Earnings Calls: Q3 '24 Highlights (part 2)

RD, SAF, RINs, Refineries Closing, UCO, Brazil, Cellulosic ethanol, California gasoline prices

Before diving into the highlights check out the report below, you won’t regret it.

All sorts of nuggets from Big Oil, Refiners, Ag, Utilities, and Autos. Enjoy!

Phillips 66 (PSX)

“…the continued outlook in California in the face of declining diesel and gasoline demand was a pretty tough one. And so when we took that given outlook for the markets and also factor in California's stated policy to move away from fossil fuels, we expected California to be a pretty challenging refining market going forward…it wasn't any kind of knee jerk reaction in the face of any policy changes in California. This (decision to close LA refinery) has been a long-term analysis…”

-Mark Lashier (CEO)

“…we've had some startup costs. We're also running higher or lower CI, but we're also running some higher CI now in Q4. I think if you think about renewable diesel margins going into Q4 and beyond, we think margins are going to strengthen for a number of reasons, feedstock prices remain depressed…Some of the RD production is going to be converted into renewable jet production like some of our competitors on the Gulf Coast…I'll caution that in Q4, we're likely not to produce renewable jet we're currently running off higher CI feedstocks for the plant as we prepare for the production tax credit next year, but we expect to be in steady state at renewable diesel -- renewable complex by Q1 of next year…”

-Brian Mandell (EVP, Marketing and Commercial)