Phillips 66 Slashes Spending 2020 Forecast; Assures Investors on Dividend

Stephen L Kanaval  |

Source: Phillips 66

On Tuesday, Phillips 66 slashed its 2020 spending forecast to secure the company’s balance sheet during the current “challenging business environment.”

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"Phillips 66 is well-positioned to manage through the challenging environment with our high-quality, diversified asset base and strong balance sheet," said Greg Garland, chairman and CEO of Phillips 66. "Our top priorities remain the well-being of our employees, our communities, and safe and reliable operations. We are taking action to maintain our financial strength to ensure security of our dividend, execute capital growth projects that are near completion, and maintain our strong investment grade credit rating. We remain focused on disciplined capital allocation and creating long-term value for our shareholders."

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Source: Phillips 66

The refiner did assure investors their dividend was secure, but announced it would take several steps, including:

  • Cutting 2020 consolidated capital spending by $700 million to $3.1 billion,
  • Reducing operating and administrative costs by $500 million and
  • Temporarily suspending share repurchases.

As U.S. crude prices last week touched their lowest point in nearly two decades, Phillips said the company also secured a new $1 billion, 364-day term loan facility.

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Source: Equities News

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