Chevron Corp raised its Share Buyback

Chevron Corp (CVX.N) raised its share buyback and operating cash flow guidance until 2026, benefiting from cost savings and recent soaring energy prices.

The second-largest oil producer in the United States of America expects to buy back from $5 billion to $10 billion of shares each year, up from its previous target of $ 3 billion to $ 5 billion.

Major oil companies are responding to the surge in earnings due to rising oil and gas prices this year by returning a lot of cash to shareholders who have been dissatisfied with long-standing low earnings. 

So far, most shale operators have indicated plans to raise the rate of return on capital more than the growth in output, even if USA oil prices exceed $100 a barrel earlier this week.

The Chief Executive of Chevron, Mike Wirth has said that the company is aiming to increase its cash flow and return more of it to shareholders, leveraging its strengths to deliver lower carbon energy to a growing world.

Chevron also expects to maintain previous guidance on upstream spending of $ 15 billion to $ 17 billion annually through 2026, reducing operating costs per barrel by more than 10% from last year's levels.

The company also announced the acquisition of Renewable Energy Group Inc and reaffirmed its targets for lowering the carbon intensity of its operations and growing new energy businesses.