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“It says that they’re comfortable about the future of their business,” Faisal A. Hersi, an energy analyst at Edward Jones, said of the buybacks.
Chevron, which spent nearly $4 billion repurchasing its own shares in the first half of the year, raised the upper limit of its buyback target for the full year to $15 billion, up from $10 billion before. Exxon, which spent $6 billion on buybacks in the first half, said on Friday it was “on track” with a plan for $30 billion in buybacks in 2022 and 2023, a target that it tripled a few months ago.
Shell said it would repurchase $6 billion in stock in the third quarter and TotalEnergies’ plan for $2 billion in third-quarter buybacks was seen as overly conservative by comparison, so the company’s stock has not risen as much as the others this week.
Investors have been keeping a close eye on company earnings this quarter, as fears rise about a potential recession’s effect on business conditions. Energy companies stand out for their bullishness, especially when compared to their counterparts in other industries. Big banks, including JPMorgan Chase and Citigroup, said this month that they were pausing share buybacks to conserve capital and meet regulatory requirements.
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