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2019 Annual Report Are Commission-Free
Table of Contents 1 Letter to Our Shareholders 4 Financial Highlights 6 Our Businesses Midstream Chemicals Refining Marketing and Specialties 7 Our Value Chain 8 Our Strategy Operating Excellence Growth Returns Distributions High-Performing Organization 28 Board of Directors 30 Executive Leadership Team 31 Non-GAAP Reconciliations 32 Form 10-K | ON THE COVER AND TABLE OF CONTENTS Lake Charles Refinery WESTLAKE, LA In 2019, Lake Charles Manufacturing Complex achieved a sustained safety record of more than 55 months, equivalent to 7.5 million safe work hours. 2019 PHILLIPS 66 ANNUAL REPORT 1 To Our Shareholders We have the right strategy in place to create shareholder value, and our employees are executing it well. Phillips 66 achieved 34% total shareholder return during 2019, which exceeded our peer group average and the S&P 100. In 2019, we delivered earnings of $3.1 billion and earnings per share of $6.77. Adjusted earnings were $3.7 billion or $8.05 per share. During the year, we generated $4.8 billion of operating cash flow. We reinvested $3.9 billionback into the business and returned $3.2 billion of capital to shareholders through dividends and share repurchases. We increased our quarterly dividend 12.5% and announced a $3 billion increase to our share repurchase program. Since our formation, we have returned $26 billion to shareholders through dividends, share repurchases and exchanges, reducing our initial shares outstanding by 33%. Operating excellence is our No. 1 priority and core to everything we do. Our goal is zero incidents, zero accidents and zero injuries. We believe this is attainable, and we strive for it daily. -
2020 Fact Book 2 Our Businesses Our Strategy Midstream Chemicals Refining Marketing and Specialties Energy Research & Innovation Global Asset Map General Information
Cover Photo: Taft Storage Facility at Gray Oak Pipeline TAFT, TX Contents 3 4 5 OUR BUSINESSES OUR STRATEGY MIDSTREAM Ferndale Ferndale Rail Terminal* Renton North Spokane Tacoma (MT) Yellowstone Cut Bank Moses Lake Thompson 17Falls Rail 24 14 Spokane Terminal Palermo* UROPE DLE EA Portland D Great Falls E I ST Portland (MT) Missoula Rail Terminal M Yello Glacier Sacagawea* Missoula wsto Helena Roundup Keene CDP* ne Billings Crude* Bozeman Billings Billings Humber SPCo & S-Chem ooth Sheridan* Semino Bakk Beart en Bayway MiRO CHEMICALS REFINING * MARKETING AND SPECIALTIES Bighorn e* Linden* Q-Chem I & II Casper* Tremley Pt. (MT)* * Po Rock Springs wd Bayway Rail eminoe er Ri Terminal* S Harbor Red Line Oil North Salt Lake Pioneer ve Des Moines s r Sacramento Rockies Expr Hartford Lincoln ess Line 20 ess Richmond (MT) Rockies Expr San Francisco Denver Borg Conway Kansas City* Po 0 Rockies Expres to Wichita wd Paola er-Den Gold Line* Wood River er Riv Wichita N.* Products* HeartlandPaola* Blue Line 0 Wichita S.* E. St. ver Jeerson City* Junction er Louis* Southern Hills* m Cherokee North* r*Hartford* Line 30 re Line 40 ol Standish* La Junta * h Ponca City* Explo his Ponca City ld Line C Crude* Go 0 Los Angeles Medford* eeMount Vernon* ok t Los Angeles Borger CherEas Torrance Cherokee Colton Borger to Amarillo* Blue LineSouth* Glenpool* Ponca Selmer Line O* * CushPo* Albuquerque* K PL Sk AC ATA Line* elly ST Cushing City SA Oklahoma City* Amarillo* -Belvieu Los Angeles AL Borger Oklahoma Crude* * Explor Wichita Falls* Lubbock* Savannah North -
Long-Term Prospects for Northwest European Refining
