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.
No comments:
Post a Comment