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  "documentTitle": "Phillips 66 (PSX)",
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  "authorName": "John Pike",
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  "presentationDate": "2025-02-11 00:00:00",
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  "notes": "The slide uses a narrative structure to contrast Phillips 66's performance with Marathon and cites an analyst quote to demonstrate credibility loss.",
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      "kind": "callout",
      "text": "Lack of trust in cost-reduction programs",
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      "text": "These results have rightfully led investors to dismiss the Company’s subsequent targets – not based on their estimation of the opportunity, but on their estimation of the management team’s ability to achieve its stated goals.",
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      "text": "opex/bbl: $2.30/bbl",
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      "text": "Since his elevation to CEO in 2022, Mr. Lashier, along with the Phillips 66 management team, has set a strategic outlook that includes i) targeting $14 billion of mid-cycle EBITDA by 2025...",
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      "text": "The magnitude of this inefficiency has ballooned in recent years. By 2022, Phillips 66's opex/bbl “gap” to Valero had grown to ~$2.30/bbl, representing an increase of ~$0.95/bbl versus its average gap from 2013-2019 of ~$1.35/bbl.",
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      "text": "At the same time, and in stark contrast to Phillips 66, Marathon's opex/bbl gap to Valero shrank dramatically. By 2022, under the leadership of CEO Mike Hennigan, Marathon had reduced its opex/bbl to within ~$0.30/bbl of Valero, representing a reduction of ~$1.10/bbl versus its average gap from 2013-2019 of ~$1.40/bbl.",
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      "text": "…in 2019, you laid out a similar cost-cutting program, and it actually looks like costs increased over that period on an absolute basis... – Cowen, November 2022",
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      "text": "“...in 2019, you laid out a similar cost-cutting program, and it actually looks like costs increased over that period on an absolute basis, stripping out energy and maintenance costs on a per unit - on a per barrel basis and relative to peers. So to instill some confidence maybe in this program that you're about to embark on, can you discuss maybe what went wrong in that 2019 to 2022 program and how you expect to maybe not incur those same issues?” — Cowen, November 2022",
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      "text": "The Phillips 66 Value-Creation Opportunity",
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