Phillips 66 leaders indicated this week it is their intention to provide a plan to deliver higher shareholder distributions and increase shareholder value.
The pledge from Mark Lashier, President and CEO of Phillips 66 came during an investor day meeting in New York City.
“We are announcing a number of priorities designed to reward shareholders,” he said.
“Thanks to our clear vision, core values and dedicated employees, we’ve enjoyed tremendous success since our inception 10 years ago. We have returned more than $30 billion to shareholders since the company’s formation in 2012, in large part from our uniquely integrated and diversified assets in Midstream, Chemicals, Refining and Marketing.”
Lashier said that the company plans to return an additional $10 billion to $12 billion to shareholders between mid-year 2022 and the end of 2024 through a combination of dividends and share repurchases. The company’s Board of Directors approved a $5 billion increase to its authorization to repurchase its common stock, which brings the total amount of share repurchases authorized by the Board since 2012 to an aggregate of $20 billion.
Phillips 66 is enhancing Refining performance by taking necessary actions to increase reliability, improve market capture and reduce costs.
Phillips 66 plans to increase adjusted EBITDA by $3 billion over the next three years. The company expects to achieve this growth through its proposed 87% interest in DCP Midstream, execution of Rodeo Renewed and other projects, as well as sustainable cost reductions from its Business Transformation.
These actions will enable the company to increase distributions to shareholders, Lashier said, adding that the company is committed to disciplined growth and financial flexibility to drive returns and reward shareholders, now and in the future.
Source: Phillips 66 release