- DCP Midstream (NYSE:DCP) cuts its 2020 growth capital program by 75% to $150M, down from its previous guidance midpoint of $600M, and chops its quarterly distribution in half to $0.39/unit from $0.78/unit, in response to "extraordinary and volatile market conditions."
- DCP says the 50% distribution cut will save $325M of cash that will be used to reduce leverage and strengthen the balance sheet.
- DCP says the $450M capex cut includes a decision to defer a 30% ownership option in Phillips 66's (NYSE:PSX) Sweeny Frac 2 and 3 projects, which was projected to be exercised at the end of this year.
- The company says it has ~$500M in liquidity and anticipates liquidity of $700M-$1B at the end of 2020.
- DCP -2.8% pre-market.