Investor Conferences at Phillips 66

From Researchandideas
Jump to: navigation, search
Logo of Phillips 66. “We are standing on the shoulders of giants,” said Phillips 66 CEO Greg Garland. “People like E. W. Marland, who started Marland Oil in 1911, and Frank and L. E. Phillips that started Phillips Petroleum in 1917. I could go on and on and list the giants that have come before us that have so well positioned this company for the success that we enjoy today.”[1] Photo: ConocoPhillips
The 587 foot tall Mammoet PTC 140 crane, seen here from North First Street, towers over the refinery in Ponca City, Oklahoma built by E. W. Marland. The crane was used to move two new coker reactor units within the refinery in September, 2013. The photograph was taken from almost two miles away from the crane. Photo: Hugh Pickens All Rights Reserved.
A photo of Marland Refinery in Ponca City in 1921. By 1921 EW Marland had consolidated all of his oil operations under the auspices of the Marland Oil Company. Headquartered in Ponca City the firm continued its phenomenal growth pattern by absorbing numerous small oil companies including the Comar Oil Company, Tom Jones Oil Company, Kenney-Cleary Oil Company, Francoma Oil Company, John S. Alcorn Oil Company, and many others whose highly competent executives Marland's company usually retained. Photo: Oklahoma Historical Society

Contents

Investor Conferences

April 10, 2014: Phillips Presents at Phillips 66 Analyst Meeting

Phillips reported that Greg Garland, Clayton Reasor, Tim Taylor, and Greg Maxwell presented at an Analyst Meeting on April 10, 2014. "Part of our vision is to double the enterprise value of our Company based upon its historical implied value, said Garland. "We were thoughtful, we are very purposeful in how we structured Phillips 66 from the very beginning and the assets that went into the Company. We believe that our four main business segments are more valuable together than they would be separated, and we do test that continually. We think that we access lower cost of capital. We think that, looking across the value chain, that we can optimize. We can direct capital to its highest and most best use. And then finally, we can grow quicker."[2]

March 6, 2014: Phillips 66 presents at Bank of America Merrill Lynch 2014 Refining Conference

Phillips reported that Clayton Reasor and Greg Maxwell presented at Bank of America Merrill Lynch 2014 Refining Conference on March 6, 2014. "We’ve got two very good refineries on the West Coast – one in San Francisco, one in L.A. – about 230,000 barrels a day of total capacity, 110,000 barrels a day of coking capacity. They are positive cash flow, they are positive net income," said Reasor. "Capital requirements aren’t that significant. So those refineries are well positioned, but they’re generating single-digit returns and struggle as far as attracting capital. We’ve talked about how to improve performance in California, and for us, it’s around increasing the amount of advantaged crude, so how do we find ways of getting Canadian crude into California? We’re in the comment period right now at Santa Maria, a 30,000 or 35,000-barrel-a-day unit train rail unloading facility, and hopefully that will be permitted. We’re also looking at other things in California to improve the performances of those businesses. But for us, we believe California will struggle being competitive in the export market, given the costs there and the lack of advantaged crudes, and longer term, we look at California and wonder if it’s something that we need to continue to own in order to grow our chemicals industry business."[3]

February 12, 2014: Phillips presents at Credit Suisse Energy Summit

Phillips reported that Greg Garland Clayton Reasor presented at the Credit Suisse Energy Summit on February 12, 2014. Garland told security analysts that the Refining Business Segment is always is going to be a very volatile business for Phillips. "We don't see that changing in the future. I think small changes in operating rates in infrastructure are going to create dislocations. I think having a large system like we have, having a very sophisticated and large commercial organization like we have, we're going to be able to take advantage of those opportunities that come our way."[4]

August 29, 2013: Phillips presents at Barclays CEO Energy-Power Conference

Phillips reported that Greg Garland presented at Barclays CEO Energy-Power Conference on August 29, 2013. "It's going to be an energy century as you think about it; it's going to be a century of opportunity," said Garland. "We're very optimistic about the growth in U.S. manufacturing as people see $3.50 natural gas; they're looking at 8% unemployment. They see the investment that the industry is making in infrastructure and petrochemical facilities and etc. And we think at Phillips 66 we're extremely well-positioned to play our part in this changing American energy landscape and that we can be one of the premier companies in this space in terms of creating jobs, capturing value, providing energy and improving lives."[5]

