U.S. oil refiner Phillips 66 said Wednesday its 2020 capital spending budget might fall up to 10% below this year’s plans, which embody $300 million for a West Coast marketing campaign.
Officials at the fourth-largest U.S. refiner by capacity stated in a presentation to Wall Street analysts that 2020’s outlays would range from $3 billion to $3.5 billion, in contrast with the forecasted $3.3 billion to $3.5 billion this year.
The 2019 capital budget was boosted partially by $300 million to pay for a retail-fuels joint marketing campaign with an undisclosed companion on the West Coast, executives stated. Phillips markets fuels beneath the Phillips 66 and Union 76 manufacturers.
At the high end of the subsequent year’s spending, the corporate would have “$1.5 billion to $2.5 billion for share buybacks, ahead of our projections of $1.2 billion,” Credit Suisse analysts stated on Wednesday.
During the web presentation, analysts questioned whether the capital funds fully mirrored spending for significant oil pipeline and different initiatives being built.
Garland stated shippers had financed two major pipelines being developed. Phillips 66 unveils its financing deals to credit rating firms, he added, saying: “We’re utterly transparent.”
Phillips 66’s budget will embody work on gasoline-producing fluidic catalytic cracking models (FCCU) at its Sweeny, Texas, and Ponca City, Oklahoma, refineries in 2020.
At the 265,000-barrel-per-day (bpd) Sweeny refinery south of Houston, Phillips 66 plans to proceed modernizing the two FCCUs. Work at the 207,000-bpd Ponca Metropolis refinery in northern Oklahoma will deal with enhancing the yield from the FCCUs.
For 2020, the corporate is planning tasks to provide diesel fuels from renewable sources on the 120,200-bpd Rodeo, California, refinery in the San Francisco Bay region, and at the 221,000-bpd Humber, England, refinery.