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Phillips 66 To Cut Capex, Defer Permian Oil Pipeline Project

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   |    Tuesday,March 24,2020

Phillips 66 said it is taking the following steps

In Midstream, the Red Oak Pipeline and Sweeny Frac 4 projects, as well as Phillips 66 Partners’ Liberty Pipeline, will all be deferred.

The Red Oak Pipeline had a initial startup of 1H 2021 and its own 50% by Phillips

The Liberty Pipeline also had a initial startup date of 1H 2021. 

Source : Phillips 66 via Shale Experts Presentation Database

 

The company is taking the following actions:

  • Reducing 2020 consolidated capital spending by $700 million to $3.1 billion.
    • Capital spending is now expected to be $3.0 billion. This reduction in adjusted capital from the $3.3 billion budget reflects a $700 million reduction in our consolidated capital spending, partially offset by a $400 million reduction in cash capital contributions anticipated from DCP Midstream.
  • Reducing operating and administrative costs by $500 million in 2020.
  • Temporarily suspended share repurchases effective March 18. Share repurchases during the first quarter of 2020 were approximately $440 million. Phillips 66 will evaluate timing to resume share repurchases.
  • Secured a new $1 billion, 364-day term loan facility. This facility provides additional liquidity and financial flexibility in addition to the existing $5 billion revolving credit facility. Phillips 66 Partners has a $750 million revolving credit facility.

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