Houston-based energy manufacturing and logistics firm Phillips 66 is targeting a 2021 capital expenditure (capex) budget of $1.7 billion, down from $3.1 billion year/year.

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“Our 2021 capital budget is supported by our diversified portfolio, strong financial position and capital discipline,” said CEO Greg Garland. “We continue to focus on reducing capital expenditures as market conditions remain challenged. We are prioritizing completion of in-progress projects, as well as advancing our investments in renewable fuels.”

Initial capex guidance was $3.8 billion for 2020. In late March, Phillips 66 reduced it by $700 million to $3.1 billion.

In midstream, the company plans to invest $610 million, including $300 million of Phillips 66 Partners LP adjusted capex. The budget...