As for Chevron, it’s leaning toward the latter approach. The big question for oil executives is whether they’ll devote the windfall from surging commodity markets to drill more wells or enrich shareholders. “We’re fast approaching a net-debt ratio where we could increase our buyback guidance range even further,” Breber said. Under Chevron’s existing buyback program, the company aims to spend $2 billion to $3 billion a year on repurchases. The oil giant’s third-quarter earnings were so strong that the net-debt-to-capital ratio fell below Chevron’s target of 20% to 25%, a key threshold that could spur an increase in stock repurchases, Chief Financial Officer Pierre Breber said during an interview. is exploring an increase in share buybacks as soaring oil and natural prices generate record cash flow.
