Phillips 66 (NYSE:PSX) Q1 2024 Earnings Conference Call April 26, 2024 12:00 PM ET

Company Participants

Jeff Dietert - Vice President, Investor Relations
Mark Lashier - President and Chief Executive Officer
Kevin Mitchell - Chief Financial Officer
Rich Harbison - Refining
Tim Roberts - Midstream and Chemicals
Brian Mandell - Marketing and Commercial

Conference Call Participants

Neil Mehta - Goldman Sachs
Roger Read - Wells Fargo Securities
Ryan Todd - Piper Sandler
Manav Gupta - UBS
John Royall - JPMorgan
Matthew Blair - Tudor, Pickering, Holt
Paul Cheng - Scotiabank
Jason Gabelman - Cowen and Company
Theresa Chen - Barclays

Operator

Welcome to the First Quarter 2024 Philips 66 Earnings Conference Call. My name is Lydia, and I’ll be your operator for today’s call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session. Please note that this conference is being recorded.

I will now turn the call over to Jeff Dietert, Vice President, Investor Relations. Jeff, you may begin.

Jeff Dietert

Welcome to Philips 66 first quarter earnings conference call. Participants on today’s call will include Mark Lashier, President and CEO; Kevin Mitchell, CFO; Tim Roberts, Midstream and Chemicals; Rich Harbison, Refining; and Brian Mandell, Marketing and Commercial.

Today’s presentation materials can be found on the Investor Relations section of the Philips 66 website along with supplemental financial and operating information.

Slide two contains our Safe Harbor statement. We will be making forward-looking statements during today’s call. Actual results may differ materially from today’s comments. Factors that could cause actual results to differ are included here, as well as in our SEC filings.

With that, I’ll turn it over to Mark.

Mark Lashier

Thanks, Jeff. Welcome everyone to our first quarter earnings call. We continued to progress our strategic priorities and we returned significant cash to our shareholders. While our crude utilization rates were strong during the quarter, our results were affected by maintenance that limited our ability to make higher value products. We were also impacted by the renewable fuels conversion at Rodeo, as well as the effect of rising commodity prices on our inventory hedge positions. Currently, our assets are running near historical highs and we are ready to meet peak summer demand.

Before we provide an update on our strategic priorities, we want to recognize our midstream, refining and chemicals businesses, which have all received honors for their exemplary safety performance in 2023. Our midstream gathering and processing business received the top 2023 GPA Safety Award in the large operator division. In refining, the Rodeo and Sweeney facilities both received the AFPM Distinguished Safety Award, which is the highest annual safety award in the industry. This was Sweeney Refinery's third straight year to receive the honor.