May 21, 2013: Phillips Presents at UBS Global Oil & Gas Conference

Phillips reported that Greg Maxwell presented at the UBS Global Oil & Gas Conference on May 21, 2013. "We can run some lights in San Francisco. As far as working towards getting advantaged crudes into that, we're looking at options to take down via pipeline -- I mean via rail cars, and then also going over to the waterfront and barging down into those refineries," said Maxwell. "With regard to San Francisco and LA, land is expensive and short to come by. We have to do some permitting. And then also, bringing it in via tankers, we have to get some permitting as well. So all that's underway."[6]

May 15, 2013: Phillips Presents at the Citi Global Energy and Utilities Conference

Phillips reported that Tim Taylor and Greg Maxwell presented at the Citi Global Energy and Utilities Conference on May 15, 2013. "Rail for us is a relatively minor percentage of our total movement, and so we look at rail as a mobile pipeline," said Taylor at the conference. "And clearly today some of the northern plays are more oriented toward rail versus the access that you have by pipe in the southern part of the U.S. So I see rail as playing a role, but we still like pipelines. It’s more economical. But there is a lot of flexibility in rail, so I think rail continues to be a piece, but it’s not going to become the dominant mode or the primary focus."[7]

March 18, 2013: Phillips Presents at the Howard Weil 41st Annual Energy Conference

Phillips reported that they presented at the Howard Weil 41st Annual Energy Conference on March 18, 2013.[8]

February 28, 2013: Phillips to Present at Bank of America Merrill Lynch 2013 Refining Conference on March 7

The Fort Mills Times reports that Larry Ziemba, executive vice president, Refining, Project Development and Procurement of Phillips 66 will speak at the Bank of America Merrill Lynch 2013 Refining Conference in New York on Thursday, March 7 to discuss the company’s plans to enhance refining returns, as well as its overall strategy for growth and value creation.[9]

February 5, 2013: Taylor Tells Credit Suisse Energy Summit That Canadian Crude is Being Transported to California Refineries

Reuters reported on February 5, 201 that Tim Taylor, Phillips executive vice president for commercial, marketing, transportation and business development, told the Credit Suisse energy conference that Phillips has begun moving cut-price Canadian crude to its California refineries at Los Angeles and San Francisco via rail. "We're beginning to deliver Canadian crude to our California refineries by rail," said Taylor. Garland told Reuters on January 30, 2013 that Phillips was looking at coiled tube cars that are suited to bitumen in Canada's heavy oil deposits that must be heated in order to flow.[10]

January 22, 2013: Phillips 66 to Present at Credit Suisse Energy Summit on February 5, 2013

Daily Finance reported on January 22, 2013 that Tim Taylor, executive vice president, Commercial, Marketing, Transportation and Business Development of Phillips 66 will speak to investors and securities analysts at the Credit Suisse Energy Summit in Vail, Colo. on February 5, 2013 to discuss the company's strategy to enhance refining returns, grow midstream infrastructure and chemicals capacity, and increase distributions to shareholders.[11]

December 13, 2012: Phillips Announces 2013 Capital Program at Inaugural Analyst Meeting

Phillips reported on Decmeber 13, 2012 that they had hosted their inaugural Analyst Meeting in New York to discuss their capital program of $3.7 billion for 2013, a 6 percent increase over the $3.5 billion capital spend for 2012, and how it will to enhance returns, deliver profitable growth and increase distributions to shareholders.[12]

November 27, 2012: Greg Garland to Host Inaugural Analyst Meeting on December 13

Marketwatch reported on November 27, 2012 that Greg Garland and other executives at Phillip 66 will discuss the company's strategic objectives, including its plans to enhance returns, grow profitably and increase shareholder distributions at an Inaugural Analyst Meeting in New York on December 13, 2012.

November 13, 2012: Tim Taylor Presents at Bank of America Merrill Lynch 2012 Global Energy Conference

4-traders reported on November 5, 2013 that Tim G. Taylor, executive vice president, Commercial, Marketing, Transportation and Business Development of Phillips 66 spoke to investors and securities analysts at the Bank of America Merrill Lynch 2012 Global Energy Conference in Miami, Fla. on November 13, 2012 with an overview of the company and its strategic initiatives.[13]

September 5, 2012: Garland Speaks at Barclays CEO Energy-Power Conference

Phillips 66 reported that Phillips CEO Greg C. Garland spoke to investors and securities analysts at the 2012 Barclays CEO Energy-Power Conference in New York on September 5, 2012 to discuss Phillips 66's business portfolio and provide an update on the company's strategic progress.[14]

