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Phillips reports first-quarter earnings jump First quarter deals include closing of combination of gas gathering, processing, marketing business with Duke Energy, 50-50 joint venture in chemicals with Chevron by The Associated Press
Phillips Petroleum Co.’s first-quarter earnings more than tripled from a year ago as the company plowed ahead with a series of deals aimed at faster growth, officials said April 27.
Higher prices and increased production boosted the Bartlesville-based company’s first-quarter net income to $250 million, or 99 cents per share. That compares with $70 million, or 28 cents per share, for the same period of 1999.
Phillips had several deals working in the first quarter, including the closing of the transaction that combined the company’s gas gathering, processing and marketing business with that of Duke Energy.
Phillips also announced a plan to form a 50-50 joint venture that would combine its worldwide chemicals business with that of Chevron Corp. And the company signed a definitive agreement to purchase all of ARCO’s Alaska businesses.
Mulva’s strategy Jim Mulva, chief executive officer, said Phillips is trying to position its business segments to be more competitive, grow faster and improve returns.
“This strategy includes investing more in our exploration and production segment to grow this business, while becoming larger and more profitable in our other segments by positioning them as part of more competitive, self-funding entities with strong capital programs,” he said.
Phillips had first-quarter revenues of $4.8 billion versus $2.5 billion a year ago.
The recent fatal explosion at Phillips’ chemical plant in Houston accounted for the bulk of a $21 million earnings decrease attributed to special items, the company said.
Net operating income from exploration and production was $223 million, up from $55 million in the same quarter a year ago. Phillips’ average worldwide crude oil price was $27.09 per barrel, compared with $10.88 in the same quarter of 1999.
Natural gas liquids prices helped boost operating income from gas gathering, processing and marketing from $7 million in 1999 to $57 million in the first quarter of this year.
Refining, marketing and transportation net operating income was $27 million compared with a net operating loss of $6 million for the same period a year ago.
The company said higher motor fuel and distillates margins were partly offset by lower margins for other products.
Phillips’ chemicals segment also saw an increase.
Net operating income rose to $28 million from $22 million a year ago on better volumes and margins in olefins-polyolefins, better margins for aromatics and higher specialty plastics volumes.
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