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Phillips 66 has increased its 2026 capital budget to $2.4 billion, allocating $1.3 billion for growth and $1.1 billion for sustaining capital. The Midstream segment will receive $1.1 billion, with $700 million for growth projects and $400 million for sustaining projects focused on expanding pipeline and fractionation capacity.

A significant portion of growth capital will fund joint ventures with Chevron Phillips Chemical and WRB Refining, constructing petrochemical facilities in the U.S. Gulf Coast and Ras Laffan, Qatar, with operations starting in 2026.

The company is also converting its San Francisco-area refinery into the Rodeo Renewable Energy Complex for renewable diesel and sustainable aviation fuel production, which has begun commercial operations. Additionally, Phillips 66 faces pressure from activist investor Elliott Management for a strategic review to enhance financial performance.