By Michael Dabaie
Phillips 66 said it is reducing 2020 consolidated capital spending by $700 million to $3.1 billion.
In its midstream operations, the company on Tuesday said the Red Oak Pipeline and Sweeny Frac 4 projects, as well as Phillips 66 Partners' Liberty Pipeline, will all be deferred. Phillips 66 Partners has also postponed its final investment decision on ACE Pipeline.
In refining, the company said it is deferring and cancelling certain discretionary projects.
The company said it is reducing operating and administrative costs by $500 million in 2020.
Phillips 66 temporarily suspended share repurchases. The company repurchased about $440 million during the first quarter.
The company also secured a new $1 billion, 364-day term loan facility to provide more liquidity and financial flexibility in addition to the existing $5 billion revolving credit facility. Phillips 66 Partners has a $750 million revolving credit facility.
"We will continue to closely monitor market conditions and evaluate the impact on our portfolio. We are prepared to take additional action as needed," Chief Executive Greg Garland said.
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(END) Dow Jones Newswires
March 24, 2020 07:40 ET (11:40 GMT)Copyright (c) 2020 Dow Jones & Company, Inc.