In the oil and gas industry, Phillips 66 and ConocoPhillips are two well-known companies that have been intertwined for years. Many people have questions about these two petroleum giants, with some even wondering if they are the same company. In this blog, we will explore the Phillips 66 and ConocoPhillips split and the underlying controversy that led to it. We will also answer some of the most frequently asked questions about the companies, such as who owns Phillips 66 and whether Phillips 66 is ConocoPhillips.
One of the most commonly asked questions is whether ConocoPhillips split from Phillips 66. The answer is yes; ConocoPhillips spun off Phillips 66 in 2012, making Phillips 66 a separate, publically traded company. This split was a strategic move for ConocoPhillips, which was looking to increase its focus on oil and gas exploration and production.
Despite the split, many people still wonder if the two companies are the same. While Phillips 66 was once a part of ConocoPhillips, the two companies are now distinctly separate entities with different goals and objectives. They are both publicly traded companies on the New York Stock Exchange, but they operate independently of each other.
So, why did ConocoPhillips spin off Phillips 66? The primary reason was to increase shareholder value and financial flexibility. By separating its refining and marketing operations, ConocoPhillips could focus on its core business of exploration and production, while Phillips 66 could focus on its downstream operations, including refining and marketing.
However, the split was not without controversy. Some investors were concerned about the long-term value of Phillips 66 shares, given the company’s dependence on refining and marketing, which tend to be more volatile than exploration and production. Despite these concerns, Phillips 66 has continued to operate successfully as an independent company, and its shares have performed well in the years since the split.
In the next sections of this blog, we will delve deeper into the specifics of the Phillips 66 and ConocoPhillips split, answering more questions about the companies and their relationship. We will also explore the controversy surrounding the split and what it means for investors and the future of the oil and gas industry. So, buckle up, and let’s explore the world of Phillips 66 and ConocoPhillips.
Who Owns Phillips 66
If you’re wondering who owns Phillips 66, you’re not alone. Many people get confused between Phillips 66 and ConocoPhillips, and it’s easy to see why – both are energy companies with similar names. However, the two have split up, and they are no longer under the same ownership.
Phillips 66 Spin-Off
Phillips 66 used to be a subsidiary of ConocoPhillips, but it’s now an independent company. In 2012, ConocoPhillips spun off its downstream assets, including refining and marketing operations, into a separate company, which became Phillips 66. This spinoff enabled ConocoPhillips to focus on its upstream business, which involves exploration and production.
Phillips 66 Owners
So, who are the owners of Phillips 66 now? The company is publicly traded on the New York Stock Exchange under the ticker symbol PSX. This means that ownership of Phillips 66 is spread across thousands of investors who hold shares of the company. According to the company’s filings with the Securities and Exchange Commission, the largest institutional shareholders of Phillips 66 as of June 30th, 2021, are:
- The Vanguard Group, Inc.
- BlackRock, Inc.
- State Street Corporation
- Wellington Management Company, LLP
- Capital World Investors
It’s worth noting that these institutional investors could be managing stocks on behalf of various individual or institutional clients.
Key Takeaways
- Phillips 66 is no longer owned by ConocoPhillips.
- ConocoPhillips spun off its downstream assets, including refining and marketing operations, to create Phillips 66 in 2012.
- Phillips 66 is now an independent company that is publicly traded on the New York Stock Exchange.
- Ownership of Phillips 66 is spread across thousands of investors who hold shares of the company.
- As of June 30th, 2021, the largest institutional shareholders of Phillips 66 were The Vanguard Group, Inc., BlackRock, Inc., State Street Corporation, Wellington Management Company, LLP, and Capital World Investors.
Phillips 66 vs ConocoPhillips: What’s the Difference
Phillips 66 Conoco: Is There a Connection
When it comes to the oil and gas industry, there are a lot of big players and confusing relationships between companies. One area that often causes confusion is the relationship between Phillips 66 and ConocoPhillips. Here’s what you need to know:
- History: Phillips 66 and ConocoPhillips were once part of the same company: ConocoPhillips Co. In 2012, the company announced that it would split into two separate, publicly traded companies: ConocoPhillips and Phillips 66.
