Phillips 66
NYSE:PSX
Phillips 66
Phillips 66 is a prominent name in the energy industry, tracing its lineage back to the storied history of the American oil and gas sector. Its inception as an independent entity in 2012, following a spin-off from ConocoPhillips, marked a significant shift towards refining and midstream activities that have historically bolstered its financial viability. As a diversified energy manufacturing and logistics company, Phillips 66 has carved out a robust presence in the downstream sector, with its operations spanning from refining crude oil to marketing refined petroleum products. At the heart of its business model lies an intricate network of refineries, pipelines, and terminals that transform crude oil into valuable end-products like gasoline, diesel, and lubricants. This transformation process enables the company to deliver a wide array of products, catering to both consumer and industrial demands, which generates significant revenue streams for the company.
In addition to its core refining operations, Phillips 66 extends its reach through its midstream and chemical segments, which play a crucial role in fortifying its market position. The midstream sector, operated through a partnership with Phillips 66 Partners LP, manages the complex logistics of transporting crude oil, refined products, and natural gas liquids across vast distances. Strategically aligned with its refining capabilities, the midstream segment ensures a seamless supply chain, enhancing the efficiency and profitability of its operations. Furthermore, the company's venture into the chemicals industry, represented by its alliance with Chevron in the formation of Chevron Phillips Chemical Company, exemplifies its commitment to diversification and growth. This joint venture widens the firm's portfolio, tapping into the high-margin petrochemical markets where everyday products, from plastics to synthetic rubbers, originate. By focusing on integration and maintaining a well-balanced business model, Phillips 66 navigates the cyclical nature of the energy market, aiming to deliver consistent value to its shareholders.
Phillips 66 is a prominent name in the energy industry, tracing its lineage back to the storied history of the American oil and gas sector. Its inception as an independent entity in 2012, following a spin-off from ConocoPhillips, marked a significant shift towards refining and midstream activities that have historically bolstered its financial viability. As a diversified energy manufacturing and logistics company, Phillips 66 has carved out a robust presence in the downstream sector, with its operations spanning from refining crude oil to marketing refined petroleum products. At the heart of its business model lies an intricate network of refineries, pipelines, and terminals that transform crude oil into valuable end-products like gasoline, diesel, and lubricants. This transformation process enables the company to deliver a wide array of products, catering to both consumer and industrial demands, which generates significant revenue streams for the company.
In addition to its core refining operations, Phillips 66 extends its reach through its midstream and chemical segments, which play a crucial role in fortifying its market position. The midstream sector, operated through a partnership with Phillips 66 Partners LP, manages the complex logistics of transporting crude oil, refined products, and natural gas liquids across vast distances. Strategically aligned with its refining capabilities, the midstream segment ensures a seamless supply chain, enhancing the efficiency and profitability of its operations. Furthermore, the company's venture into the chemicals industry, represented by its alliance with Chevron in the formation of Chevron Phillips Chemical Company, exemplifies its commitment to diversification and growth. This joint venture widens the firm's portfolio, tapping into the high-margin petrochemical markets where everyday products, from plastics to synthetic rubbers, originate. By focusing on integration and maintaining a well-balanced business model, Phillips 66 navigates the cyclical nature of the energy market, aiming to deliver consistent value to its shareholders.
Strong Earnings: Phillips 66 reported $2.9 billion in Q4 earnings, with adjusted earnings flat at $1 billion, reflecting robust operations and cost improvements.
Cost Reduction Progress: Controllable refining costs improved quarter-over-quarter, moving toward a $5.50 per barrel target by 2027, with further reductions expected in 2026.
Midstream Growth: Midstream adjusted EBITDA reached about $1 billion in Q4, up 40% since 2022, and the company targets $4.5 billion in run-rate adjusted EBITDA by year-end 2027.
Portfolio Optimization: The company acquired the remaining 50% of WRB, sold a 65% stake in its Germany and Austria retail marketing business, and idled the Los Angeles Refinery.
