Phillips 66 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.
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.
