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Phillips 66

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Phillips 66 Company
Company typePublic
IndustryOil and gas
PredecessorConocoPhillips' midstream and downstream operations (2002–2012)
Founded
  • 1927; 97 years ago (1927) (brand)
  • May 1, 2012; 12 years ago (2012-05-01) (company)[1] in Houston, Texas, U.S.
Founders
HeadquartersWestchase, Houston, Texas, U.S.
Area served
Worldwide
Key people
Products
Brands
Services
RevenueDecrease US$149.9 billion (2023)
Decrease US$7.897 billion (2023)
Decrease US$7.015 billion (2023)
Total assetsDecrease US$75.50 billion (2023)
Total equityIncrease US$30.58 billion (2023)
Number of employees
14,000 (2023)
SubsidiariesChevron Phillips Chemical
Websitephillips66.com
Footnotes / references
[2]

The Phillips 66 Company is an American multinational energy company headquartered in Westchase, Houston, Texas. Its name, dating back to 1927 as a trademark of the Phillips Petroleum Company, helped ground the newly reconfigured Phillips 66. The company today was formed ten years after Phillips merged with Conoco to form ConocoPhillips. The merged company spun off its refining, chemical, and retail assets – known in the oil industry as downstream operations – into a new company bearing the Phillips 66 name. It began trading on the New York Stock Exchange on May 1, 2012, under the ticker PSX.

The company is engaged in refining, transporting, and marketing natural gas liquids (NGL) petrochemicals. They are also active in the research and development of emerging energy sources and partners with Chevron on chemicals through a joint venture known as Chevron Phillips Chemical.[3]

Phillips 66 is ranked No. 29 on the Fortune 500 list and No. 74 on the Fortune Global 500 list as of 2022, with revenues of over $115 billion USD. Phillips 66 has approximately 14,000 employees worldwide and is active in the United States, United Kingdom, Germany, Austria, and Switzerland, and owns and licenses service station brands across the country, such as 76 and Conoco within the United States, and JET in Europe.[4][5]

History

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Main article: Phillips Petroleum Company

Beginning

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The Phillips Petroleum Company 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.[6] The specific gravity of the gasoline was close to 66;[disputed – discuss] the car testing the fuel did 66 miles per hour; and, the test took place on US Route 66.[6] So, the naming committee unanimously voted for “Phillips 66.”[6]

The first Phillips 66 service station opened on November 19, 1927, at 805 E. Central Avenue in Wichita, Kansas.[7] 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.[8]

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The first Phillips 66 logo, branded by the Phillips Petroleum Co. in 1930

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. The first design had the second 6 lower than the first; the current design does not.

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

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Phillips was among the first oil companies to introduce a multi-grade motor oil, "TropArtic," in 1954.[9] 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. Phillips 66 sells motor oil under the Kendall brand.

Gas stations

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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.[citation needed]

In 1966, Phillips entered the West Coast market by purchasing Tidewater Oil Co.'s refining and marketing properties in that region[10] and rebranding all Flying A distributorships and service stations to Phillips 66.[citation needed]

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.[citation needed]

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, Phillips 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.[11]

Mergers

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Phillips Petroleum created a joint venture with Chevron Corporation's chemicals and plastics division in 2000 and also acquired ARCO Alaska from BP. 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.[12]

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.[13]

Marketing

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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 slogan as of July 2015 is "Proud To Be Here". Phillips 66's newest slogan as of 2017 is “Live To The Full”.

Phillips 66 has long been a supporter of basketball in the Midwest and Southwest, particularly at the collegiate and senior amateur level. The men's and women's conference basketball tournaments of the Big Eight Conference, which featured multiple universities in Phillips 66's footprint, was officially sponsored by the firm since the 1980s: the sponsorship would move to its successor, the Big 12 Conference, in 1997, and Phillips remains the tournament's presenting sponsor to this day. Company employees founded the Phillips 66ers team in 1919, initially playing against other Bartlesville and Tulsa-area company teams or athletic clubs. Chairman Frank Phillips would later expand the team to play a high-quality, nationwide schedule against other amateur teams while marketing Phillips 66 products. Before the foundation of the NBA after World War II, many top collegiate players would continue to play organized ball on these "industrial" teams while earning a living as corporate employees and keeping their amateur status to play in the Olympics. The most notable 66er was Bob Kurland, who won two NCAA titles at nearby Oklahoma A&M and was considered one of American basketball's first great "big men". The 7-footer passed up the opportunity to play pro for a marketing job at Phillips, winning three AAU titles and two Olympic gold medals while eventually rising to the executive level and helping to develop self-serve gas stations. Rising pro salaries and the resulting loss of national media coverage spelled doom for senior AAU ball, though, and the 66ers would close up shop after losing in the 1968 AAU quarterfinals.

