On July 10, refining and midstream giant Phillips 66 announced that it has decided to increase its 2014 capital budget by $1.2 billion, in a move by the board authorizing $3.9 billion in capital expenditures. This marks a significant increase from the previously approved budget, which stood at $2.7 billion.
The Houston Chronicle reports that the move will allow the company to invest more in its Sweeny refinery, including the development of a new fractioner, among other projects.
"We are executing our growth plans through disciplined organic capital spending and by selective acquisitions in our Transportation and Lubricants businesses," said Greg Garland, chairman and CEO of Phillips 66, in the company's press release. "Our financial flexibility enables us to increase investment in higher valued business lines while growing dividends and stock repurchases in order to create differentiated value for our shareholders."
The company, a result of a spin-off from ConocoPhillips in 2012, has authorized a total of $7 billion in share repurchases since the third quarter of 2012, according to MarketWatch. The availability of lower-priced crude oil has grown the organization's profits in recent years, pushing the value of its assets to $51 billion as of March 31, 2014.
The new fractioner will separate natural gas liquids into liquefied petroleum to be exported, and is expected to be fully operational by 2016.
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