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Energy giant Chevron just raised its dividend and announced a new stock-buyback plan. Fourth-quarter earnings and guidance could be the icing on the cake.
David Paul Morris/Bloomberg
Chevron
reported disappointing fourth-quarter earnings, pushing shares down in premarket trading.
The oil major said it earned $4.09 per share in the last three months of the year, after adjustments. Analysts had expected $4.33, according to a survey by FactSet.
Chevron (ticker: CVX) shares fell 0.9% to $186.12 early on Friday.
This is a breaking news story. Below is a preview of the company’s results.
Chevron delighted investors late on Wednesday after announcing an increase to its dividend, and a new plan to repurchase $75 billion worth of shares. The stock was up 2.8% on Thursday.
The move to reward shareholders angered the White House, however. A spokesman criticized Chevron for spending so much on shareholders when President Biden has been urging oil companies to drill more in order to increase supplies and force oil prices lower.
It was indicative of the challenge Chevron now faces in pleasing different constituencies, even as the company is on track to post record annual earnings when it releases fourth-quarter results on Friday. After the stock soared 53% in 2022, Chevron will have a hard time matching that performance this year.
The White House may be Chevron’s most vocal critic, but the government poses little threat to the company, particularly given that Republicans control the House of Representatives. The bigger challenge for Chevron is convincing investors that it can withstand the traditional boom-bust…
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