In the fourth quarter, Phillips 66 returned more than $400 million of capital to shareholders through $157 million in dividend payments and $245 million of share repurchases. In December, Phillips 66’s board of directors approved a 25 percent increase in the company’s annual dividend rate, raising it to $1.25 per share for 2013. The board of directors also approved an additional $1.0 billion of share repurchases, increasing the total repurchase program to $2.0 billion.Full-year Financial Results Phillips 66’s full-year 2012 earnings were $4.1 billion or $6.48 per share. This compares with $4.8 billion or $7.52 per share for 2011. Full-year adjusted earnings were $5.4 billion or $8.46 per share in 2012, compared with $3.6 billion or $5.66 per share in 2011. The company generated strong returns with a reported return on capital employed (ROCE) of 17 percent and an adjusted ROCE of 22 percent. During 2012, the company generated $4.3 billion in cash from operations. Excluding working capital, operating cash flow was $5.5 billion. Phillips 66 funded $1.7 billion in capital expenditures and investments. In addition, the company paid $282 million in dividends, and repurchased 7.6 million shares of common stock totaling $356 million. Strategic Initiatives Phillips 66 remains focused on value creation and growth in its Midstream and Chemicals segments. As announced in December, the company intends to form a master limited partnership. A registration statement is expected to be filed with the Securities and Exchange Commission in the second quarter of 2013 and, subject to final approval by Phillips 66’s board of directors, an initial public offering is anticipated during the second half of 2013. DCP continues to execute its long-term growth plan. In December, the first phase of the Sand Hills pipeline, which extends from Eagle Ford to Mont Belvieu, was placed in service. The second phase of the project, with deliveries from the Permian Basin, is expected to be complete in the second quarter of 2013. Southern Hills is also on schedule with service from the midcontinent to Mont Belvieu anticipated by mid-2013. DCP expects to increase the initial projected capacity of Southern Hills from 150,000 barrels per day to 175,000 barrels per day.