Phillips 66 paid $125 million in dividends and repurchased $111 million of common stock as part of the company’s share repurchase plan. In October, Phillips 66’s Board of Directors declared a $0.25 per share dividend payable in the fourth quarter, representing a 25 percent increase. This dividend increase, along with the company’s $1.0 billion share repurchase plan, are part of Phillips 66’s strategy to return capital to its shareholders.
Phillips 66 continues to enhance returns and deliver growth. In R&M, the company is improving margins by accessing more advantaged feedstocks and increasing refined product export capability. In order to supply lower-cost crude to its refineries, the company recently entered into several transportation agreements and plans to improve targeted logistics infrastructure. These actions are expected to increase Phillips 66’s access to advantaged crudes. In addition, Phillips 66 continues to increase its export capability through low-cost capital investments, while also taking steps to market a wider variety of products globally when opportunities exist.
Phillips 66 remains committed to the expanding opportunities in the midstream industry as part of its strategy to deliver long-term profitable growth. Pursuant to an agreement in principle with Spectra Energy and DCP Midstream, the company expects to acquire a one-third ownership in DCP’s Sand Hills and Southern Hills NGL pipelines, representing a total estimated investment of $700 million to $800 million. This investment will enable DCP to maintain its growth plan through 2015. The Sand Hills pipeline is expected to commence deliveries of NGL from Eagle Ford into Mont Belvieu by year-end. The second phase, with service from the Permian Basin, is targeted to be in operation in the second quarter of 2013. The Southern Hills pipeline, which will extend from DCP’s Midcontinent region to Mont Belvieu, remains on schedule for completion in mid-2013.
CPChem announced in October that the Saudi Polymers Company world-scale petrochemicals facility in Saudi Arabia began commercial production. CPChem’s projects in the U.S. Gulf Coast are progressing as planned, including the proposed ethane cracker and related polyethylene facilities, as well as its 1-hexene plant.