- Operations: Although they were once part of the same company, Phillips 66 and ConocoPhillips now operate independently of one another. Phillips 66 focuses on refining, marketing, and distributing oil and gas products, while ConocoPhillips is an exploration and production company.
- Stock: Even though they are separate companies, Phillips 66 and ConocoPhillips still have some connections. For example, Phillips 66 still owns a 12% stake in the company that was once its parent, ConocoPhillips. Additionally, Phillips 66 shareholders used to receive ConocoPhillips shares as part of their dividend payments, although this arrangement ended in 2019.
Overall, while there are some connections between Phillips 66 and ConocoPhillips, they are now separate companies with distinct operations and business models. Understanding the difference between these two industry giants can help investors make informed decisions about where to put their money.
Did Conoco Separate from Phillips 66
In 2012, ConocoPhillips, a multinational energy corporation headquartered in Houston, Texas, decided to separate its downstream businesses from its oil and gas exploration and production operations. This strategic move came as a result of ConocoPhillips wanting to enhance its ability to focus on its upstream assets and improving returns to shareholders.
As part of the separation plan, ConocoPhillips spun off its downstream businesses, which included its refining, marketing, and transportation functions, into a new publicly-traded company called Phillips 66. The split became official on May 1, 2012, and Phillips 66 began trading on the New York Stock Exchange under the ticker symbol PSX.
The decision to split the company was a significant milestone for ConocoPhillips and Phillips 66, and it had several implications for both companies, their stakeholders, and the energy industry as a whole.
Key Takeaways from the Separation of ConocoPhillips and Phillips 66
Here are some of the key takeaways from the separation of ConocoPhillips and Phillips 66:
- The separation allowed ConocoPhillips to focus on its core operations of exploration, production, and development of oil and gas resources. By giving up its downstream and midstream operations, the company was able to streamline its asset portfolio and improve capital efficiency.
- Phillips 66, on the other hand, became an independent downstream company with a diverse portfolio of refining, marketing, and transportation businesses. The company has since become one of the largest and most profitable independent downstream companies in the world.
- The separation enhanced the value proposition for shareholders of ConocoPhillips and Phillips 66. By separating their businesses, the two companies were able to unlock value and provide investors with a more targeted investment opportunity.
- The split also had broader implications for the energy industry. The separation of ConocoPhillips and Phillips 66 was seen as a trendsetter for other integrated oil companies that were looking to optimize their business portfolios and streamline their operations.
In summary, the separation of ConocoPhillips and Phillips 66 was a significant event in the energy industry that had several implications for both companies, their stakeholders, and investors. By separating its downstream businesses, ConocoPhillips was able to focus on its core operations, while Phillips 66 became an independent downstream giant. The separation also had broader implications for the energy industry and is seen as a trendsetter for other integrated oil companies looking to optimize their business portfolios and streamline their operations. Overall, the separation was a strategic move that has benefited both ConocoPhillips and Phillips 66 and their stakeholders.
What is the Phillips 66 Controversy
Phillips 66 is an American multinational energy company that specializes in petroleum and natural gas. Over the years, the company has faced several controversies that have put it in the spotlight. Here are the main points to consider:
Fuel Spillage At Santa Maria Refinery
In 2019, Phillips 66 was hit with a $111,000 monetary penalty by the Santa Barbara County’s Air Pollution Control District because of oil spillage at its Santa Maria refinery.
Leakages in the Pipeline System
In 2018, a Phillips 66 pipeline ruptured and released more than 43,000 gallons of gasoline and diesel near St. Louis, Missouri. The company was also hit with a fine of $1.7 million by the Missouri Department of Natural Resources.
Criticisms Against the Company’s Environmental Practices
Phillips 66 has also been criticized for not doing enough to protect the environment. Environmental advocacy groups have accused the company of contributing to global warming by producing and selling petroleum products.
Allegation of Discrimination
Phillips 66 has faced charges of discrimination against its female employees in the past. In 2018, the company was sued by the Equal Employment Opportunity Commission for sex discrimination.
Consequence of Recent Mergers and Acquisitions
Phillips 66 is also facing criticism for its recent acquisition of Bridger Pipeline LLC. Environmental activists have accused the company of not doing enough research about the environmental impact of the pipeline.
