Phillips 66 provides update on strategic priorities

The company said, “Phillips 66 is on track to exceed its original strategic priority targets. The company is successfully executing operational enhancements in Refining and delivering business transformation cost reductions. In Midstream, the implementation of the company’s NGL wellhead-to-market strategy has exceeded expectations and enabled an increase to the synergy target. Given the company’s substantial progress on these strategic priorities, combined with plans to increase commercial contributions, Phillips 66 is increasing its mid-cycle adjusted EBITDA growth target from $3 billion to $4 billion by 2025. Phillips 66 returned $6.7 billion through share repurchases and dividends since July 2022 and is on pace to exceed the original $10 billion to $12 billion target. The company is now increasing this target to a range of $13 billion to $15 billion and plans to return at least 50% of operating cash flow to shareholders. The Board of Directors of Phillips 66 approved an additional $5 billion in share repurchase authorization. This is in addition to its previous authorization, which had approximately $3.1 billion remaining as of September 30. Since 2012, the Board has authorized share repurchases totaling $25 billion. Phillips 66’s business transformation will deliver over $1 billion in run-rate cost and capital reductions by the end of 2023. The company is now targeting a $1.4 billion run-rate by the end of 2024. The company also plans to monetize non-core assets that are expected to generate over $3 billion in proceeds that will be deployed to further strategic priorities, including returns to shareholders. In August, Phillips 66 sold its 25% interest in South Texas Gateway Terminal for $275 million. The company’s total proceeds from asset dispositions were $370 million through the third quarter of 2023.”