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