Capital Allocation: Over 50% of net operating cash flow is being returned to shareholders through dividends and buybacks; $756 million was returned in Q4.
Refining Outlook: Management is bullish on refining margins for 2026, citing favorable demand, widening Canadian heavy crude differentials, and high utilization rates.
Operational Discipline: Improved turnaround management and operational reliability have driven higher utilization and clean product yields.
Midstream Expansion: Ongoing projects like Dos Picos II and planned additions in the Permian Basin contribute to an optimistic growth trajectory.
Management
Mark E. Lashier is the President and Chief Executive Officer (CEO) of Phillips 66, a diversified energy manufacturing and logistics company. With a career spanning over three decades in the oil and gas industry, Lashier has held a variety of leadership roles that have equipped him with extensive experience and insights into global energy markets. Before becoming the CEO of Phillips 66, Mark Lashier had a significant tenure at Chevron Phillips Chemical Company, a joint venture between Chevron Corporation and Phillips 66. At Chevron Phillips Chemical, he served as president and CEO, where he led the company through strategic growth initiatives and global expansion efforts. Lashier's leadership was instrumental in advancing the company's position in the petrochemical industry, enhancing its competitive edge, and pursuing sustainable development projects. Lashier holds a bachelor's degree and a doctorate in chemical engineering from Iowa State University. Known for his focus on operational excellence, safety, and sustainability, he has championed projects aimed at promoting responsible energy use and reducing environmental impact. As President and CEO of Phillips 66, Lashier oversees the company's refining, midstream, marketing, and specialty businesses. His leadership emphasizes innovation, digital transformation, and a commitment to delivering shareholder value while navigating the challenges and opportunities of the evolving energy landscape.
Before becoming the CEO of Phillips 66, Mark Lashier had a significant tenure at Chevron Phillips Chemical Company, a joint venture between Chevron Corporation and Phillips 66. At Chevron Phillips Chemical, he served as president and CEO, where he led the company through strategic growth initiatives and global expansion efforts. Lashier's leadership was instrumental in advancing the company's position in the petrochemical industry, enhancing its competitive edge, and pursuing sustainable development projects.
Lashier holds a bachelor's degree and a doctorate in chemical engineering from Iowa State University. Known for his focus on operational excellence, safety, and sustainability, he has championed projects aimed at promoting responsible energy use and reducing environmental impact.
As President and CEO of Phillips 66, Lashier oversees the company's refining, midstream, marketing, and specialty businesses. His leadership emphasizes innovation, digital transformation, and a commitment to delivering shareholder value while navigating the challenges and opportunities of the evolving energy landscape.
Kevin J. Mitchell is an established executive who has served as the Executive Vice President and Chief Financial Officer of Phillips 66, a diversified energy manufacturing and logistics company. He joined the company in this role in July 2016. Before ascending to his CFO role, Mitchell had extensive experience in the energy sector and financial management. He began his tenure at ConocoPhillips, where he held multiple leadership positions that included roles in finance and strategy, gaining broad exposure to the global energy market. Mitchell's expertise spans over various aspects of finance and strategic operations within the energy industry. At Phillips 66, he has been responsible for overseeing the company's financial strategies, including capital allocation, risk management, financial reporting, and investor relations. His leadership in finance is complemented by a strong academic background; he is a certified public accountant and holds a bachelor's degree in business studies from the City of London Polytechnic. His work has been instrumental in steering Phillips 66's financial health and strategic direction amid the evolving energy landscape.
Mitchell's expertise spans over various aspects of finance and strategic operations within the energy industry. At Phillips 66, he has been responsible for overseeing the company's financial strategies, including capital allocation, risk management, financial reporting, and investor relations. His leadership in finance is complemented by a strong academic background; he is a certified public accountant and holds a bachelor's degree in business studies from the City of London Polytechnic. His work has been instrumental in steering Phillips 66's financial health and strategic direction amid the evolving energy landscape.
