the effects of the coronavirus affected its operations.

The spending plan “reflects Chevron’s enduring commitment to capital discipline,” said Chevron chief executive Michael Wirth.

While the 2022 spending budget is higher than this year’s spending forecast, it sits on the low end of Chevron’s previous forecast of $ 15 billion to $ 17 billion per year.

The company reduced debt and freed up cash flow for distributions to shareholders after the rebound in crude oil prices this year, which hit a 7-year high in October.

Chevron will spend $ 3 billion next year on its U.S. Permian Basin operations out of the roughly $ 8 billion allocated to oil and gas production assets. An additional $ 2 billion will be deployed in its Tengiz field in Kazakhstan.

(Reporting by Sabrina Valle in Houston and Manojna Maddipatla in Bangalore; Editing by Marguerita Choy and Richard Pullin)

Copyright 2021 Thomson Reuters.


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