$2 billion capital program for Phillips 66 in 2023

Phillips 66 Extends Partnership With Synchrony


Phillips 66 announced a 2023 capital program of $2 billion, including $865 million for sustaining capital and $1.1 billion for growth capital.

Approximately 50% of growth capital supports lower-carbon opportunities. The capital program is consistent with the company’s commitment to maintain a $2 billion annual budget through 2024.

“The 2023 capital program reflects our ongoing commitment to capital discipline,” said Mark Lashier, President and CEO of Phillips 66. “Through our Business Transformation, we are capturing $200 million of sustaining capital efficiencies while prioritizing safety and reliability. We are also investing in returns-focused growth opportunities, including enhancing our NGL platform and converting our Rodeo facility to produce lower-carbon renewable fuels.

“Additionally, the capital program supports our commitment to return $10 billion to $12 billion to shareholders between the second half of 2022 and the end of 2024 through a secure, competitive and growing dividend and share repurchases.”

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The Midstream capital plan of $639 million comprises $329 million for sustaining projects and $310 million for growth projects. Growth capital will be directed toward enhancing the company’s integrated NGL value chain from wellhead to market. The Midstream expected spend includes 100 percent of DCP Midstream, LP’s sustaining capital of $150 million and $125 million of growth capital.

In Refining, Phillips 66 plans to invest $1.1 billion, including $389 million for reliability, safety and environmental projects. Refining growth capital of $729 million includes the continuing conversion of the San Francisco Refinery in Rodeo, California, into one of the world’s largest renewable fuels facilities. The conversion will reduce emissions from the facility and produce lower carbon-intensity transportation fuels.

Phillips 66 Statement on Ponca City Refinery Incident


Refining growth capital will also support opportunities for high-return, low-capital projects to improve asset reliability and market capture. The announcement did not include any reference to the company’s Ponca City refinery in Oklahoma.