Phillips 66 announces 2025 capital program

Rhea-AI Summary

Phillips 66 (NYSE: PSX) has announced its 2025 capital budget of $2.1 billion, comprising $998 million for sustaining capital and $1.1 billion for growth capital. The budget focuses on strengthening the company's NGL wellhead-to-market value chain and enhancing refining competitiveness.

Key allocations include $975 million for Midstream operations, $822 million for Refining, and investments in Marketing and Specialties, Renewable Fuels, and Corporate projects. Additionally, Phillips 66's share of capital spending through joint ventures with CPChem and WRB is expected to be $877 million, bringing the total 2025 capital program to $3 billion.

Positive

• Significant investment of $546 million in Midstream growth projects
• Commitment to high-return, low-capital refining projects with $408 million allocation
• Strategic investment in renewable diesel and sustainable aviation fuel production
• Joint venture investments in world-scale petrochemical facilities set to launch in 2026

Negative

• None.

Insights

Financial Analyst

Phillips 66's $2.1 billion 2025 capital program represents a strategic allocation focused on growth and sustainability. The $1.1 billion growth capital, particularly in Midstream ($546 million) and Refining ($408 million), signals a robust expansion strategy in the NGL value chain and refining competitiveness. The balanced approach between sustaining capital ($998 million) and growth investments demonstrates prudent financial management. The self-funded joint ventures with CPChem and WRB, adding $877 million to the total program, provide additional value through petrochemical expansions and operational sustainability. This capital discipline, combined with strategic growth initiatives, particularly in high-return projects, positions PSX well for long-term value creation.

Energy Industry Analyst

The capital program reveals PSX's strategic focus on strengthening its integrated NGL operations and refining capabilities. The significant Midstream investment of $975 million shows commitment to expanding gas processing capacity in key basins, potentially capturing more value from the growing U.S. natural gas production. The Rodeo Renewable Energy Complex investments demonstrate PSX's adaptation to energy transition demands, particularly in renewable diesel and sustainable aviation fuel. The joint venture investments in world-scale petrochemical facilities in the U.S. Gulf Coast and Qatar position PSX to capitalize on growing global petrochemical demand when these facilities commence operations in 2026.

HOUSTON--(BUSINESS WIRE)-- Phillips 66 (NYSE: PSX) today announced a 2025 capital budget of $2.1 billion, including $998 million for sustaining capital and $1.1 billion for growth capital.

“We continue to demonstrate capital discipline, aligning our investments with our strategic priorities,” said Mark Lashier, chairman and CEO of Phillips 66. “The budget underscores our dedication to delivering value to shareholders by funding growth in the NGL wellhead-to-market value chain and further enhancing refining competitiveness.”

In Midstream, the capital budget of $975 million comprises $429 million for sustaining projects and $546 million for growth projects. The budget advances the integrated NGL wellhead-to-market value chain by strengthening the company’s position in key basins, including increasing gas processing capacity.

In Refining, Phillips 66 plans to invest $822 million, including $414 million for sustaining capital. Refining growth capital of $408 million supports the company’s commitment to high-return, low-capital projects.

The Marketing and Specialties capital budget reflects the continued enhancement of the company’s branded network.

The Renewable Fuels capital budget reflects investments at the Rodeo Renewable Energy Complex toward the optimization of feedstocks and logistics for renewable diesel and sustainable aviation fuel production.

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 LLC (CPChem) and WRB Refining LP (WRB) is expected to total $877 million and be self-funded.

CPChem’s growth capital will continue to fund the construction of world-scale petrochemical facilities on the U.S. Gulf Coast and in Ras Laffan, Qatar, through joint ventures. The facilities are expected to start up in 2026.

WRB’s capital spending will primarily be directed to sustaining projects.

Including Phillips 66’s proportionate share of capital spending associated with joint ventures CPChem and WRB, the company’s total 2025 capital program is projected to be $3 billion.

		Millions of Dollars
		Sustaining			Growth		Capital
		Capital			Capital		Program
Capital Program
Midstream*		$	429		546		975
Chemicals			-		-		-
Refining*			414		408		822
Marketing and Specialties			63		91		154
Renewable Fuels			18		56		74
Corporate and Other*			74		1		75
Phillips 66 Consolidated			998		1,102		2,100
CPChem			195		519		714
WRB			122		41		163
Selected Equity Affiliates**			317		560		877
Total Capital Program		$	1,315		1,662		2,977
*Excludes non-cash finance leases of $43 MM in Refining, $30 MM in Midstream and $2 MM in Corporate and Other. ** Our share of joint ventures’ capital spending.

About Phillips 66

Phillips 66 (NYSE: PSX) is a leading integrated downstream energy provider that manufactures, transports and markets products that drive the global economy. The company’s portfolio includes Midstream, Chemicals, Refining, Marketing and Specialties, and Renewable Fuels businesses. Headquartered in Houston, Phillips 66 has employees around the globe who are committed to safely and reliably providing energy and improving lives while pursuing a lower-carbon future. For more information, visit phillips66.com or follow @Phillips66Co on LinkedIn.

