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Profile: Phillips 66 (PSX)

PSX on New York Consolidated

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22 Jul 2016
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Phillips 66, incorporated on November 10, 2011, is an energy manufacturing and logistics company with midstream, chemicals, refining and marketing, and specialties businesses. The Company operates its business through four segments: Midstream, Chemicals, Refining, and Marketing and Specialties (M&S).

Midstream

The Company gathers, processes, transports and markets natural gas, and transports, fractionates and markets natural gas liquids (NGLs) in the United States. In addition, this segment also transports crude oil and other feedstocks to its refineries and other locations, and delivers refined and specialty products to market, and provides storage services for crude oil and petroleum products. The Midstream segment includes, among other businesses, the Company's equity investment in DCP Midstream , LLC (DCP Midstream) and its investment in Phillips 66 Partners LP. The Midstream segment consists of three business lines: Transportation, DCP Midstream and NGL.

The transportation business line transports crude oil and other feedstocks to its refineries and other locations, and delivers refined and specialty products to market, and provides storage services for crude oil and petroleum products. The operations of its master limited partnership, Phillips 66 Partners LP, are included in the transportation business line. The DCP Midstream business line gathers, processes, transports and markets natural gas, and transports, fractionates and markets NGL.

The Company owns or leases assets to provide delivery and storage of crude oil, refined products, natural gas and NGL. These assets include pipeline systems; petroleum product, crude oil and liquefied petroleum gas (LPG) terminals; a petroleum coke handling facility; marine vessels, and railcars and trucks. Its transportation business manages over 18,000 miles of crude oil, natural gas, NGL and petroleum products pipeline systems in the United States, including those partially owned or operated by affiliates. The Company owns or operates over 40 finished product terminals, 40 storage locations, five LPG terminals, 20 crude oil terminals and one petroleum coke exporting facility. It has interest in Rockies Express Pipeline LLC (REX). The REX natural gas pipeline runs over 1,710 miles from Meeker, Colorado, to Clarington, Ohio, and has a natural gas transmission capacity of over 1.8 billion cubic feet per day (BCFD), with most of its system having a pipeline diameter of over 40 inches. The REX pipeline is designed to enable natural gas producers in the Rocky Mountain region to deliver natural gas supplies to the Midwest and eastern regions of the United States.

The Company owns a limited partner interest in Phillips 66 Partners, which is a master limited partnership formed to own, operate, develop and acquire primarily fee-based crude oil, refined petroleum product and NGL pipelines and terminals, as well as other transportation and midstream assets. Phillips 66 Partners' assets consist of crude oil and refined petroleum product pipeline, terminal, rail rack and storage systems in the Central, Gulf Coast, Atlantic Basin and Western regions of the United States. Its vessels are used primarily to transport feedstocks or provide product transportation for certain of its refineries, including delivery of domestic crude oil to its Gulf Coast and East Coast refineries. Truck and rail operations support the Company's feedstock and distribution operations. Rail movements are provided via a fleet of over 12,300 owned and leased railcars. Truck movements are provided through approximately 170 third-party truck companies, as well as through Sentinel Transportation LLC, in which the Company holds an equity interest.

Midstream segment includes the Company's equity investment in DCP Midstream. DCP Midstream owns or operates over 64 natural gas processing facilities, with a net processing capacity of approximately 8.0 BCFD. DCP Midstream's owned or operated natural gas pipeline systems include gathering services for these facilities, as well as natural gas transmission, and totaled approximately 68,000 miles of pipeline. DCP Midstream also owns or operates over 10 NGL fractionation plants, along with natural gas and NGL storage facilities, a propane wholesale marketing business and NGL pipeline assets. The residual natural gas, primarily methane, which results from processing raw natural gas, is sold by DCP Midstream at market-based prices to marketers and end users, including industrial companies, natural gas distribution companies and electric utilities.

