Announcement came right at the time, when sanctions are being put on Russia and there is expected lower supply of oil and gas, mainly to Europe, however company said that they are less exposed to the situation in Eastern Europe, and it is not the reason for this decision.

Company is expected to buy back between 5 billion and 10 billion dollars’ worth of its shares every year, which is around 3 to 5 billion dollars more than previous years. Program would be possible to last 5 years if price of oil will be above 50 dollars per barrel. They are also planning to pump more than 3,5 million barrels of oil and gas per day, compared to last year’s pumping of 3,1 million barrels per day. Positive news caused immediate 4% jump in value of stock.

Company is also favourable for investors, because they pay dividends every year and current dividend yield is at 4,05%. From history of paid dividends, it is also seen, that every year amount of paid dividend is higher than previous one.

Performance of Chevron stock over 5-year period. (Source: Trading Economics)