February 21, 2024

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Chevron announces 2022 earnings, $75 billion in buybacks as the White House fumes

Chevron announces 2022 earnings, $75 billion in buybacks as the White House fumes

chevron (CVX) published mixed fourth-quarter results early Friday, missing earnings views while beating revenue estimates. However, the energy giant reported record earnings and cash flow in 2022 and has already announced that it will launch a massive $75 billion share buyback and raise its dividend. Chevron stock fell on Friday.


Chevron Stock: Dividend

estimates: Wall Street expected earnings per share to grow 69% to $4.33. Analysts saw sales increase 9% to $52.68 billion.

earningsChevron reported a 60% dividend increase to $4.09 per share. Revenue grew 17% to $56.47 billion. Full year earnings in 2022 swelled 128% to $18.83 per share while sales increased 51% to $246.25 billion.

Total cash flow from operations in 2022 was $49.6 billion, compared to $29.2 billion in 2021. Meanwhile, capital expenditure in 2022 was $12.3 billion, up from $8.6 billion in 2021.

Over the past three quarters, Chevron has averaged 200% earnings growth over the prior year. In Q3, Chevron highest earnings estimatesEPS was reported up 88% to $5.56 per share. Sales increased 59% to $66.6 billion in the third quarter.

“We achieved record profits and cash flow in 2022, with increased investments and US production increasing to a company record,” CEO Mike Wirth said in a statement on Friday.

Werth added, “We are well positioned to lead in both the traditional and new energy businesses, with higher returns, lower carbon and higher shareholder value.”

In late November, the White House eased oil sanctions on Venezuela. The Biden administration said, following the human rights agreement signed between President Nicolás Maduro’s administration and opposition negotiators, that it would. Allowing Chevron to resume oil production in the Latin American country. Chevron can produce the oil for six months and can only export it to the United States under the licensing agreement.

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Reuters reported on Wednesday that Chevron’s fifth and sixth shipment of Venezuelan heavy crude is expected to arrive in the United States soon.

Chevron’s Buyback Program

On Wednesday, Chevron announced its $75 billion share buyback program, representing 20% ​​of shares outstanding, at current price levels. Chevron also boosted its quarterly dividend by 6%, to $1.51 a share. The $75 billion buyback program will begin on April 1, 2023, and has no set end date. Chevron’s former $25 billion stock repurchase program began in January 2019 and will end on March 31, 2023.

In 2022, the American economy has reopened from the Covid pandemic. Russia has invaded Ukraine, sending oil and gas prices skyrocketing. This resulted in the Chevron Corporation, Exxon Mobil (xom) and other energy stocks leading the market, with Companies recording record profits.

Chevron stock is up more than 50% in 2022 even as the broader stock market drops.

Throughout 2022, President Joe Biden Exxon Mobil criticizedAnd Chevron and many other large producers for choosing to focus on returning money to shareholders rather than spending to increase production.

“For a company that claimed not so long ago that it was ‘working hard’ to increase oil production, surely distributing $75 billion to wealthy CEOs and shareholders is an odd way of showing it,” White House Assistant Press Secretary Abdullah Hassan wrote on Twitter on Wednesday.

Chevron stock

Chevron shares fell 1.8% pre-trade Friday. On Thursday, shares rose 4.6 percent to 187.37. The stock is holding support at the 10-week moving average, below 189.78 Point purchase from shallow cup base. Aggressive investors can use Monday’s high of 182.55 as an early entry.

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Chevron stock ranks 11th in the world Integrated oil and gas industry group. CVX owns 91 shares Composite classification Out of 99. the stock has a rating of 84 relative strength, exclusive IBD stock check A measure of share price movement. The EPS rating is 78.

Please follow Kit Norton on Twitter @employee for more coverage.

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