What happened
Shares of Chevron (CVX 0.37%) popped on Thursday after the oil and gas titan announced a massive new capital return program. As of 1:10 p.m. ET, Chevron's stock price was up more than 4%.
So what
Chevron announced a stunning $75 billion share repurchase plan, which will take effect on April 1. The company expects to complete its existing $25 billion stock buyback program by March 31.
With its current market capitalization of roughly $360 billion, Chevron's new authorization could allow it to repurchase more than 20% of its stock at current prices.
Chevron also boosted its quarterly cash dividend by 6% to $1.51 per share. The dividend will be paid on March 10 to shareholders of record at the market close on Feb. 16.
The increase marks the 36th straight year that Chevron has raised its annual cash payout to its share owners.
Now what
Chevron's announcement follows a year of record profits from many energy companies. Chevron is expected to report roughly $37 billion in full-year earnings when it releases its fourth-quarter financial results on Friday.
Yet the news wasn't greeted warmly by everyone. Politicians have criticized Chevron's decision to reward its investors with larger buybacks and dividends at the expense of ramping up its oil and gas production, at a time when higher energy prices are slowing economic growth and denting consumers' budgets.
Investors, however, greeted the news warmly, and they bid up Chevron's stock price accordingly on Thursday.
