Phillips 66 CEO Mark Lashier on Q3 results, refining capacity and oil price trends

Financial Performance - Philip 66's earnings reached $250%, equivalent to $052 per share, exceeding expectations of $217% [1] - The company achieved 99% capacity utilization in refining during the quarter [1] - Net operating cash flow for the quarter was $12 billion [1] - Realized margin rose to $1215 per barrel, up from $831 a year earlier [4] Operational Efficiency and Cost Management - The company has reduced costs by $1 per barrel over the past few years [4] - Enhanced utilization and record yields have been achieved, with costs consistently decreasing [5][6] - Disciplined execution and thoughtful investments have contributed to improved performance [2][3] Market Dynamics and Strategy - Refining capacity is tightening as global demand increases, which is constructive for refiners [7] - The company focuses on putting the lowest cost, highest value crudes into its refineries [9] - The company is committed to providing energy and improving lives in California [14] - Peak oil is not considered a real thing, and there are expected to be plenty of hydrocarbons for decades to come [17] California Operations - The Los Angeles refinery stopped crude oil processing recently and will be idled for redevelopment [9][10] - Operating refineries in California is more expensive and it's more difficult to access the right crude oils [13] - A new pipeline with Kinder Morgan is being considered to bolster delivery of refined product to the West Coast [12]