Phillips 66 lowers 2021 spending budget after pandemic hit Toggle share menu
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Phillips 66 lowers 2021 spending budget after pandemic hit U.S. oil refiner Phillips 66 on Monday set its 2021 capital budget at US$1.7 billion, around 43per cent lower than forecast for the previous year, as the energy industry struggles to recover from the blow of the COVID-19 pandemic.
FILE PHOTO: A Phillips 66 gasoline station in St. Louis, Missouri January 14, 2015, as gas prices dropped across the country over the last three months. Missouri became the first state in over five years to show an average statewide gas price under $2 per gallon. REUTERS/Kate Munsch
Commitment to Disciplined Capital Allocation
HOUSTON–(BUSINESS WIRE)–Phillips 66 (NYSE: PSX), a diversified energy manufacturing and logistics company, announces its 2021 capital budget of $1.7 billion, which includes $0.3 billion at Phillips 66 Partners.
“Our 2021 capital budget is supported by our diversified portfolio, strong financial position and capital discipline,” said Greg Garland, chairman and CEO of Phillips 66. “We continue to focus on reducing capital expenditures as market conditions remain challenged. We are prioritizing completion of in-progress projects, as well as advancing our investments in renewable fuels. Phillips 66 is committed to financial flexibility, enabled by our balance sheet and strong investment grade credit ratings. We continue to execute our strategy with a focus on disciplined capital allocation and long-term value creation for our shareholders, including a secure, competitive, growing dividend.”
Phillips 66 Cuts 2021 Capex on Challenging Market Conditions
Houston-based energy manufacturing and logistics firm Phillips 66 is targeting a 2021 capital expenditure (capex) budget of $1.7 billion, down from $3.1 billion year/year.
“Our 2021 capital budget is supported by our diversified portfolio, strong financial position and capital discipline,” said CEO Greg Garland. “We continue to focus on reducing capital expenditures as market conditions remain challenged. We are prioritizing completion of in-progress projects, as well as advancing our investments in renewable fuels.”
Initial capex guidance was $3.8 billion for 2020. In late March, Phillips 66 reduced it by $700 million to $3.1 billion.
In midstream, the company plans to invest $610 million, including $300 million of Phillips 66 Partners LP adjusted capex. The budget is directed toward completing near-term committed and optimization projects, focusing on pipeline operations and progressing construction of the Swe
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