The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Manav Gupta - UBS Investment Bank, Research Division - Analyst
: I just wanted to first touch base a little bit on the Chemicals earnings seeing a strong rebound. It really helps you out. I think you have a $0.10
improvement in ethylene chain margin. So just trying to understand from you, from the demand point on the Chemicals side, what are you seeing?
And should we expect a further recovery in chemical margins, given the strong global demand?
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MAY 03, 2023 / 4:00PM, PSX.N - Q1 2023 Phillips 66 Earnings Call
Question: Manav Gupta - UBS Investment Bank, Research Division - Analyst
: Perfect, guys. My quick follow-up is if you can get some updates on your -- the progress you are making on your renewable diesels project. And
hopefully, it starts up by year-end or early 2024.
Question: Manav Gupta - UBS Investment Bank, Research Division - Analyst
: That's a very encouraging update.
Question: John Macalister Royall - JPMorgan Chase & Co, Research Division - Analyst
: So my first one is on OpEx. Can you talk about OpEx trends in Refining into the second quarter? It's an item that you don't guide to, but 1Q ticks
down, presumably on lower natural gas prices and despite higher maintenance. In 2Q, you'll have an even lower price presumably and less
maintenance, and of course, your efforts around costs. So any color on expectations on the Refining OpEx side in 2Q and going forward?
Question: John Macalister Royall - JPMorgan Chase & Co, Research Division - Analyst
: Great. And then just on the share buyback in 1Q. You paced a bit ahead of your quarterly pace that you need to hit your longer-term guidance, but
2Q does have an outflow from the acquisition. So should we be expecting a slowing in 2Q? And then further, if the environment were to continue
to deteriorate from a crack's perspective, could that impact your pacing as well?
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MAY 03, 2023 / 4:00PM, PSX.N - Q1 2023 Phillips 66 Earnings Call
Question: Paul Cheng - Scotiabank Global Banking and Markets, Research Division - Analyst
: Mark, just 2 questions. First, with the new California windfall profit penalty, that being passed, how does that change your view? Or does it change
your view about your California asset, both in the Refining and Marketing?
Question: Paul Cheng - Scotiabank Global Banking and Markets, Research Division - Analyst
: Mark, do you think you or the industry is going to challenge them in court, because I'm not sure how -- yet the industry has not been proven to
have done anything wrong, why that will be slapped with a penalty?
Question: Paul Cheng - Scotiabank Global Banking and Markets, Research Division - Analyst
: Okay. The second question, I think this is for Kevin. Kevin, you mentioned about in the Refining capture in your presentation, in the Other columns,
it's a very big positive. And I actually went back to the last, say, 4 or 5 quarters. I think mainly without exception, that column is always a negative,
yet that is helping your margin instead of, say, benefiting like what we've seen in this quarter. I think you sort of talked a bit in your prepared
remarks. Can you elaborate a little bit more that what that column really represented and why we have seen such an improvement and whether
those is sustainable?
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MAY 03, 2023 / 4:00PM, PSX.N - Q1 2023 Phillips 66 Earnings Call
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