tiprankstipranks
Chevron Announces $15B Capital Spending Plans; Raises Share Buybacks
Market News

Chevron Announces $15B Capital Spending Plans; Raises Share Buybacks

Shares of Chevron Corporation (CVX) gained 1.3% in Wednesday’s extended trading session after the company revealed its capital spending plans of about $15 billion, up 20% from 2021 levels. Also, the spending level is at the low end of its $15 billion to $17 billion guidance range.

Chevron provides administrative, financial management and technology support for energy and chemical operations. (See Chevron stock charts on TipRanks)

With this program, Chevron seeks to achieve higher returns and lower carbon, including about $800 million in lower carbon spending. The above-mentioned spending budget excludes an expected investment of $600 million for the formation of a renewable fuel feedstocks joint venture with Bunge.

Meanwhile, Chevron has also announced plans to raise its share buyback guidance range from $2 billion to $3 billion to $3 billion to $5 billion per year.

The Chairman and CEO of Chevron, Mike Wirth, said, “The 2022 capital budget reflects Chevron’s enduring commitment to capital discipline. We’re sizing our capital program at a level consistent with plans to sustain and grow the company as the global economy continues to recover.”

Stock Rating

Recently, Mizuho Securities analyst Silvio Micheloto maintained a Buy rating on Chevron with a price target of $135 (20.4% upside potential).

The rest of the Street is optimistic about the stock and has a Strong Buy consensus rating based on 14 Buys and 3 Holds. The average Chevron price target of $132.44 implies 18.1% upside potential. Shares have gained 24.7% over the past year.

Smart Score

CVX scores a 9 out of 10 on TipRanks’ Smart Score rating system, suggesting that the stock is likely to outperform market averages.

Related News:
XPeng Jumps 4.4% as November Deliveries Rise
NIO Rises 4% on Making Highest Monthly Deliveries
FDA Committee Votes in Favor of Merck’s COVID-19 Pill

Trending

Name
Price
Price Change
S&P 500
Dow Jones
Nasdaq 100
Bitcoin

Popular Articles