Brian M. Mandell is the Executive Vice President of Marketing and Commercial at Phillips 66, a diversified energy manufacturing and logistics company. With a career spanning several decades in the energy industry, Mandell has extensive experience and a deep understanding of the market dynamics that drive the industry. His role involves overseeing the company's global marketing and commercial functions, including the optimization and growth of Phillips 66's commercial and marketing business, which is crucial for the company's profitability and market positioning. Before assuming his current role, Mandell held various key positions within Phillips 66 and its predecessor companies. His leadership skills and strategic insights have been instrumental in navigating the complex challenges of the energy sector. He is known for his effective management and his ability to drive marketing and commercial strategies that align with the company's overall goals. Mandell earned a Bachelor of Science degree in Mechanical Engineering from Cornell University. His educational background in engineering, combined with his extensive industry experience, provides him with a unique perspective on the operational and commercial aspects of the energy business. Under his leadership, Phillips 66 continues to strengthen its brand and expand its market reach globally.
Before assuming his current role, Mandell held various key positions within Phillips 66 and its predecessor companies. His leadership skills and strategic insights have been instrumental in navigating the complex challenges of the energy sector. He is known for his effective management and his ability to drive marketing and commercial strategies that align with the company's overall goals.
Mandell earned a Bachelor of Science degree in Mechanical Engineering from Cornell University. His educational background in engineering, combined with his extensive industry experience, provides him with a unique perspective on the operational and commercial aspects of the energy business. Under his leadership, Phillips 66 continues to strengthen its brand and expand its market reach globally.
Jeffrey Alan Dietert is a notable figure at Phillips 66, serving as the Vice President of Investor Relations. In this role, he is responsible for managing the company's relationships with shareholders and the broader investment community. Dietert's expertise in financial and strategic analysis supports Phillips 66's communication with investors, providing insights into the company's performance and strategy. Before joining Phillips 66, Dietert had a distinguished 20-year career at Simmons & Company International, where he held the position of Managing Director of Research. His deep understanding of the energy sector, particularly oil and gas, is built upon decades of experience and research. Dietert has a Bachelor’s degree in Business Administration from Texas A&M University and a Master’s degree in Business Administration from the University of Texas at Austin. His extensive background in the industry and investment community makes him a significant asset to Phillips 66.
Before joining Phillips 66, Dietert had a distinguished 20-year career at Simmons & Company International, where he held the position of Managing Director of Research. His deep understanding of the energy sector, particularly oil and gas, is built upon decades of experience and research. Dietert has a Bachelor’s degree in Business Administration from Texas A&M University and a Master’s degree in Business Administration from the University of Texas at Austin. His extensive background in the industry and investment community makes him a significant asset to Phillips 66.
Vanessa L. Allen Sutherland is a seasoned executive with a robust background in legal affairs, regulatory compliance, and corporate governance. At Phillips 66, she serves as Executive Vice President, General Counsel, and Chief Compliance Officer. In this role, she oversees the company’s legal, compliance, and government affairs functions. Before joining Phillips 66, Sutherland held prominent roles, including her leadership position as Chairperson and Chief Executive Officer of the U.S. Chemical Safety and Hazard Investigation Board (CSB). Her career also includes time at Altria Group where she held roles such as Senior Counsel, and she worked at the Department of Transportation Pipeline and Hazardous Materials Safety Administration (PHMSA) as Chief Counsel. Her diverse experience is characterized by a focus on safety, risk management, and regulatory excellence. Vanessa L. Allen Sutherland is known for her strategic acumen and commitment to ethical practices, helping navigate complex legal landscapes effectively while championing corporate responsibility. She is also recognized for her dedication to diversity and inclusion within organizations.
