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Phillips 66 Cuts 2020 Consolidated Capital Spending By $700 Mln To $3.1 Bln

Energy logistics company Phillips 66 (PSX) announced Tuesday actions in response to the challenging business environment to maintain financial strength to ensure security of dividend, execute capital growth projects that are near completion, and maintain strong investment grade credit rating.

The company is reducing 2020 consolidated capital spending by $700 million to $3.1 billion. It is also reducing operating and administrative costs by $500 million in 2020.

Further, the company has temporarily suspended share repurchases effective March 18 and will evaluate timing to resume share repurchases.

The company has also secured a new $1 billion, 364-day term loan facility. This facility provides additional liquidity and financial flexibility in addition to the existing $5 billion revolving credit facility.

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