ExxonMobil and Chevron may hold of on further share buy-backs beyond what they already have in the pipeline, despite near record-breaking profts expected in the second quarter, as fears of a recession encourage a more cautious outlook. Both companies have shored up their balance sheets since the depths of the pandemic, helped by soaring oil prices and sky-high refning margins, and they are well placed to withstand a downturn. But they may draw a line in the sand when it comes to putting aside extra cash for future buy-backs that would ramp up investor returns further. “The excess cash is going to be put on the balance sheet,” Scotiabank analyst Paul Cheng says.
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