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Phillips 66 names Sean Maher as Vice President of Investor Relations and Chief Economist; Jeff Dietert to Retire
Businesswire· 2025-09-10 17:05
HOUSTON--(BUSINESS WIRE)--Phillips 66 announced that Sean Maher has been appointed vice president of investor relations and chief economist, effective Oct. 1. ...
Phillips 66 agrees to acquire remaining 50% stake in WRB Refining
Yahoo Finance· 2025-09-10 09:06
Core Viewpoint - Phillips 66 has signed a definitive agreement to acquire the remaining 50% ownership interest in WRB Refining from Cenovus Energy for $1.4 billion, expected to close in Q4 2025 [1] Group 1: Acquisition Details - The transaction is valued at $1.4 billion and is subject to customary purchase price adjustments [1] - WRB Refining is a joint venture that owns the Borger refinery in Texas and the Wood River refinery in Illinois, with a combined crude throughput capacity of 495,000 barrels per day (bpd) [2] - Post-acquisition, Cenovus Energy's downstream business will consist of several refineries with a combined capacity of 472,800 bpd, with 55% dedicated to heavy crude oil processing [2] Group 2: Strategic Implications - Phillips 66 aims to strengthen its integrated business and expand its industry position in the region with full ownership of the refineries [3] - The acquisition is expected to deliver operational and commercial synergies of approximately $50 million per year, enabling full integration with Phillips 66's value chain [4] - The Wood River and Borger refineries will contribute an estimated additional 250,000 bpd to Phillips 66's refining capacity upon completion of the deal [4] Group 3: Financial Impact - Cenovus plans to use the proceeds from the sale to reduce net debt and enhance shareholder returns through accelerated share repurchases [5] - As of August, Cenovus has repurchased approximately 18.8 million common shares for $388 million at an average price of around $20.59 per share [5] Group 4: Recent Activities - This acquisition follows Phillips 66's earlier purchase of EPIC Y-Grade GP and EPIC Y-Grade for $2.2 billion in April, which includes long-haul natural gas liquids pipelines and fractionation facilities [6]
Phillips 66 buys remaining stake in major US refineries from Cenovus for $1.4 billion
Yahoo Finance· 2025-09-09 11:18
Group 1 - Phillips 66 will acquire the remaining 50% stake in WRB Refining from Cenovus Energy for $1.4 billion, gaining full ownership of two major U.S. refineries [1] - The acquisition will add approximately 250,000 barrels per day to Phillips 66's refining capacity, enhancing its ability to produce transportation fuels and process various crude types [2] - The deal is seen as a strategic move to strengthen Phillips 66's integrated business and expand its market position in the refining sector [3] Group 2 - The transaction is considered appealing in terms of valuation and is expected to upgrade Phillips 66's portfolio by adding higher margin capacity [4] - Cenovus aims to simplify its downstream business and focus on heavy oil operations following the sale of WRB [4] - The deal is anticipated to close between the end of the third and fourth quarters, with Cenovus planning to use the proceeds to reduce net debt and enhance shareholder returns through share repurchases [5]
Phillips 66 Begins Phased Closure of LA Refinery in 2025
ZACKS· 2025-09-02 14:00
Company Overview - Phillips 66 will begin winding down operations at its Los Angeles-area refinery this week, with a permanent closure expected in the fourth quarter of 2025 [1] - The refinery has a capacity of 139,000 barrels per day and is set to cease operations following the company's announcement last year [1][10] Employee Impact - More than half of the 600 employees at the refinery are represented by the United Steelworkers Union, with most facing layoffs in December [2][10] - A small number of workers may be transferred to the Phillips 66 marine oil terminal in Los Angeles, but the company has not commented on post-closure employment plans [2] Market Implications - The closure of Phillips 66's refinery, along with Valero Energy Corporation's Benicia facility, which has a capacity of 145,000 barrels per day, will impact approximately 20% of California's gasoline supply [3][10] - These closures are expected to tighten fuel markets and may contribute to volatility in pump prices as California increases reliance on imports and alternative sources to meet demand [3] Operational Details - The shutdown process will be multi-phased and complex, involving environmental remediation and coordination with local agencies [4] - Phillips 66 has stated its commitment to work with state officials to supply fuel and address the long-term fate of its strategically located properties near the Port of Los Angeles [4]
Refining & Marketing Industry Outlook: 4 Stocks in Focus
ZACKS· 2025-08-21 13:26
