dabuff Posted August 30, 2015 Share Posted August 30, 2015 http://www.businessinsider.com/warren-buffett-buys-phillips-66-2015-8 More likely WEB than a T&T holding? Link to comment Share on other sites More sharing options...
Liberty Posted August 30, 2015 Share Posted August 30, 2015 I'd guess Buffett too. 4.5 billion is a bit big for T&T, and Buffett had a position in it before (that he swapped for some assets for Lubrizol), so that sounds like him. Link to comment Share on other sites More sharing options...
CorpRaider Posted September 2, 2015 Share Posted September 2, 2015 What's the deal here? Refiner and gas marketer transitioning to midstream and chemicals with a good balance sheet? Link to comment Share on other sites More sharing options...
HJ Posted September 3, 2015 Share Posted September 3, 2015 What's the deal here? Refiner and gas marketer transitioning to midstream and chemicals with a good balance sheet? http://www.forbes.com/sites/christopherhelman/2015/09/01/deal-flow-and-synergy-why-warren-buffett-likes-phillips-66/ One perspective. Link to comment Share on other sites More sharing options...
CorpRaider Posted September 3, 2015 Share Posted September 3, 2015 What's the deal here? Refiner and gas marketer transitioning to midstream and chemicals with a good balance sheet? http://www.forbes.com/sites/christopherhelman/2015/09/01/deal-flow-and-synergy-why-warren-buffett-likes-phillips-66/ One perspective. Thanks for the response! I had not read that before. Link to comment Share on other sites More sharing options...
Guest neiljgsingh Posted January 10, 2016 Share Posted January 10, 2016 Has anyone revisited this? Buffett has been buying the past few days as the stock as fallen: http://www.sec.gov/Archives/edgar/data/1534701/000120919116090650/xslF345X03/doc4.xml He's been buying even more aggressively over the past few quarters, which places PSX in the top half of his biggest 10 holdings. Wondering if anyone has ideas on what he sees here. Link to comment Share on other sites More sharing options...
shhughes1116 Posted January 10, 2016 Share Posted January 10, 2016 Has anyone revisited this? Buffett has been buying the past few days as the stock as fallen: http://www.sec.gov/Archives/edgar/data/1534701/000120919116090650/xslF345X03/doc4.xml He's been buying even more aggressively over the past few quarters, which places PSX in the top half of his biggest 10 holdings. Wondering if anyone has ideas on what he sees here. His buying seems pretty logical to me. Berkshire owns Lubrizol, a specialty chemicals company. Philips 66 owns a number of assets and specialty chemical products that would fit nicely under the Lubrizol umbrella. Rather than buy these assets/products outright, Buffet can buy a bunch of stock, and then exchange the PSX stock for the assets/products. He has already done this twice (swap with PSX for midstream service business, and swap with P&G for Duracell). Why not a third time, especially when the price of PSX has fallen? Link to comment Share on other sites More sharing options...
scorpioncapital Posted January 10, 2016 Share Posted January 10, 2016 Or he might like an indirect play on an energy company that is highly weighted to refining and moving to higher value in specialty chemicals, that will do well in high or low oil environment and is undervalued by the market in light of the higher value product strategy. Likewise pays a high tax-free dividend and is buying back shares. This investment looks almost identical in attributes to the IBM investment. Link to comment Share on other sites More sharing options...
smartone Posted January 15, 2016 Share Posted January 15, 2016 Has anyone revisited this? Buffett has been buying the past few days as the stock as fallen: http://www.sec.gov/Archives/edgar/data/1534701/000120919116090650/xslF345X03/doc4.xml He's been buying even more aggressively over the past few quarters, which places PSX in the top half of his biggest 10 holdings. Wondering if anyone has ideas on what he sees here. His buying seems pretty logical to me. Berkshire owns Lubrizol, a specialty chemicals company. Philips 66 owns a number of assets and specialty chemical products that would fit nicely under the Lubrizol umbrella. Rather than buy these assets/products outright, Buffet can buy a bunch of stock, and then exchange the PSX stock for the assets/products. He has already done this twice (swap with PSX for midstream service business, and swap with P&G for Duracell). Why not a third time, especially when the price of PSX has fallen? There is another example...BRK trading its Graham stake for Graham's BRK shares and a Miami TV station Link to comment Share on other sites More sharing options...
CorpRaider Posted January 15, 2016 Share Posted January 15, 2016 Either way he must find the public market valuation lower than the intrinsic value, right? Otherwise, he would just buy whatever business he supposedly wants with the cash. It is not like he has a large tax gain in these shares which he wants to defer. Link to comment Share on other sites More sharing options...
shhughes1116 Posted January 15, 2016 Share Posted January 15, 2016 Either way he must find the public market valuation lower than the intrinsic value, right? Otherwise, he would just buy whatever business he supposedly wants with the cash. It is not like he has a large tax gain in these shares which he wants to defer. That is consistent with what I have been reading. Private market valuations of midstream assets remain higher than public market valuations. Converse is true in O&G sector based on what I have been seeing and reading, which would explain the lack of deals in the O&G. Link to comment Share on other sites More sharing options...