_{Cautionary Statement for the Purposes of the “Safe Harbor” Provisions of the Private Securities Litigation Reform Act of 1995 — This news release contains forward-looking statements within the meaning of the federal securities laws relating to Phillips 66’s operations, strategy and performance. Words such as “anticipated,” “estimated,” “expected,” “planned,” “scheduled,” “targeted,” “believe,” “continue,” “intend,” “will,” “would,” “objective,” “goal,” “project,” “efforts,” “strategies” and similar expressions that convey the prospective nature of events or outcomes generally indicate forward-looking statements. However, the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements included in this news release are based on management’s expectations, estimates and projections as of the date they are made. These statements are not guarantees of future events or performance, and you should not unduly rely on them as they involve certain risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecast in such forward-looking statements. Factors that could cause actual results or events to differ materially from those described in the forward-looking statements include: changes in governmental policies or laws that relate to the company’s operations, including regulations that seek to limit or restrict refining, marketing and midstream operations or regulate profits, pricing, or taxation of the company’s products or feedstocks, or other regulations that restrict feedstock imports or product exports; the company’s ability to timely obtain or maintain permits necessary for projects; fluctuations in NGL, crude oil, refined petroleum, renewable fuels and natural gas prices, and refining, marketing and petrochemical margins; the effects of any widespread public health crisis and its negative impact on commercial activity and demand for refined petroleum or renewable fuels products; changes to worldwide government policies relating to renewable fuels and greenhouse gas emissions that adversely affect programs including the renewable fuel standards program, low carbon fuel standards and tax credits for renewable fuels; potential liability from pending or future litigation; liability for remedial actions, including removal and reclamation obligations under existing or future environmental regulations; unexpected changes in costs for constructing, modifying or operating the company’s facilities; the company’s ability to successfully complete, or any material delay in the completion of, any asset disposition, acquisition, shutdown or conversion that we have announced or may pursue, including receipt of any necessary regulatory approvals or permits related thereto; unexpected difficulties in manufacturing, refining or transporting the company’s products; the level and success of drilling and production volumes around the company’s midstream assets; risks and uncertainties with respect to the actions of actual or potential competitive suppliers and transporters of refined petroleum products, renewable fuels or specialty products; lack of, or disruptions in, adequate and reliable transportation for the company’s products; failure to complete construction of capital projects on time or within budget; the company’s ability to comply with governmental regulations or make capital expenditures to maintain compliance with laws; limited access to capital or significantly higher cost of capital related to illiquidity or uncertainty in the domestic or international financial markets, which may also impact the company’s ability to repurchase shares and declare and pay dividends; potential disruption of the company’s operations due to accidents, weather events, including as a result of climate change, acts of terrorism or cyberattacks; general domestic and international economic and political developments, including armed hostilities (such as the Russia-Ukraine war), expropriation of assets, and other diplomatic developments; international monetary conditions and exchange controls; changes in estimates or projections used to assess fair value of intangible assets, goodwill and property and equipment and/or strategic decisions with respect to the company’s asset portfolio that cause impairment charges; investments required, or reduced demand for products, as a result of environmental rules and regulations; changes in tax, environmental and other laws and regulations (including alternative energy mandates); political and societal concerns about climate change that could result in changes to the company’s business or increase expenditures, including litigation-related expenses; the operation, financing and distribution decisions of equity affiliates we do not control; and other economic, business, competitive and/or regulatory factors affecting Phillips 66’s businesses generally as set forth in the company’s filings with the Securities and Exchange Commission. Phillips 66 is under no obligation (and expressly disclaims any such obligation) to update or alter its forward-looking statements, whether as a result of new information, future events or otherwise.}

_{Use of Non-GAAP Financial Information — The disaggregation of capital spending between sustaining and growth is not a distinction recognized under generally accepted accounting principles in the United States. The company provides such disaggregated information to demonstrate management’s return expectations with respect to capital spending. References in the release to shareholder distributions refers to the sum of dividends paid to Phillips 66 stockholders and proceeds used by Phillips 66 to repurchase shares of its common stock.}

View source version on businesswire.com: https://www.businesswire.com/news/home/20241216546360/en/

Jeff Dietert (investors)

832-765-2297

jeff.dietert@p66.com

Owen Simpson (investors)

832-765-2297

owen.simpson@p66.com

Thaddeus Herrick (media)

855-841-2368

thaddeus.f.herrick@p66.com

Source: Phillips 66

FAQ

What is Phillips 66's (PSX) total capital budget for 2025?

Phillips 66's total capital budget for 2025 is $2.1 billion, with an additional $877 million in joint venture spending, bringing the total capital program to $3 billion.

How much is PSX investing in Midstream operations for 2025?

Phillips 66 is investing $975 million in Midstream operations, including $429 million for sustaining projects and $546 million for growth projects.

What is PSX's 2025 investment plan for Refining operations?

Phillips 66 plans to invest $822 million in Refining operations, with $414 million for sustaining capital and $408 million for growth capital projects.

When will PSX's joint venture petrochemical facilities be operational?

The petrochemical facilities being constructed through joint ventures on the U.S. Gulf Coast and in Ras Laffan, Qatar, are expected to start up in 2026.

How much is PSX investing in Renewable Fuels for 2025?

Phillips 66 is investing $74 million in Renewable Fuels, with $18 million for sustaining capital and $56 million for growth capital.