Phillips 66 and Berkshire Hathaway Announce Share Repurchase Agreement
HOUSTON & OMAHA, Neb.–(BUSINESS WIRE)–Phillips 66 (NYSE: PSX) announces it has agreed to repurchase 35 million
shares of Phillips 66 common stock from a wholly-owned subsidiary of
Berkshire Hathaway Inc. (NYSE: BRK.A; BRK.B) for $93.725 per share. This
$3.3 billion repurchase is expected to close on Feb. 14, 2018.
“We are excited to have this opportunity to return capital to our
shareholders in such a meaningful way,” said Greg Garland, Chairman and
CEO of Phillips 66. “This transaction benefits all of our shareholders,
as it is immediately accretive to earnings per share and positive for
valuation. While this highlights our dedication to shareholder
distributions, our strategy remains unchanged. We are committed to
running our assets safely and reliably, growing our Midstream and
Chemicals businesses, enhancing our Refining and Marketing returns, and
rewarding our shareholders through a secure, competitive and growing
dividend along with continued share repurchases.”
“Phillips 66 is a great company with a diversified downstream portfolio
and a strong management team,” commented Warren E. Buffett, Berkshire
Hathaway Chairman and CEO. “This transaction was solely motivated by our
desire to eliminate the regulatory requirements that come with ownership
levels above 10 percent. We remain one of Phillips 66’s largest
shareholders and plan to continue to hold the stock for the long term.”
At closing of this transaction, Phillips 66 will have 466.5 million
shares outstanding of which Berkshire will have an equity ownership
interest in 45.7 million shares.
About Phillips 66
Phillips 66 is a diversified energy manufacturing and logistics company.
With a portfolio of Midstream, Chemicals, Refining, and Marketing and
Specialties businesses, the company processes, transports, stores and
markets fuels and products globally. Phillips 66 Partners, the company's
master limited partnership, is an integral asset in the portfolio.
Headquartered in Houston, the company has 14,600 employees committed to
safety and operating excellence. Phillips 66 had $54 billion of assets
as of Dec. 31, 2017. For more information, visit www.phillips66.com
or follow us on Twitter @Phillips66Co.
About Berkshire Hathaway
Berkshire Hathaway and its subsidiaries engage in diverse business
activities including insurance and reinsurance, utilities and energy,
freight rail transportation, finance, manufacturing, retailing and
services. Common stock of the company is listed on the New York Stock
Exchange, trading symbols BRK.A and BRK.B.
CAUTIONARY STATEMENT FOR THE PURPOSES OF THE "SAFE HARBOR" PROVISIONS
OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995
This news release contains certain forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, as amended,
which are intended to be covered by the safe harbors created thereby.
Words and phrases such as “is anticipated,” “is estimated,” “is
expected,” “is planned,” “is scheduled,” “is targeted,” “believes,”
“continues,” “intends,” “will,” “would,” “objectives,” “goals,”
“projects,” “efforts,” “strategies” and similar expressions are used to
identify such forward-looking statements. However, the absence of these
words does not mean that a statement is not forward-looking.
Forward-looking statements relating to Phillips 66’s operations
(including joint venture operations) are based on management’s
expectations, estimates and projections about the company, its interests
and the energy industry in general on the date this news release was
prepared. These statements are not guarantees of future performance and
involve certain risks, uncertainties and assumptions that are difficult
to predict. Therefore, actual outcomes and results may differ materially
from what is expressed or forecast in such forward-looking statements.
Factors that could cause actual results or events to differ materially
from those described in the forward-looking statements include
fluctuations in NGL, crude oil, and natural gas prices, and
petrochemical and refining margins; unexpected changes in costs for
constructing, modifying or operating our facilities; unexpected
difficulties in manufacturing, refining or transporting our products;
lack of, or disruptions in, adequate and reliable transportation for our
NGL, crude oil, natural gas, and refined products; potential liability
from litigation or for remedial actions, including removal and
reclamation obligations under environmental regulations; limited access
to capital or significantly higher cost of capital related to
illiquidity or uncertainty in the domestic or international financial
markets; and other economic, business, competitive and/or regulatory
factors affecting Phillips 66’s businesses generally as set forth in our
filings with the Securities and Exchange Commission. Phillips 66 is
under no obligation (and expressly disclaims any such obligation) to
update or alter its forward-looking statements, whether as a result of
new information, future events or otherwise.