Phillips 66 announces 2026 capital budget

HOUSTON--(BUSINESS WIRE)--Phillips 66 (NYSE: PSX) today announced its 2026 capital budget of $2.4 billion, including $1.1 billion for sustaining capital and $1.3 billion for growth capital.

“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,” said Mark Lashier, chairman and CEO of Phillips 66.

Lashier added, “With the consolidation of WRB Refining, we incorporated approximately $200 million of sustaining capital and $100 million of growth capital into the budget.”

In Midstream, the capital budget of $1.1 billion includes $400 million for sustaining projects and $700 million for growth projects. The projects organically advance the company’s integrated NGL wellhead-to-market strategy by increasing gas processing, pipeline and fractionation capacity in key basins. The growth capital spend includes:

• The previously announced Iron Mesa gas processing plant, a 300 MMCFD facility in the Permian Basin and the company’s largest in the region. The plant is expected to start up in the first quarter of 2027.

• The previously announced Coastal Bend NGL pipeline expansion, which increases capacity from 225 MBD to 350 MBD, while enhancing connectivity between production in the Permian and Eagle Ford basins to fractionators in Corpus Christi and Sweeny. The expansion is expected to be completed in the fourth quarter of 2026.

• A proposed fractionator in Corpus Christi, adding 100 MBD of NGL fractionation capacity. The project increases bidirectional access for Y-grade and purities between Corpus Christi, Sweeny and Mont Belvieu. Final investment decision is anticipated in early 2026, with project completion expected in 2028.

In Refining, Phillips 66 plans to invest approximately $1.1 billion, including $590 million for sustaining capital and $520 million for growth projects. This underscores the company’s commitment to world-class operations while investing in high-return projects. The growth capital spend includes:

• The newly announced Humber gasoline quality improvement project, a multiyear investment that will enable production of higher-quality gasoline, facilitating greater access to higher-value global markets. Startup is targeted for the second quarter of 2027.

• Over 100 low-capital, high-return projects to improve market capture focused on crude flexibility, feedstock optimization and clean product yield improvements.

	Millions of Dollars
	Sustaining		Growth	Capital
	Capital		Capital	Budget
Capital Budget
Midstream*	$	400	700	1,100
Chemicals		-	-	-
Refining*		590	520	1,110
Marketing and Specialties		30	50	80
Renewable Fuels		10	30	40
Corporate and Other		40	0	40
Phillips 66 Consolidated Capital Budget	$	1,070	1,300	2,370
^*Excludes non-cash finance leases of $10 MM in Refining and $40 MM in Midstream.

Phillips 66’s proportionate share of capital spending by its joint venture, Chevron Phillips Chemical Company LLC (CPChem), is expected to total $680 million and be self-funded. This includes $200 million for sustaining capital and $480 million for growth projects. CPChem’s growth capital will continue to fund the construction of world-scale petrochemical facilities through joint ventures on the U.S. Gulf Coast and in Ras Laffan, Qatar. The facilities are expected to start up in 2026 and early 2027, respectively.


About Phillips 66

Phillips 66 (NYSE: PSX) is a leading integrated downstream energy provider that manufactures, transports and markets products that drive the global economy. The company’s portfolio includes Midstream, Chemicals, Refining, Marketing and Specialties, and Renewable Fuels businesses. Headquartered in Houston, Texas, Phillips 66 has employees around the globe who are committed to safely and reliably providing energy and improving lives while pursuing a lower-carbon future. For more information, visit phillips66.com or follow @Phillips66Co on LinkedIn.

^{Cautionary Statement for the Purposes of the “Safe Harbor” Provisions of the Private Securities Litigation Reform Act of 1995 — This news release contains forward-looking statements within the meaning of the federal securities laws relating to Phillips 66’s operations, strategy and performance. Words such as “anticipated,” “estimated,” “expected,” “planned,” “scheduled,” “targeted,” “believe,” “continue,” “intend,” “will,” “would,” “objective,” “goal,” “project,” “efforts,” “strategies” and similar expressions that convey the prospective nature of events or outcomes generally indicate forward-looking statements. However, the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements included in this news release are based on management’s expectations, estimates and projections as of the date they are made. These statements are not guarantees of future events or performance, and you should not unduly rely on them as they involve certain risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecast in such forward-looking statements. Factors that could cause actual results or events to differ materially from those described in the forward-looking statements include: changes in governmental policies relating to NGL, crude oil, natural gas, refined petroleum or renewable fuels products pricing, regulation or taxation, including exports; our ability to timely obtain or maintain permits, including those necessary for capital projects; fluctuations in NGL, crude oil, refined petroleum products, renewable fuels, renewable feedstocks and natural gas prices, and refined product, marketing and petrochemical margins; the effects of any widespread public health crisis and its negative impact on commercial activity and demand for our products; changes to government policies relating to renewable fuels and greenhouse gas emissions that adversely affect programs including the renewable fuel standards program, low carbon fuel standards and tax credits for biofuels; liability resulting from pending or future litigation or other legal proceedings; liability for remedial actions, including removal and reclamation obligations under environmental regulations; unexpected changes in costs or technical requirements for constructing, modifying or operating our facilities or transporting our products; our ability to successfully complete, or any material delay in the completion of, any asset disposition, acquisition, shutdown or conversion that we may pursue, including receipt of any necessary regulatory approvals or permits related thereto; unexpected technological or commercial difficulties in manufacturing, refining or transporting our products, including chemical products; the level and success of producers’ drilling plans and the amount and quality of production volumes around our midstream assets; risks and uncertainties with respect to the actions of actual or potential competitive suppliers and transporters of refined petroleum products, renewable fuels or specialty products; changes in the cost or availability of adequate and reliable transportation for our NGL, crude oil, natural gas and refined petroleum and renewable fuels products; failure to complete definitive agreements and feasibility studies for, and to complete construction of, announced and future capital projects on time or within budget; our ability to comply with governmental regulations or make capital expenditures to maintain compliance; limited access to capital or significantly higher cost of capital related to our credit profile or illiquidity or uncertainty in the domestic or international financial markets; damage to our facilities due to accidents, weather and climate events, civil unrest, insurrections, political events, terrorism or cyberattacks; domestic and international economic and political developments including armed hostilities, such as the war in Eastern Europe, instability in the financial services and banking sector, excess inflation, expropriation of assets and changes in fiscal policy, including interest rates; international monetary conditions and exchange controls; changes in estimates or projections used to assess fair value of intangible assets, goodwill and properties, plants and equipment and/or strategic decisions or other developments with respect to our asset portfolio that cause impairment charges; substantial investments required, or reduced demand for products, as a result of existing or future environmental rules and regulations, including greenhouse gas emissions reductions and reduced consumer demand for refined petroleum products; changes in tax, environmental and other laws and regulations (including alternative energy mandates) applicable to our business; political and societal concerns about climate change that could result in changes to our business or increase expenditures, including litigation-related expenses; the operation, financing and distribution decisions of our joint ventures that we do not control; the potential impact of activist shareholder actions or tactics; and other economic, business, competitive and/or regulatory factors affecting Phillips 66’s businesses generally as set forth in our filings with the Securities and Exchange Commission. Phillips 66 is under no obligation (and expressly disclaims any such obligation) to update or alter its forward-looking statements, whether as a result of new information, future events or otherwise.}

^{Use of Non-GAAP Financial Information — The disaggregation of capital spending between sustaining and growth is not a distinction recognized under generally accepted accounting principles in the United States. The company provides such disaggregated information to demonstrate management’s return expectations with respect to capital spending.}