Dividends and Stock Repurchase at Phillips 66

Logo of Phillips 66. “We are standing on the shoulders of giants,” said Phillips 66 CEO Greg Garland. “People like E. W. Marland, who started Marland Oil in 1911, and Frank and L. E. Phillips that started Phillips Petroleum in 1917. I could go on and on and list the giants that have come before us that have so well positioned this company for the success that we enjoy today.”^[1] Photo: ConocoPhillips

The 587 foot tall Mammoet PTC 140 crane, seen here from North First Street, towers over the refinery in Ponca City, Oklahoma built by E. W. Marland. The crane was used to move two new coker reactor units within the refinery in September, 2013. The photograph was taken from almost two miles away from the crane. Photo: Hugh Pickens All Rights Reserved.

A photo of Marland Refinery in Ponca City in 1921. By 1921 EW Marland had consolidated all of his oil operations under the auspices of the Marland Oil Company. Headquartered in Ponca City the firm continued its phenomenal growth pattern by absorbing numerous small oil companies including the Comar Oil Company, Tom Jones Oil Company, Kenney-Cleary Oil Company, Francoma Oil Company, John S. Alcorn Oil Company, and many others whose highly competent executives Marland's company usually retained. Photo: Oklahoma Historical Society

Dividends and Stock Repurchase

February 14, 2014: Garland Says Phillips Believes in Bulletproof Dividends

Greg Garland told security analysts at the Credit Suisse Global Energy Summit on February 12, 2014 that Phillips believes in bulletproof dividends. "We think that growing shareholder distributions is key to growing total shareholder return. We believe in bullet proof dividends. We believe in not only secure but growing dividends and competitive dividends. We nearly doubled the dividends since the spin."^[2]

February 7, 2014: Phillips Declares Quarterly Dividend of 39 cents

Marketwatch reported on February 7, 2014 that the board of directors of Phillips has declared a quarterly dividend of 39 cents per share on Phillips 66 common stock payable on March 3, 2014, to shareholders of record at the close of business on Feb. 18, 2014.^[3]

December 6, 2013: Phillips Announces New $2 Billion Share Repurchase Program

Businesswire reported on December 6, 2013 that Phillips' board of directors has approved a new $2 billion share repurchase program, consistent with the company's strategy to grow shareholder distributions. “Returning capital to our shareholders is fundamental to creating value and delivering superior total shareholder returns,” said Phillips 66 Chairman and CEO Greg Garland. “Our disciplined capital allocation process complements these distributions with capital spending and reinvestment in our higher-valued businesses.” The shares will be repurchased from time to time in the open market at the company's discretion, subject to market conditions and other factors, and in accordance with applicable regulatory requirements.^[4]

October 2, 2013: Phillips Increases Quarterly Dividend to 39 cents

Seeking Alpha reported on October 2, 2013 that the board of directors of Phillips declared a quarterly dividend of 39 cents per share on Phillips 66 common stock, representing an increase of approximately 25 percent from the prior quarter. The dividend is payable on Dec. 2, 2013, to shareholders of record at the close of business on Nov. 14, 2013. "Our objective is to consistently increase shareholder distributions, while also capturing attractive opportunities to reinvest in our businesses and grow future returns," said Phillips 66 Chairman and CEO Greg Garland. Returning capital to our shareholders remains a priority for Phillips 66, and we are pleased to deliver another increase in our quarterly dividend."^[5]

July 10, 2013: Phillips Declares Quarterly Dividend of 31.25 cents

istockanalyst reported on July 10, 2013 that Phillips declared a quarterly dividend of 31.25 cents per share payable on September 3, 2013, to shareholders of record at the close of business on August 16, 2013.^[6]

May 8, 2013: Phillips Declares Quarterly Dividend of 31.25 cents

The Wall Street Journal reported on May 8, 2013 that Phillips declared a quarterly dividend of 31.25 cents per share payable on June 3, 2013, to shareholders of record at the close of business on May 20, 2013.^[7]

February 11, 2013: Phillips Declares Quarterly Dividend of 31.25 cents

Investors Business Daily reported on February 11, 2013 that Phillips declared a quarterly dividend of 31.25 cents per share payable on March 1, 2013, to shareholders of record at the close of business on Feb. 18, 2013.^[8]

December 7, 2012: Phillips Increases Quarterly Dividend from 25 cents to 31.25 cents

Bloomberg reported on December 7, 2012 that Phillips has announced that the company is raising its quarterly dividend to 31.25 cents per share from 25 cents. The new dividend will be paid in the first quarter of 2013. Phillips 66 also said it approved the repurchase of another $1 billion in company stock. It approved the repurchase of $1 billion shares during the third quarter as well.^[9]

