Thu, Sep. 10, 7:56 AM
- Berkshire Hathaway (BRK.A, BRK.B) discloses the purchase of another 3.5M shares of Phillips 66 (NYSE:PSX), bringing its total stake in the company to 11.4%.
- The latest series of purchases, made during Sept. 4-9, brings BRK's beneficially owned shares to a total of 61.5M.
- The additional 3.5M shares are worth ~$282M at Wednesday's closing price of $80.65; including the newly-purchased shares, BRK's stake is now worth $4.9B.
- Earlier (Aug. 29): Berkshire returns to energy sector with $4.5B stake in Phillips 66
Tue, Sep. 8, 5:41 PM
- Phillips 66 (NYSE:PSX) and Spectra Energy (NYSE:SE) announce plans to prop up their troubled DCP Midstream (NYSE:DPM) natural gas liquids joint venture with $1.5B in cash and a share of two pipelines.
- PSX says it plans to send $1.5B to go toward paying down a portion of DCP’s debt, while SE sends its share in both the Sand Hills and Southern Hills NGL pipelines into the partnership; the companies say the moves are intended to shore up DCP’s balance sheet and ease its access to credit.
- PSX and SE say they will remain 50/50 JV owners of DCP after the deals.
Mon, Aug. 31, 3:49 PM
- West Texas crude oil surged 8.8% to $49.19/bbl, capping a three-day rally that added more than 27% to the price - the largest three-day rally since January 2009 - after U.S. oil production data showed output falling and OPEC said it would talk with other producers about low prices.
- Brent crude rallied 7.4% to $53.80, as the spread between the two benchmarks widened to more than $5 intraday after narrowing to $4.33.
- "Oil markets are hungry for any evidence of a fall in production, anywhere,” says Global Hunter's Robert Hastings.
- The SPDR Energy ETF (XLE +1.2%) jumped after being down as much as 2.5% early in the day, and the Market Vectors Oil Services ETF (OIH +2.3%) reversed a 2.6% loss at its intraday low.
- However, trading volumes were lower and volatility perhaps greater than usual due to a U.K. holiday.
- Andrew Keene tells CNBC he is selling today's pop, noting that XLE is again trading at its 20-day MA and "we haven't traded above this moving average since May."
- Among the shares of some of the more active energy companies, Chevron (CVX +0.5%) and Exxon Mobil (XOM +0.4%) are higher after respective early losses of 3.1% and 2.4%; also, COP +5%, PSX +2.6%, SLB +2.2%, RIG +4.1%, HAL +2.4%, WLL +8.3%, MRO +3.4%, NFX +5.1%, LINE +5.7%.
- Other ETFs: VDE, ERX, XOP, ERY, FCG, DIG, GASL, DUG, BGR, XES, IYE, IEO, IEZ, FENY, PXE, PXI, FIF, PXJ, NDP, RYE, FXN, DDG
Mon, Aug. 31, 10:35 AM
- Phillips 66 (PSX +2.7%) opens with strong gains despite sharp losses in the broader energy sector (XLE -1.1%), after Berkshire Hathaway reveals a new 58M-share, $4.5B stake that makes it the top shareholder in the largest U.S. oil refiner.
- Warren Buffett’s commitment to PSX might look like a case of buying at the top, as factors such as wide spreads between prices for U.S. crude and refined products on global markets have made the past several quarters some of the most profitable ever for U.S. refiners and stocks of refining companies have enjoyed a strong YTD rally.
- But Heard On The Street's Spencer Jakab says many non-refining businesses within PSX, such as its midstream unit, are substantial and stand to benefit if beaten-down oil and natural gas prices rebound, and that Buffett actually is making his own bet on energy infrastructure.
- Berkshire’s stake is too large to be a simple portfolio move and looks more like a strategic step, Jakab writes, perhaps a shares-for-assets swap for assets complementary to BRK’s existing infrastructure that offer steady, utility-like returns, rather than the refining units that are all the rage.
