Phillips 66 (Phillips 66) is an integrated energy company. It collects, refines, moves, stores, and sells petroleum products like gasoline, diesel, aviation fuel, and lubricants as well as natural gas. Additionally, it fractionates, trades, and transports natural gas liquids (NGLs). At its refineries, the corporation processes crude oil and other feedstock before selling in the US and Europe. Plastics and petrochemicals are produced by Phillips 66. Additionally, it produces and sells speciality lubricants under the Red Line, Kendall, and Phillips 66 names. In addition to the US, the corporation is present in Europe, Asia, the Middle East, and Africa. Houston, Texas, in the US, serves as the company’s headquarters.
History
The Phillips Petroleum Company was established on June 13, 1917, by Lee Eldas “L.E.” Phillips and Frank Phillips of Bartlesville, Oklahoma. The new business had $3 million in assets, 27 workers, and land all throughout Kansas and Oklahoma. Following the 1918 discovery of the massive Panhandle gas field in Texas and the Hugoton Field in Kansas to the north, Phillips became more and more involved in the industry’s explosive growth. The business specialized in extracting liquids from natural gas, and by 1925 it was the biggest producer of natural gas liquids in the country. The “Phillips 66” moniker for the fuel, according to the Phillips Petroleum Company Museum in Bartlesville, resulted from a string of occurrences.
On November 19, 1927, the first Phillips 66 service station in Wichita, Kansas, opened its doors at 805 E. Central Street. The local historical society has kept this station standing. On July 27, 1928, the junction of 5th and Main streets in Turkey, Texas, saw the opening of the first Phillips 66 service station ever constructed in the state.
Registered nurses worked for Phillips as “highway hostesses” who made sporadic trips to Phillips 66 stations within their districts from the late 1930s through the 1960s. To make sure they were tidy and supplied with supplies, the nurses checked the restrooms at the station. Additionally, they performed the role of concierges, promoting the business by guiding drivers toward appropriate dining and lodging options. Similar hostesses were employed by Union 76 under the name “Sparkle Corps.”
In 1954, Phillips was one of the first oil firms to release a multi-grade motor oil under the name “TropArtic.” Unlike single grades for which several grades of motor oils were advised to meet weather variations, such motor oils were created to be used year-round in automotive engines.
In 2000, Phillips Petroleum purchased ARCO Alaska from BP and formed a joint venture with the chemicals and plastics business of Chevron Corporation. In 2001, it acquired Tosco, which included Union 76 petrol stations and Circle K convenience stores. Union Oil Company of California (later Unocal) launched the 76 brand in 1932, which has long been well-known in the western and southern parts of the United States. Ralph G. Trippett, Henry W. Peters, and Algur H. Meadows sold the General American Oil Company to Phillips Petroleum in 1983.
ConocoPhillips was created in 2002 by the merger of Phillips Petroleum and Conoco. Under the Phillips 66, Conoco, and 76 names, the combined corporation continued to sell gasoline and other goods. Suncor Energy, however, has a license from the Phillips 66 Company to use the Phillips 66 name at its Phillips 66-branded stations in Colorado.
Phillips 66 was separated from ConocoPhillips in 2012.
On December 30, 2013, it was revealed that Berkshire Hathaway would exchange more than 19 million of its 27.2 million shares in Phillips 66 for a company that produces additives that facilitate the movement of crude oil through pipelines. When the deal closed, the precise number of shares was established.
Phillips 66 sold two natural gas pipeline lines to its affiliate Phillips 66 Partners on February 17, 2015, for a total of $1.01 billion in cash and equity.
Operations
The business transports, markets, and refines petrochemicals known as natural gas liquids (NGL). They collaborate with Chevron on chemicals through a joint venture known as Chevron Phillips Chemical and are also involved in the research and development of future energy sources.
The corporation manages Conoco, Phillips 66, and 76 stations in the United States. In Germany, Austria, Denmark, Sweden, and the United Kingdom, Phillips 66 runs Jet filling stations. It gave its Russian affiliate, Lukoil, its Jet stations in Belgium, the Czech Republic, Finland, Hungary, Poland, and Slovakia. In Switzerland, it adopts the Coop brand. The business is the fourth-largest provider of finished lubricants in the country. With stations in 44 states, Phillips 66 trails only ExxonMobil and Shell Oil Company but is absent from Alaska, Delaware, Maine, New Hampshire, Vermont, and West Virginia.
With 13 refineries and a total daily net crude oil capacity of 2.2 million barrels (350 103 m3/d), Phillips 66 also has 10,000 branded retail locations and 15,000 miles (24,000 km) of pipelines. It owns a 50% investment in DCP Midstream, LLC, a company that gathers and processes natural gas and has a processing capacity of 7.2 billion cubic feet per day (200 106 m3/d). Additionally, it owns a 50% share in Chevron Phillips Chemical Company.
Additionally, Phillips 66 holds a quarter stake in the contentious Dakota Access Pipeline.
The refineries of the company in Los Angeles, Lake Charles, San Francisco, and Sweeney, Texas, receive and treat crude oil from the South American Amazon River Basin. The Los Angeles refinery processed 21,512 barrels of Amazonian oil daily in 2015.
Corporate Affairs
Following its separation from ConocoPhillips in 2012, It relocated its operations from that company’s headquarters to the Pinnacle Westchase building, a nine-story Class A office structure situated on 8.4 acres (3.4 ha) of land in Houston’s Westchase neighborhood. This served as the temporary administrative center.
Phillips 66 finished relocating to a new permanent headquarters in July 2016 on a 14-acre (5.7 ha) parcel of property in Westchase. The new headquarters are located near the Sam Houston Tollway, adjacent to Briar Forest and Westheimer Road. The Thomas Properties Group subsidiary sold the site to Phillips 66. The official architect is HOK. The opening was finished on time, and the official groundbreaking took place in November 2013. Conference rooms, medical facilities, food preparation areas, outdoor amusement areas, a gymnasium with a full-size basketball court, and training facilities are all included in the 1.1 million square foot corporate headquarters. The exterior landscaping is watered by a recovered water system. 2,200 people from six separate Houston locations, including the ConocoPhillips headquarters, where several hundred Phillips 66 employees had remained after the spin-off, are now housed on the new campus.
The establishment of a “long-term partnership” between the business and English non-league association football club Leamington F.C. was announced on August 4, 2015. The club’s stadium was renamed from “The New Windmill Ground” to “The Phillips 66 Community Stadium” as part of the agreement.
Financials
For the fiscal year 2019 the company’s key financials in USD were:
- Revenue: 107.293 billion
- Net income: 3.076 billion
- Total assets: 58.720 billion
Presently;
With approximately $115 billion in US sales in 2022, Phillips 66 is placed No. 29 on the Fortune 500 list and No. 74 on the Fortune Global 500 list. Currently, Phillips 66 owns and licenses out a number of service station brands across the nation, including 76 and Conoco in the United States and JET in Europe. The company has about 14,000 employees worldwide and is active in the United States, United Kingdom, Germany, Austria, and Switzerland.
