Chevron is rewarding investors by buying back stock to the tune of USD 75bn, the US oil and gas company reports in a press release.

This sum corresponds to slightly less than a fifth of Chevron’s USD 350bn market cap.

At the same time, the company raises dividends by 6.3% to USD 1.51 per share.

The announcement follows a year of strong earnings due to surging prices in the aftermath of Russia’s invasion of Ukraine.

Western nations imposing sanctions on Russian energy deliveries resulted in soaring prices of natural gas and oil.

Stock buybacks typically occur when a company doesn’t see any better investments to make or if the company considers the stock undervalued.

Effective from April 1., the stock buyback program follows a similar undertaking in 2019 involving a buyback program for USD 25bn of stock.

Headquartered in San Ramon, California, Chevron is the world’s fourth largest non-state-owned oil company.

In the third quarter of 2022, Chevron generated USD 11.2bn in revenue.

The supermajor will release its 2022 financial report on Jan. 27. 

In the summer of last year, Western oil companies such as Shell, ExxonMobil, Chevron and BP all reported exceptionally high profits throughout the 2022 fiscal year.

In many territories, this spurred demands for introducing special windfall taxes.