Phillips 66 Eyeing Energy Transition, with Oil and Gas Recovery Hinging on Return to ‘Normal’ Phillips 66 wants to exploit the technology base it has to advance a lower carbon business platform, while maintaining a strong balance sheet and returning value to shareholders. The Houston-based energy firm sharply reduced the 2021 capital expenditure (capex) budget to $1.7 billion, down from $3.1 billion last year. About $1.1 billion of sustaining capital would go toward reliability, safety and environmental projects, according to CEO Greg Garland. Another $600 million of growth capital would target “in-flight” projects, investments and renewable fuels. Speaking on the fourth quarter earnings call, Garland said Phillips 66 plans to resume construction of the fourth fractionator at the Sweeny Hub in Old Ocean, TX, in the second half of 2021, bringing total fractionation capacity at the facility to 550,000 b/d.