Core Viewpoint - The Zacks Oil and Gas - Refining & Marketing industry is evolving to balance reliable fossil fuel output with investments in cleaner, lower-carbon solutions, driven by government incentives and corporate demand, while U.S. refiners are increasing exports to capture margins and diversify revenue streams [1][3][4]. Industry Overview - The industry includes companies that sell refined petroleum products and non-energy materials, operating terminals, storage facilities, and transportation services. Refining margins are volatile and influenced by various factors including inventory levels, demand, and capacity utilization [2]. Trends Defining the Future - **Growing Role of Low-Carbon Solutions**: Refiners are investing in renewable diesel and sustainable aviation fuel, supported by government incentives and corporate demand, which positions them for long-term relevance in a decarbonizing economy [3]. - **Advantaged Export Opportunities**: U.S. refiners are leveraging strong international demand, particularly from Latin America and Europe, to export refined products, enhancing profitability and providing a hedge against domestic market fluctuations [4]. - **Margin Pressure from Volatile Prices**: The industry faces risks from fluctuating crude oil prices and inflationary cost pressures, which could impact earnings stability and shareholder returns [5]. Industry Outlook - The Zacks Oil and Gas - Refining & Marketing industry holds a Zacks Industry Rank of 56, placing it in the top 23% of 246 Zacks industries, indicating strong near-term prospects [6][7]. Performance Comparison - Over the past year, the industry has underperformed compared to the broader Zacks Oil - Energy Sector and the S&P 500, with a decline of 10.1% versus a decrease of 0.6% for the sector and a gain of 15.9% for the S&P 500 [9]. Current Valuation - The industry is currently trading at an EV/EBITDA ratio of 4.24X, significantly lower than the S&P 500's 17.60X and the sector's 4.92X, indicating a potential undervaluation [12]. Stocks in Focus - **Par Pacific Holdings**: Operates an integrated energy platform with a refining capacity of 219,000 barrels per day and a market cap of $1.5 billion, showing a projected earnings growth of 394.6% for 2025 [15][16]. - **Galp Energia**: A Portuguese company with a market cap of $13.1 billion, producing over 100,000 barrels of oil equivalent per day, and a four-quarter average earnings surprise of 47.2% [18][19]. - **Marathon Petroleum**: A leading independent refiner with a market cap of $50 billion, known for strong cash flow generation and shareholder returns, with a recent earnings estimate increase of 8.5% for 2025 [21][22]. - **Phillips 66**: One of the largest independent refiners with nearly 2 million barrels per day of refining capacity, expected EPS growth rate of 15.5% over three to five years [24][25].
Phillips 66's Bayway Refinery in New Jersey Faces Production Outage
ZACKS· 2025-08-18 14:56
Company Overview - Phillips 66 (PSX) is a leading U.S.-based refining company that has reduced gasoline production at its Bayway refinery in Linden, NJ due to a fire incident [1][8] - The Bayway refinery has a production capacity of 258,000 barrels per day and is one of the largest fuel suppliers on the U.S. East Coast [1] Incident Details - A fire broke out in ancillary equipment of the fluid catalytic cracking unit (FCCU) at the Bayway refinery, which is essential for converting heavy crude oil into lighter products like gasoline [2] - The exact cause of the fire is currently unknown, but it has led to a production outage at the refinery [2] - The refinery plans to address the issue and restore full production in the coming days [2][8] Historical Context - The Bayway refinery experienced production disruptions last month due to a power outage caused by heavy rainstorms, which temporarily increased prices for refined products at the New York Harbor [3] - Given the refinery's significant role in the U.S. East Coast fuel supply, the current outage may similarly lead to a temporary spike in prices, depending on the duration of the production disruption [3]
Phillips 66: A Survived Proxy Fight And Growth
Seeking Alpha· 2025-08-17 12:34
Company Overview - Phillips 66 is a large refining company with a market capitalization of $50 billion [2] Recent Developments - The company has successfully navigated a contentious battle with Elliot Management, which was advised to be ignored by analysts [2] Investment Strategy - The Value Portfolio focuses on building retirement portfolios using a fact-based research strategy that includes extensive analysis of 10Ks, analyst commentary, market reports, and investor presentations [2]
Phillips 66: The Trajectory Is Improving
Seeking Alpha· 2025-08-15 11:00
Analyst's Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Over fifteen years of experience making contrarian bets based on my macro view and stock-specific turn ...
