(Reuters) -Chevron Corp on Tuesday raised its share buyback program and forecast for operating cash-flow through 2026, benefiting from cost cuts and a recent surge in energy prices.
The second-largest U.S. oil producer now expects to buy back between $5 billion and $10 billion of its shares every year, compared with its previous target of between $3 billion and $5 billion.
“We’re aiming to grow cash flow and return more of it to shareholders, leveraging our strengths to deliver lower carbon energy to a growing world,” Chevron Chief Executive Mike Wirth said in a statement.
The company also maintained its prior forecast for annual upstream spending at between $15 billion and $17 billion through 2026 and was expecting to cut operating expenses per barrel by more than 10% from last year’s levels.
Chevron reaffirmed its targets for lowering carbon intensity of its operations and growing new energy business lines in renewable fuels, hydrogen, carbon capture and offsets.
Chevron announced a $3 billion purchase of biodiesel maker Renewable Energy Group Inc on Monday.
(Reporting by Shariq Khan; Editing by Krishna Chandra Eluri and Anil D’Silva)