October 3, 2012: Phillips Increases Quarterly Dividend from 20 cents to 25 cents

Businesswire reported on October 3, 2012 that Phillips has declared a quarterly dividend of 25 cents per share on Phillips 66 common stock, representing a 25 percent increase from the prior quarter. “This 25 percent increase reinforces our objective to provide competitive and growing dividends,” said Phillips 66 Chairman and CEO Greg Garland. “Allocating capital to dividends and repurchases while continuing to invest in the growth of our business is fundamental to our philosophy of delivering shareholder value.”^[10]

July 12, 2012: Phillips 66 Initiates $0.20 Quarterly Dividend

Michael Aneiro reported on Barrons on July 11, 2012 that Phillips 66 announced a quarterly common stock dividend of 20 cents per share, payable Sept. 4 to stockholders as of July 23. “Phillips 66 has a clear strategy to improve returns and to deliver a strong, competitive dividend program to our investors,” said compay chairman and CEO Greg C. Garland. “We are convinced that returns, growth and distributions create value.”^[11]

Master Index for Phillips 66 Articles

References

About the Author

Hugh Pickens

Hugh Pickens (Po-Hi '67) is a physicist who has explored for oil in the Amazon jungle, crossed the empty quarter of Saudi Arabia, and built satellite control stations for Goddard Space Flight Center all over the world. Retired in 1999, Pickens and his wife moved from Baltimore back to his hometown of Ponca City, Oklahoma in 2005 where he cultivates his square foot garden, mows nine acres of lawn, writes about local history and photographs events at the Poncan Theatre and Ponca Playhouse.

Since 2001 Pickens has edited and published “Peace Corps Online,” serving over one million monthly pageviews. His other writing includes contributing over 1,500 stories to “Slashdot: News for Nerds,” and articles for Wikipedia, “Ponca City, We Love You”, and Peace Corps Worldwide.

Articles about Ponca City

The Pioneer Woman Models Should Return to Ponca City July 13, 2007
The Pioneer Woman Models Come Home to Ponca City February 26, 2010
President Barack Obama's Mother Grew Up in Ponca City February 6, 2009
Standing Bear Looks to the Future
What to See in Ponca City
Ponca Playhouse to Present "The Broken Statue" January 17, 2012
What Ponca City Owes EW Marland June 20, 2012
How Much Money Does the Marland Refinery in Ponca City Earn for Phillips 66? July 23, 2012
EW Marland and the Movie "The Ends of the Earth" May 23, 2013

Other Writing

Updates to the Web Site

This web page is frequently updated so check back periodically to see the latest information or subscribe to the rss feed for this article. If you have any information or insights that you would like to see added to this report please contact Hugh Pickens by email at hughpickens AT gmail DOT com.

Copyright

The material in this article is licensed under under the Creative Commons under an Attribution-Noncommercial-Share Alike 2.0 Generic license. Except for short, fair use excerpts, the material on this article cannot be used for commercial purposes without permission of Hugh Pickens. Attribution for use of any material from this article must be provided to Hugh Pickens and if used on the web a link must be provided to http://hughpickens.com.

[1] Bartlesville Examiner-Enterprise. "Phillips 66 CEO praises city" by Kelcey King. August 28, 2008.

[2] Credit Suisse Global Energy Summit. "Transcript of Phillips 66 Presentation" by Greg Garland. February 12, 2014

[3] Marketwatch. "Phillips 66 Announces Quarterly Dividend" February 14, 2014.

[4] Businesswire. "Phillips 66 Announces New $2 Billion Share Repurchase Program" December 6, 2013.

[5] Seeking Alpha. "Phillips 66 Announces 25 Percent Increase in Quarterly Dividend" October 2, 2013.

[6] stockanalyst. "Phillips 66 Announces Quarterly Dividend" July 10, 2013.

[7] Wall Street Journal. "Phillips 66 Announces Quarterly Dividend" May 8, 2013.

[8] Investors Business Daily. "Phillips 66 Announces Quarterly Dividend" February 11, 2013.

[9] Bloomberg. "Phillips 66 raises dividend, plans new $1B buyback" December 7, 2012.

[10] Businesswire. "Phillips 66 Announces a 25 Percent Increase in Quarterly Dividend" October 3, 2012.

[11] Barrons. "Phillips 66 Initiates $0.20 Quarterly Dividend" by Michael Aneiro. July 11. 2012.

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