Trade Tracker: Phillips 66, Valero Energy, Marathon Petroleum and Baker Hughes
CNBC Television· 2025-07-29 18:03
Refiners Investment Strategy - The company is increasing exposure to refiners due to a seasonally strong period and the outperformance of reformulated gasoline and heating oil relative to crude oil [1][2] - Investment is spread across three refiner names: Phillips (PSX), Marathon Petroleum (MPC), and Valero (VLOO) to avoid isolating risk to a single company [3] Market Performance - Crude oil is down 5% year-to-date, while reformulated gasoline and heating oil prices are higher [2] - Baker Hughes' target price was raised by Morgan Stanley by $10, from $45 to $55 [3] - Baker Hughes is up 11% year-to-date [3] Baker Hughes' Strategy - Baker Hughes made an acquisition with Chart Industries to increase exposure to data centers and LNG [4] - Baker Hughes is diversifying away from oil and moving towards electricity [4]
Phillips 66(PSX) - 2025 Q2 - Quarterly Report
2025-07-28 18:07
[Part I – Financial Information](index=3&type=section&id=Part%20I%20%E2%80%93%20Financial%20Information) This section provides a comprehensive overview of the company's financial performance, position, and cash flows [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) The company's financial statements for Q2 2025 show decreased net income and revenues, increased assets, and reduced operating cash flow Consolidated Income Statement Highlights (Q2 2025 vs Q2 2024) | Metric | Q2 2025 (Millions) | Q2 2024 (Millions) | Change (%) | | :--- | :--- | :--- | :--- | | Sales and other operating revenues | $33,323 | $38,129 | -12.6 | | Net Income Attributable to Phillips 66 | $877 | $1,015 | -13.6 | | Diluted EPS | $2.15 | $2.38 | -9.7 | Consolidated Balance Sheet Highlights (As of June 30, 2025) | Metric | June 30, 2025 (Millions) | Dec 31, 2024 (Millions) | Change (%) | | :--- | :--- | :--- | :--- | | Total Current Assets | $21,076 | $17,910 | +17.7 | | Total Assets | $75,942 | $72,582 | +4.6 | | Total Current Liabilities | $19,685 | $15,087 | +30.5 | | Long-term debt | $17,200 | $18,231 | -5.7 | | Total Equity | $28,627 | $28,463 | +0.6 | Consolidated Cash Flow Highlights (Six Months Ended June 30) | Metric | 2025 (Millions) | 2024 (Millions) | Change (%) | | :--- | :--- | :--- | :--- | | Net Cash Provided by Operating Activities | $1,032 | $1,861 | -44.5 | | Net Cash Used in Investing Activities | ($1,143) | ($338) | +238.2 | | Net Cash Used in Financing Activities | ($523) | ($2,389) | -78.1 | [Notes to Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Notes detail significant events including refinery idling, major acquisitions and divestitures, and a substantial litigation accrual - The company announced the intention to cease operations at its Los Angeles Refinery in Q4 2025, resulting in accelerated depreciation of **$239 million** and **$485 million** for the three and six months ended June 30, 2025, respectively[23](index=23&type=chunk) - On April 1, 2025, the company acquired Coastal Bend, a midstream business, for **$2.2 billion**, net of cash acquired[24](index=24&type=chunk) - On January 31, 2025, the company sold its 49% interest in Coop Mineraloel AG, receiving cash proceeds of **$1.2 billion** and recognizing a before-tax gain of **$1 billion**[48](index=48&type=chunk) - A definitive agreement was signed to divest a 65% equity interest in the Germany and Austria retail marketing business for expected pre-tax cash proceeds of approximately **$1.6 billion**[140](index=140&type=chunk)[141](index=141&type=chunk) - As a result of a jury verdict in the Propel Fuels litigation, the company recorded an accrual of **$604.9 million** in Q3 2024[83](index=83&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=43&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Q2 2025 earnings