Phillips 66 is a growing energy manufacturing and logistics company. We’re the only integrated downstream company to combine leading midstream, chemicals, refining, and marketing and specialties businesses. With this diverse portfolio, Phillips 66 is uniquely positioned to capture opportunities of the changing energy landscape.
Our Midstream segment includes Phillips 66’s transportation business, including operations of Phillips 66 Partners LP, our master limited partnership which conducted an initial public offering in July 2013; a 50 percent interest in DCP Midstream, LLC; and natural gas liquids (NGL) operations. DCP Midstream is the largest NGL producer and one of the largest natural gas gatherers and processors in the United States, with 63,000 miles of pipeline, 62 plants and 12 NGL fractionators.
We conduct our Chemicals business through a 50 percent interest in Chevron Phillips Chemical Company LLC (CPChem), one of the world’s top producers of olefins and polyolefins with more than 33 billion pounds of net annual chemicals processing capacity across its product lines.
Phillips 66 Refining operations include 15 refineries with a net crude oil capacity of 2.2 million barrels per day. Our Marketing and Specialties business includes 10,000 owned or supplied outlets, lubricants marketing in more than 70 countries, and other specialty products including petroleum coke, waxes, solvents, polypropylene and pipeline flow improvers.
- Continued focus on safety with lowest recordable incident rate ever and additional sites awarded OSHA Voluntary Protection Program (VPP) certiﬁcation by the U.S. Occupational Safety and Health Administration (OSHA).
- Obtained investment grade credit rating and further strengthened balance sheet by retiring $1 billion of long-term debt.
- Began to pursue a master limited partnership, Phillips 66 Partners LP, to facilitate growth in the Midstream and Transportation sectors.
- Acquired direct one-third interests in the Sand Hills and Southern Hills natural gas liquids (NGL) pipelines entities, which will deliver product from the midcontinent, Permian Basin and Eagle Ford to market hubs in Mont Belvieu.
- DCP Midstream initiated service on the Sand Hills Pipeline from the Eagle Ford Shale.
- CPChem advanced plans to build a world-scale ethane cracker and polyethylene facilities.
- CPChem announced and began construction of a world-scale 1-hexene plant at its Cedar Bayou chemical complex in Baytown, Texas, with anticipated startup in 2014.
- Improved return on capital employed (ROCE) in Refining by capturing favorable market conditions, as well as increasing the use of cost-advantaged crude oil.
- Improved clean product yield, with continued industry-leading distillate yield.
- Achieved strong performance in Marketing and Specialties businesses, including record earnings from lubricants and flow improvers.