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Phillips 66

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Phillips 66 Company
Company typePublic
IndustryOil and gas
Predecessors
FoundedJune 13, 1917; 107 years ago (1917-06-13)
Ponca City, Oklahoma, U.S.
Bartlesville, Oklahoma, U.S.
May 1, 2012; 12 years ago (2012-05-01)
Houston, Texas, U.S.
FoundersL.E. Phillips
Frank Phillips
HeadquartersWestchase, Houston, Texas, U.S.
Area served
Worldwide
Key people
Greg Garland
(Chairman and CEO)
ProductsNatural gas
Petrochemicals
Aviation fuels
Motor fuels
Lubricants
ServicesOil refining
Service Stations
RevenueIncreaseUS$ 102.354 billion (2017)[1]
Increase US$ 1.838 billion (2017)[1]
Increase US$ 5.106 billion (2017)[1]
Total assetsIncrease US$ 54.371 billion (2017)[1]
Total equityIncrease US$ 25.085 billion (2017)[1]
Number of employees
14,600 (2017)[1]
SubsidiariesConoco
76
Chevron Phillips Chemical
Websitewww.phillips66.com

The Phillips 66 Company is an American multinational energy company headquartered in Westchase, Houston, Texas. It debuted as an independent energy company when ConocoPhillips executed a spin-off of its downstream and midstream assets. Its name dating back to 1927 as a trademark of the Phillips Petroleum Company, the newly-reconfigured 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. The company has approximately 14,000 employees worldwide and is active in more than 65 countries.[2] Phillips 66 is ranked No. 23 on the Fortune 500 list and No. 67 on the Fortune Global 500 list as of 2018.[3][4]

History

Beginning

Phillips Petroleum Co. was founded by Lee Eldas "L.E." Phillips and Frank Phillips of Bartlesville, Oklahoma, and incorporated on June 13, 1917. The new company had assets of $3 million, 27 employees and land throughout Oklahoma and Kansas. After discovery of Texas's huge Panhandle gas field in 1918 and the Hugoton Field to its north in Kansas, Phillips became increasingly involved in the rapidly developing natural gas industry. In particular, the company specialized in extracting liquids from natural gas and by 1925 was the nation's largest producer of natural gas liquids. According to the Phillips Petroleum Company Museum in Bartlesville, the “Phillips 66” name for the gasoline came about by a combination of events.[5] The specific gravity of the gasoline was close to 66; the car testing the fuel did 66 miles per hour; and, the test took place on US Route 66.[5] So, the naming committee unanimously voted for “Phillips 66.”[5]

The first Phillips 66 service station opened November 19, 1927, at 805 E. Central Street in Wichita, Kansas.[6] This station still stands, preserved by the local historical society. The first Phillips 66 service station built in Texas opened on July 27, 1928, on the corner of 5th and Main streets in Turkey, Texas.[7] In January, 2019, Turkey's Phillips 66 service station was recognized by the Texas Historical Commission as a Recorded Texas Historical Landmark, and a ceremony to unveil the State Historical Marker is planned to take place in April 2020.

The Phillips 66 shield logo, linking it to U.S. Route 66, was introduced in 1930 in a black and orange color scheme that would last nearly thirty years. In 1959, Phillips replaced these colors with red, white and black, the one still deployed.

Old-fashioned Phillips 66 station in Bassett, Nebraska

From the late 1930s until the 1960s, Phillips employed registered nurses as "highway hostesses" that made random visits to Phillips 66 stations within their districts. The nurses inspected station restroom facilities to ensure they were clean and stocked with supplies. They also served as concierges, spreading goodwill for the company by helping motorists identify suitable dining and lodging facilities. (Union 76 employed similar hostesses, called the "Sparkle Corps".)

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.

Phillips66 Shield image by Gas Land Petroleum

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 1932, the 76 brand, long familiar in the western U.S., was created by Union Oil Company of California (later Unocal). 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 Co.'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.

Restored 1928 Phillips 66 Service Station in Turkey, Texas. The first Phillips 66 Service Station built in Texas

The company withdrew from gasoline marketing in the northeastern U.S. in 1972, 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. In recent years, the 76, Philips 66 and Conoco brand-names have begun to reappear in Eastern markets, including the New York City metro region, via a licensing deal with Motiva Enterprises.[8]

Mergers

Phillips Petroleum created a joint venture with Chevron Corporation's chemicals and plastics division in 2000 and also acquired ARCO Alaska Inc. from British Petroleum. It purchased Tosco, which included Circle K convenience stores and Union 76 gasoline, in 2001. 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 1983, Phillips Petroleum purchased the General American Oil Company from owners Algur H. Meadows, Henry W. Peters, and Ralph G. Trippett.