decreased due to specific factors, while management focuses on strategic priorities including shareholder returns and business growth [Executive Overview and Business Environment](index=43&type=section&id=EXECUTIVE%20OVERVIEW%20AND%20BUSINESS%20ENVIRONMENT) Q2 2025 earnings and cash flow reported, with strategic priorities focusing on shareholder returns and business growth amidst mixed market conditions - The company's financial target aims to return greater than **50%** of net cash provided by operating activities to shareholders through dividends and share repurchases[151](index=151&type=chunk) - Strategic priorities include enhancing Refining segment returns and growing Midstream and Chemicals businesses, with a budgeted 2025 capital expenditure of **$2.1 billion** (excluding acquisitions)[150](index=150&type=chunk)[151](index=151&type=chunk) - Key market conditions in Q2 2025 included a decrease in the benchmark high-density polyethylene chain margin from **18.3** to **7.4 cents per pound** YoY, while the composite 3:2:1 market crack spread increased from **$18.96** to **$21.65 per barrel** YoY[155](index=155&type=chunk)[156](index=156&type=chunk) [Results of Operations](index=47&type=section&id=RESULTS%20OF%20OPERATIONS) Q2 2025 consolidated net income decreased due to lower Chemicals earnings and accelerated depreciation, partially offset by stronger Marketing and Refining results Income (Loss) Before Income Taxes by Segment (Q2 2025 vs Q2 2024) | Segment | Q2 2025 (Millions) | Q2 2024 (Millions) | Change (Millions) | | :--- | :--- | :--- | :--- | | Midstream | $731 | $767 | ($36) | | Chemicals | $20 | $222 | ($202) | | Refining | $359 | $302 | $57 | | Marketing and Specialties | $571 | $415 | $156 | | Renewable Fuels | ($133) | ($55) | ($78) | | Corporate and Other | ($428) | ($340) | ($88) | | **Total** | **$1,120** | **$1,311** | **($191)** | - The Midstream NGL business results increased by **$269 million** in Q2 2025, primarily due to the absence of a 2024 impairment charge and contributions from newly acquired Coastal Bend operations[181](index=181&type=chunk) - The Chemicals segment's income plummeted by **$202 million** in Q2 2025, driven by lower polyethylene margins due to decreased sales prices and higher feedstock costs[184](index=184&type=chunk) - The Refining segment's income increased by **$57 million** in Q2 2025, driven by improved realized margins and higher volumes, despite accelerated depreciation for the Los Angeles Refinery[191](index=191&type=chunk) - The Marketing and Specialties segment's income for the first six months of 2025 increased by **$1,072 million**, primarily due to a **$1 billion** pre-tax gain on the sale of the company's investment in Coop[196](index=196&type=chunk) [Capital Resources and Liquidity](index=57&type=section&id=CAPITAL%20RESOURCES%20AND%20LIQUIDITY) As of June 30, 2025, the company maintained strong liquidity, funding acquisitions and shareholder returns with $1.1 billion cash and $3.7 billion credit Key Financial Indicators | Indicator | June 30, 2025 (Millions) | Dec 31, 2024 (Millions) | | :--- | :--- | :--- | | Cash and cash equivalents | $1,052 | $1,738 | | Total debt | $20,935 | $20,062 | | Total equity | $28,627 | $28,463 | | Percent of total debt to capital | 42% | 41% | - In H1 2025, the company funded a **$2.2 billion** acquisition (Coastal Bend), paid **$956 million** in dividends, and repurchased **$666 million** of common stock[205](index=205&type=chunk)[237](index=237&type=chunk)[239](index=239&type=chunk) - The company amended its Accounts Receivable Securitization Facility, increasing its size from **$500 million** to **$1 billion**, which was fully utilized as of June 30, 2025[211](index=211&type=chunk)[213](index=213&type=chunk) Capital Expenditures and Investments (Six Months Ended June 30, 