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 companys 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.
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