3 Companies Winning Big Thanks to America’s Oil Boom

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Valero, Tesoro and Phillips 66 are all winning thanks to America’s energy boom.

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  • http://phx.corporate-ir.net/External.File?item=UGFyZW50SUQ9MjE0NjYzfENoaWxkSUQ9LTF8VHlwZT0z&t=1
  • http://www.phillips66.com/EN/investor/presentations_ccalls/Documents/2014%20Analyst%20Presentation%20web%20version.pdf
  • http://www.phillips66.com/EN/investor/presentations_ccalls/Documents/2014%20Analyst%20Presentation%20web%20version.pdf
  • file:///C:/Users/Owner/Downloads/UBS+Conference_5-21-14_Final.pdf
  • file:///C:/Users/Owner/Downloads/UBS+Conference_5-21-14_Final.pdf
  • file:///C:/Users/Owner/Downloads/2014%20Simmons%20Energy%20v2.pdf
  • file:///C:/Users/Owner/Downloads/2014%20Simmons%20Energy%20v2.pdf
  • file:///C:/Users/Owner/Downloads/UBS+Conference_5-21-14_Final.pdf
  • 3 Companies Winning Big Thanks to America’s Oil Boom

    1. 1. 3 Companies Winning Big Thanks to America’s Oil Boom
    2. 2. America’s energy boom is creating a disconnect with oil prices as America’s West Texas Intermediate (WTI) oil trades at a discount to the global benchmark Brent. Source: Tesoro Investor Presentation
    3. 3. This disconnect is a profitable opportunity for refiners. Photo credit: Phillips 66
    4. 4. Many are investing to rid themselves of foreign oil and replace it with cheaper American oil. Photo credit: Phillips 66
    5. 5. For example, by 2016 Phillips 66 is expected to completely eliminate Brent priced crude from its mix.
    6. 6. The company sees refining advantaged crude oil as a big key to improving its return on capital employed.
    7. 7. Meanwhile, 27% of Valero’s 2014 capital budget is to be spent to increase its ability to process lighter crude oils, up from 7% last year.
    8. 8. The goal is to effectively double its capacity to refine light crude oil derived from shale plays.
    9. 9. Tesoro is also investing to access more price advantaged crude oil at all its refineries.
    10. 10. In addition to being cheaper, another advantage to refining this oil is that it yields more higher valued products per barrel.
    11. 11. Increased distillate yields are important because of higher margins and demand growth.
    12. 12. Bottom line: Refiners are one of the biggest winners of America’s oil boom…
    13. 13. …and all three are well positioned to continue winning as the boom shows no end in sight. Photo credit: Phillips 66
    14. 14. This is becoming OPEC’s Worst Nightmare

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