The Company's NGL business includes its equity interest in Gulf Coast Fractionators, which owns an NGL fractionation plant in Mont Belvieu, Texas. The Company has equity interest in a fractionation plant in Mont Belvieu, Texas, and its net share of capacity is over 30,250 barrels per day. The Company has equity interest in a fractionation plant in Conway, Kansas, and the Company's net share of capacity is approximately 43,200 barrels per day. It also has one-third interest in both the DCP Sand Hills and DCP Southern Hills pipeline entities, connecting Eagle Ford, Permian and Midcontinent production to the Mont Belvieu, Texas market.

Chemicals

The Chemical segment manufactures and markets petrochemicals and plastics. The Chemicals segment consists of its equity investment in Chevron Phillips Chemical Company LLC (CPChem). CPChem's business is structured around two primary operating segments: Olefins and Polyolefins (O&P) and Specialties, Aromatics and Styrenics (SA&S). The O&P segment produces and markets ethylene and other olefin products; the ethylene produced is primarily consumed within CPChem for the production of polyethylene, normal alpha olefins and polyethylene pipe. The SA&S segment manufactures and markets aromatics products, such as benzene, styrene, paraxylene and cyclohexane, as well as polystyrene and styrene-butadiene copolymers. SA&S also manufactures and/or markets a range of specialty chemical products, including organosulfur chemicals, solvents, catalysts, drilling chemicals and mining chemicals. CPChem, including through its subsidiaries and equity affiliates, has manufacturing facilities located in Belgium, China, Colombia, Qatar, Saudi Arabia, Singapore, South Korea and the United States.

Refining

The refining segment buys, sells and refines crude oil and other feedstocks into petroleum products (such as gasolines, distillates and aviation fuels) at over 15 refineries, mainly in the United States and Europe. The Bayway Refinery is located on the New York Harbor in Linden, New Jersey. Bayway refining units include a fluid catalytic cracking unit, over two hydrodesulfurization units, a naphtha reformer, an alkylation unit and other processing equipment. The refinery produces a high percentage of transportation fuels, such as gasoline, diesel and jet fuel, as well as petrochemical feedstocks, residual fuel oil and home heating oil. The complex also includes an approximately 775-million-pound-per-year polypropylene plant.

The Humber Refinery is located on the east coast of England in North Lincolnshire, the United Kingdom. It produces a high percentage of transportation fuels, such as gasoline, diesel and jet fuels. Humber's facilities encompass fluid catalytic cracking, thermal cracking and coking. This refinery has over two coking units with associated calcining plants, which upgrade the heaviest part of the crude barrel and imported feedstocks into light oil products and graphite and anode petroleum cokes. Approximately 60% of the light oils produced in this refinery are marketed in the United Kingdom, while the other products are exported to the rest of Europe, West Africa and the United States.

The Whitegate Refinery is located in Cork, Ireland. This refinery produces transportation fuels, such as gasoline, diesel and fuel oil, which are distributed to the inland market, as well as being exported to international markets. The Mineraloelraffinerie Oberrhein GmbH (MiRO) refinery, located on the Rhine River in Karlsruhe in southwest Germany, is a joint venture in which the Company owns interest. Facilities include over three crude unit trains, fluid catalytic cracking, petroleum coking and calcining, hydrodesulfurization, naphtha reformer, isomerization, ethyl tert-butyl ether and alkylation units. MiRO also produces a high percentage of transportation fuels, such as gasoline and diesel fuels. Other products include petrochemical feedstocks, home heating oil, bitumen and anode- and fuel-grade petroleum coke. Refined products are delivered to customers in southwest Germany, northern Switzerland and western Austria by truck, railcar and barge.

The Alliance Refinery is located on the Mississippi River in Belle Chasse, Louisiana. The single-train facility includes fluid catalytic cracking units, alkylation, delayed coking, hydrodesulfurization units, a naphtha reformer and aromatics unit. Alliance produces a high percentage of transportation fuels, such as gasoline, diesel and jet fuels. Other products include petrochemical feedstocks, home heating oil and anode-grade petroleum coke.

The Lake Charles Refinery is located in Westlake, Louisiana. Its facilities include fluid catalytic cracking, hydrocracking, delayed coking and hydrodesulfurization units. The refinery produces a high percentage of transportation fuels, such as low-sulfur gasoline and off-road diesel, along with home heating oil. The majority of its refined products are distributed by truck, railcar, barge or major common carrier pipelines to customers in the southeastern and eastern United States. Refined products can also be sold into export markets through the refinery's marine terminal. Refinery facilities also include a specialty coker and calciner, which produce graphite petroleum coke for the steel industry.

