Phillips 66 (NYSE: PSX) inches up in pre trading session on Tuesday as the company set a $2 billion capital investment budget for 2023, up from its previous year’s plan. The corporation intends to invest $1.1 billion in expansion projects, with half of the money going toward low-carbon initiatives. The operating capital will be $865 million.
Global economies are progressively shifting to greener energy sources. As a result of the pressure to address climate change on numerous fronts, fossil fuel players have continually increased investments in renewables and low-carbon fuels.
Phillips 66 will invest $1.1 billion in refining, including $389 million for programs related to reliability, safety, and the environment. $729 million will be set aside for refining expansion expenditures, which will include converting its San Francisco refinery into one of the world’s largest renewable fuel plants. At the facility, the conversion will minimize emissions and create low-carbon transportation fuel.
The corporation will invest $639 million in the midstream industry, with $310 million going toward growth initiatives and $329 million going toward sustainability. The expansion financing will be used to strengthen the company’s integrated NGL value chain from wellhead to market.
The capital program also supports Phillips 66’s promise to return $10-$12 billion to shareholders through dividends and share repurchases between the second half of 2022 and the end of 2024.
In the last three months, the company’s stock has outperformed the industry. The stock has increased 13.8% compared to the industry’s 8.3% increase.
HP is a prominent land and offshore drilling contractor in the Western Hemisphere, with the most modern and efficient drilling fleet. HP’s adjusted earnings of 27 cents per share in the fiscal third quarter of 2022 above the Zacks Consensus Estimate of 5 cents.
Helmerich & Payne’s profits are predicted to increase by 277.8% in 2022. HP has a solid balance sheet, with $542.3 million in long-term debt. When compared to many of its counterparts that are heavily in debt, the company’s debt-to-capitalization ratio is just 16.6%.
