Phillips 66 announces 2018 capital program

Phillips 66 is planning to spend $2.3bn on capital projects in 2018. This includes $1.4bn of growth and $0.9bn on sustaining capital.

Chairman and CEO, Greg Garland said: “The 2018 capital program demonstrates our commitment to disciplined capital allocation and operating excellence. We continue to make sustaining capital investments to maintain the integrity of our assets and ensure safe, reliable and environmentally responsible operations. Our growth budget promotes value through investment in capital projects offering attractive returns. Long-term, we continue to target re-investing 60 percent of our cash flow back into the business and returning 40 percent to our shareholders.”

In Midstream, Phillips 66 plans to invest $1.2bn, including $1bn of growth capital, in its Natural Gas Liquids (NGL) and transportation businesses. The company is developing growth projects integrated with its existing assets and infrastructure, such as ongoing expansion of the Beaumont Terminal, additional Gulf Coast fractionation capacity, and investment in pipelines and other terminals.

Midstream capital includes budgeted spending of $595m by Phillips 66 Partners, with $85mi directed toward maintenance. Growth capital at the partnership will support organic projects, such as the Sand Hills Pipeline expansion, completion of the Bayou Bridge Pipeline eastern segment, and an isomerization unit at the Phillips 66 Lake Charles Refinery.

Phillips 66 plans $827m of capital spending in Refining, with $541m for reliability, safety and environmental projects. Refining growth capital of $286m is for small, high-return, quick payout projects primarily to increase clean product yields. Projects include completion of the fluid catalytic cracking (FCC) unit modernization at the Bayway Refinery and FCC optimization at the Sweeny Refinery.

In Marketing and Specialties, the company intends to invest $140m of growth and sustaining capital. The growth investment will further increase retail sites in Europe.

Phillips 66’s proportionate share of capital spending by joint ventures Chevron Phillips Chemical Company LLC (CPChem), DCP Midstream, LLC (DCP Midstream) and WRB Refining LP (WRB) is expected to be $946m. Including these equity affiliates, the company’s total 2018 capital program is projected to be $3.2bn.

For more information visit www.phillips66.com

11th Dec 2017