Company plans to transition to renewable fuels and explore asset sales
- Phillips 66 to shut down crude operations at Rodeo facility in February
- Preparation for renewable fuel production by end of Q1
- Hydrocracker expected to start up in March
- Rodeo facility to have initial production capacity of over 50,000 b/d of renewable diesel
- Potential asset sales underway to raise $3 billion
Phillips 66 has announced that it will be shutting down the crude oil refinery operations at its Rodeo facility in California in February. This move is in preparation for the start of renewable fuel production at the facility by the end of the first quarter. The company has already begun to turn operations down and has shut a crude unit at Rodeo during Q4. The shutdown in February will allow for the tying in of common utilities for one of its hydrocrackers, which is currently in the conversion process. The hydrocracker is expected to start up in March, with the facility quickly ramping up to about 50% of its nameplate capacity. By the end of Q2, Phillips 66 expects Rodeo to be up to full rates. The Rodeo facility will have an initial production capacity of more than 50,000 b/d of renewable diesel. In addition to the transition to renewable fuels, Phillips 66 is also exploring potential asset sales to raise $3 billion. The company has stated that there are ongoing discussions regarding the sale of non-core assets, with more details to be provided during its Q1 earnings conference call in April.
Public Companies: Phillips 66 (PSX), Cenovus Energy (undefined)
Private Companies:
Key People: Kevin Mitchell (Chief Financial Officer), Rich Harbison (Executive Vice President of Refining)
Factuality Level: 8
Justification: The article provides specific information about Phillips 66’s plans to shut down the oil refinery operations at its Rodeo facility in California and start up renewable fuel production. It includes quotes from company executives and mentions previous announcements about the conversion of the facility. The article also mentions potential asset sales and provides information about Phillips 66’s other refineries and businesses. Overall, the article provides factual information without any obvious bias or inaccuracies.
Noise Level: 7
Justification: The article provides information about Phillips 66’s plans to shut down its oil refinery operations at its Rodeo facility in California and start renewable fuel production. It includes quotes from company executives and mentions potential asset sales. However, it lacks in-depth analysis, scientific rigor, and evidence to support its claims. It also does not provide actionable insights or explore the consequences of the decisions on those who bear the risks.
Financial Relevance: Yes
Financial Markets Impacted: The shutdown of the oil refinery operations at Phillips 66’s Rodeo facility in California and the transition to renewable fuel production may impact the oil and renewable energy markets. It could also have implications for companies involved in the production and distribution of crude oil and renewable fuels.
Presence of Extreme Event: No
Nature of Extreme Event: No
Impact Rating of the Extreme Event: No
Justification: The article discusses the shutdown of the oil refinery operations at Phillips 66’s Rodeo facility in California and the company’s plans to start renewable fuel production. While this event does not involve an extreme event, it is relevant to financial markets as it may impact the oil and renewable energy sectors. The transition to renewable fuel production could also have implications for companies involved in the production and distribution of crude oil and renewable fuels.
www.marketwatch.com 