August 22, 2012: Garland to Speak at Barclays CEO Energy-Power Conference on September 5

Marketwatch reported on August 22, 2012 that Phillips CEO Greg C. Garland will speak to investors and securities analysts at the 2012 Barclays CEO Energy-Power Conference in New York on September 5, 20120 to discuss Phillips 66's business portfolio and provide an update on the company's strategic progress.[15]

June 5, 2012: Garland Presents Phillips Strategy for Growth to the Citi Global Energy Conference

On June 5, 2012 Phillips CEO Greg Garland presented to the Citi Global Energy Conference and said Phillips has a clear strategy for growth and improving returns.[16]

Refining and Marketing Strategy

Garland said Phillips is kind of an average performer in terms of returns on Refining and Marketing with a 12% ROCE in this business, but the expectation is thatthis can be improved to a 15% ROCE business over the cycle. "The R&M business for us is a run well, optimized business. You won’t see us adding capacity. You will see us investing around the infrastructure to put more advantaged crude to the front end of the refineries and to be able to export."[17]

There is another way Phillips would like to improve returns in the refining business and that is by getting advantaged crude to the front end of the refineries. "Today we can process about 500,000 barrels a day of TI-related and about 100,000 barrels a day of shalerelated crudes. If you think about the mid-con, we think there’s about 2 million barrels a day of new light sweet crude coming on in the central part of the US. Then you’ve got another couple million barrels a day of the Canadian heavy that’s ultimately going to make its way down through the midcontinent and ultimately, we believe to the Gulf Coast. And so every dollar that we can capture across our system is worth about $500 million of net income to us." So Phillips is going to go around pipelines and is considering buying a couple thousand more rail cars to get Bakken crude either east and west. "We’re running about 100,000 barrels a day of these shales today and we think we can easily in the next year or two move another 120-150,000 barrels a day of incremental crude through rail. Plus as these pipeline solutions become more available and ready, we’ll capture those opportunities. But ultimately, we can process about 500,000 barrels a day of these shale-type crudes."[18]

Phillips also wants to increase yields in the refineries. "Every one percent clean product yield is worth somewhere between $100 to $150 million of net income. For every one percent diesel yield, we can increase, in today’s market is the capture of about $60 million in net income. In the first quarter we ran about 41% diesel, which is really the highest of the peer group if you look out there. And so we’re pretty comfortable that we can continue to tweak the operations in refineries and to eke out a couple more percentage points in clean product yields and continue to push our diesel yields up without significant investment at this point in time.[19]

When asked a question about rationalizing refining capacity by closing down plants Garland said it is difficult to shut refineries down. "Mostly because you think about the environmental liabilities that have accrued over the years. So it takes a lot of money to actually exit one of these facilities. And so that’s what you see people convert them to other uses, terminals, etcetera. So they tend to find another life in some shape or form to avoid the remediation that comes along with completely clearing, closing, shutting down and remediating the whole facility."[20]

Midstream Strategy

Garland said there are s large opportunities in terms of midstream investment in gas gathering and processing, NGL fractionation, and distribution and that Phillips has a a very aggressive investment profile in the midstream space. "We have about $7 billion of projects identified, underway in this space and so you think at the DCP JV level spending kind of $500 million a year, historical capex, we’re moving that up to about $2 billion a year," said Garland. "We also have our own embedded midstream business within Phillips 66. It’s primarily pipelines and ownership in fractionators at Conway, Borger, and Belvieu. Good business generates good returns for us in a growth area for us and we would consider growth in this area around fractionation, around LPG exports."[21]

Chemical Strategy

Garland says the NGLs that are coming on over the next 10 years are going to be feedstocks for the petrochemicals business and that the Joint Venture with Chevron is well positioned for that.[22]

June 5, 2012: Garland Presents to Investors at Citi Global Energy Conference

On May 29, 2012 Phillips 66 announced that CEO Greg Garland will speak to investors and securities analysts on June 5, 2012 at the 2012 Citi Global Energy Conference partipating n a roundtable discussion, providing a brief company overview and engaging in Q&A with investors.[23]

May 24, 2012: Clayton Reasor Presents to UBS Global Oil and Gas Conference

On May 17, 2012 Phillips 66 announced that Clayton Reasor, Phillips 66 senior vice president for Investor Relations, Strategy and Corporate Affairs, will speak to investors and securities analysts on May 24, 2012 at the UBS Global Oil and Gas Conference in Austin, Texas about Phillips 66's strategic priorities, including plans for growth and returns enhancement.[24]

