Summary
Phillips 66 (PSX) completed its first full year as an independent, publicly traded company in 2013, having been spun off from ConocoPhillips in April 2012. The company reported earnings of $3.7 billion and generated $6.0 billion in cash from operations. Strategic priorities for 2014 include maintaining operational excellence, delivering profitable growth through increased capital expenditures, growing shareholder distributions via dividends and share repurchases, and building a high-performing organization. The company's performance was influenced by market conditions across its segments: Midstream benefited from increased transportation volumes and equity gains, while Refining saw lower earnings due to reduced refining margins. The Chemicals segment, primarily through its joint venture CPChem, experienced growth driven by price-advantaged NGL feedstocks and improved polyethylene margins. Marketing and Specialties (M&S) showed improved earnings, partly due to higher RINs values and international marketing margins.
Financial Highlights
48 data points| Revenue | $171.60B |
| R&D Expenses | $69.00M |
| SG&A Expenses | $1.48B |
| Operating Income | $3.67B |
| Net Income | $3.73B |
| EPS (Basic) | $6.07 |
| EPS (Diluted) | $6.02 |
| Shares Outstanding (Basic) | 612.92M |
| Shares Outstanding (Diluted) | 618.99M |
Key Highlights
- 1Phillips 66 reported earnings of $3.7 billion in 2013 and generated $6.0 billion in cash from operating activities, demonstrating strong financial performance in its first full year as an independent entity.
- 2The company significantly increased its dividend rate by 56% in 2013, reflecting confidence in its capital structure and cash flow generation.
- 3Capital expenditures and investments are projected to increase by approximately 40% in 2014 to $2.7 billion (consolidated) and $4.6 billion (including joint ventures), focusing on growth in Midstream and Chemicals.
- 4Phillips 66 Partners LP, a master limited partnership formed in 2013, completed its initial public offering, raising $404 million in net proceeds.
- 5The Midstream segment's Transportation business saw improved earnings due to higher throughput fees and the absence of significant impairments, while DCP Midstream benefited from higher natural gas and crude oil prices.
- 6The Chemicals segment, through its 50% investment in CPChem, experienced a 20% earnings increase in 2013, driven by lower debt-related costs and improved polyethylene margins.
- 7Refining earnings decreased by 42% in 2013, primarily due to lower realized refining margins and feedstock advantage, although impairments from the prior year were reduced.