Phillips 66 boosts 2015 budget

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Greg Garland, CEO of Phillips 66

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Phillips 66 (NYSE: PSX) said Dec. 5 its capital budget for 2015 is $4.6 billion, up 18 percent from what it spent in 2014.

Including spending for joint ventures DCP Midstream, Chevron Phillips Chemical Co. and WRB Refining, Phillips 66 expects its total capital program to be $6.8 billion next year.

Last year, Phillips 66 announced its 2014 capital budget of $2.7 billion, not including joint ventures, in December and increased that to $3.9 billion in July.

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Here's a basic breakdown of the company's 2015 budget:

• Midstream:$3.16 billion, plus $550 million for its share of DCP's expenditures
• Chemicals:$1.45 billion for its share of Chevron Phillips' capital expenditures
• Refining:$1.11 billion, plus $203 million for its share of WRB's capital expenditures
• Marketing and specialties:$170 million
• Corporate and other:$155 million

Phillips 66 more than doubled its midstream spending from last year's initial budget. Midstream spending includes the ongoing construction of the Sweeny Fractionator One and the Freeport LPG Export Terminal on the Gulf Coast, as well as pipeline and rail infrastructure projects to move crude oil from North Dakota throughout the U.S. Phillips 66 also is pursuing an expansion of the Beaumont Terminal and related infrastructure opportunities, the company said.

Midstream spending also includes $207 million that Phillips 66 Partners LP, a master limited partnership, plans to spend on organic growth projects.

"The 2015 capital program reflects our commitment to grow our higher-value businesses while enhancing returns in refining," Chairman and CEO Greg Garland said in a statement. "We are executing a portfolio of major midstream and chemicals projects while evaluating a significant backlog of investment opportunities."

Olivia Pulsinelli is the web producer for the Houston Business Journal's award-winning website. Follow her on Twitter for more.