Phillips 66 Will Not Alter Its C-store Strategy

HOUSTON -- Despite being spun off three weeks ago from ConocoPhillips Inc., Phillips 66 intends to stay the course regarding its convenience store strategy.

More specifically, that means the company will continue to license its Phillips 66, Conoco and 76 brand names to 8,000 convenience stores in the United States without operating any locations itself, Clayton Reasor, Phillips 66's senior vice president of strategy and corporate affairs, reported during a presentation at today’s UBS Global Oil & Gas Conference. However, Phillips 66 will continue to operate 900 gas stations under the JET brand name in Europe, he added.

Expanding his comments to a wider outlook, Reasor said the separation from ConocoPhillips has gone well.

"We are looking at what's next," the senior vice president said.

One thing sure to be next will be an increased demand for natural gas in the United States, according to Reasor. Despite a current surplus and decade-low price for the gasoline alternative, Phillips 66 will ramp up production of the fuel alternative touted as cleaner burning and locally produced.

"Ethanol will also continue to replace gasoline due to government mandates," he said.

In addition, he noted Phillips 66 will continue to consider spinning off a portion of its business into a master limited partnership.

"We like our business," said Reasor. "We execute well. We are a good partner. We see ourselves as an advantaged downstream company."