Before joining Phillips 66, Sutherland held prominent roles, including her leadership position as Chairperson and Chief Executive Officer of the U.S. Chemical Safety and Hazard Investigation Board (CSB). Her career also includes time at Altria Group where she held roles such as Senior Counsel, and she worked at the Department of Transportation Pipeline and Hazardous Materials Safety Administration (PHMSA) as Chief Counsel. Her diverse experience is characterized by a focus on safety, risk management, and regulatory excellence.
Vanessa L. Allen Sutherland is known for her strategic acumen and commitment to ethical practices, helping navigate complex legal landscapes effectively while championing corporate responsibility. She is also recognized for her dedication to diversity and inclusion within organizations.
Andrez Carberry is the Vice President and Chief Human Resources Officer at Phillips 66, a diversified energy manufacturing and logistics company. In his role, Carberry is responsible for the strategic direction and operational management of the human resources function globally, which includes talent acquisition, leadership development, employee engagement, and total rewards. Before joining Phillips 66, Andrez Carberry has amassed extensive experience within the HR field across various industries, contributing to his well-rounded expertise in developing and implementing HR strategies that support business objectives. His leadership is marked by an emphasis on fostering inclusive and innovative workplace cultures that empower employees and promote organizational excellence. Carberry's educational background includes degrees pertinent to his field, and he has been recognized for his contributions to human resources through various awards and honors. He is actively involved in professional organizations and is known for his thought leadership around HR best practices and trends. Under his leadership, Phillips 66 continues to strengthen its commitment to diversity, equity, and inclusion, ensuring that the company's workforce represents the communities it serves. Carberry’s strategic vision aims to enhance employee experience and align HR initiatives with the company's long-term growth and sustainability goals.
Before joining Phillips 66, Andrez Carberry has amassed extensive experience within the HR field across various industries, contributing to his well-rounded expertise in developing and implementing HR strategies that support business objectives. His leadership is marked by an emphasis on fostering inclusive and innovative workplace cultures that empower employees and promote organizational excellence.
Carberry's educational background includes degrees pertinent to his field, and he has been recognized for his contributions to human resources through various awards and honors. He is actively involved in professional organizations and is known for his thought leadership around HR best practices and trends.
Under his leadership, Phillips 66 continues to strengthen its commitment to diversity, equity, and inclusion, ensuring that the company's workforce represents the communities it serves. Carberry’s strategic vision aims to enhance employee experience and align HR initiatives with the company's long-term growth and sustainability goals.
Zhanna Golodryga is a prominent figure in the energy sector, currently serving as the Executive Vice President and Chief Digital and Administrative Officer at Phillips 66, a major American energy company. In this role, she oversees the company's digital transformation and leverages technology to enhance operational efficiencies and drive innovation. Golodryga is responsible for Phillips 66's information technology, digital strategy, and various administrative functions, ensuring they align with the company's overall business objectives. Before joining Phillips 66, Zhanna Golodryga held several leadership positions in several major companies. She comes with a wealth of experience in digital technology and business processes. Her career spans across various industries, including aerospace, oil and gas, and petrochemicals, where she has been instrumental in pioneering digital initiatives and managing large-scale IT operations. Golodryga holds a strong educational background in engineering and has a reputation for fostering a culture of continuous improvement and efficiency. Her strategic vision and leadership have been vital in steering Phillips 66 towards becoming a more digitally enabled enterprise, enhancing its competitive edge in the fast-evolving energy market. Her contributions to the field have been recognized as transformative, not just for Phillips 66, but for the energy industry as a whole, showcasing the critical role of digital innovation in contemporary business models.
Before joining Phillips 66, Zhanna Golodryga held several leadership positions in several major companies. She comes with a wealth of experience in digital technology and business processes. Her career spans across various industries, including aerospace, oil and gas, and petrochemicals, where she has been instrumental in pioneering digital initiatives and managing large-scale IT operations.
Golodryga holds a strong educational background in engineering and has a reputation for fostering a culture of continuous improvement and efficiency. Her strategic vision and leadership have been vital in steering Phillips 66 towards becoming a more digitally enabled enterprise, enhancing its competitive edge in the fast-evolving energy market.