Sat, Aug. 29, 12:10 AM
- Berkshire Hathaway (BRK.A, BRK.B) discloses a $4.5B stake in Phillips 66 (NYSE:PSX), as Warren Buffett takes a renewed interest in the energy industry after appearing to pull back from the group.
- Berkshire holds nearly 58M shares after purchases this week, or more than 10% of the total outstanding, according to an SEC filing late Friday.
- Earlier this month, Berkshire did not disclose an investment in PSX at the end of Q2 but said it had omitted some data that was reported confidentially to the SEC, which sometimes allows companies to withhold information from the public to limit copycat investing while a firm is building or cutting a position.
- The most recent figure BRK had given for a PSX investment was a 7.5M-share stake at the end of Q1.
- PSX shares fell below $70 on Monday amid the broad selloff before rebounding to end the week at $77.23.
Fri, Aug. 21, 1:31 PM
- WTI crude dips below $40 for the first time since 2009 on major concerns over demand from China and a Baker Hughes report indicating producers increased their rig count for the 5th straight week.
- WTI crude traded as low as $39.86.
- Oil majors are down slightly more than broad market averages on the day. Notable decliners include Exxon Mobil (NYSE:XOM) -1.4%, Chevron (NYSE:CVX) -2.5%, Royal Dutch Shell (NYSE:RDS.A) -2.7%, Phillips 66 (NYSE:PSX) -4.5%, and ConocoPhillips -2.1%.
- Related ETFs: USO, OIL, UCO, UWTI, SCO, BNO, DBO, DWTI, DTO, USL, DNO, OLO, SZO, OLEM
Fri, Aug. 14, 5:56 PM
- Berkshire Hathaway (BRK.A, BRK.B) disclosed in its latest 13F filing that it sold off its shares in Phillips 66 (NYSE:PSX) and National Oilwell Varco (NYSE:NOV) during Q2, as it continued to cut its positions in energy companies.
- Meanwhile, BRK kept unchanged its stakes in its “Big Four” holdings American Express (NYSE:AXP), Coca Cola (NYSE:KO), Wells Fargo (NYSE:WFC) and IBM.
- Warren Buffett seemed to hint during a CNBC interview this week that BRK may have built up its IBM stake in the current quarter, saying "I love it when it goes down" when asked whether he was concerned about the stock’s recent performance.
- Buffett’s only new stake in the quarter was a 20M-share investment in auto paint maker Axalta Coating Systems (NYSE:AXTA), which BRK bought from Carlyle Group.
Fri, Aug. 14, 12:47 PM
- The Obama administration will allow limited sales of crude oil to Mexico for the first time, Reuters reports, citing a senior administration official who says the U.S. Commerce Department is "acting favorably on a number of applications" to export U.S. crude in exchange for imported Mexican oil.
- The shipments, likely to be lighter, high-quality shale oil, would help Mexico's aging refineries produce more premium fuels, while U.S. refiners would continue to get Mexican heavy oil, a better match for them than the light oil coming from Texas and North Dakota.
- Although limited in scope, the move toward freeing up trade will please U.S. oil producers such as Pioneer Natural Resources (NYSE:PXD) and ConocoPhillips (NYSE:COP), which say the restrictions force them to sell oil at below global market rates, and may add momentum to efforts mostly to repeal what advocates see as a relic of the 1970s.
- Among relevant oil stocks: XOM, CVX, BP, RDS.A, RDS.B, OAS, NOG, CLR, WLL, EOX, SM, SFY, PVA, GST, SN, CRK, BBG, CWEI
- Relevant refining stocks: VLO, HFC, MPC, TSO, WNR, ALJ, PSX, PBF, DK, NTI, ALDW
- ETFs: XLE, XOP, XES, IEO, IEZ, PXE, NDP
Fri, Jul. 31, 8:44 AM
- Phillips 66 (NYSE:PSX) beat profit expectations on strong Q2 results from Refining and Chemicals even as it pursues a focus on higher-value Midstream growth. Revenue of $29.08B significantly beat expectations for $25.32B.
