Saturday, March 28, 2020

Chevron Reveals $75+ Billion Capital Distribution Plan

Here is the article.

Distribute between $75 billion and $80 billion to shareholders through stock buybacks and dividends, without relying on any increase in oil prices.

Adding nearly $2 billion in returns, mainly from cost reductions and improving margins.

No one worked on proofreading: deepwater -> deep water

Even at steady levels of $60 per barrel oil prices, it expects return on capital of greater than 10% by 2024, an improvement of more than 300 basis points. The company believes its focus to spend capital on lower-risk projects-including in the Permian Basin, Kazakhstan, and potential deep water projects in the Gulf of Mexico -  will allow it to return more to shareholders. 

8.4% dividend boost?


In January 2020, the company announced an 8.4% dividend boost, bringing the current dividend yield to approximately 5.3%. Combined with $5 billion in planned annual share repurchases, total shareholder yield comes to more than 7%. To maintain these returns, Chevron sees compound annual energy production growth of greater than 3% through 2024. Combined with this latest capital return plan, Chevron shareholders have a lot to look forward to going forward.





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