Company News

Phillips 66 Stands Tall

Recommends shareholders reject mini-tender offer by TRC

HOUSTON -- Newly minted downstream energy company Phillips 66 Co. has recommended that shareholders not tender their shares in response to an unsolicited mini-tender offer by TRC Capital Corp. TRC is offering to purchase up to three million shares, or less than 0.48% of Phillips 66's outstanding common stock.

TRC's offer price of $31.30 per share represents a 4.78% discount to the Phillips 66 closing share price on June 25, 2012, the day prior to the commencement of TRC's mini-tender offer.

"Phillips 66 strongly recommends investors obtain current market quotes for their shares of common stock and consult with their financial advisors with respect to TRC's offer," the company said. "The company does not endorse and is not associated with TRC's unsolicited mini-tender offer."

Phillips 66 shareholders who have already tendered shares in the offer are advised that they may withdraw their shares as described in TRC's offer documentation prior to the expiration of the offer on July 26, 2012.

TRC has made several mini-tender offers with other large publicly traded companies. In the petroleum industry, TRC has made similar offers over the last several years for Marathon Oil, Marathon Petroleum, Hess and Canadian Tire.

Houston-based ConocoPhillips officially spun off Phillips 66 as an independent midstream and downstream energy company in May (see Related Content below for previous CSP Daily News coverage).

Phillips 66 will release its quarterly earnings results on August 1, its first time as an independently traded company. Chairman and CEO Greg C. Garland and executive vice president and CFO Greg G. Maxwell will host a webcast to discuss the company’s second-quarter performance and provide an update on how the company is delivering on its strategy.

Based in Houston, Phillips 66 is a downstream energy company with segment-leading refining and marketing (R&M), midstream and chemicals businesses.

Its R&M operations include 15 refineries with a net crude oil capacity of 2.2 million barrels per day, 10,000 branded marketing outlets and 15,000 miles of pipeline systems.

Its R&M operations include 15 refineries with a net crude oil capacity of 2.2 million barrels per day, 10,000 branded marketing outlets and 15,000 miles of pipeline systems. The company markets fuels in the United States and Europe primarily under the brands Phillips 66, Conoco, 76 and JET. In addition to branded fuels, Phillips 66 also offers consumers a variety of lubricants, including 76 Lubricants, Conoco Lubricants, Phillips 66 Lubricants and Kendall Motor Oil.

In midstream, the company primarily conducts operations through its 50% interest in DCP Midstream LLC, one of the largest natural gas gatherers and processors in the United States. Phillips 66's Chemicals business is conducted through its 50% interest in Chevron Phillips Chemical Co. LLC.

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