Warren Buffett’s firm acquiring Phillips 66 unit

Associated Press ^ | Dec 30, 2013 6:12 PM EST

[Olog-hai]

Warren Buffett’s company has agreed to trade roughly $1.4 billion of its stock in Phillips 66 for one of the refiner's chemical businesses.

Houston-based Phillips 66 said Monday that Berkshire Hathaway will give up about 19 million of its 27.2 million Phillips 66 shares to acquire a business that makes additives that help crude oil flow through pipelines. …

[Errant]

Berkshire Hathaway will give up about 19 million of its 27.2 million Phillips 66 shares to acquire a business that makes additives that help crude oil flow through pipelines.

Well, don't be surprised to learn that the Keystone Pipeline project is back on track folks!

[SeaHawkFan]

Wonder if Phillips 66 found a supplier that makes something better at a lower cost.

[NoCmpromiz]

don't be surprised to learn that the Keystone Pipeline project is back on track folks!

Speaking of tracks... BNSF doesn't have nearly enough rolling stock, motive power, or infrastructure to carry ALL the oil, so Berk-Hathaway needs to, umm, diversify..

[Revolting cat!]

I ain’t selling to this... Communist!

[Still Thinking]

Great. Commies in charge of my gas. Not good.

[TaMoDee]

Da fix is in! Chicago style.

[NetAddicted]

Bookmark

[TigersEye]

Buffet needs to clean up the mess he made in ND before he starts anymore projects he can't handle.

Fiery train derailment leads to evacuation

[Fred Hayek]

Another addition to Lubrizol?

[DaveA37]

“Well, don’t be surprised to learn that the Keystone Pipeline project is back on track folks!”.......

IS Buffett buying that too? Might as well cover both bases so he wins no matter which way the oil gets moved.

[thackney]

Commies in charge of my gas.

From the article:

Houston-based Phillips 66 said Monday that Berkshire Hathaway will give up about 19 million of its 27.2 million Phillips 66 shares to acquire a business that makes additives that help crude oil flow through pipelines.

They are trading away shares in the company they already had, to fully own a division that makes a specific additive.

[txrefugee]

Too bad that greedy geezer has blocked the Keystone pipeline all these years. Guess he’s looking ahead to the possibility of the Dems losing the Senate next fall and is covering his butt.

[okie01]

Too bad that greedy geezer has blocked the Keystone pipeline all these years.

Berkshire Hathaway just bought a Phillips Petroleum unit which manufactures a material that makes crude flow more smoothly thru a pipeline.

So, my guess is we're gonna see Keystone XL get built now.

[SunkenCiv]

> Houston-based Phillips 66 said Monday that Berkshire Hathaway will give up about 19 million of its 27.2 million Phillips 66 shares to acquire a business that makes additives that help crude oil flow through pipelines.

Hmm, obviously they expect KeystoneXL to be approved.

Thanks Olog-hai.

[Fred Hayek]

Warren Buffett has owned Lubrizol for about two years (I work there). There is a press release on the Phillips website showing that this business unit will be placed under the Lubrizol umbrella.

[BooBoo1000]

I detect a great deal of mendacity here. So-what if Warren swaps one thing for another. He had created so many jobs, and paid so much in taxes of one kind of another. I also see a lot of jealousy, if you don’t like Warren;s tactic start selling Coke at a fishing camp as he did.

[cardinal4]

P66 operates the refinery where I work. While they refine Jet A (Buckeye operates a pipeline from Wood River to STL airport and Ohare)and some gasoline for retail, the big thing is coke. An inspector told me they would quit everything and just produce coke if they could.

I see the Buffet move as a positive for Keystone, as well..

[thackney]

Petroleum cokes sells for a small fraction of what the transportation fuels sell for.

I used to work as a chief engineer for a company that designed and built cokers for refineries. The entire operation of a coker is to produce as much lighter grade fuel, like gasoline or diesel as possible.

The coke is the leftover waste. It has the smallest value of the separated products from that unit. They are designed to minimize the coke produced and maximize the lighter units produced.

[Fred Hayek]

I am not criticizing Buffett’s acquisitions at all. Although I may have some disagreements with him (such as what Churchill called “negotiating with the crocodile” in this case the crocodile being Washington), Buffett has been a long term investor. This is not a swap, this is an addition to his Lubrizol portfolio. If Buffett acquires a company, that is because he sees the long term potential, and many times he goes beyond the initial acquisition and pours more capital to strengthen that investment. This I have seen directly. And no, I have not drunk the Berkshire Hathaway kool aid, I just see Buffett as a shrewd investor, not by any means any of these heavily leveraged suits that just flip companies.