Phillips 66 entered into a $2.25 billion, 364‑day term‑loan credit agreement on March 18, 2026. The facility, fully drawn on the closing date, is administered by Mizuho Bank, Ltd. and carries an interest rate of either Term SOFR plus 1.100% or a reference rate plus 0.100%. The agreement includes customary covenants, including a maximum consolidated net debt‑to‑capitalization ratio of 65%.
On March 13, 2026, Phillips 66 amended its accounts‑receivable securitization program, increasing the maximum facility size from $1.25 billion to $1.75 billion and allowing future expansion up to $2.0 billion. PNC Bank, National Association serves as the administrative agent for this facility. The amendment provides additional working‑capital flexibility that complements the term‑loan facility.
The new credit agreement supports Phillips 66’s 2026 capital budget of $2.4 billion, which includes significant investments in its NGL value chain and high‑return refining projects such as the Iron Mesa gas‑processing plant and the Coastal Bend NGL pipeline expansion. "The 2026 capital budget reflects our ongoing commitment to capital discipline and maximizing shareholder returns," said Chairman and CEO Mark Lashier. "We are investing growth capital in our NGL value chain and high‑return refining projects, while also investing sustaining capital to support safe and reliable operations."
The term loan and the expanded receivables facility together enhance Phillips 66’s liquidity and financial flexibility, allowing the company to manage working‑capital needs and fund growth initiatives without immediately diluting equity. The financing aligns with the company’s disciplined capital‑allocation strategy, which has historically focused on returning value to shareholders through dividends and share repurchases. "The dividend increase is indicative of Phillips 66’s confidence in generating consistent cash flow across all phases of the economic cycle," Lashier added.
By securing these credit lines, Phillips 66 positions itself to navigate market volatility while maintaining a strong balance sheet. The additional liquidity supports ongoing operations, supports capital‑allocation plans, and reinforces the company’s ability to capitalize on opportunities in the refining and midstream sectors.
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