A journey based on strategic growth

Phillips 66's Midstream business adds employees - and earnings

Phillips 66's Midstream organization is more than 3,500 employees strong, doubling in size over 18 months and adding $644 million to the company's third-quarter earnings.

"Safety, reliability and earnings are all coming together consistently in Midstream, and that's a testament to the caliber of our people and alignment to our corporate strategy," said Bill Johnson, Vice President of Midstream Operations.

Midstream's success and transformation stem from portfolio optimization, disciplined cost management and hard work from dedicated individuals across the business to drive operational synergies. The goal: capitalize on rising U.S. production and increasing global demand for liquid petroleum gases.

"We see a lot of growth opportunities in the NGL value chain," said Don Baldridge, Executive Vice President of Midstream and Chemicals. "We're well positioned to expand our presence in this area."

Key acquisitions like DCP Midstream LP in 2023 and Pinnacle Midstream in 2024 have contributed to the company's wellhead-to-market strategy. Several divestitures have also shaped the business into what it is today, including the sale of the company's 25% interest in the Rockies Express Pipeline to Tallgrass Energy LP for $1.275 billion. These transactions are a significant part of the company's $3 billion asset divestiture commitment, with $2.7 billion already delivered.

"When an asset is worth more to another company than it is to us, that's when we consider divestment," said Baldridge. "We want to retain or acquire assets that best integrate with our existing downstream infrastructure and support our NGL value chain."

That's why the Pinnacle acquisition makes sense, adding a 220 MMCFD gas plant and 80 miles of gathering pipeline to complement Phillips 66's existing regional footprint and providing a platform for growth in the NGL-rich Permian Basin. The business is already planning a follow-on processing plant expansion, which is expected to be completed in mid-2025.

"Reliability is key to staying competitive," said Michael Andrew, Managing Director, Midstream Commercial and BD. "Our recent strategic moves help us get the right products to the right market reliably and efficiently."

As Midstream grows its portfolio, it's also capturing synergies. It exceeded its target of $400 million in run-rate synergies from the DCP integration and is on track to achieve more than $55 million in run-rate savings through Business Transformation efforts.

"Our teams have seized opportunities to do things differently and more efficiently to capture value," said Michelle Hilger, GM, Technical Services and Innovation, Midstream Operations. "We pursue continuous improvement as a core part of our culture."

In addition to capturing the growing NGL market, Phillips 66's Midstream business is vital in the safe transportation and logistics of refined products to meet gasoline demand. With a fully integrated Midstream value chain, including a robust Chemicals business, Baldridge invites anyone interested in the future of energy to explore career opportunities at Phillips 66.

"With avenues into crude and clean products, NGLs, gas processing and chemicals, we have diverse career opportunities," said Baldridge. "We need talented people up and down our value chain to help us meet the energy demands of the future and grow together."