Phillips 66 SWOT Analysis, Competitors & USP

Phillips 66

Parent Company

Phillips 66 Company

Category

Natural Gas Liquids (NGL) and Petrochemicals

Sector

Energy & Power

Tagline/ Slogan

Proud To Be Here

USP

One of the biggest companies in the world

Phillips 66 STP

Segment

Downstream NGL & Petrochemicals

Target Group

End consumers and midstream Natural Gas Liquids companies

Positioning

Diversified energy manufacturing and logistics company

Phillips 66 SWOT Analysis

Strengths

Below is the Strengths, Weaknesses, Opportunities & Threats (SWOT) Analysis of Phillips 66. Strengths are:

1. It is ranked 7 in the Fortune 500 list of 2015 employing over 14000 employees
2. Its stations Phillips 66 and 76 are highly recognized brands across the US
3. Apart from US it operates in more than 65 countries across the world
4. It has one of the best distribution and sales network in the US for NGL and petrochemicals

5. The company owns 15 refineries with net crude oil capacity of 2.2 million barrels per day, 10,000 branded marketing outlets, and 24,000 Kms of pipelines

6. Actively involved in finding new sources of energy

7. The first company to join U.S. climate action plan

Weaknesses

Here are the weaknesses of Phillips 66 :

1. Increasing cost of new exploration and production projects
2. Increasing volatility of Oil & Gas prices in the world markets affects profitability
3. Total revenues have decreased due to decrease in prices of Crude oil

Opportunities

Following are the Opportunities of Phillips 66 :

1. With the decrease in prices, the demand for Oil & Natural gas has increased in the US
2. Strategic divestments of non-core assets have helped generate additional revenue for the company 
3. Disciplined approach taken to invest in new areas for Oil & Gas

Threats

The threats of Phillips 66 are as mentioned :

1. Energy & Power sector is one of the most competitive business in the world and perhaps the most volatile
2. Threat of OPEC and cartelization which can hamper profits
3. Investments in Shale gas and Oil sands which could only be operational if oil prices are high

Phillips 66 Competition

Competitors

Below are the 3 main Phillips 66 competitors :

1. BP Plc
2. Chevron Corporation
3. Exxon Mobil Corporation