2025) | Segment | Capital Spending (Millions) | | :--- | :--- | | Midstream | $600 | | Refining | $324 | | Marketing and Specialties | $49 | | Renewable Fuels | $18 | | Corporate and Other | $19 | | **Total** | **$1,010** | [Quantitative and Qualitative Disclosures About Market Risk](index=78&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company states that its commodity price risk and interest rate risk at June 30, 2025, have not materially changed from prior disclosures - There were no material changes in commodity price risk or interest rate risk compared to the 2024 Annual Report[280](index=280&type=chunk) [Controls and Procedures](index=78&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were effective as of June 30, 2025, with no material changes in internal control over financial reporting - The Chairman and CEO, along with the EVP and CFO, concluded that the company's disclosure controls and procedures were effective as of June 30, 2025[281](index=281&type=chunk) - No changes in internal control over financial reporting occurred during the quarter that have materially affected, or are reasonably likely to materially affect, these controls[282](index=282&type=chunk) [Part II – Other Information](index=79&type=section&id=Part%20II%20%E2%80%93%20Other%20Information) This section provides updates on legal proceedings, risk factors, equity repurchases, and other general corporate information [Legal Proceedings](index=79&type=section&id=Item%201.%20Legal%20Proceedings) The company reported a new environmental enforcement action and material developments in the Propel Fuels litigation, including a significant jury verdict - A new enforcement action was commenced by the New Mexico Environment Department against DCP Operating Company, L.P. alleging violations at multiple gas plants and seeking a civil penalty over **$1 million**[287](index=287&type=chunk) - An update on the Propel Fuels litigation confirms a **$604.9 million** jury verdict and notes that motions for exemplary (treble) damages and for a new trial are expected to be ruled on in 2025[288](index=288&type=chunk) [Risk Factors](index=80&type=section&id=Item%201A.%20Risk%20Factors) The company reports that there have been no material changes from the risk factors previously disclosed in its 2024 Annual Report on Form 10-K - No material changes to risk factors were reported since the 2024 Annual Report on Form 10-K[291](index=291&type=chunk) [Issuer Purchases of Equity Securities](index=80&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) In Q2 2025, the company repurchased approximately 3.55 million shares for $395 million, with $2.85 billion remaining in the program Share Repurchases (Q2 2025) | Period | Total Shares Purchased | Average Price Paid per Share ($) | Total Cost (Approx. Millions) | | :--- | :--- | :--- | :--- | | April 2025 | 1,422,753 | $102.46 | $145.8 | | May 2025 | 1,136,882 | $114.89 | $130.6 | | June 2025 | 985,777 | $120.51 | $118.8 | | **Total** | **3,545,412** | **$111.46** | **$395.2** | - The company's share repurchase program, initiated in 2012, has an aggregate authorization of **$25 billion** and does not expire; as of June 30, 2025, approximately **$2.85 billion** remained available[292](index=292&type=chunk)[294](index=294&type=chunk) [Other Information](index=80&type=section&id=Item%205.%20Other%20Information) No directors or Section 16 officers adopted, modified, or terminated Rule 10b5-1 trading arrangements, and annual advisory votes on executive compensation will continue - No director or Section 16 officer entered into or modified a Rule 10b5-1 trading plan during the quarter ended June 30, 2025[295](index=295&type=chunk) - Following the 2025 Annual Meeting, the company will hold advisory votes on named executive compensation annually[296](index=296&type=chunk)