Phillips 66

Phillips 66 Company

Type	Public
Traded as	NYSE: PSX S&P 500 Component
Industry	Oil and gas
Predecessor(s)	Phillips Petroleum Company
Founded	Bartlesville, Oklahoma (1917 (1917))
Founder(s)	L.E. Phillips and Frank Phillips
Headquarters	Westchase, Houston, Texas
Key people	Greg Garland (Chairman and CEO)
Products	Refined oil products Chemicals
Services	Oil refining
Website	www.phillips66.com

Phillips 66 is a holding company created when ConocoPhillips spun off its downstream assets into the new company. Phillips 66 began trading on the New York Stock Exchange on May 1, 2012, under the ticker PSX. The company is engaged in producing natural gas liquids (NGL) and petrochemicals. It is led by Greg C. Garland, Chairman and CEO. The Phillips 66 is Headquartered in Westchase, Houston, Texas. The company has approximately 14,000 employees worldwide.

History

Beginning

The company that makes Phillips 66 gasoline began in 1917 as Phillips Petroleum Company, founded by L.E. Phillips and Frank Phillips of Bartlesville, Oklahoma. In 1927, the company's gasoline was being tested on U.S. Highway 66 in Oklahoma, and when it turned out that the car was going 66 mph (106 km/h), which was fast at the time, cementing the idea of "66", which was originally disliked, the company decided to name the new fuel Phillips 66.

The first Phillips 66 service station opened November 19, 1927, in Wichita, Kansas. The first station to be built in Texas was built in 1929 at McLean. Both of these stations have been preserved by local historical societies.

Logo

The Phillips 66 shield logo, created for its link to the highway of the same number, was introduced in 1930 in a black and orange color scheme that would last nearly 30 years. In 1959, Phillips introduced a revised version of the shield in red, white and black, a color scheme still used by Phillips 66 Company for the brand.

Old-fashioned Phillips 66 station in Bassett, Nebraska

From the late 1930s until the 1960s, Phillips employed registered nurses as "Highway Hostesses," who made periodic and random visits to Phillips 66 stations within their regions. The women inspected station restroom facilities to ensure they were well cleaned and stocked. The Highway Hostesses also served as ambassadors for the company by directing motorists to suitable dining and lodging facilities.

Motor oil

Phillips was among the first oil companies to introduce a multi-grade motor oil, TropArtic, in 1954. Such motor oils were designed to be used year-round in automobile engines, as opposed to single grades for which different grades of motor oils were recommended to meet weather variances.

Gas stations

Phillips also had gasoline stations in Canada's western provinces of Alberta, British Columbia, Manitoba, and Saskatchewan under the name Pacific 66 until the late 1970s. In 1946, Phillips purchased the Utah-based Wasatch Oil Co., bringing the Phillips 66 brand to the northern Rocky Mountain states and the far eastern portions of Oregon and Washington. In 1966, Phillips entered the West Coast market by purchasing Tidewater Oil Company's refining and marketing properties in that region and rebranding all Flying A distributorships and service stations to Phillips 66.

In 1967, Phillips became the nation's second oil company, after Texaco, to sell and market gasoline in all 50 states, by opening a Phillips 66 station in Anchorage, Alaska. However, Phillips' experiment in 50-state marketing was short-lived. The company withdrew from gasoline marketing in the northeastern U.S. in 1972 (although it has been returning; for example, there is a Phillips 66 in Westport, Connecticut and Hadley, Massachusetts), and sold the former Tidewater properties on the West Coast to The Oil & Shale Corporation (Tosco) in 1976. Today, Phillips 66 primarily operates in the Midwest and Southwest, evidenced by its sponsorship of the Big 12 Men's Basketball Tournament dating back to its Big Eight days.

Mergers

Phillips purchased Tosco, which included Circle K convenience stores and Union 76 gasoline, in 2000. The 76 brand, long familiar in the western and southern U.S., was created by Union Oil Company of California (later Unocal) in 1932.

