Phillips 66 intends to build its financial strength and flexibility through disciplined capital allocation. Equity growth and debt reduction are expected to further improve the company’s debt-to-capital ratio within its target range of 20 to 30 percent by the end of 2013. The company plans to reduce debt by $2 billion by the end of next year. Phillips 66’s approach to capital allocation is designed to fund earnings growth and sustainability investments, while increasing distributions to shareholders through dividends and share repurchases.Since becoming an independent company in May 2012, Phillips 66 has announced plans to increase its quarterly dividend by a total of 56 percent, and to repurchase $2 billion of outstanding common stock. Complementary to its plans for growth, Phillips 66 is building a high-performing organization in order to promote business continuity and continued success. The company has a long heritage of safe, reliable and environmentally sound operations and continues to maintain a constant focus on operating excellence. “Our dedicated employees enable us to pursue and execute our strategy. Together, we are delivering energy to the world and conducting our business with safety, honor and commitment,” Garland concluded. Garland and other company executives will further discuss Phillips 66’s strategy at today’s Analyst Meeting, which will begin at 8:30 a.m. Eastern time. To access the live webcast, go to Phillips 66’s Investors site, www.phillips66.com/investors, and click on “Presentations and Conference Calls.” You should begin this procedure at least 15-20 minutes prior to the start of the webcast. A replay of the webcast will be archived on Phillips 66’s Investors site approximately two hours following the live call. A transcript also will be available on the Investors site at a later date.
|Phillips 66 Planned 2013 Capital Program|
|Millions of Dollars|
|Refining and Marketing**||$||1,387||$||112||$||1,499|
|Corporate and Other||161||-||161|
|* Includes Phillips 66's share of capital spending by DCP Midstream, Chevron Phillips Chemical Company and|
|WRB Refining, which is expected to be self-funding in 2013.|
|** Includes non-cash capitalized lease of $152 million.|