The Sweeny Refinery is located in Old Ocean, Texas, approximately 65 miles southwest of Houston. Refinery facilities include fluid catalytic cracking, delayed coking, alkylation, a naphtha reformer and hydrodesulfurization units. The refinery receives crude oil primarily via tankers, through wholly and jointly owned terminals on the Gulf Coast, including a deepwater terminal at Freeport, Texas. It produces a high percentage of transportation fuels, such as gasoline, diesel and jet fuels. Other products include petrochemical feedstocks, home heating oil and fuel-grade petroleum coke.

Merey Sweeny, L.P. (MSLP) owns a delayed coker and related facilities at the Sweeny Refinery. MSLP processes long residue, which is produced from heavy sour crude oil, for a processing fee. Fuel-grade petroleum coke is produced as a by-product and becomes the property of MSLP. The Company is the operator and managing partner of WRB Refining LP (WRB), which consists of the Wood River and Borger refineries. WRB's gross processing capability of heavy Canadian or similar crudes ranges between 235,000 and 255,000 barrels per day. The Company's other refineries include Ponca City Refinery, Billings Refinery, Ferndale Refinery, Los Angeles Refinery and San Francisco Refinery.

Marketing and Specialties

The Marketing and Specialties segment purchases for resale and markets refined petroleum products (such as gasolines, distillates and aviation fuels), mainly in the United States and Europe. In addition, this segment includes the manufacturing and marketing of specialty products (such as base oils and lubricants), as well as power generation operations. The Company markets gasoline, diesel and aviation fuel through approximately 8,350 marketer-owned or -supplied outlets in over 50 states of the United States. Its wholesale operations utilize a network of marketers operating approximately 6,700 outlets. In addition, the Company holds brand-licensing agreements with approximately 800 sites. In addition to automotive gasoline and diesel, the Company produces and markets jet fuel and aviation gasoline, which is used by smaller piston-engine aircraft. Aviation gasoline and jet fuel were sold through dealers and independent marketers at approximately 850 Phillips 66-branded locations in the United States.

The Company has marketing operations in over five European countries. The Company uses the JET brand name to market retail and wholesale products in Austria, Germany and the United Kingdom. In addition, a joint venture in which the Company has an equity interest markets products in Switzerland under the Coop brand name. The Company also markets aviation fuels, LPG, heating oils, transportation fuels, marine bunker fuels, bitumen and fuel coke specialty products to commercial customers and into the bulk or spot markets in Austria, Germany, the United Kingdom, Switzerland and Ireland. In addition, through its joint venture operations in Switzerland, the Company has interests in over 295 additional sites.

The Company manufactures and sells a range of specialty products, including petroleum coke products, waxes, solvents and polypropylene. It markets graphite and anode-grade petroleum cokes in the United States and Europe for use in the global steel and aluminum industries. It also markets polypropylene in North America under the COPYLENE brand name. The Company own an interest in Excel Paralubes, a joint venture, which owns a hydrocracked lubricant base oil manufacturing plant located adjacent to the Lake Charles Refinery. This facility produces approximately 22,000 barrels per day of hydrocracked base oils.

The Company manufactures and sells automotive, commercial and industrial lubricants, which are marketed under the Phillips 66, Conoco, 76 and Kendall brands, as well as other private label brands. It also markets Group II Pure Performance base oils globally, as well as import and market Group III Ultra-S base oils through an agreement with Korea's S-Oil corporation. It has interests in Sweeny Cogeneration, L.P., which owns a cogeneration power plant located adjacent to the Sweeny Refinery. The plant generates electricity and provides process steam to the refinery, as well as merchant power into the Texas market. The plant has a net electrical output of approximately 440 megawatts and is capable of generating over 3.6 million pounds per hour of process steam.

Company Address

Phillips 66

3010 Briarpark Dr
HOUSTON   TX   77042-3706
P: +1281.2936600
F: +1302.6365454

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