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# Phillips 66 Spent $2.3 Billion On Buybacks In One Quarter While Pipeline Spending Heads Higher
- URL: https://www.bullished.co/phillips-66-spent-2-3-billion-on-buybacks-in-one-quarter-while-pipeline-spending-heads-8db78374/
- Published: 2026-10-28T18:12:20.000Z
- Updated: 2026-10-28T18:12:20.000Z
- Description: The refiner's third-quarter repurchases dwarfed the prior quarter's $379 million as it flagged 2027 capital spending above its $2.5 billion target.
- Author: Matteo Parrino
- Tags: Earnings, PSX, Industry: Energy

[Phillips 66](https://www.bullished.co/tag/psx/), which refines crude oil, runs pipelines and makes chemicals and lubricants, [repurchased $2.3 billion of its own stock](https://www.sec.gov/Archives/edgar/data/0001534701/000153470126000037/psx-20260930.htm?ref=bullished.co) in the third quarter, up from $379 million in the second. The company said in its 10-Q on Wednesday that 2027 capital spending will exceed the roughly $2.5 billion target it had communicated before.

## Buybacks swamp the prior quarter

The third-quarter buyback came alongside [$504 million of dividends](https://markets.ft.com/data/announce/detail?dockey=600-202610280700BIZWIRE%5FUSPRX%5F%5F%5F%5F20261028%5FBW203964-1&ref=bullished.co) and $680 million of capital spending and investments. Net debt repayments and repurchases came to $2.1 billion, according to the filing.

The [prior quarter's 10-Q](https://www.sec.gov/Archives/edgar/data/0001534701/000153470126000032/psx-20260630.htm?ref=bullished.co) showed $379 million of buybacks, $6.7 billion of net debt repayments and $508 million of dividends.

The company reported third-quarter earnings of [$5.6 billion](https://seekingalpha.com/news/4658739-phillips-66-non-gaap-eps-of-14%5F08-beats-by-2%5F29-revenue-of-51%5F5b-beats-by-8%5F27b?ref=bullished.co) and $7.3 billion of cash from operations. In July its board approved a $10 billion increase to the repurchase authorization, and in October it declared a quarterly dividend of $1.33 per share, up $0.06.

## A bigger 2027 budget

The spending flag follows a final investment decision on the Western Gateway Pipeline, a proposed 1,300-mile refined products system linking its Central Corridor and Gulf Coast refineries to West Coast and Southwest marketing assets. Phillips 66 owns 49.9% of it. The company said the size and timing of the increase depend on finalizing the 2027 capital budget.

The company also targets cutting total debt to $17 billion by the end of 2027\. Debt stood at [$18.5 billion](https://www.benzinga.com/markets/earnings/26/10/62664615/phillips-66-rides-refining-windfall-to-blowout-earnings?ref=bullished.co) at September 30, and the $2.25 billion term loan taken in March was fully repaid.

## Deferral limits and a $947 million accrual

Phillips 66 can postpone interest on its $2 billion of junior subordinated notes for as long as a decade at a stretch. While interest is postponed, it generally could not pay dividends or buy back its stock.

The accrual for the Propel Fuels trade-secret case stood at $947 million at September 30\. Phillips 66 denies wrongdoing and filed its opening appeal brief in California's First District Court of Appeal on July 10\. The company warned that losses beyond the accrual could materially hurt its financial position.

Midstream minimum-volume contracts carried $703 million of remaining performance obligations, with a weighted average remaining life of five years.

Phillips 66 said the final size of the 2027 spending increase waits on the budget the company has yet to finalize.

### Sources

- [10-Q Filing — Phillips 66 (PSX)](https://www.sec.gov/Archives/edgar/data/0001534701/000153470126000037/psx-20260930.htm?ref=bullished.co) — SEC EDGAR
- [10-Q Filing — Phillips 66 (PSX), Q2 FY2026 filed 2026-08-05 (comparison basis)](https://www.sec.gov/Archives/edgar/data/0001534701/000153470126000032/psx-20260630.htm?ref=bullished.co) — SEC EDGAR
- [Earnings release (8-K Item 2.02, psx-2026930\_ex991.htm) — Phillips 66, filed 2026-10-28](https://www.sec.gov/Archives/edgar/data/0001534701/000153470126000035/psx-2026930%5Fex991.htm?ref=bullished.co) — SEC EDGAR
- [Phillips 66 (PSX) Q3 Earnings and Revenues Beat Estimates](https://finance.yahoo.com/markets/stocks/articles/phillips-66-psx-q3-earnings-113506269.html?.tsrc=rss&ref=bullished.co) — Yahoo Finance
- [Phillips 66 Non-GAAP EPS of $14.08 beats by $2.29, revenue of $51.5B beats by $8.27B (PSX:NYSE)](https://seekingalpha.com/news/4658739-phillips-66-non-gaap-eps-of-14%5F08-beats-by-2%5F29-revenue-of-51%5F5b-beats-by-8%5F27b?ref=bullished.co) — seekingalpha.com
- [Phillips 66 Rides Refining Windfall to Blowout Earnings](https://www.benzinga.com/markets/earnings/26/10/62664615/phillips-66-rides-refining-windfall-to-blowout-earnings?ref=bullished.co) — benzinga.com
- [Phillips 66 beats estimates on strong refining margins](https://finance.yahoo.com/energy/articles/phillips-66-beats-estimates-strong-114652139.html?ref=bullished.co) — Yahoo Finance
- [Phillips 66 Reports Third-Quarter Results: Delivers 98% Refining Utilization and Strong Midstream Volumes – Company Announcement - FT.com](https://markets.ft.com/data/announce/detail?dockey=600-202610280700BIZWIRE%5FUSPRX%5F%5F%5F%5F20261028%5FBW203964-1&ref=bullished.co) — Financial Times

### More on Phillips 66

- [Phillips 66 Trails Its 50% Cash-Return Pledge — CFO Says Cash Is Piling Up Faster Than Buybacks](https://www.bullished.co/phillips-66-trails-its-50-cash-return-pledge-cfo-says-cash-is-piling-up-faster-than-2b00283e/)
- [Phillips 66 CEO On Midstream Reaching Half Of EBITDA: 'I Don't Think That's Crazy'](https://www.bullished.co/phillips-66-ceo-on-midstream-reaching-half-of-ebitda-i-dont-think-thats-crazy-50856235/)
- [Phillips 66 Earns $14.08 A Share In Third Quarter, Up From $9.55, As Refining Margins Jump](https://www.bullished.co/phillips-66-earns-14-08-a-share-in-third-quarter-up-from-9-55-as-refining-margins-jump-a6cf9966/)

[All Phillips 66 (PSX) coverage →](https://www.bullished.co/tag/psx/)