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Chevron (CVX) Affirms Higher Returns, Boosts Share Buyback Plan
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Chevron Corporation (CVX - Free Report) , a major oil company, recently announced its intentions to expand share repurchase program and boost U.S. output by 750,000 barrels of oil and gas per day, primarily on contributions from the Gulf of Mexico and the country's shale basins. At its annual presentation, Chevron informed investors about its ambitions to increase worldwide output at a 3% annual rate through 2027.
Chevron anticipates delivering better returns and lower carbon, while maintaining capital and cost restraint. Growing shareholder dividends are supported by high return production growth. At $60 Brent, the company anticipates annual free cash flow growth of more than 10%. It has also increased its share repurchase guidance to $10-$20 billion per year due to higher expected cash flow. Also, starting in the second quarter of 2023, Chevron will increase its planned annual share repurchase rate to $17.5 billion.
Chevron's CFO, Pierre Breber, asserted that the company has the capital restraint and balance sheet strength to provide a distinct value offering. With stable and increasing cash delivered to shareholders across the commodity price cycle, Chevron is gradually regaining the trust of investors.
Late last year, Chevron said that its 2023 organic capital expenditure budget will jump by more than 30% from the 2022 level. Chevron also updated investors on its efforts to meet its goal of reducing its energy products’ carbon intensity to 24 kg per barrel of oil equivalent by 2028.
Further, Chevron offered a glimpse of its new energy business lines, stating that it is halfway to achieving its 2030 renewable fuels objective. It is also moving forward with plans to establish companies in carbon capture, offsets and hydrogen.
Some better-ranked stocks for investors interested in the energy space are Murphy USA Inc. (MUSA - Free Report) and CVR Energy (CVI - Free Report) both sporting a Zacks Rank #1 and PBF Energy (PBF - Free Report) carrying a Zacks Rank #2 (Buy).
Murphy USA operates stations close to Walmart supercenters and sells low-cost, high-volume fuel. This helps the company to get a lot more business than its competitors. Another significant competitive advantage for the firm is its access to product distribution centers and pipelines, which helps control costs in the intensely competitive retail sector. Over the past 30 days, MUSA has witnessed upward earnings estimate revisions for 2023 and 2024.
CVR Energy, a diversified holding company with its main office in Sugar Land, TX, is an independent refiner and marketer of high value transportation fuels. Over the past seven days, CVI has seen an upward revision in earnings estimates for 2023 and 2024.
PBF Energy is a leading crude oil refiner and offers end products that include heating oil, transportation fuels, lubricants and many other related items through five oil refineries and accompanying infrastructure throughout the United States. Over the past 30 days, PBF has seen an upward revision in earnings estimates for 2024.
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Chevron (CVX) Affirms Higher Returns, Boosts Share Buyback Plan
Chevron Corporation (CVX - Free Report) , a major oil company, recently announced its intentions to expand share repurchase program and boost U.S. output by 750,000 barrels of oil and gas per day, primarily on contributions from the Gulf of Mexico and the country's shale basins. At its annual presentation, Chevron informed investors about its ambitions to increase worldwide output at a 3% annual rate through 2027.
Chevron anticipates delivering better returns and lower carbon, while maintaining capital and cost restraint. Growing shareholder dividends are supported by high return production growth. At $60 Brent, the company anticipates annual free cash flow growth of more than 10%. It has also increased its share repurchase guidance to $10-$20 billion per year due to higher expected cash flow. Also, starting in the second quarter of 2023, Chevron will increase its planned annual share repurchase rate to $17.5 billion.
Chevron's CFO, Pierre Breber, asserted that the company has the capital restraint and balance sheet strength to provide a distinct value offering. With stable and increasing cash delivered to shareholders across the commodity price cycle, Chevron is gradually regaining the trust of investors.
Late last year, Chevron said that its 2023 organic capital expenditure budget will jump by more than 30% from the 2022 level. Chevron also updated investors on its efforts to meet its goal of reducing its energy products’ carbon intensity to 24 kg per barrel of oil equivalent by 2028.
Further, Chevron offered a glimpse of its new energy business lines, stating that it is halfway to achieving its 2030 renewable fuels objective. It is also moving forward with plans to establish companies in carbon capture, offsets and hydrogen.
Zacks Rank & Key Picks
Currently, Chevron carries a Zack Rank #3 (Hold).
You can see the complete list of today’s Zacks #1Rank (Strong Buy) stocks here.
Some better-ranked stocks for investors interested in the energy space are Murphy USA Inc. (MUSA - Free Report) and CVR Energy (CVI - Free Report) both sporting a Zacks Rank #1 and PBF Energy (PBF - Free Report) carrying a Zacks Rank #2 (Buy).
Murphy USA operates stations close to Walmart supercenters and sells low-cost, high-volume fuel. This helps the company to get a lot more business than its competitors. Another significant competitive advantage for the firm is its access to product distribution centers and pipelines, which helps control costs in the intensely competitive retail sector. Over the past 30 days, MUSA has witnessed upward earnings estimate revisions for 2023 and 2024.
CVR Energy, a diversified holding company with its main office in Sugar Land, TX, is an independent refiner and marketer of high value transportation fuels. Over the past seven days, CVI has seen an upward revision in earnings estimates for 2023 and 2024.
PBF Energy is a leading crude oil refiner and offers end products that include heating oil, transportation fuels, lubricants and many other related items through five oil refineries and accompanying infrastructure throughout the United States. Over the past 30 days, PBF has seen an upward revision in earnings estimates for 2024.