LONG-TERM PROSPECTS FOR NORTHWEST EUROPEAN REFINING ASYMMETRIC CHANGE: A LOOMING GOVERNMENT DILEMMA? ROBBERT VAN DEN BERGH MICHIEL NIVARD MAURITS KREIJKES CIEP PAPER 2016 | 01 CIEP is affiliated to the Netherlands Institute of International Relations ‘Clingendael’. CIEP acts as an independent forum for governments, non-governmental organizations, the private sector, media, politicians and all others interested in changes and developments in the energy sector. CIEP organizes lectures, seminars, conferences and roundtable discussions. In addition, CIEP members of staff lecture in a variety of courses and training programmes. CIEP’s research, training and activities focus on two themes: • European energy market developments and policy-making; • Geopolitics of energy policy-making and energy markets CIEP is endorsed by the Dutch Ministry of Economic Affairs, the Dutch Ministry of Foreign Affairs, the Dutch Ministry of Infrastructure and the Environment, BP Europe SE- BP Nederland, Coöperatieve Centrale Raiffeisen-Boerenleenbank B.A. ('Rabobank'), Delta N.V., ENGIE Energie Nederland N.V., ENGIE E&P Nederland B.V., Eneco Holding N.V., EBN B.V., Essent N.V., Esso Nederland B.V., GasTerra B.V., N.V. Nederlandse Gasunie, Heerema Marine Contractors Nederland B.V., ING Commercial Banking, Nederlandse Aardolie Maatschappij B.V., N.V. NUON Energy, TenneT TSO B.V., Oranje-Nassau Energie B.V., Havenbedrijf Rotterdam N.V., Shell Nederland B.V., TAQA Energy B.V.,Total E&P Nederland B.V., Koninklijke Vopak N.V. and Wintershall Nederland B.V. CIEP Energy -
Consolidated Income Statement
CONSOLIDATED INCOME STATEMENT Millions of Dollars 2011 2012 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD Revenues and Other Income Sales and other operating revenues* 56,530 65,627 62,784 59,872 244,813 56,132 56,132 Equity in earnings of affiliates 1,017 1,160 1,298 602 4,077 1,220 1,220 Gain on dispositions 616 78 (480) 1,793 2,007 942 942 Other income 84 96 27 122 329 60 60 Total Revenues and Other Income 58,247 66,961 63,629 62,389 251,226 58,354 58,354 Costs and Expenses Purchased crude oil, natural gas and products 42,376 50,133 47,597 45,761 185,867 41,889 41,889 Production and operating expenses 2,628 2,606 2,768 2,768 10,770 2,696 2,696 Selling, general and administrative expenses 499 514 466 599 2,078 685 685 Exploration expenses 176 264 266 360 1,066 679 679 Depreciation, depletion and amortization 2,070 2,075 1,870 1,919 7,934 1,838 1,838 Impairments - 2 486 304 792 259 259 Taxes other than income taxes* 4,364 4,830 4,579 4,534 18,307 4,521 4,521 Accretion on discounted liabilities 112 115 114 114 455 114 114 Interest and debt expense 262 247 235 228 972 209 209 Foreign currency transaction (gains) losses (36) (17) 68 (31) (16) (11) (11) Total Costs and Expenses 52,451 60,769 58,449 56,556 228,225 52,879 52,879 Income before income taxes 5,796 6,192 5,180 5,833 23,001 5,475 5,475 Provision for income taxes 2,754 2,773 2,549 2,423 10,499 2,520 2,520 Net Income 3,042 3,419 2,631 3,410 12,502 2,955 2,955 Less: net income attributable to noncontrolling interests (14) (17) (15) (20) (66) (18) (18) Net -
Report-Magazine-Autumn-2019.Pdf
ISSUE NO.11: AUTUMN 2019 04–05 06–07 14 –15 20–23 UK Maritime Minister on London Maritime 2050: turning a British exporters: navigating Brexit-proof: the Port International Shipping Week bold vision into reality a new trading reality of Zeebrugge It’s time to... TURBO--CHARGE TRADE Insight from Britain’s Leading Port Operator 2 REPORT – AUTUMN 2019 REPORT – AUTUMN 2019 3 In this issue Welcome to the Autumn 2019 edition of Report magazine. 04–05 08 –11 20–23 32–33 I am delighted to introduce to you this special UK Maritime Minister It’s time to Brexit-proof: the Port Talking about issue dedicated to London International Also in this issue Shipping Week (LISW) and looking to the on London International turbo-charge trade of Zeebrugge a revolution future of trade. Shipping Week The Government’s intention to In this joint article, Joachim Coens, President Maritime 2050: turning a Among many highlights are a piece by the UK “turbo-charge” the nation’s preparations for CEO at the Port of Zeebrugge, and Patrick Van bold vision into reality Maritime Minister, Nusrat Ghani, discussing UK Maritime Minister Nusrat Ghani MP outlines no deal has been made clear. Whilst leaving Cauwenberghe, Trade Facilitation Director at the Jonathan Spremulli, Principal Director and Head 06–07 the key achievements of the sector and an some of the key features London International the EU without a deal is not a desirable outcome Port of Zeebrugge, examine the port’s trading of the Marine Department at the International — article by the Director for Maritime at the Shipping Week (LISW) visitors can look forward for many, it is vital that British businesses make tradition with the UK and outline steps taken to Chamber of Shipping, looks at the opportunities to this year. -