Master Index for Phillips 66 Articles

References

  1. Bartlesville Examiner-Enterprise. "Phillips 66 CEO praises city" by Kelcey King. August 28, 2008.
  2. Phillips 66. "Analyst Meeting" April 10, 2014.
  3. Phillips 66. "Bank of America Merrill Lynch 2014 Refining Conference" March 6, 2014.
  4. Phillips 66. "Credit Suisse Energy Summit" February 12, 2014.
  5. Phillips 66. "Barclays CEO Energy-Power Conference" August 29, 2013.
  6. Phillips 66. "UBS Global Oil & Gas Conference" May 21, 2013.
  7. Phillips 66. "Citi Global Energy and Utilities Conference" May 15, 2013.
  8. Phillips 66. Slide Presentation at the Howard Weil 41st Annual Energy Conference
  9. Fort Mills Times. "Phillips 66 to Present at Bank of America Merrill Lynch 2013 Refining Conference" February 28, 2013.
  10. Reuters. "UPDATE 1-Phillips 66 moving some Canadian crude to Calif. refineries" by Kristen Hays. February 5, 2013.
  11. Daily Finance. "Phillips 66 to Present at Credit Suisse Energy Summit" January 22, 2013.
  12. Phillips 66. "Phillips 66 Announces 2013 Capital Program and Intent to Form MLP" December 13. 2012.
  13. 4-traders. "Phillips 66: to Present at Bank of America Merrill Lynch 2012 Global Energy Conference" November 5, 2012.
  14. Phillips 66. "2012 Barclays CEO Energy-Power Conference" presented by Phillips CEO Greg Garland. September 5, 2012.
  15. Marketwatch. "Phillips 66 to Present at Barclays CEO Energy-Power Conference" August 22, 2012.
  16. Phillips 66. "Greg Garland's 2012 Presentation to the Citi Global Energy Conference" June 5, 2012.
  17. Phillips 66. "Greg Garland's 2012 Presentation to the Citi Global Energy Conference" June 5, 2012.
  18. Phillips 66. "Greg Garland's 2012 Presentation to the Citi Global Energy Conference" June 5, 2012.
  19. Phillips 66. "Greg Garland's 2012 Presentation to the Citi Global Energy Conference" June 5, 2012.
  20. Phillips 66. "Greg Garland's 2012 Presentation to the Citi Global Energy Conference" June 5, 2012.
  21. Phillips 66. "Greg Garland's 2012 Presentation to the Citi Global Energy Conference" June 5, 2012.
  22. Phillips 66. "Greg Garland's 2012 Presentation to the Citi Global Energy Conference" June 5, 2012.
  23. TheStreet.com "Phillips 66 To Participate In Citi Global Energy Conference" May 29, 2012.
  24. Marketwatch. "Phillips 66 to Present at UBS Global Oil and Gas Conference" May 17, 2012.

About the Author

Hugh Pickens

Hugh Pickens (Po-Hi '67) is a physicist who has explored for oil in the Amazon jungle, crossed the empty quarter of Saudi Arabia, and built satellite control stations for Goddard Space Flight Center all over the world. Retired in 1999, Pickens and his wife moved from Baltimore back to his hometown of Ponca City, Oklahoma in 2005 where he cultivates his square foot garden, mows nine acres of lawn, writes about local history and photographs events at the Poncan Theatre and Ponca Playhouse.

Since 2001 Pickens has edited and published “Peace Corps Online,” serving over one million monthly pageviews. His other writing includes contributing over 1,500 stories to “Slashdot: News for Nerds,” and articles for Wikipedia, “Ponca City, We Love You”, and Peace Corps Worldwide.

Articles about Ponca City

Other Writing

Updates to the Web Site

This web page is frequently updated so check back periodically to see the latest information or subscribe to the rss feed for this article. If you have any information or insights that you would like to see added to this report please contact Hugh Pickens by email at hughpickens AT gmail DOT com.

Copyright

The material in this article is licensed under under the Creative Commons under an Attribution-Noncommercial-Share Alike 2.0 Generic license. Except for short, fair use excerpts, the material on this article cannot be used for commercial purposes without permission of Hugh Pickens. Attribution for use of any material from this article must be provided to Hugh Pickens and if used on the web a link must be provided to http://hughpickens.com.

Personal tools