Chevron tops profit estimates, joins share buyback stampede By Reuters – Investing.com

Chevron tops profit estimates, joins share buyback stampede By Reuters – Investing.com

By Shariq Khan

(Reuters) - Chevron Corp (NYSE:) on Friday reported its highest profit in six quarters and joined an oil industry stampede to reward investors with share buybacks, as rebounding prices carried earnings and cash flow to pre-pandemic levels. Oil and gas are trading near multi-year highs as fuel consumption has thrown off pandemic losses and has soared on weather demand. OPEC's decision to carry production curbs into next year has kept oil trading above $70 per barrel.

Chevron last year slashed spending to allow profits to flow at above $50 a barrel. Lower costs and higher prices generated the highest cash flow in two years, enabling the company to pare debt and resume share repurchases, officials said. Share buybacks will resume this quarter at an annual rate of between $2 billion and $3 billion, said Chief Executive Michael Wirth in a statement, about half the annual rate it had planned. The company suspended purchases early last year as the pandemic cut oil demand.