Valero Energy Corp. (VLO) said its board authorized the repurchase of an additional $2.5 billion of the oil refiner's shares, bringing the total amount under the company's stock buyback plan to $2.9 billion.
Shares rose 1.7% to $68 in recent after-hours trading.
The San Antonio, Texas-based company said its previous stock repurchase program had $400 million remaining.
Valero, the largest refiner in the U.S., during April had reported that its first-quarter revenue tumbled 37%, though results still exceeded Wall Street expectations due to steep cost cuts and stronger volume and margins in its refining division.
Valero recently had a market capitalization of roughly $33.49 billion, according to FactSet.
The company plans to release its second-quarter financial results July 30.
(By Tess Stynes)