PSX - Phillips 66 plans $2B 2023 capex program $729M to convert California refinery

Phillips 66 ( NYSE: PSX ) -1.8% in Friday's trading after revealing a $2B capital budget for FY 2023 , including 50% of planned $1.1B in growth capital supporting low-carbon initiatives, compared to 45% allocated in the company's 2022 plan.

Including Phillips 66's ( PSX ) proportionate share of capital spending associated with its Chevron Phillips and WRB Refining joint ventures CPChem and WRB, the company's total 2023 capital program is projected at $3.1B.

Phillips 66 plans to spend $1.1B in growth capital in its refining business in 2023, including $729M on the continuing conversion of the San Francisco Refinery in Rodeo, California, into one of the world's largest renewable fuels facilities.

Midstream planned capital spending of $639M will be directed toward enhancing the company's integrated natural gas liquids value chain from wellhead to market.

The company said its overall program supports its commitment to return $10B-$12B to shareholders between H2 2022 and the end of 2024 through growing dividends and share buybacks.

Even as Phillips 66's ( PSX ) valuation has been cut nearly in half from pre-pandemic levels, a closer look at the stock and underlying business suggests upside is limited while the risk of it falling with other energy stocks is higher, Acutel writes in an analysis posted recently on Seeking Alpha .

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