Phillips 66 Q1 2021 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Paul Cheng - Scotiabank Global Banking and Markets, Research Division - Analyst : Kevin, just curious that you talk about near term, you're trying to get the debt back to the pre-pandemic level around $12 billion. And then you will start looking at alternative or that incremental cash return to shareholder or kind of flexibility. And the question is that is $12 billion is really the right number? Given the unpredictable nature of the refining market and all that, should we even target a much lower bad debt for the company. So that's the first question. Now that doesn't mean that you should not, at the same time, to maybe that increase the shareholder return. But is that one or the other or that we can concurrently to have continue a portion of the free cash flow being drive down the debt or put on the balance sheet until the balance sheet will be a much lower debt level. So that's the first question. The second question is I think this is for maybe Bob and for RIN brand, 50%, that seems really low, given how big is your total network in the U.S. So are we missing something here that because one we thought given that Phillips 66 today is a combination of Phillips and Chronical both that have a pretty large wholesale network and all those contracts historically that will allow you to capture the win. So one we thought that you will brand far more than 50%. So are we missing something here?