In 2002, Phillips Petroleum merged with Conoco to form ConocoPhillips. The merged company continued marketing gasoline and other products under the Phillips 66, Conoco, and 76 brands. However, Phillips 66 Company licenses the Phillips 66 brand to Suncor Energy for its Phillips 66-branded stations in Colorado.[9]

Marketing

Winged version of logo used for domestic airplane fuel stations, seen in Hillsboro, Oregon

In 1973, Phillips began billing itself as "The Performance Company," promoting innovations with asphaltic materials, fertilizers, and other non-automotive products as well as its traditional automotive products. Other slogans 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 2015) is "Proud To Be Here." The 2016 slogan will be "The Power of 2" after reclassification of its brands into either Phillips 66 or Kendall.

Phillips 66 conspicuously sponsored PBS programming during the 1980s. It funded A.M. Weather; The Search for Solutions; and Onstage with Judith Somogi.

Spin-off

In 2012, Phillips 66 was spun off from ConocoPhillips.

Berkshire Hathaway trade

On December 30, 2013, it was announced that Berkshire Hathaway would trade more than 19 million of its 27.2 million shares in Phillips 66 to acquire a business that makes additives that help crude oil flow through pipelines. The final number of shares will be determined when the deal actually closes.[10]

Spin-off of natural gas pipelines

On February 17, 2015, Phillips 66 sold two natural gas pipeline systems to its affiliate, Phillips 66 Partners for $1.01 billion in cash and stock.[11]

Operations

In the United States, the company operates Conoco, Phillips 66 and 76 stations. In Europe, Phillips 66 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.[citation needed] The company is the fourth largest finished lubricants supplier in the United States.

Phillips 66 owns 13 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 percent 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 percent stake in Chevron Phillips Chemical Co.

Phillips 66 also owns a one-quarter share in the controversial Dakota Access Pipeline.[12]

Refineries

Country Name Location Nelson Complexity Factor Crude Oil Processing Capacity (MBD)
United States Wood River Refinery* Roxana, IL 9.8 305
United States Alliance Refinery Belle Chasse, LA 12.0 247
United States Sweeny Refinery Old Ocean, TX 13.2 247
United States Bayway Refinery Linden, NJ 8.5 238
United States Lake Charles Refinery Westlake, LA 10.2 239
United States Ponca City Refinery Ponca City, OK 9.8 210
United States Borger Refinery* Borger, TX 12.3 146
United States Los Angeles Refinery Carson, CA/Wilmington, CA 14.1 139
United States San Francisco Refinery Rodeo, CA/Arroyo Grande, CA 13.6 120
United States Ferndale Refinery Ferndale, WA 7.4 100
United States Billings Refinery Billings, MT 14.3 58
United Kingdom Humber Refinery North Lincolnshire 11.6 221
Germany MIRO Refinery* Karlsruhe 7.9 58

* Denotes joint ventures. Crude capacity reflects that proportion.

Sources (Mar 31, 2011)[13][14][15]

Phillips 66's Los Angeles (CA), Lake Charles (LA), San Francisco (CA), and Sweeney (TX) refineries receive and process crude oil from the Amazon River Basin of South America. In 2015, the Los Angeles refinery was processing 21,512 barrels per day of Amazonian oil.

Corporate affairs

In 2012, after Phillips 66 split from ConocoPhillips, it moved its operations from the ConocoPhillips headquarters to the Pinnacle Westchase building,[16] a nine-story Class A office building located on 8.4 acres (3.4 ha) of land in Westchase, Houston.[17] This was a temporary headquarters location.[16]

In July 2016, Phillips 66 completed its move to a new permanent headquarters on a 14-acre (5.7 ha) plot of land in Westchase. The new headquarters is between Westheimer Road and Briar Forest, in close proximity to the Sam Houston Tollway. Phillips 66 purchased the land from a subsidiary of Thomas Properties Group. The architect of record is HOK.[18] The official groundbreaking was in November 2013, and the opening was completed on schedule. The 1.1 million square foot headquarters includes conference spaces, medical facilities, food service facilities, outdoor recreational space, a gymnasium with full-size basketball court, and training facilities. Irrigation of the outdoor landscaping is via a reclaimed water system. The new campus houses 2,200 workers who were spread among six different Houston locations, including the ConocoPhillips headquarters, where several hundred Phillips 66 workers had remained post spin-off.[16][19][20]

