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Phillips 66 announces $3.34B capital program for 2020

Phillips 66 on Dec. 13 announced a capital budget of $3.34 billion for 2020 that allocates $1.19 billion to sustaining capital and $2.15 billion to growth capital.

The midstream segment's budget of $1.05 billion reflects funding for the Liberty and Red Oak crude oil pipelines as well as an additional fractionation capacity of 450,000 barrels per day at the Sweeny Hub. The budget excludes the capital program of its master limited partnership subsidiary, Phillips 66 Partners LP, as well as $374 million to be cash funded by DCP Midstream LLC for Fracs 2 and 3 at the Sweeny Hub.

Phillips 66 Partners' capital program of $867 million includes investments in the Gray Oak, C2G and Bakken pipelines as well as the South Texas Gateway Terminal. The program excludes $95 million of growth capital that will be cash funded by the Gray Oak joint venture partners.

The refining segment's budget amounted to $1.05 billion, with $600 million set aside for reliability, safety and environmental projects. The budget will also fund upgrades to the fluid catalytic cracking units at the Ponca City and Sweeny refineries, renewable diesel projects and other projects to improve margins.

The marketing and specialties segment was allocated $161 million to develop and improve the company's international retail sites. Corporate and other was given a $204 million capital program that will fund information technology projects including a new enterprise resource planning system.

Phillips 66 expects its equity share of capex at equity affiliates, including DCP Midstream, Chevron Phillips Chemical Co. and WRB Refining LP, to come in at $1.22 billion, which would bring its total capital program to $4.56 billion.

The company expects its share in DCP Midstream, CPChem and WRB Refining LP to come in at $350 million, $656 million and $215 million, respectively.

On Dec. 14, 2018, Phillips 66 announced a $2.89 billion capital spending program for 2019, consisting of $1.88 billion of growth capital and $1.01 billion of sustaining capital.