Phillips 66 Announces $2.2 Billion Capital Budget for 2024

By Chris Wack

Phillips 66 unveiled its capital budget for 2024, which amounts to $2.2 billion. This includes $923 million allocated for sustaining capital and $1.3 billion for growth capital.

It is worth noting that after excluding joint venture debt repayments due in 2024, the company’s capital budget for the year is reduced to $2 billion.

The 2024 capital budget will primarily be used for completing the Rodeo renewable fuels facility and improving refining performance. Furthermore, Phillips 66 is committed to returning $13 billion to $15 billion to shareholders by the end of 2024.

Within the refining sector, the company plans to invest $1.1 billion, with $412 million allocated for sustaining capital. A significant portion of the refining growth capital, which amounts to $654 million, will be utilized in the conversion of the San Francisco refinery in Rodeo, Calif., into one of the largest renewable fuels facilities globally. The startup of this converted facility is expected in the first quarter of 2024. Moreover, the refining growth capital will fund projects aimed at enhancing market capture while maintaining a high return on investment and low capital requirements.

By considering Phillips 66’s share of capital spending in joint ventures CPChem and WRB, the company’s total capital program for 2024 is projected to reach $3.2 billion.