Chevron Corporation (NYSE: CVX) shares have advanced more than 35% since the beginning of 2021 year, and the current price stands at $117.
Chevron continues to improve its position in the market, but the global COVID-19 pandemic continues to pose downside risks for the upcoming quarters.
Momentum remains strong
Chevron Corporation is an American multinational energy corporation engaged in every aspect of oil and natural gas; 70% of its reserves are concentrated in the U.S., Australia, Kazakhstan, and the Gulf of Mexico.
The company’s business has proven improvements throughout the third fiscal quarter, and Chevron reported strong results in October.
Total revenue has increased by 82.9% Y/Y to $44.71 billion, while the GAAP EPS was $3.19 (beats by $1.06). Mike Wirth, Chevron’s chairman, and the chief executive officer said:
Third-quarter earnings were the highest since the first quarter of 2013, largely due to improved market conditions, strong operational performance, and a lower cost structure. Our free cash flow during the quarter was the best ever reported by the company; we paid dividends of $2.6 billion, reduced debt by $5.6 billion, and repurchased $625 million of shares during the quarter.
The company’s management raised stock buyback guidance ranging between $3 billion to $5 billion per year, well above prior guidance of $2 billion to $3 billion per year.
At the beginning of December 2021, Chevron announced its plan to spend $15 billion on capital and exploratory projects in the 2022 fiscal year.
It is also important to mention that Chevron plans to invest $10 billion in lower-carbon energy businesses by 2028, and the company plans to increase renewable natural gas production to 40K MMBtu/day by 2030.
Chevron also expects
