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Phillips 66 lowers 2016 capex, boosts share buyback

U.S. refiner Phillips 66 set a lower capital budget for 2016 and raised its share buyback plan.

The company said on Monday it would spend $3.6 billion in capital expenditure next year, excluding Phillips 66 Partners’ capital program.

The company’s capital budget was $4.6 billion for the current year, which included $200 million for Phillips 66 Partners, according to a Simmons & Co analyst.

Of the total budget, the refiner plans to invest $2 billion in its midstream business and $1.2 billion in its refining operations.

The company is building a liquids export terminal at Freeport, Texas, expanding its natural gas liquids fractionator in nearby Sweeny and investing in several pipeline projects.

Phillips 66 also raised its share buyback by $2 billion to $9 billion.

Chief Executive Greg Garland said the company planned to increase dividends in 2016.

The company’s shares were up slightly at $83.67 in morning trading on the New York Stock Exchange. Up to Friday’s close, the stock had fallen 16.5 percent this year.

In related news, Buffett’s Berkshire takes $4.48 billion stake in Phillips 66.

(Reporting by Shubhankar Chakravorty in Bengaluru; Editing by Kirti Pandey and Anil D’Silva)

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