Case Study on Co2 Transport Pipeline Network Design for Humber Region in the Uk
CASE STUDY ON CO2 TRANSPORT PIPELINE NETWORK DESIGN FOR HUMBER REGION IN THE UK Tihomir Lazica, Eni Okoa,b and Meihong Wanga,b,* aProcess Systems Engineering Group, School of Engineering, Cranfield University, Bedfordshire, MK43 0AL, UK bSchool of Engineering, University of Hull, HU6 7RX, UK *Corresponding author. Tel.: +44 1482 466688. E-mail address: [email protected] ABSTRACT Reliable, safe and economic CO2 transport from CO2 capture points to long term storage/enhanced oil recovery (EOR) sites is critical for commercial deployment of carbon capture and storage (CCS) technology. Pipeline transportation of CO2 is considered most feasible. However, in CCS applications there is concern about associated impurities and huge volumes of high pressure CO2 transported over distances likely to be densely populated areas. On this basis, there is limited experience for design and economic assessment of CO2 pipeline. The Humber region in the UK is a likely site for building CO2 pipelines in the future due to large CO2 emissions in the region and its close access to depleted gas fields and saline aquifers beneath the North Sea. In this paper, various issues to be considered in CO2 pipeline design for CCS applications are discussed. Also, different techno- economic correlations for CO2 pipelines are assessed using the Humber region as case study. Levelized cost of CO2 pipelines calculated for the region range from 0.14 to 0.75 GBP per tonne of CO2. This is a preliminary study and is useful for obtaining quick techno-economic assessment of CO2 -
The Low Carbon Energy & Industry Investment Opportunity
Greater Lincolnshire UK The Low Carbon Energy & Industry Investment Opportunity Greater Lincolnshire UK The Low Carbon Energy & Industry Investment Opportunity 03 Business Location Guide Contents Contents Contents 03 The Low Carbon Investment Opportunity 04 The UK Low Carbon Market Opportunity 06 The Low Carbon Industrial Investment Opportunity 08 The Circular Economy Investment Opportunity 10 The Offshore Renewable Energy Investment Opportunity 12 Low Carbon & Related Industry Clusters 14 Low Carbon Knowledge, Research & Technologies 16 Workforce, Education & Skills for Low Carbon Sectors 18 Industrial Sites & Property Solutions 26 Humber Freeport Sites & Benefits28 Ports & Logistics Infrastructure 30 Fast UK & Global Market Access 32 Greater Lincolnshire’s Location & Connectivity 34 UK Market Access 35 Support for Your Low Carbon Sector Business Investment 36 Greater Lincolnshire UK The Low Carbon Energy & Industry Investment Opportunity 04 Greater Lincolnshire UK The Low Carbon Energy & Industry Investment Opportunity 05 Business Location Guide Business Location Guide Growth opportunities aligned with Greater ambitious UK sustainability goals Lincolnshire UK: UK-leading industry clusters The Low Carbon in Low Carbon energy and industrial sectors Investment Building on established strengths in energy generation, energy-intensive industries, and port logistics, including within the Humber Energy Advanced Low Carbon research, Estuary, the area is home to the UK’s most Opportunity ambitious Industrial Decarbonisation project, a innovation -
UK Ports: Delivering a Global Future
