The Origin Energy Ltd (ASX: ORG) share price is on the move on Wednesday morning.
At the time of writing, the energy company's shares are up 2% to $5.91.
This means the Origin share price is now up 10% since the start of the year.
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Why is the Origin share price charging higher today?
The catalyst for the rise in the Origin share price on Wednesday has been the release of a positive announcement this morning.
According to the release, Origin has decided to return funds to shareholders through an on-market $250 million share buyback which will commence in April.
Origin's CEO, Frank Calabria, said: "Origin is in a strong financial position, with a robust outlook for the business and a capital structure comfortably within our target range. This means we are now in a position to increase shareholder distributions with a share buyback of $250 million. Going forward, we will continue to balance expected increased cash flow available for shareholder distributions with growth investments."
The company also revealed that further capital management initiatives may be considered over time. This will be subject to operating conditions and capital allocation alternatives.
Origin's refreshed strategy
In a separate announcement, Origin has provided an update on its refreshed strategy.
Management advised that its ambition with this strategy is to lead the transition to net zero through cleaner energy and customer solutions.
It wants to achieve this while at the same time cutting its costs. Origin is aiming to be the lowest cost retailer and is targeting a $200 million to $250 million cash cost reduction by FY 2024 based on FY 2018 costs. This will be supported by its scalable Kraken platform which aims to deliver a superior customer experience at lowest cost.
Origin also revealed that it aims to have 5,000 electric vehicles under management by FY 2026 with its full end-to-end EV fleet management solution.
Judging by the Origin share price performance today, investors appear pleased with what it heard.
