By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
The Democrat NewsThe Democrat NewsThe Democrat News
0

No products in the cart.

Notification Show More
Font ResizerAa
  • Energy
  • Sports
Reading: Chevron Reduces Buybacks While Exxon Holds Steady Amid Oil Price Drop
Share
Font ResizerAa
The Democrat NewsThe Democrat News
0
  • Energy
  • Sports
Search
  • Home
  • Categories
  • Customize Interests
  • My Bookmarks
  • Blog View
Have an existing account? Sign In
Follow US
The Democrat News > Blog > Uncategorized > Chevron Reduces Buybacks While Exxon Holds Steady Amid Oil Price Drop
Uncategorized

Chevron Reduces Buybacks While Exxon Holds Steady Amid Oil Price Drop

Esther Udoh
Last updated: May 5, 2025 10:53 am
Esther Udoh
Published May 5, 2025
Share
SHARE

Chevron announced a 30% reduction in share buybacks for Q2, lowering the repurchase to $2.75 billion due to declining oil prices, despite strong earnings from low-cost production in Kazakhstan and the Permian Basin. In contrast, ExxonMobil plans to maintain its $5 billion quarterly buyback, and Shell confirmed it can continue repurchasing over $3 billion in shares per quarter even if crude prices fall to $50 per barrel.As Brent crude dropped 17% this year to $62 a barrel, Big Oil is facing challenges in maintaining share buybacks. The ongoing trade war and increased oil supply from OPEC and its allies have added pressure.

BP and Chevron reduced their buybacks, while Exxon, Shell, and TotalEnergies maintained theirs. With rising debt levels, the effectiveness of these strategies remains uncertain, especially if oil prices continue to fall.Brent crude futures fell 0.3% to $61.95 a barrel on Friday. Chevron’s Q1 earnings of $2.18 per share exceeded analyst expectations, as did Shell’s, while Exxon matched estimates. Chevron’s Q2 buyback, between $2.5 billion and $3 billion, remains within its annual guidance but represents a reduction from last year. The company also invested $2.3 billion to purchase 5% of Hess Corp. shares ahead of a planned merger. CFO Eimear Bonner called the buyback program “very strong,” noting it exceeds pre-COVID levels.

Chevron’s debt level remains manageable, with its net debt ratio increasing to 14.4% in Q1, still well below its target range of 20% to 25%. While Chevron can continue returning cash to shareholders, RBC Capital Markets analyst Biraj Borkhataria noted the company’s actions this quarter indicate it’s preparing for potential challenges ahead due to deteriorating market conditions. Chevron’s shares rose up to 2% on Friday.Exxon, the largest investor-owned supermajor, is increasing capital spending this year, planning to launch 10 new projects, including oil developments in Guyana, the Permian Basin, and Brazil, as well as LNG and chemicals in the US and China.

CEO Darren Woods assured shareholders that Exxon is prepared for market uncertainty. Meanwhile, Shell’s focus on cost-cutting, reliability, and shedding underperforming assets positions it better to handle the downturn, unlike BP. Exxon’s shares rose by up to 3%.Shell’s shares rose 4.4% on Friday in London. However, its Q1 cash flow dropped to $9.28 billion from $13.16 billion, and net debt increased to $41.52 billion from $38.81 billion in Q4. The gearing ratio rose from 17.7% to 18.7%. CFO Sinead Gorman stated that Shell is sticking to its plan, despite recognizing that other companies may face more challenges due to weaker positioning.

You Might Also Like

Willy Gnonto Crowned Leeds United Young Player of the Year

Christian Nørgaard Extends Brentford Stay Until 2027

Falcon Enhances Gas Infrastructure in Nigeria

“he becomes a talker now” – Neymar Fires Back at Rodri After Ballon d’Or Win

Nigeria Accelerates Domestic Gas Utilization with the Launch of Five LNG Plants

TAGGED:Downstream
Share This Article
Facebook Email Print
Leave a Comment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Recipe Rating




Follow US

Find US on Social Medias
FacebookLike
XFollow
YoutubeSubscribe
TelegramFollow

Weekly Newsletter

Subscribe to our newsletter to get our newest articles instantly!
Popular News
Uncategorized

NNPCL Appoints Idris and Obioma, Dismisses Port Harcourt Refinery MD and Over 200 Staff

Esther Udoh
Esther Udoh
April 30, 2025
Exxon to Boost Natural Gas Output in Oil-Rich Guyana
Tyrell Malacia Loaned to PSV from Manchester United
Beckham and Neville Complete Full Takeover of Salford City
Trent Alexander-Arnold Ruled Out of Carabao Cup Final with Ankle Injury
- Advertisement -
Ad imageAd image
Global Coronavirus Cases

Confirmed

0

Death

0

More Information:Covid-19 Statistics

Categories

  • ES Money
  • U.K News
  • The Escapist
  • Insider
  • Science
  • Technology
  • LifeStyle
  • Marketing

About US

We influence 20 million users and is the number one business and technology news network on the planet.

Subscribe US

Subscribe to our newsletter to get our newest articles instantly!

© Foxiz News Network. Ruby Design Company. All Rights Reserved.
Welcome Back!

Sign in to your account

Username or Email Address
Password

Lost your password?