Chevron Corp on Wednesday said it would triple its budget for share buybacks to $75 billion, the oil industry's most ambitious shareholder payouts to date, as high oil and gas prices pad profits.
U.S. oil producers overall are increasing their budgets for new energy projects this year, but the expenditures will be dwarfed by the amounts paid to shareholders.
The White House criticized the move in a statement. Last year the administration of President Joe Biden called for oil producers to instead invest in production to reduce energy prices for consumers and raise investments in renewable energy. “For a company that claimed not too long ago that it was ‘working hard’ to increase oil production, handing out $75 billion to executives and wealthy shareholders sure is an odd way to show it," said White House spokesperson Abdullah Hasan.
The U.S. oil majors' valuations are about 40% above European rivals, Citi said. BP's market value is about $108 billion, compared to Chevron's $346 billion and Exxon's $466 billion. Exxon Mobil, which led shareholder returns among oil majors last year, last month increased its buyback plan toChevron's buyback plan is smaller than those for large technology companies such as Apple. As of September, Apple has authorized $405 billion in buybacks and repurchased more than $90 billion in shares during the previous 12-month period.The energy industry last year was one of the top sectors in the S&P 500 index after trailing the broader market for years.
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