The S&P/ASX 200 Index (ASX: XJO) is having a pretty robust day so far this Tuesday. At the time of writing, the ASX 200 is up a healthy 0.58%. But that's nothing compared to the stellar day the Origin Energy Ltd (ASX: ORG) share price is currently enjoying.
Origin shares are presently up a pleasing 3.03% to $6.625 a share. Yesterday's closing price was $6.43. But that's not all. Earlier this morning, Origin shares rose as high as $6.65. That was a new 52-week high for Origin. It's also a new two year high for the energy company. Yes, Origin hasn't traded at these levels since way back in March 2020, just before the COVID-induced share market crash we saw that year.
Today's move caps off what has been a very pleasant 12 months for Origin Energy. The company is now up almost 43% over the past year, as well as being up more than 23% in 2022 alone.
But, in saying that, longer-term shareholders could still well be in the red, even after these encouraging gains. Origin shares are still almost 25% below their immediate pre-COVID levels of close to $9 a share. And this company's all-time high of more than $15 a share that we saw way back in 2010 is something of a pipedream today.
Yet, even so, we can't deny it has been a very lucrative 12 months for this ASX 200 blue chip.
So what is behind Origin's more recent successes?
Image source: Getty Images
Origin Energy share price soars amid share buybacks, energy prices
Well, there are a couple of possible catalysts. Firstly, energy prices remain significantly elevated, particularly oil, gas, and coal. This is a major tailwind for Origin.
Then there is the matter of the company's share buybacks. As my Fool colleague Brooke covered late last month, Origin has been executing its $250 million share buyback program. Just this morning, the company told investors that it had bought and retired more than 710,000 of its own shares on the markets yesterday. Share buybacks increase returns for existing shareholders.
So it's likely that a combination of these factors has resulted in the new 52-week high for the Origin shares that we see today. No doubt shareholders will be pleased.
At the current Origin Energy share price, this ASX 200 blue chip has a market capitalisation of $11.66 billion, with a dividend yield of 4%.
