U.S. oil major Chevron Corp (CVX.N) on Tuesday raised its share buyback outlook to between $10 billion and $20 billion per year and reaffirmed its production guidance of more than 3% annual growth by 2027.
Shares of the company, which is scheduled to hold its annual investor meeting later in the day, rose 1.3% to $165 in premarket trade.
Chevron in January tripled its budget for buybacks to $75 billion with no fixed expiration date. The company last year posted record earnings that allowed it to authorize the most ambitious shareholder payout among Western oil producers.
The top Western oil companies paid out a record $110 billion in dividends and share repurchases to investors in 2022, spurring outraged calls on governments to impose windfall taxes on the industry to help consumers with surging energy costs.
Chevron last year returned $26 billion via dividends and buybacks to shareholders and invested $15.7 billion in operations.
The oil major on Tuesday maintained its annual organic capital expenditures of $13 billion to $15 billion through 2027.
"Our guidance range is unchanged as affiliate capex is expected to decrease further leaving room for future capex increases up to another billion dollars," Chief Executive Officer Mike Wirth said in his prepared remarks.
The company also said it would raise its targeted annual share buyback rate to $17.5 billion, starting in the second quarter.
The No. 2 U.S. oil producer's previous annual buyback target was up to $15 billion.
Chevron also said it aimed to reduce the carbon intensity of its oil and gas production to 24 kg per barrel of oil equivalent by 2028.
"This year we'll be running four grid-powered rigs and one natural gas driven frac spread. Around 40% of our grid-supplied power will be from wind and solar," the company added.
