Phillips 66 announced a 2024 capital budget of US$ 2.2 billion, including US$ 923 million for sustaining capital and US$ 1.3 billion for growth capital. Excluding joint venture debt repayments due in 2024, the company’s 2024 capital budget is US$ 2 billion.

“We continue to demonstrate capital discipline in support of our strategic priorities,” said Mark Lashier, president and CEO of Phillips 66. "The 2024 capital budget includes investing in our NGL wellhead-to-market value chain, completing the Rodeo renewable fuels facility and enhancing Refining performance. In addition, the capital budget is consistent with our plan to return US$ 13 billion to US$ 15 billion to shareholders by year-end 2024."

Lashier added that the sustaining capital budget reflects US$ 300 million of efficiencies as a result of the company’s business transformation efforts. Phillips 66’s historical average sustaining capital spend was approximately JUS$ 1 billion per year prior to business transformation, and the consolidation of DCP Midstream adds approximately US$ 200 million in sustaining capital.

In Midstream, the capital budget of US$ 985 million comprises US$ 392 million for sustaining projects and US$ 593 million for growth projects focused on enhancing the company’s integrated NGL wellhead-to-market value chain. In addition, growth capital includes US$ 250 million related to the repayment of the company’s 25% share of the Bakken Pipeline joint venture’s debt due in 2024.

Phillips 66 plans to invest US$ 1.1 billion in Refining, including US$ 412 million for sustaining capital. Refining growth capital of US$ 654 million includes completing the conversion of the San Francisco Refinery in Rodeo, California, into one of the world’s largest renewable fuels facilities. Startup of the converted facility is expected in the first quarter of 2024. The conversion will reduce emissions from the facility and allow for the production of lower carbon-intensity transportation fuels. Refining growth capital will also support high-return, low-capital projects to enhance market capture.

The Marketing and Specialties capital budget reflects continued enhancement of the company’s retail network, including energy transition opportunities. Corporate and other capital will primarily fund information technology projects.

Phillips 66’s proportionate share of capital spending by joint ventures Chevron Phillips Chemical Company (CPChem) and WRB Refining LP (WRB) is expected to total US$ 1 billion and be self-funded.