Phillips 66 and Berkshire Hathaway Announce Share Repurchase Agreement
February 13 2018 - 6:27PM
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.
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version on businesswire.com: http://www.businesswire.com/news/home/20180213006695/en/
Phillips 66Jeff Dietert, jeff.dietert@p66.com or Rosy
Zuklic, rosy.zuklic@p66.com832-765-2297 (investors)Dennis Nuss,
dennis.h.nuss@p66.com832-765-1850 (media)Berkshire
HathawayMarc D. Hamburg402-346-1400
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