ISSUE NO.9: SPRING 2019 08–09 14 –17 18–19 22–23 The Danish connection: ABP sponsors Women in The future of wind Port of Tallinn goes keeping Britain trading Journalism parliamentary reception propulsion technology smart and green 04–07 UK ports: delivering a global future Secretary of State for International Trade, Rt. Hon Dr. Liam Fox MP Insight from Britain’s Leading Port Operator 2 REPORT – SPRING 2019 REPORT – SPRING 2019 3 In this issue Welcome to the Spring 2019 edition of Report magazine. 04–07 08–09 14 –17 18 –19 20– 21 This year’s first issue opens with an article UK ports: delivering The Danish connection: ABP sponsors The future of wind Port of Rotterdam: training by Secretary of State for International Trade, a global future keeping Britain trading Women in Journalism propulsion technology a workforce fit for the Dr Liam Fox MP, who discusses the vital role UK ports continue to play in our national life, parliamentary reception Fourth Industrial Revolution underpinning our current and future prosperity. Secretary of State for International Trade, Rt. Hon HR expert and researcher at the Port of The vital importance of ports is also Dr. Liam Fox MP discusses the vital role ports Trade advisor at the Danish Embassy in the UK, Secretary of International Windship Association Rotterdam, Renee Rotmans, discusses ways in reaffirmed by Danish Embassy Trade Advisor, continue to play in our national identity as Jes Lauritzen, traces the history of the UK and ‘Meet the Women of Westminster’ (IWSA), Gavin Allwright, looks at the latest which the port is focusing on upskilling in order Jes Lauritzen, who shares why ABP’s Ports a great maritime nation. -
Explosion at the Conoco Humber Refinery – 16Th April 2001
SYMPOSIUM SERIES NO. 151 # 2006 Crown Copyright EXPLOSION AT THE CONOCO HUMBER REFINERY – 16TH APRIL 2001 Jonathan Carter, Peter Dawson and Robert Nixon Health and Safety Executive, Hazardous Installations Directorate # Crown Copyright 2006. This article is published with the permission of the Controller of HMSO and the Queen’s Printer for Scotland An explosion and fire occurred at the Conoco Humber Refinery on 16th April 2001, following the catastrophic failure of a 600 overhead pipe from a de-ethaniser column on the Saturate Gas Plant. Investigation revealed that the failure of the pipe was due to internal corrosion that had not been identified by the refinery pipework inspection regime. The paper describes the event and the emergency response. It also examines the immediate cause of the event, and how failures of the management of pipework inspection and management of change failed to prevent the accident occurring. The paper concludes with the lessons that can be learned from this event. THE REFINERY The Humber Refinery is located on the south bank of the estuary of the River Humber on the east coast of England, approximately 1.5 km north-west of the town of Immingham and 0.5 km east of the village of Killingholme. In 2001 Conoco Ltd owned the refinery. In August 2002 Conoco merged to form ConocoPhillips Ltd., the current owners of the refinery. The refinery was constructed between 1966 and 1969 and commissioned in 1970. The current capacity of the refinery is about 225,00 US barrels per day of crude oil, or about 11.4 million tonne per year. -
Point of Entry
DESIGNATED POINTS OF ENTRY FOR PLANT HEALTH CONTROLLED PLANTS/ PLANT PRODUCTS AND FORESTRY MATERIAL POINT OF ENTRY CODE PORT/ ADDRESS DESIGNATED POINT OF ENTRY AIRPORT FOR: ENGLAND Avonmouth AVO P The Bristol Port Co, St Andrew’s House, Plants/plant products & forestry St Andrew’s Road, Avonmouth , Bristol material BS11 9DQ Baltic Wharf LON P Baltic Distribution, Baltic Wharf, Wallasea, Forestry material Rochford, Essex, SS4 2HA Barrow Haven IMM P Barrow Haven Shipping Services, Old Ferry Forestry material Wharf, Barrow Haven, Barrow on Humber, North Lincolnshire, DN19 7ET Birmingham BHX AP Birmingham International Airport, Birmingham, Plants/plant products B26 3QJ Blyth BLY P Blyth Harbour Commission, Port of Blyth, South Plants/plant products & forestry Harbour, Blyth, Northumberland, NE24 3PB material Boston BOS P The Dock, Boston, Lincs, PE21 6BN Forestry material Bristol BRS AP Bristol Airport, Bristol, BS48 