Steve Richardson

Steve Richardson asked about the strategic benefits of the Wood River and Borger (WRB) acquisition beyond the attractive price and synergy targets, specifically inquiring about organic growth opportunities enabled by 100% ownership.

Answer

Chairman and CEO Mark Lashier highlighted the acquisition as a key part of Phillips 66's strategy to focus on the Mid-Continent Central Corridor. Refining executive Rich Harbison detailed how full ownership unlocks flexibility in crude processing and product slates, allowing optimization of Wood River, Borger, and Ponca City as an interconnected regional system. Marketing and Commercial executive Brian Mandell mentioned 30+ ongoing commercial synergy initiatives, including butane blending optimization and proprietary pipeline incentives. EVP and CFO Kevin Mitchell clarified the capital expenditure impact, noting a net addition of $150 million for WRB in the 2025 capital budget, with benefits expected relatively near-term and capital-efficient.

Steve Richardson asked about the strategic benefits and organic growth opportunities arising from Phillips 66's 100% ownership of the Wood River and Borger Refineries (WRB), and the associated capital expenditure implications.

Answer

Mark Lashier, Chairman and CEO, emphasized the strategic alignment with the Mid-Continent Central Corridor. Richard Harbison, EVP of Refining, detailed increased crude processing flexibility, product slate optionality, and the ability to operate WRB and Ponca City as an integrated regional system. Brian Mandell, EVP of Marketing and Commercial, provided examples of commercial synergy initiatives. Kevin Mitchell, EVP and CFO, clarified the capital budget impact, noting a net addition of $150 million for WRB in 2025, with many benefits being capital-efficient and near-term.