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

Spin-off

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In 2012, Phillips 66 was spun off from ConocoPhillips.[14]

Berkshire Hathaway trade

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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 was determined when the deal closed.[15]

Spin-off of natural gas pipelines

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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.[16]

Operations

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Big Oil companies[a]
Company Revenue (USD)[17] Profit (USD) Brands
ExxonMobil $286 billion $23 billion Mobil
Esso
Imperial Oil
Shell plc $273 billion $20 billion Jiffy Lube
Pennzoil
Z Energy
TotalEnergies $185 billion $16 billion Elf Aquitaine
SunPower
BP $164 billion $7.6 billion Amoco
Aral AG
Chevron $163 billion $16 billion Texaco
Caltex
Havoline
Marathon $141 billion $10 billion ARCO[18]
Phillips 66 $115 billion $1.3 billion 76
Conoco
JET
Valero $108 billion $0.9 billion —
Eni $77 billion $5.8 billion —
ConocoPhillips $48.3 billion $8.1 billion —

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.[19][20][21] Phillips 66 has stations in 44 U.S. states, just behind Shell Oil Company and ExxonMobil, lacking a presence in Alaska, Delaware, Maine, New Hampshire, Vermont, and West Virginia.[22]

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.[23]

Refineries

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Country Name Location Nelson Complexity Factor Crude Oil Processing Capacity (MBD)
United States Wood River Refinery* Roxana, IL 9.8 173
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 75
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 7.7 105
United States Billings Refinery Billings, MT 12.4 58
United Kingdom Humber Refinery North Lincolnshire 11.6 221
Germany MIRO Refinery* Karlsruhe 7.9 58

* Denotes joint ventures.

Sources (Mar 31, 2011)[24][25][26]

In 2015, the Los Angeles refinery was processing 21,512 barrels per day of Amazonian oil. Phillips 66's Los Angeles (CA), Lake Charles (LA), San Francisco (CA), and Sweeney (TX) refineries were receiving and processi crude oil from the Amazon River Basin of South America. The San Francisco Refinery converted from fossil fuels to renewable diesel fuel. Closure of the Los Angeles Refinery was announced in 2024.[3]

Corporate affairs

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In 2012, after Phillips 66 split from ConocoPhillips, it moved its operations from the ConocoPhillips headquarters to the Pinnacle Westchase building,[27] a nine-story Class A office building located on 8.4 acres (3.4 ha) of land in Westchase, Houston.[28] This was a temporary headquarters location.[27]

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.[29] 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.[27][30][31]

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."[32]

Carbon footprint

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Phillips 66 reported Total CO2e emissions (Direct + Indirect) for the twelve months ending 31 December 2020 at 30,050 Kt (-4,690 /-13.5% y-o-y).[33]

Phillips 66's annual Total CO2e Emissions - Location-Based Scope 1 + Scope 2 (in kilotonnes)
Dec 2014 Dec 2015 Dec 2016 Dec 2017 Dec 2018 Dec 2019 Dec 2020
34,500[34] 36,000[35] 34,070[33] 33,770[33] 34,090[33] 34,740[33] 30,050[33]

Notes

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  1. ^ Data is based on the 2022 Fortune 500.