- Refining contributed $604M to earnings, up 22% Q/Q on higher gasoline margins. Market capture was 62% based on a heavy weighting toward distillates.
- Chemicals earnings rose 45% to $295M as polyethylene demand was high.
- Midstream earnings of $48M were down $19M Q/Q as seasonal propane volumes and lower margins held down NGL business, and losses widened at the DCP Midstream operations mainly from the loss on selling its interest in the Benedum gas processing plant.
- The company says it's focused on growing higher-valued Midstream and Chemicals businesses and enhancing returns in refining.
- Capex was $2.3B through the end of Q2, on track for a capital budget of $4.6B focused on Midstream growth. Operating cash flow, excluding working capital, was $1.8B.
- Webcast to come at noon ET.
- Press Release
Fri, Jul. 31, 8:05 AM
Thu, Jul. 30, 7:19 PM
- Phillips 66 (NYSE:PSX) says it is teaming up with Energy Transfer Partners (NYSE:ETP) and Sunoco Logistics Partners (NYSE:SXL) in a joint venture to build the Bayou Bridge pipeline that will deliver crude oil from the PSX and SXL terminals in Nederland, Tex., to Lake Charles, La.
- PSX holds a 40% interest in the venture, while ETP and SXL each hold 30%, although SXLwill serve as the operator of the system.
- Construction has begun on the Nederland to Lake Charles segment of the pipeline, which will be 30 in. in diameter and is expected to begin commercial operations in Q1 2016.
Thu, Jul. 30, 5:30 PM
Tue, Jul. 14, 3:57 PM
- Although upside among oil refiner stocks seems limited now, Goldman Sachs thinks H2 will be characterized by “dispersion, where company-specific, idiosyncratic leaders” such as Valero (VLO -0.8%), Marathon Petroleum (MPC +0.1%) and Delek US (DK +4.2%) will substantially outperform peers.
- Goldman continues to include VLO in its Americas Conviction List, maintaining a Buy rating and $79 price target. and likes MPC, with a Buy rating and $68 target, expecting Gulf coast refiners to benefit from sturdy gasoline margins, capital allocation, wider spreads and appealing valuations going forward.
- The firm upgrades DK to Buy from Neutral, believing it is well positioned to deliver premium free cash flow on the back of capex declines, while downgrading Phillips 66 (PSX +0.1%) to Neutral from Buy to reflect recent appreciation and expected margin pressure, and raising Western Refining (WNR +1.2%) to Neutral from Sell to reflect midstream value, M&A potential and strong Phoenix margins.
Tue, Jul. 14, 8:37 AM
- Phillips 66 (NYSE:PSX) says it does not anticipate any impact on operations at its 336K bbl/day Wood River, Ill., refinery following the shutdown of the Capwood pipeline.
- Plains All American Pipeline (NYSE:PAA) said on Friday it experienced a crude oil leak at its Pocahontas pumping station, which is part of the Capwood line, but did not specify if the spill had an impact on the overall flow of the line.
- The Wood River refinery sources crude from the 277K bbl/day Capwood line, which runs from Patoka, Ill., to Wood River.
Wed, Jul. 8, 12:54 PM
Fri, Jun. 5, 12:52 PM
- Phillips 66 (PSX +1.3%) says it resumed pumping of its 14K bbl/day pipeline in Santa Barbara County, Calif., after a spill oil spill knocked it out of service earlier this week.
- The pipeline, which serves PSX’s 45K bbl/day Santa Maria refinery, was shut Tuesday after oil was spotted on the surface near the underground pipeline 150 miles up the coast from Los Angeles.
- PSX says it cleaned up the spill, estimated to be “about one barrel” of crude (42 gallons), and then patched up the damaged pipeline.
Phillips 66 is a downstream energy company. The Company's segment includes Refining and Marketing (R&M), Midstream and Chemicals businesses. Its Chemicals business is conducted through its 50% interest in Chevron Phillips Chemical Company LLC.
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