Reuters: Regulatory News: UPDATE 1-Phillips 66 says mulling options for California refineries

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UPDATE 1-Phillips 66 says mulling options for California refineries Jan 30th 2013, 17:33 Wed Jan 30, 2013 12:33pm EST HOUSTON Jan 30 (Reuters) - Phillips 66 is studying "any and all options" for its California refineries given challenges with state regulatory requirements and high costs, Chief Executive Greg Garland told analysts on Wednesday. Analysts have repeatedly asked whether the company would try to sell its two California refineries and exit the state because of higher operating costs. On Wednesday, Garland said the company is working to improve profitability by tapping into cheaper crudes already run by refineries elsewhere in the country and reducing costs. But he also did not rule out a sale. "We're studying any and all options for California in terms of where we go," he said. "I don't feel it's a distressed asset. We want to take our time and be thoughtful." Garland said the company increased its runs of so-called advantaged crudes - such as cheap inland U.S. crude and Canadian heavy oil - to 67 percent of the overall U.S. crude slate, up from 57 percent a year ago. Phillips 66 is the only refiner with plants in all five U.S.-defined petroleum supply zones and most of its refineries run at least some of those cheaper crudes. But refiners with plants in California face regulatory challenges as well as isolation from other markets when it comes to tapping that supply. Garland told analysts that Phillips 66 was looking at getting railcars capable of hauling Canadian heavy crude to the company's refineries in California. Link this Share this Digg this Email Reprints

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