In 2002, Phillips merged with Conoco to form ConocoPhillips. The merged company marketed gasoline and other products under the Phillips 66, Conoco and 76 brands, and continues to do so as Phillips 66 Company. Phillips 66 Company licenses the Phillips 66 brand to Suncor Energy for its Phillips 66 branded stations in Colorado.

Marketing

The advertising slogan from circa 1973 until the ConocoPhillips merger was "The Performance Company," promoting not only the performance of Phillips 66 gasoline and other petroleum products, but also innovations with asphaltic materials, fertilizers and other non-automotive products. Other slogans through the years have included: "Go first-class... go Phillips 66", "The gasoline that won the West", "Good things for cars and the people who drive them", "Hard working gas", and "At Phillips 66, it's performance that counts". Their current slogan (July 2011) is "Experts in gas since 1927".

Phillips 66 also was a long-time supporter of PBS programming for most of the 1980s. It provided funding for shows such as: A.M. Weather, The Search for Solutions, and Onstage with Judith Somogi.

Spin-off

In 2012, Phillips 66 was spun-off from ConocoPhillips.

Operations

In the United States, the company operates Conoco, Phillips 66 and (Union) 76 stations. In Europe, ConocoPhillips operates Jet filling stations in Austria, Denmark, Germany, Sweden and the United Kingdom. It sold its Jet stations in Belgium, the Czech Republic, Finland, Hungary, Poland and Slovakia to its Russian affiliate, Lukoil. It uses the COOP identity in Switzerland. The company is the fourth largest finished lubricants supplier in the United States.

Phillips 66 owns 15 refineries with a net crude oil capacity of 2.2 million barrels per day (350×10^³ m³/d), 10,000 branded marketing outlets, and 15,000 miles (24,000 km) of pipelines. It has 50% stake in DCP Midstream, LLC, a natural gas gatherers and processors with 7.2 billion cubic feet per day (200×10^⁶ m³/d) of processing capacity. It also owns 50% stake in Chevron Phillips Chemical Company.

Refineries

Country	Name	Location	Nelson Complexity Factor	Crude Oil Processing Capacity (MBD)
	Wood River Refinery	Roxana, IL	9.8	305
	Alliance Refinery	Belle Chasse, LA	12.0	247
	Sweeny Refinery	Old Ocean, TX	13.2	247
	Bayway Refinery	Linden, NJ	8.5	238
	Lake Charles Refinery	Westlake, LA	10.2	239
	Ponca City Refinery	Ponca City, OK	9.8	187
	Borger Refinery*	Borger, TX	12.3	73
	Los Angeles Refinery	Carson/Wilmington, CA	14.1	139
	San Francisco Refinery	Rodeo, CA/Arroyo Grande, CA	13.6	120
	Ferndale Refinery	Ferndale, WA	7.4	100
	Billings Refinery	Billings, MT	14.3	58
	Humber Refinery	North Lincolnshire	11.6	221
	Whitegate Refinery	Cork	3.8	71
	Melaka Refinery	Melaka	9.8	76
	MIRO Refinery*	Karlsruhe	7.9	58

* Denotes joint ventures. Crude capacity reflects that proportion.

Sources (Mar 31, 2011)

Corporate affairs

In 2012, after Phillips 66 split from ConocoPhillips, it moved its operations from the ConocoPhillips headquarters to the Pinnacle Westchase building, a 9 story Class A office building located on 8.4 acres (3.4 ha) of land in Westchase, Houston. This is a temporary headquarters location.

Phillips 66 announced it will construct a new permanent headquarters on a 14-acre (5.7 ha) plot of land in Westchase. The new headquarters will be between Westheimer Road and Briar Forest, in close proximity to the Sam Houston Tollway. Phillips 66 had purchased the land from a subsidiary of Thomas Properties Group. The company did not disclose when it plans to begin construction. The new headquarters will include conference spaces, food service facilities, a gymnasium, and training facilities.

External links

• Phillips 66 Official Web Site
• Investor Update with Phillips 66 Business Prospects April, 2012
• Independent Business Analysis of Phillips 66
• Phillips 66 Corporate Overview