Bill Zander Phillips 66 Corporate Communications
January 10, 2022
Chairman and CEO Greg Garland sees Phillips 66 generating strong cash flows of $6 billion to $7 billion this year.
“We’re very constructive,” said Garland, addressing the virtual Goldman Sachs Global Energy and Clean Technology Conference on Jan. 5. “The supply and demand dynamics look very favorable coming into 2022.”
Garland was joined by President and COO Mark Lashier, Executive Vice President and CFO Kevin Mitchell and Jeff Dietert, Vice President of Investor Relations. He said Phillips 66 plans to pay down debt and would like to resume share repurchases this year after suspending them in 2020 amid the onset of COVID-19.
Phillips 66 executives are optimistic for strong financial performances in Refining, Midstream, Marketing & Specialties and Chemicals.
“The Midstream business continues to grow,” said Mitchell, adding that Marketing is on track for “maybe our best-ever year in that segment” in 2021.
As for Chemicals, Lashier predicted robust margins continuing into next year as the industry absorbs new capacity coming online. “We continue to see strong global economic activity,” he said. “So we think it’s a great time.”
The team also discussed the conversion of the Rodeo Refinery to use a wide range of renewable feedstocks. The Rodeo Renewed project will initially produce more than 800 million gallons of renewable fuels, helping the company meet its commitment of a 30% reduction in emissions intensity involving existing assets.
“We're sitting right there on the water in San Francisco,” said Lashier. “We've got the world at our doorstep to get the right feedstocks in there, and we've got a very low capital base because we will be able to convert those existing assets.”
Toward that end, the company plans to repurpose its portfolio to incorporate lower-carbon alternatives such as hydrogen, batteries and carbon capture.
Phillips 66 sees Emerging Energy as a $2 billion business by the end of the decade.
“We’re part of the solution. We’re problem-solvers,” Garland said. “Energy has been a business of transition for 140 years, so this isn't really new to us.”