References

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  1. ^ About us on Phillips 66 site
  2. ^ "2023 Annual Report (Form 10-K)". U.S. Securities and Exchange Commission. February 21, 2024.
  3. ^ a b Volcovici, Valerie (March 10, 2022). "Chevron, Phillips venture to pay millions for air violations at chemical plants". Reuters. Retrieved October 13, 2022.
  4. ^ "Phillips 66 (PSX) Company Profile, News, Rankings | Fortune". Fortune. Retrieved September 1, 2022.
  5. ^ "Fuels & Lubricants". Phillips 66. Retrieved October 13, 2022.
  6. ^ a b c "What’s in a Name?", Phillips Petroleum Company Museum display, Bartlesville, Oklahoma, January 20, 2020.
  7. ^ "Phillips 66". historicpreservationalliance.com. Retrieved October 6, 2015.
  8. ^ "M'Cutcheon, George Barr, (26 July 1866–23 Oct. 1928), author", Who Was Who, Oxford University Press, December 1, 2007, doi:10.1093/ww/9780199540884.013.u200226
  9. ^ "Phillips 66 Lubricants Cross Reference | Shop Now". petroleumservicecompany.com. Retrieved November 10, 2020.
  10. ^ Carmical, J. h (March 30, 1966). "Tidewater Sells Western Assets; Phillips Agrees to Purchase Refining and Marketing Units for $309-Million Comes As a Surprise – Closing of Transaction Is Scheduled for June 30 – Employees to Remain". The New York Times. ISSN 0362-4331. Retrieved November 10, 2020.
  11. ^ "Motiva, Phillips 66 Sign 76 Brand Deal". CSP Daily News. February 5, 2016. Retrieved October 23, 2019.
  12. ^ Hershey, Robert D. Jr. (January 7, 1983). "Phillips Move to Buy General American Seen". New York Times. ISSN 0362-4331. Retrieved November 6, 2020.
  13. ^ "Shell and Phillips 66 - Suncor". suncor.com. Archived from the original on April 19, 2009. Retrieved October 6, 2015.
  14. ^ "ConocoPhillips' Board of Directors Approves Spin-off of Phillips 66". ConocoPhillips. April 4, 2012. Retrieved October 30, 2020.
  15. ^ "Warren Buffett's firm buying Phillips 66 unit". USA TODAY. Retrieved November 9, 2020.
  16. ^ Olabi, Nora (February 17, 2015). "Phillips 66 Partners makes $1 billion midstream acquisition". Houston Business Journal. Retrieved May 31, 2015.
  17. ^ "Fortune 500". Fortune. Retrieved November 17, 2022.
  18. ^ "Marathon Petroleum". Marathon Petroleum Corporation . Retrieved October 26, 2023.
  19. ^ "COP to Spin off Downstream Business". Lubes'N'Greases. Retrieved November 6, 2020.
  20. ^ "ConocoPhillips Introduces Innovative Diesel Engine Oil". www.machinerylubrication.com. Retrieved November 13, 2020.
  21. ^ "Petroleum - Petroleum Industry - Conoco Phillips". www.petroleum.co.uk. Retrieved November 13, 2020.
  22. ^ "Phillips 66 gas station locations in the USA". scrapehero.com. Retrieved April 20, 2023.
  23. ^ "Trump's Stock in Dakota Access Pipeline Company Raises Concern". Fortune. Retrieved April 20, 2023.
  24. ^ ConocoPhillips (March 31, 2011). "Refining". ConocoPhillips. Retrieved August 6, 2011.
  25. ^ ConocoPhillips (March 31, 2011). "Europe". ConocoPhillips. Retrieved August 6, 2011.
  26. ^ ConocoPhillips (March 31, 2011). "Asia Pacific". ConocoPhillips. Retrieved August 6, 2011.
  27. ^ 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.
  28. ^ "Location." (Archive) Pinnacle Westchase. Retrieved on September 13, 2012.
  29. ^ HOK. "Phillips 66 Breaks Ground on New Corporate Campus". www.hok.com. Archived from the original on June 14, 2018. Retrieved June 29, 2016.
  30. ^ "Phillips 66 breaks ground on new Houston headquarters". FuelFix (Houston Chronicle). November 23, 2013. Archived from the original on July 3, 2016. Retrieved June 29, 2016.
  31. ^ "Phillips 66 offers a look at its new headquarters". FuelFix (Houston Chronicle). June 27, 2016. Archived from the original on June 29, 2016. Retrieved June 29, 2016.
  32. ^ "Location." ("Leamington FC Official Website - Leamington Football Club announces new partnership with Phillips 66". Archived from the original on January 31, 2016. Retrieved August 4, 2015.) Article on the partnership on the Leamington FC website. Retrieved on 4 August 2015.
  33. ^ a b c d e f "Viewer". docs.exerica.com. Retrieved April 20, 2023.
  34. ^ "Viewer". docs.exerica.com. Retrieved April 20, 2023.
  35. ^ "Viewer". docs.exerica.com. Retrieved April 20, 2023.
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