By Michael Dabaie
Phillips 66 shares rose 5.5% to $44.40 in late morning trading.
The company said before the market open that it is reducing 2020 consolidated capital spending by $700 million to $3.1 billion.
"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," Chief Executive Greg Garland said.
In its midstream operations, the company 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.
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(END) Dow Jones Newswires
March 24, 2020 11:47 ET (15:47 GMT)Copyright (c) 2020 Dow Jones & Company, Inc.