Don't ya just love those higher taxes and special state regulations?
Posted on 10/29/2014 7:27:40 AM PDT by thackney
Plummeting crude prices worldwide doubled Phillips 66′s profits in the third quarter, providing the company with a cheaper feedstock to run its refineries.
Crude oil is, by far, the largest operating expense for the Houston-based company, which operates pipelines and refineries. Phillips 66 purchases about 2 million barrels of oil per day, spending more than $80 billion per year on crude, depending on the price.
Falling prices can dramatically cut the company’s costs — a savings of $1 per barrel is worth about $450 million in net income, the company has reported.
The company on Wednesday reported earnings of $1.2 billion, or $2.09 per share, during the three-month period ending Sept. 30. That’s up from $535 million, or 87 cents per share, during the same period last year.
The refining sector saw earnings climb to $558 million in the third quarter from a loss of $30 million during the same time last year. Phillips 66 capitalized on the improved margins between crude prices, which have tumbled more than 20 percent since July, and the value of the petroleum products produced by Phillips 66 refineries.
Meanwhile, the company continues to grow its midstream businesses to capture growing domestic oil production unleashed by the U.S. shale boom.
The company recently announced plans to participate in two joint ventures to develop two major pipelines at a cost of $1.2 billion. The Dakota Access Pipeline is expected to carry 450,000 barrels per day of crude oil from the Bakken shale in North Dakota to the Midwest while the Energy Transfer Crude Oil Pipeline will transport oil from the Midwest to the Gulf Coast, including Phillips 66 terminal in Beaumont.
Both projects are expected to begin operating at the end of 2016.
Phillips 66 was the refining division of ConocoPhillips. In 2012, they spun them off into a separate company.
Couldn’t be!
The lefties have told us all along that the oil companies conspire to RAISE prices to increase profits!
Big difference between buying oil and selling oil.
great news - keep dropping the prices and get America back to work again.
P.S. Recall candidate Obama vowing to raise gasoline prices to $5 p/gal forcing Americans into electric cars??
Yeah, leftists have a LOT of screwed up thinking -
like, raising taxes on entrepreneurs makes them work even harder.
Buy low, sell high. Pass it on.....................
Pigs get fat.
Hogs get slaughtered.
Oregonians are still paying $3.20 a gallon.
Don't ya just love those higher taxes and special state regulations?
Would now be the time to invest in midstream oil companies ?
I am not the guy for investment advice. Too many factors outside technical knowledge of the industry. How much debt, what does the company own for resources, etc...
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