Phillips 66 on Dec. 8 announced a $3.25 billion capital program for 2018, with nearly 60% of that amount funding growth projects.
"We continue to make sustaining capital investments to maintain the integrity of our assets and ensure safe, reliable and environmentally responsible operations," Phillips 66 Chairman and CEO Greg Garland said. "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."
The company plans to spend $1.93 billion on growth projects during the year, of which 51.9%, or $1 billion will fund projects in its natural gas liquids and transportation businesses such as the ongoing expansion of the Beaumont terminal, additional Gulf Coast fractionation capacity and investment in pipelines and other terminals.
29.4%, or $567 million, of the growth capital expenditures the company plans to make in 2018 represents its proportionate share of capital expenditures planned by joint ventures Chevron Phillips Chemical Co., DCP Midstream LP and WRB Refining LP.
Phillips 66 plans to spend $286 million to fund "small, high-return, quick payout projects primarily to increase clean product yields" in its refining segment, such as completing the fluid catalytic cracking modernization at the company's Bayway refinery and fluid catalytic cracking optimization at the company's Sweeny refinery. The company plans $75 million of growth CapEx in its marketing and specialties segment, primarily to fund retail expansion in Europe.
The sustaining capital expenditures Phillips 66 plans in 2018 are primarily concentrated in the company's refining segment, with the $541 million of planned CapEx funding reliability, safety and environmental projects representing 41% of the company's $1.32 billion sustaining CapEx budget.
