NEW YORK (TheStreet) -- Phillips 66 Partners (PSX) shares closed trading down 2.29% to $62.63 on Friday after the oil and gas company announced a 2015 capital budget of $4.6 billion.
The company said that the investments are designed to support midstream business growth. Including capital spending on joint ventures with DCP Midstream (DPM) and Chevron Phillips Chemical Company, the company's total capital program is expected to be $6.8 billion.
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Investors may have reacted negatively to the company spending more than double what it spent on midstream investments from last year's budget at a time when five year low oil prices could hurt company profits. Data released today suggested that global oil and gas exploration projects totaling up to $150 billion could be put on hold next year due to falling oil prices, according to Reuters.
"The 2015 capital program reflects our commitment to grow our higher-value businesses while enhancing returns in Refining. We are executing a portfolio of major Midstream and Chemicals projects while evaluating a significant backlog of investment opportunities," said CEO Greg Garland.
TheStreet Ratings team rates PHILLIPS 66 PARTNERS LP as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation: