Disruption caused by winter storms has led to the amount of oil and gas shipped on Phillips 66 pipelines falling by about 6 percent in the first quarter.
The COVID-19 pandemic has also continued to hamper fuel demand, according to the company.
In a call with investors, the company said that pipeline revenues were down to $104 million in the three months ended March 31 from $111 million last quarter. Volumes fell to roughly 1.6 million barrels per day (bpd) from more than 1.7 million bpd following severe winter weather that shut in production and forced refiners to temporarily close shop.
Despite completing its C2G ethane pipeline in Texas and the South Texas Gateway Terminal for oil storage and exports executives acknowledged that the company continues to face a difficult environment for expansion and financial lending.
Phillips 66 chief financial officer Kevin Mitchell said: “We’re now in a position where there is a lot less midstream growth opportunities out there in this environment.”
Phillips, which is an investor in Dakota Access Pipeline (DAPL), faces the possibility that DAPL will be forced to shut by a federal court while an environmental review of its 570,000 bpd crude oil pipeline is carried out.
A US District Court judge is expected to rule on whether to order the closure of the pipeline during the months-long review.
Mitchell added: “Regardless of the outcome of what happens next week, we believe the legal process will continue progressing so I still think there’s quite a bit of uncertainty around DAPL despite our views that it should continue to operate.”
The company’s first-quarter revenues were $376 million, down from $390 million the previous quarter.
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