Chevron Announces Stock Buyback Program

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Chevron Announces Stock Buyback Program

Written by Miranda Marquit

Chevron stock buyback gives CVX stock a boost. Over the next three years, Chevron (CVX) plans to re-invest $15 billion in itself through a stock buyback program. Since Big Oil is enjoying a bullish-bias stock market along with everyone else, there's no reason why Chevron can't add to its own party by helping out. On the news that Chevron would instigate the stock buyback program, CVX stock got a nice boost. After all, you want to buy it because you know that it might easily be bought back. Reuters reports on the Chevron stock buyback program:

Chevron said its strong cash flows have enabled it to repurchase shares, as well as fund a significant capital program, increase its dividends, and reduce its debt.

This reasoning leads one to think about some of the fundamental issues underlying CVX stock. Strong cash flows (from high prices), a funded capital program and reduced debt are good things. These are indicators of a solid company, and one that is making plans to remain solid.

Disclosure: I do not own CVX stock.

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