Phillips 66 approves higher spending on midstream projects, acquisitions

The board of directors of Phillips 66 has approved an increase in 2014 capital spending to support the company’s growth strategy and authorized returning additional capital to shareholders, the company announced on Wednesday.

The board authorized $3.9 billion of capital expenditures this year, an increase of $1.2 billion to the previously approved budget. 

The increased capital program is designed to accelerate the development of the Sweeny Fractionator One project and the Freeport liquid petroleum gas (LPG) export terminal, as well as fund the recently-announced acquisitions of the Beaumont terminal in Texas and Spectrum Corp. a specialty lubricants company. 

The board also approved an additional $2 billion share repurchase program.

“We are executing our growth plans through disciplined organic capital spending and by selective acquisitions in our transportation and lubricants businesses,” said Greg Garland, CEO of Phillips 66. 

"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," he added.