Good morning, this is the Oil Patch. We're the Apple of the oilfield, we help you "Think Different."

Here's what the Oilman has for you today:

• Chevron's Big Bet

• No Risk To A Depleted Strategic Petroleum Reserve?

• Oilfield Services Providers Rejoice

• Tweet of the Day

Chevron's Big Bet: $75 Billion Share Repurchases and a Dividend to Fuel Your Portfolio

Ladies and gentlemen, talk about fun coupons.

Chevron is making a power move and allocating a whopping $75 billion for share repurchases, effective April 1st, with no expiration date in sight.

That's right, the supermajor is upping its game and tripling its previous buyback budget of $25 billion, which was set to end in March.

But wait, there's more!

Chevron is also declaring a quarterly dividend of $1.51 per share, making this a double whammy for investors.

Analysts are estimating that together with peer Exxon, Chevron could bring in a whopping $100 billion in profits, thanks to robust oil prices.

On top of the buyback budget and the quarterly dividend, Chevron is also investing in its future with $14 billion allocated for capital expenditure this year, in line with its "long-term plans to safely deliver higher returns..."

This means focusing on operations in the Permian as well as Argentina and Canada. A whopping 70% of the budget going towards the U.S. and those two countries.

The Oilman's wondering how he can get his hands on some of these fun coupons.

No Risk To A Depleted Strategic Petroleum Reserve?

The U.S. Strategic Petroleum Reserve (SPR) is running low, with crude oil stocks dropping more than 40% in just two years, according to data from the Energy Information Administration.

But analysts at Wood Mackenzie say there's no need to panic.

"We do not see dangerously low SPR stocks operationally or strategically," a WoodMac analyst said.

"U.S. SPR levels are currently low compared with previous decades, but can still be drawn down during emergencies, although at a slower rate."

That slower rate makes the Oilman a might worried. You?

The analyst added that with U.S. commercial crude oil inventories climbing and U.S. oil production on the rise, "these provide some support as well in the case of a need to meet U.S. demand in a reduced supply global oil market."

Today's Edition is Brought to You By Energy Builders Podcast

Are you ready to dive into the exciting world of oil and gas? Look no further than Energy Builders, your go-to podcast for all things black gold.

Get an inside look at the entrepreneurs making waves in the industry and learn from the drillers and deal-makers who know how to make a profit in the field. Don't miss out on this action-packed listening experience – tune in to Energy Builders now and discover the secrets of success in the oil and gas business.

Listen on Apple Podcasts, Spotify, and more.

Oilfield Services Providers Rejoice

Ladies and gentlemen, hold on to your hats because the world's largest oilfield services providers are reporting record profits, and they're not showing any signs of slowing down.

SLB (formerly Schlumberger), Halliburton, and Baker Hughes all reported very strong earnings for 2022 and expect the upcycle that began last year to be a multi-year feature in the oilfield services sector.

SLB, the biggest player in the game, was the first to report earnings and beat analyst expectations with earnings per share (EPS) of $0.71 for the fourth quarter, compared to estimates of $0.62 EPS. Full-year net income attributable to SLB jumped by 83% year on year to $3.4 billion in 2022. Revenues for the full year rose by 23% to $28.1 billion.

Baker Hughes may have booked lower income than analysts had expected, but they're still optimistic about the multi-year growth opportunities for the sector. They booked record orders of $8.0 billion for the fourth quarter, up by 32% sequentially and up by 20% compared to the same quarter of 2021.

Halliburton, the largest fracking services provider, raised its dividend by 33% after reporting on Tuesday earnings beating analyst projections. Full-year North America revenue jumped by 51% over 2021 with improved margins driven by activity and pricing gains.

The future looks bright for these companies, and they're set to see solid double digit increases in global upstream spending in 2023.

While the likes of BP are committing "clean energy" suicide...

It's nice to see these OFS companies are making sure the world – and the oil and gas industry – is doing just fine.

Tweet of the Day

Thanks for reading! If you enjoyed today's Oil Patch, please share with a friend, and be sure to subscribe.