Phillips 66 (PSX) said Wednesday that its board authorized $3.9 billion in capexs this year, an increase of $1.2 billion to the previously approved budget of the energy manufacturing and logistics company.
The Houston, Texas-based firm said the increase is designed to accelerate development of a liquid petroleum gas export terminal and fund some of its recent acquisitions, such as its purchase of Spectrum Corporation, a specialty lubricants manufacturer. The board also approved an additional $2 billion share repurchase program. The board has approved $7 billion in share repurchases since the third quarter of 2012.
Chairman and Chief Executive Greg Garland said the moves would add financial flexibility, allowing the company “to increase investment in higher valued business lines while growing dividends and stock repurchases in order to create differentiated value for our shareholders.”
Phillips 66, which was spun off from ConocoPhillips (COP) in 2012, said its cumulative share repurchases totaled $3.2 billion through the first quarter of FY2014.
Shares in the $45 billion company gained less than one percent on Wednesday to close at $79.81.