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$PSX 1Q15 10-Q: In April 2015, Rockies Express Pipeline LLC repaid $450MM of its debt, reducing its long-term debt to approx. $2.6Bil. REX funded the repayment through member cash contributions. PSX’s 25% share was approx. $112MM, which it contributed to REX in April 2015.
$PSX announced its 2018 capital budget of $2.3Bil, which includes $1.4Bil of growth capital and $0.9Bil of sustaining capital. Long-term, the company continues to target re-investing 60% of its cash flow back into the business and returning 40% to its shareholders.
Despite the challenges associated with Hurricane Harvey, energy manufacturer $PSX reported higher profit in 3Q17 as its Midstream, Chemicals and Refining segments posted higher earnings. Consolidated earnings surged 61% to $823MM or $1.60 per share and revenue rose 19% to $26.2Bil. On an adjusted basis, earnings spiked 58% to $1.66 per share.
$PSX and Square Robot, Inc. are teaming up to develop an autonomous robot that would have the capability to inspect petroleum product storage tank floors while product remains in the tank. The untethered robot is being designed and will be certified for use in a wide range of petroleum products. The robot is expected to enter service in mid-2018.
$PSX generated $1.9Bil in cash from operations during 2Q17, including $422MM of cash distributions from equity affiliates. Excluding working capital impacts, operating cash flow was $1.2Bil. Phillips 66 expects the diesel recovery project in Ponca City to be complete in 3Q17.
In terms of business growth prospect, $PSX said the second wave of ethane cracker project is being planned in the U.S. The company anticipates there will be continued opportunity for infrastructure around crude and product side, and believes Midstream will be a growth vehicle.
$PSX's Midstream's earnings for 1Q17 was $77MM compared to a loss of $1MM last quarter, which included charge related to restructuring and certain tax adjustments. Transportation net income was $78MM, improved $10MM from 4Q16 adjusted net income of $68MM, on seasonally lower maintenance costs and higher equity earnings.
$PSX reported a rise in 1Q17 earnings driven by net benefit of a gain on consolidation of a petroleum coking venture and an impairment taken by an equity affiliate. Net income rose to $535MM or $1.02 per share from $385MM or $0.72 per share last year. Adjusted EPS decreased to $0.56 from $0.67.
$PSX generated $667MM of cash from operations in 4Q16, including a $31MM working capital benefit. PSXP raised approx. $1.1Bil from the issuance of long-term notes during 4Q16. Capex was $813MM with $452MM spent on growth, mostly in Midstream. Distributions to shareholders were $558MM with $328MM in dividends and $230MM in share repurchases.