CorpRaider Posted January 15, 2016 Share Posted January 15, 2016 Yeah, that must be the case. Maybe the guys with cash are planning to just wait and buy the assets from trustees after the sellers file. Link to comment Share on other sites More sharing options...
eburnside Posted January 15, 2016 Share Posted January 15, 2016 Either way he must find the public market valuation lower than the intrinsic value, right? Otherwise, he would just buy whatever business he supposedly wants with the cash. It is not like he has a large tax gain in these shares which he wants to defer. That is consistent with what I have been reading. Private market valuations of midstream assets remain higher than public market valuations. Converse is true in O&G sector based on what I have been seeing and reading, which would explain the lack of deals in the O&G. Here is one blogger also suggesting that private market value of midstream assets are higher than public market values, which are being implied based on current multiples... http://seventeenmile.com/2015/10/18/the-case-for-oil-emerging-markets-october-2015/ Link to comment Share on other sites More sharing options...
RadMan24 Posted January 19, 2016 Share Posted January 19, 2016 He's been buying it hands over fist. Link to comment Share on other sites More sharing options...
fareastwarriors Posted February 2, 2016 Share Posted February 2, 2016 http://www.cnbc.com/2016/02/01/warren-buffett-digs-deeper-into-his-big-oil-bet.html After taking a break of nearly two weeks, Warren Buffett has resumed and accelerated his Phillips 66 shopping spree. In a new filing, Buffett's Berkshire Hathaway reveals that over three days late last week, the company purchased another 2.5 million shares of the energy giant for almost $200 million. Link to comment Share on other sites More sharing options...
dabuff Posted February 8, 2016 Author Share Posted February 8, 2016 Buffett has stated in interviews that he is not buying it "as a refiner." He rather outlines the chemicals business and the "great management." For those Charlie Munger fans out there: Cannibal?t. Spinoff?. Clone? check. Link to comment Share on other sites More sharing options...
gfp Posted June 14, 2016 Share Posted June 14, 2016 Noticed today that a director bought $1 million worth of shares. Berkshire keeps buying at these levels and is approaching 15% (over 78m shares of 525.58m outstanding). Seems like a situation similar to BNSF where Berkshire could end up owning the entire company if a friendly deal can be reached. BRK is back in a position to be able to afford an all cash deal for the rest (and would likely finance a portion as has been their preference recently). http://www.sec.gov/cgi-bin/own-disp?action=getissuer&CIK=0001534701 Link to comment Share on other sites More sharing options...
CorpRaider Posted June 14, 2016 Share Posted June 14, 2016 Buffett has stated in interviews that he is not buying it "as a refiner." He rather outlines the chemicals business and the "great management." For those Charlie Munger fans out there: Cannibal?t. Spinoff?. Clone? check. Midstream too. Link to comment Share on other sites More sharing options...
walkie518 Posted April 18, 2017 Share Posted April 18, 2017 PSX looks cheap here. Anyone looking? Link to comment Share on other sites More sharing options...
clutch Posted April 18, 2017 Share Posted April 18, 2017 I bought some recently - basically coat-tailing Buffett. I simply like the fact that the thesis is long-term. Link to comment Share on other sites More sharing options...
Okonomen Posted December 2, 2018 Share Posted December 2, 2018 Anyone revisiting this case? I strongly consider to add to my position. Great execution so far Link to comment Share on other sites More sharing options...
Dalal.Holdings Posted December 2, 2018 Share Posted December 2, 2018 Management is stellar at capital allocation and seems to care about executing buybacks that actually decrease share count (unlike so many companies out there these days). Can see why Warren likes this thing (though he's been trimming lately). Meryl Witmer was an early advocate of this way back in 2013 (https://www.cnbc.com/2013/09/19/stocks-dont-look-cheap-berkshire-director-meryl-witmer.html). I think they have great down/midstream assets that will produce attractive returns no matter the price of energy. Better yet, Greg Garland has proven himself to be an exceptional capital allocator thus far. Link to comment Share on other sites More sharing options...
Saluki Posted December 3, 2018 Share Posted December 3, 2018 I owned this and kept adding every time it dipped below $80. I sold out at about $115 when they were at 99% refining capacity and the crack spread had improved so I didn't think it had much more room to run. It's a better company now than when I owned it (the chemicials and other businesses that they were investing are proving to be profitable) and if it dips below $90 again I will probably sell something and buy into it again. It's a fairly safe investment because there hasn't been a new refinery built since the 1970s, and although there are 30% fewer refineries in the US since then, capacity is up 50%, so fewer players are doing more work and making more money. So the price rises and falls along with the crack spread (which they have no control over) but it you can stand the roller coaster ride, it's a well run company. I don't know why Buffett has been selling, and that's my only concern about this company. BRK has plenty of cash, so they don't need the money and if he's selling then why am I considering buying? Link to comment Share on other sites More sharing options...
Okonomen Posted March 9, 2020 Share Posted March 9, 2020 It's absolutely insane. PSX gone from 120 to 60-70's. Getting crushed partly due to the oil price plunge, but they are solely midstream? Might hurt volumes? Anyone with a thought here? I've been buying down on this level due to 1) they are midstream and should also benefit somewhat from the low price, 2) stellar mgmt and balance sheet, 3) buying back shares at a better price now, 4) if peers struggle they could might do a good buy? Link to comment Share on other sites More sharing options...
Okonomen Posted March 9, 2020 Share Posted March 9, 2020 Not to mention the oil price plunge could give some relief on crack spreads now that output demand is lowering (gas/distillates etc) Link to comment Share on other sites More sharing options...
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