3DY Plants/plant products & forestry material Bromborough LIV P Bromborough Stevedoring & Forwarding Ltd., Forestry material Bromborough Dock, Dock Road South, Bromborough, Wirral, CH62 4SF Chatham (Medway) MED P Convoys Wharf, No 8 Berth, Chatham Docks, Forestry Material Gillingham, Kent, ME4 4SR Coventry Parcels Depot CVT P Coventry Overseas Mail Depot, Siskin Parkway Plants/plant products & forestry West, Coventry, CV3 4HX material Doncaster/Sheffield Robin DSA AP Robin Hood Airport Doncaster, Sheffield, Plants/plant products & forestry Hood Airport Heyford House, First Avenue, material Doncaster, DN9 3RH Dover Cargo Terminal, -
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Operator Name Location Name Address Name Address Street Address Town Address County Address Postcode 1 Address Postcode 2 Incumbent Duty Type Text Previous Name LA Code Local Authority Country AMG Superalloys UK Limited Rotherham Fullerton Road Rotherham South Yorkshire S60 1DL COMAH Upper Tier Operator (was London & Scandinavian Metallurgical Co Ltd) 4415 Rotherham England Anglian Water Services Limited Wing Water Treatment Works Morcott Road Oakham Rutland LE15 8SA COMAH Upper Tier Operator 2470 Rutland UA England Arch Timber Protection Limited Huddersfield Huddersfield Works Leeds Road Huddersfield West Yorkshire HD2 1YU COMAH Upper Tier Operator (was Arch UK Biocides Ltd) 4715 Kirklees England Argenta Dundee Limited Dundee Dunsinane Industrial Estate Kinnoull Road Dundee Angus DD2 3XR COMAH Upper Tier Operator (was Vericore Limited) 9059 Dundee UA Scotland Associated British Ports Immingham Dock Immingham Dock Immingham Lincolnshire DN40 2NS COMAH Upper Tier Operator 2002 North East Lincolnshire England Associated Petroleum Terminals (Immingham) Limited Immingham Main Terminal Queens Road Immingham North East Lincolnshire DN40 2PN COMAH Upper Tier Operator 2002 North East Lincolnshire England Avanti Gas Limited Ellesmere Port Britannia Road Ellesmere Port Cheshire CH65 4HB COMAH Upper Tier Operator (was Shell Gas Limited) 4325 Wirral England Avara Avlon Pharma Services Limited Avlon Works Severn Road Bristol South Gloucestershire BS10 7ZE COMAH Upper Tier Operator (was AstraZeneca UK Limited) 0119 South Gloucs UA England BAE Systems -
Standards Terms and Conditions of Trade
bylaws, orders, notices, demands, regulations or official guidance issued by any Competent Authority which are applicable to the Customer, the Port and/or any aspect of the performance of these Conditions as the same may be amended or modified from time to time; “Cargo” means cargoes of any description; ASSOCIATED BRITISH PORTS “Cargo Services” means any services provided by, or on behalf of, STANDARD TERMS AND CONDITIONS OF TRADE ABP in relation to the Cargo or Containers including unloading or loading Cargo or Containers from or to Vessel or from or to Customer Transport, handling of Cargo or Containers, management of storage and storage of Cargo or Containers at the Port; IMPORTANT ADVICE “Charges” means all charges, dues, expenses or other sums THE CUSTOMER’S ATTENTION IS DRAWN TO SPECIFIC (including charges for Services, charges for the hire of ABP Plant, CONDITIONS WHICH EXCLUDE OR LIMIT THE LIABILITY OF and dues and charges for Vessels) which are payable by the ABP (INCLUDING CONDITIONS 6.4, 11, 14.1, 16, 18.2, 19.2, 20, Customer to ABP; 22, 23, 24, 25, 26), REQUIRE THE CUSTOMER TO INDEMNIFY OR REIMBURSE ABP IN CERTAIN CIRCUMSTANCES “Competent Authority” means any supranational, national, (INCLUDING CONDITIONS 3.2, 4, 5.3, 6.3, 8.2, 9.3, 10.1, 16, 17, regional, local or municipal government or regulatory authority, body, 18.2, 19.2) AND LIMIT TIME (INCLUDING CONDITION 25) agency, court, ministry, inspectorate or department, or any official, public or statutory person or body, police, customs or port authority, ABP UNDERTAKES NO OBLIGATION TO EFFECT INSURANCE in each case acting in accordance with its or their statutory or legal (AND MAKES NO CHARGE FOR INSURANCE).