Phillips 66 has faced numerous controversies over the years, and it is essential for the company to take the necessary steps to rectify its past mistakes. As consumers, we must also support companies that strive to maintain ethical standards and take their social and environmental responsibilities seriously.
Why ConocoPhillips Spun off Phillips 66
ConocoPhillips, one of the largest oil and gas companies in the world, surprised the markets in 2012 by announcing the spinoff of its refining arm, Phillips 66. The move was unexpected, and it raised questions about the reasons behind it. Here are some possible explanations:
Continued Focus on Exploration and Production
ConocoPhillips had been looking to shed its refining and marketing assets for years to focus on exploration and production of oil and gas. By spinning off Phillips 66, ConocoPhillips was able to achieve this goal.
Unlocking Value
ConocoPhillips believed that the separation would generate more value for its shareholders as Phillips 66 was an undervalued company, and it had the potential to grow as a standalone entity.
Streamlined Operations
By separating from ConocoPhillips, Phillips 66 became a more streamlined company, able to focus solely on downstream operations, including refining, chemicals, and marketing. This allowed for more efficient operations and improved profitability.
Lower Risk Profile
ConocoPhillips spun off Phillips 66 to reduce its exposure to volatile refining and marketing businesses. This shift also enabled the company to pay down debt and increase its financial flexibility.
Capital Allocation
The spinoff allowed both ConocoPhillips and Phillips 66 to allocate capital more efficiently. ConocoPhillips could focus on its core operating strengths, and Phillips 66 could allocate resources to its refining and marketing operations.
The Changing Oil and Gas Landscape
Finally, Phillips 66 was spun off at a time when the oil and gas industry was experiencing significant changes. There was a shift toward unconventional oil and gas resources, and the need to be more innovative and efficient. Phillips 66, as a standalone company, could be more agile and responsive to these changes.
In conclusion, ConocoPhillips’ decision to spin off Phillips 66 was based on a combination of factors that included focus, value, efficiency, and market trends. The move ultimately allowed both companies to optimize their operations and better serve their stakeholders.
Why Did ConocoPhillips and Phillips 66 Split
In 2012, ConocoPhillips announced that it would be splitting off its downstream business to form a separate independent company, Phillips 66. This was not the first time the two companies had parted ways, as they had previously merged in 2002 to form ConocoPhillips. The decision to split was a strategic move, driven by several factors:
Market pressures
The oil and gas industry was undergoing significant changes with the rise of new technologies and global economic factors. The market pressures on the upstream and downstream businesses were very different, and operating them together was becoming increasingly challenging.
Focus on core assets
ConocoPhillips wanted to focus on its core upstream business of oil and gas exploration and production, while Phillips 66 would concentrate on refining, marketing, and transportation of petroleum products. This would enable each company to optimize its assets and operations.
Unlocking value
The separation would enable both companies to unlock value and pursue growth opportunities independently. Phillips 66 would have greater flexibility to invest in its downstream business, and ConocoPhillips could prioritize its upstream investments.
Shareholder value
Finally, the split was expected to create shareholder value, with both companies offering unique investment opportunities. The separation would enable investors to choose the type of exposure they wanted to the oil and gas industry, whether it be upstream or downstream.
In conclusion, the decision to split ConocoPhillips and form Phillips 66 was a strategic move driven by market pressures, a focus on core assets, unlocking value, and creating shareholder value. The two companies continue to operate successfully independently, with each offering unique opportunities for investors.
ConocoPhillips Spin-Off of Phillips 66: Understanding Cost Basis
When ConocoPhillips spun off Phillips 66 in 2012, it was a significant event for both companies. For ConocoPhillips, it meant focusing on the upstream business of exploration and production, while for Phillips 66, it meant becoming a standalone downstream company focusing on refining, marketing, and chemicals. However, for investors in ConocoPhillips, the spin-off posed an important question: How would their cost basis in ConocoPhillips translate to their cost basis in Phillips 66?
What Is Cost Basis
Cost basis is the original value of an asset for tax purposes. When an asset is sold, the difference between the sale price and the cost basis is taxed as either a capital gain or a capital loss. For investors holding stock in ConocoPhillips before the spin-off, their cost basis in ConocoPhillips could affect their tax liability after the spin-off.
