ExxonMobil and Chevron Rake in $12 Billion in Profits, Massively Increase Stock Buybacks to Enrich Executives, Wall Street Investors
Washington, D.C. – Today, ExxonMobil and Chevron both reported billions in profits as consumers continue to feel pain at the pump thanks to Putin’s price hike. Chevron’s profits quadrupled, with the company reporting a whopping $6.3 billion in profits during the first three months of the year. For its part, ExxonMobil reported a massive $5.5 billion profit even after taking a $3.4 billion write-down.
Both companies also reported a significant increase in their stock buyback programs. ExxonMobil said it would triple its program from $10 billion to $30 billion. Chevron announced it would at least double its buyback program to a record $10 billion.
“Oil and gas CEOs are using Putin’s price hike to take advantage of American consumers,” said Climate Power senior advisor Noreen Nielsen. “Instead of investing in their much-touted clean energy efforts or in ways to lower costs for consumers, oil companies are using their billions in profits to enrich executives and Wall Street investors. Their war profiteering and refusal to do anything but line their profits is unconscionable. The only road to real energy independence is by investing in a clean energy future for all.”
The Federal Reserve Bank of Dallas recently surveyed 132 oil and gas companies. The overwhelming majority said “investor pressure” (i.e. maintaining dividends and stock buybacks instead of drilling) was the reason they refuse to ramp up domestic production. Fewer than 10 percent cited “government regulations” as a reason for holding back production.
The New York Times reported this week that oil companies are not increasing production to help our European allies wean themselves off of Russian gas and oil as they undertake an expedited transition to clean energy because oil companies are more interested in enriching investors. One major Texas producer, Pioneer Natural Resources, admitted it was cutting its targeted production increase from 20 percent to just 5 percent in order to return a full 80 percent of its cash flow back to investors.