Sign Up for FREE Daily Energy News
  • Stay Connected
  • linkedin
  • twitter
  • facebook
  • youtube2

Hazloc Heaters
Hazloc Heaters

Phillips 66 Announces 2019 Capital Program

English Español 简体中文 हिन्दी Português
These translations are done via Google Translate

HOUSTON–(BUSINESS WIRE)–Phillips 66 (NYSE: PSX), a diversified energy manufacturing and logistics company, announces its 2019 capital program, investing in attractive growth opportunities and funding safety and reliability projects. The Phillips 66 capital budget, excluding Phillips 66 Partners, is $2.3 billion. The Phillips 66 Partners capital budget net of $303 million expected cash capital contributions from noncontrolling interests (“adjusted capital”) is $601 million.

“The 2019 capital program reflects our strong portfolio of growth projects aligned with our long-term strategy,” said Chairman and CEO Greg Garland. “We are building out our integrated Midstream infrastructure network, including pipelines, export facilities, and fractionation in support of growing hydrocarbon production in the key domestic shale plays. CPChem is also pursuing petrochemicals expansion opportunities on the U.S. Gulf Coast.”

“Disciplined capital allocation is a top priority for us, and we continue to have a long-term objective to reinvest 60 percent of our cash flow into the business and return 40 percent to our shareholders through dividends and buybacks. We are committed to a secure and competitive dividend with annual increases. Through our ongoing share repurchase program, we buy our shares when they trade below intrinsic value and have $2.1 billion remaining on our share repurchase authorizations as of Sept. 30. Since 2012, we have returned $21.6 billion to shareholders through dividends, share repurchases and exchanges.”

In the Midstream segment, the adjusted capital budget is $1.6 billion, including $1.4 billion of adjusted growth capital. This adjusted capital budget includes $601 million for Phillips 66 Partners, and reflects expected joint venture-level financing to fund a portion of the Gray Oak Pipeline construction.

Midstream growth capital at Phillips 66 includes 300,000 barrels per day of additional fractionation capacity at the Sweeny Hub, as well as ongoing expansion of the Beaumont Terminal and pipeline investments providing integration across our value chain. Growth capital at Phillips 66 Partners supports organic projects, including the Gray Oak Pipeline, South Texas Gateway Terminal, Clemens Caverns expansion, an isomerization unit at the Phillips 66 Lake Charles Refinery, and the Lake Charles products pipeline.

Phillips 66 plans $923 million of capital spending in Refining, with $512 million for reliability, safety and environmental projects. Refining growth capital of $411 million is for high-return projects to enhance the yield of higher-value products, including an upgrade of the fluid catalytic cracking unit at the Sweeny Refinery, as well as other low-capital, quick-payout projects.

In the Marketing and Specialties segment, the company intends to invest $161 million of growth and sustaining capital. The investment will further grow and enhance retail sites in Europe.

The Corporate and Other capital budget primarily funds information technology projects, including an investment in a new enterprise resource planning system.

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 $1.2 billion. Including these equity affiliates, the company’s total 2019 adjusted capital program is projected to be $4.1 billion.

Phillips 66’s expected share of CPChem’s capital spending is $572 million, including $282 million of sustaining capital. CPChem’s growth capital will fund continuing development of a second U.S. Gulf Coast petrochemicals project for additional ethylene and derivative capacity, as well as debottleneck opportunities on existing units. Phillips 66’s expected share of DCP Midstream’s capital spending is $505 million, reflecting growth projects such as the Gulf Coast Express Pipeline, DJ Basin gas processing plants, and natural gas liquids (NGL) pipeline expansions. Phillips 66’s expected share of WRB’s capital spending is $165 million, including $78 million of sustaining projects. Capital spending by these three major joint ventures is expected to be self-funded.

Millions of Dollars






Adjusted Capital Program

Midstream* $ 185 847 1,032
Refining 512 411 923
Marketing and Specialties 64 97 161
Corporate and Other 177 177

Phillips 66*




Phillips 66 Partners** 78 523 601

Phillips 66 Consolidated




DCP Midstream 55 450 505
CPChem 282 290 572
WRB 78 87 165

Selected Equity Affiliates




Total Adjusted Capital Program





*Excludes adjusted capital budget associated with Phillips 66 Partners.

**Excludes $303 million of growth capital expected to be cash funded by noncontrolling interests.

Millions of Dollars






Midstream Adjusted Capital Budget

Phillips 66* $ 185 847 1,032
Phillips 66 Partners** 78 523 601

Consolidated Midstream Adjusted Capital Budget





*Excludes adjusted capital budget associated with Phillips 66 Partners.

**Excludes $303 million of growth capital expected to be cash funded by noncontrolling interests.

About Phillips 66

Phillips 66 is a diversified energy manufacturing and logistics company. With a portfolio of Midstream, Chemicals, Refining, and Marketing and Specialties businesses, the company processes, transports, stores and markets fuels and products globally. Phillips 66 Partners, the company’s master limited partnership, is integral to the portfolio. Headquartered in Houston, the company has 14,200 employees committed to safety and operating excellence. Phillips 66 had $56 billion of assets as of Sept. 30, 2018. For more information, visit or follow us on Twitter @Phillips66Co.


This news release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are intended to be covered by the safe harbors created thereby. Words and phrases such as “is anticipated,” “is estimated,” “is expected,” “is planned,” “is scheduled,” “is targeted,” “believes,” “continues,” “intends,” “will,” “would,” “objectives,” “goals,” “projects,” “efforts,” “strategies” and similar expressions are used to identify such forward-looking statements. However, the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements relating to Phillips 66’s operations (including joint venture operations) are based on management’s expectations, estimates and projections about the company, its interests and the energy industry in general on the date this news release was prepared. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecast in such forward-looking statements. Factors that could cause actual results or events to differ materially from those described in the forward-looking statements include fluctuations in NGL, crude oil, and natural gas prices, and petrochemical and refining margins; unexpected changes in costs for constructing, modifying or operating our facilities; unexpected difficulties in manufacturing, refining or transporting our products; lack of, or disruptions in, adequate and reliable transportation for our NGL, crude oil, natural gas, and refined products; potential liability from litigation or for remedial actions, including removal and reclamation obligations under environmental regulations; limited access to capital or significantly higher cost of capital related to illiquidity or uncertainty in the domestic or international financial markets; the impact of adverse market conditions or other similar risks to those identified herein affecting PSXP, as well as the ability of PSXP to successfully execute its growth plans; and other economic, business, competitive and/or regulatory factors affecting Phillips 66’s businesses generally as set forth in our filings with the Securities and Exchange Commission. Phillips 66 is under no obligation (and expressly disclaims any such obligation) to update or alter its forward-looking statements, whether as a result of new information, future events or otherwise.

This news release uses the terms “adjusted capital budget” and “adjusted capital program.” These are non-GAAP financial measures that are derived by reducing the company’s budgeted capital spending by that portion expected to be cash funded by noncontrolling interests, thereby demonstrating the amount of capital spending attributable to Phillips 66. The disaggregation of capital spending between sustaining and growth is not a distinction recognized under generally accepted accounting principles in the United States. The company provides such disaggregated information to demonstrate management’s return expectations with respect to capital spending.


Jeff Dietert (investors)
[email protected]

Brent Shaw (investors)
[email protected]

Dennis Nuss (media)
[email protected]

Share This:

More News Articles

New SHOWCASE Directory Companies


RAM Industries Inc.
RHK Hydraulic Cylinder Services Inc.