How Was Cost Basis Determined for the Phillips 66 Spin-Off
When Phillips 66 was spun off from ConocoPhillips, shareholders of ConocoPhillips received shares of Phillips 66 as a tax-free distribution. The IRS requires that the total cost basis of the ConocoPhillips shares be divided between the ConocoPhillips and Phillips 66 shares received in the spin-off.
To determine the cost basis of the Phillips 66 shares, investors needed to allocate a portion of their original ConocoPhillips cost basis to their Phillips 66 shares based on their relative fair market values at the time of the spin-off. The fair market value of Phillips 66 shares was determined on the first day of trading after the spin-off, which was April 30, 2012.
How Can Investors Determine Their Cost Basis in Phillips 66
Investors who held ConocoPhillips shares before the spin-off should have received a Form 8937 from ConocoPhillips, which provided the necessary information to calculate their cost basis in Phillips 66. If an investor did not receive a Form 8937 or if they purchased ConocoPhillips shares after the spin-off, they can contact their broker or financial advisor for assistance in calculating their cost basis.
Key Takeaways
- Cost basis is the original value of an asset for tax purposes.
- When Phillips 66 was spun off from ConocoPhillips, shareholders of ConocoPhillips received shares of Phillips 66 as a tax-free distribution.
- The total cost basis of the ConocoPhillips shares must be divided between the ConocoPhillips and Phillips 66 shares received in the spin-off.
- The fair market value of Phillips 66 shares was determined on the first day of trading after the spin-off, which was April 30, 2012.
- Investors who held ConocoPhillips shares before the spin-off should have received a Form 8937 from ConocoPhillips, which provided the necessary information to calculate their cost basis in Phillips 66.
In conclusion, understanding cost basis is an essential aspect of investing in ConocoPhillips and Phillips 66. Investors who held ConocoPhillips shares before the spin-off should be mindful of their cost basis allocation in Phillips 66 to avoid any potential tax liabilities. While the process of determining cost basis may seem daunting, investors can seek assistance from their broker or financial advisor to ensure a smooth transition.
Are Phillips 66 and ConocoPhillips the Same Company
If you’re curious about whether Phillips 66 and ConocoPhillips are the same company, don’t worry – you’re not alone. Even though they share a similar name, these two companies are not the same company, and there are some key differences between them that you should be aware of.
The History of Phillips 66 and ConocoPhillips
- Phillips 66 was originally part of the Phillips Petroleum Company, which was founded in 1917 by Lee Eldas “L.E.” Phillips.
- ConocoPhillips was formed in 2002 through the merger of Conoco Inc. and Phillips Petroleum Company.
- Conoco Inc. was founded in 1875 as the Continental Oil and Transportation Company.
Differences in Focus
- Phillips 66 is primarily focused on the refining, marketing, and transportation of petroleum products.
- ConocoPhillips, on the other hand, has a more diversified portfolio and is involved in the exploration, production, transportation, and marketing of petroleum, natural gas, and other energy products.
Differences in Size
- Although Phillips 66 is a significant player in the energy industry, it is a relatively small company compared to ConocoPhillips.
- In terms of market capitalization, ConocoPhillips is significantly larger than Phillips 66, with a market value of $42.79 billion, while Phillips 66 has a market value of $32.6 billion.
Differences in Stock Ticker Symbol
- Phillips 66’s stock ticker symbol is “PSX”
- ConocoPhillips’ stock ticker symbol is “COP”
Key Takeaways
- Phillips 66 and ConocoPhillips are two separate companies, despite their similar names and origins.
- Phillips 66 is primarily focused on refining, marketing, and transporting petroleum products, while ConocoPhillips has a more diversified portfolio and is involved in the exploration, production, transportation, and marketing of petroleum, natural gas, and other energy products.
- While both companies are significant players in the energy industry, ConocoPhillips is significantly larger than Phillips 66 in terms of market capitalization.
Now that you have a better understanding of the differences between Phillips 66 and ConocoPhillips, you can avoid any confusion when researching or investing in these two companies.