On 4 August 2015 it was announced that the company had formed a "long-term partnership" with English non-league association football club Leamington F.C.. The deal involved, amongst other things, the renaming of the club's ground from "The New Windmill Ground" to "The Phillips 66 Community Stadium."[21]

References

  1. ^ a b c d e f "2017 Phillips 66 Annual Report (Form 10-K)". sec.gov. U.S. Securities and Exchange Commission. February 2018. Retrieved 3 April 2018.
  2. ^ "Conoco says refining co will be Phillips 66". Conoco says refining co will be named Phillips 66. Reuters. November 10, 2011. Retrieved November 10, 2011.
  3. ^ "Fortune 500 List". Time Inc. Retrieved June 6, 2019.
  4. ^ "Global 500 List". Time Inc. Retrieved June 6, 2019.
  5. ^ a b c "What’s in a Name?", Phillips Petroleum Company Museum display, Bartlesville, Oklahoma, January 20, 2020.
  6. ^ "Phillips 66". historicpreservationalliance.com. Retrieved 6 October 2015.
  7. ^ "M'Cutcheon, George Barr, (26 July 1866–23 Oct. 1928), author", Who Was Who, Oxford University Press, 2007-12-01, doi:10.1093/ww/9780199540884.013.u200226
  8. ^ Feb. 05; 2016. "Motiva, Phillips 66 Sign 76 Brand Deal". CSP Daily News. Retrieved 2019-10-23. {{cite web}}: |last2= has numeric name (help)CS1 maint: numeric names: authors list (link)
  9. ^ "Shell and Phillips 66 - Suncor". suncor.com. Archived from the original on 19 April 2009. Retrieved 6 October 2015.
  10. ^ url=https://www.usatoday.com/story/money/business/2013/12/30/warren-buffetts-firm-phillips-66-unit/4255665
  11. ^ Olabi, Nora (17 February 2015). "Phillips 66 Partners makes $1 billion midstream acquisition". Houston Business Journal. Retrieved 31 May 2015.
  12. ^ "Trump's Stock in Dakota Access Pipeline Company Raises Concern".
  13. ^ ConocoPhillips (Mar 31, 2011). "Refining". ConocoPhillips. ConocoPhillips. Retrieved Aug 6, 2011.
  14. ^ ConocoPhillips (Mar 31, 2011). "Europe". ConocoPhillips. ConocoPhillips. Retrieved Aug 6, 2011.
  15. ^ ConocoPhillips (Mar 31, 2011). "Asia Pacific". ConocoPhillips. ConocoPhillips. Retrieved Aug 6, 2011.
  16. ^ a b c Sebastian, Simone. "Phillips 66 to build global headquarters in West Houston Archived 2012-09-15 at the Wayback Machine." FuelFix (Houston Chronicle). September 12, 2012. Retrieved on September 13, 2012.
  17. ^ "Location." (Archive) Pinnacle Westchase. Retrieved on September 13, 2012.
  18. ^ HOK. "Phillips 66 Breaks Ground on New Corporate Campus". www.hok.com. Archived from the original on 2018-06-14. Retrieved 2016-06-29.
  19. ^ "Phillips 66 breaks ground on new Houston headquarters". FuelFix (Houston Chronicle). 2013-11-23. Archived from the original on 2016-07-03. Retrieved 2016-06-29.
  20. ^ "Phillips 66 offers a look at its new headquarters". FuelFix (Houston Chronicle). 2016-06-27. Archived from the original on 2016-06-29. Retrieved 2016-06-29.
  21. ^ "Location." ("Archived copy". Archived from the original on 2016-01-31. Retrieved 2015-08-04.{{cite web}}: CS1 maint: archived copy as title (link)) Article on the partnership on the Leamington FC website. Retrieved on 4 August 2015.
Wikimedia Commons has media related to Phillips 66.
  • Official website
  • Business data for Phillips 66:
  • Investor Update with Phillips 66 Business Prospects April, 2012
  • Independent Business Analysis of Phillips 66
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