Phillips 66 (PSX), a diversified energy manufacturing and logistics company, is providing preliminary ranges for certain financial information reflecting the market and operating conditions experienced in the first quarter, including the effects of recent winter storms and the ongoing COVID-19 pandemic.
The severe winter storms had significant impacts on the company’s operations in the Central and Gulf Coast regions. These winter storms resulted in lower utilization of assets, as well as higher utility, maintenance and repair costs primarily in the Midstream, Chemicals and Refining segments. The higher utility costs were driven by significant increases in prices for natural gas and electricity in certain markets due to the increased demand and supply outages caused by the winter storms. These negative impacts were partially offset by the sale of electricity to help meet demand in the Texas market. The company’s Refining and Marketing and Specialties segments also continue to be impacted by lower global demand for refined petroleum products due to the COVID-19 pandemic.
In addition, the company will recognize an impairment in the first quarter reflecting Phillips 66 Partners’ decision to exit the Liberty Pipeline project.
Update to First-Quarter 2021 Outlook
During the company's fourth-quarter 2020 earnings conference call, the company provided guidance on certain first-quarter 2021 operating and financial items. The table below provides updated guidance.
The company has not completed its financial closing procedures for the first quarter of 2021, and actual results could vary from these preliminary estimates. Please see the information set forth below under “Cautionary Statement for the Purposes of the ‘Safe Harbor’ Provisions of the Private Securities Litigation Reform Act of 1995” for additional information about the Update to First-Quarter 2021 Outlook and Preliminary First-Quarter 2021 Financial Information.