Her contributions to the field have been recognized as transformative, not just for Phillips 66, but for the energy industry as a whole, showcasing the critical role of digital innovation in contemporary business models.
Thaddeus Herrick serves as the Executive Vice President of Legal and Government Affairs, General Counsel, and Corporate Secretary at Phillips 66, an energy manufacturing and logistics company. In this role, he oversees all legal and governmental matters for the corporation, ensuring compliance and strategic alignment with industry regulations and policies. Herrick brings a wealth of experience to his role, having had an extensive career in the legal field with a focus on corporate governance, regulatory affairs, and complex litigation. His leadership is integral to Phillips 66's navigation of legal challenges and public policy issues, making a significant impact on the company's strategic direction and operational execution. Throughout his tenure at Phillips 66, Herrick has been recognized for his ability to lead multidisciplinary teams and forge effective relationships with governmental and regulatory bodies, helping the company navigate the complex legal landscape of the energy sector.
Herrick brings a wealth of experience to his role, having had an extensive career in the legal field with a focus on corporate governance, regulatory affairs, and complex litigation. His leadership is integral to Phillips 66's navigation of legal challenges and public policy issues, making a significant impact on the company's strategic direction and operational execution.
Throughout his tenure at Phillips 66, Herrick has been recognized for his ability to lead multidisciplinary teams and forge effective relationships with governmental and regulatory bodies, helping the company navigate the complex legal landscape of the energy sector.
David Erfert is a notable figure at Phillips 66, where he serves as the Executive Vice President, Marketing and Commercial. In this role, he is responsible for overseeing the company's global marketing initiatives as well as commercial strategies across various market sectors. Erfert's leadership extends to managing Phillips 66's diverse commercial portfolio, ensuring alignment with strategic goals to maximize profitability and market presence. Mr. Erfert has been with Phillips 66 for over three decades, during which he has amassed extensive experience in operational leadership, project execution, refining, marketing, and commercial operations within the energy sector. His deep understanding of industry dynamics has been instrumental in steering Phillips 66's commercial ventures and marketing direction towards sustainable growth and innovation. Throughout his career at Phillips 66, Erfert has held various high-level positions which have equipped him with a comprehensive insight into the energy business. His strategic vision and leadership skills have contributed significantly to Phillips 66's industry standing as a leading energy manufacturing and logistics company. As the company navigates the evolving energy landscape, Mr. Erfert's role is pivotal in driving the strategic initiatives and expanding the reach of Phillips 66's products and services globally.
Mr. Erfert has been with Phillips 66 for over three decades, during which he has amassed extensive experience in operational leadership, project execution, refining, marketing, and commercial operations within the energy sector. His deep understanding of industry dynamics has been instrumental in steering Phillips 66's commercial ventures and marketing direction towards sustainable growth and innovation.
Throughout his career at Phillips 66, Erfert has held various high-level positions which have equipped him with a comprehensive insight into the energy business. His strategic vision and leadership skills have contributed significantly to Phillips 66's industry standing as a leading energy manufacturing and logistics company. As the company navigates the evolving energy landscape, Mr. Erfert's role is pivotal in driving the strategic initiatives and expanding the reach of Phillips 66's products and services globally.
Richard G. Harbison is an executive who has served as a significant figure within Phillips 66, a diversified energy manufacturing and logistics company. He holds the position of Manager of the Sweeny Refinery, which is one of Phillips 66's key refining facilities located in Texas. In this role, Harbison is responsible for overseeing the operations of the refinery, ensuring it adheres to safety and environmental standards, and optimizing production processes to meet company and industry demands. His leadership plays a crucial role in maintaining the refinery's efficiency and reliability, contributing to the overall success and strategic objectives of Phillips 66. Harbison's extensive experience in the energy sector underscores his capability in managing complex industrial environments and guiding teams towards achieving operational excellence.
