Phillips 66 (NYSE:PSX) on Monday unveiled its 2026 capital spending plan.
The company disclosed capital expenditure of $2.4 billion, comprising $1.1 billion for sustaining investments and $1.3 billion for growth initiatives.
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“The 2026 capital budget reflects our ongoing commitment to capital discipline and maximizing shareholder returns. We are investing growth capital in our NGL value chain and high-return Refining projects, while also investing sustaining capital to support safe and reliable operations,” added Mark Lashier, chairman and CEO of Phillips 66.
Spending by Segment
Within its Midstream segment, Phillips 66 has set a $1.1 billion capital allocation, with $400 million designated for sustaining investments and $700 million earmarked for growth initiatives.
These projects support the integrated NGL wellhead-to-market strategy by expanding gas processing, pipeline and fractionation capacity across key producing regions.
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Meanwhile, Phillips 66 expects to allocate about $1.1 billion to its Refining segment, with $590 million directed toward sustaining capital and $520 million toward growth initiatives.
On the other hand, Phillips 66 plans to invest $680 million in its CPChem joint venture, fully self-funded, with $200 million for sustaining capital and $480 million for growth.
The growth funds will support world-scale petrochemical facilities on the U.S. Gulf Coast and in Ras Laffan, Qatar, expected to start up in 2026 and early 2027.
Recent Key Events
This month, the company closed the sale of a 65% stake in its Germany and Austria retail marketing business to a consortium of subsidiaries of Energy Equation Partners and Stonepeak for roughly 2.5 billion euros (around $2.8 billion).
With this, Phillips 66 will retain a 35% non-operated interest in the new joint venture that now owns the business and received around 1.5 billion euros ($1.6 billion) in pre-tax proceeds at closing.
PSX Price Action: Phillips 66 shares are down 0.52% at $140.70 at publication on Monday.
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