From $2.15/Hour to a $7.1 Billion Sale: The Story of Bob Phillips - Ep. 83

In this episode of Financial Planning for Oil & Gas Professionals, we had the pleasure of speaking with Bob Phillips, a seasoned veteran with a 47-year career in the oil and gas industry. Bob shared his incredible journey, from his early days in Tyler, Texas, to his recent sale of Crestwood Equity Partners to Energy Transfer for $7.1 billion.

Key Highlights:

Bob grew up in Tyler, Texas, and attended the University of Texas, where he got into the oil and gas program. His first job in the industry was as a rig hand making $2.15 an hour, which sparked his passion for oil and gas.

Career Milestones:

Bob's career began with Gulf Oil Company and included significant roles at Anadarko and Tenneco. He witnessed the deregulation of the natural gas industry and the technological advancements that transformed oil and gas production.

Entrepreneurial Ventures:

Bob founded his first company, EastEx Energy, in 1981 and took it public in 1987. He shared the challenges of competing with larger companies and the lessons learned from those experiences.

Mentorship and Influence:

Bob was mentored by Boone Pickens, who taught him the importance of using capital to build a company. This mentorship played a crucial role in Bob's decision to IPO EastEx Energy.

Crestwood Equity Partners:

Bob founded Crestwood in 2008 with private equity backing. He discussed the importance of aligning with the right equity partners and the commercial challenges faced during the early years. Crestwood's success was attributed to strategic acquisitions and a strong focus on ESG (Environmental, Social, and Governance) principles.

Industry Challenges and Successes:

Bob highlighted the impact of commodity price fluctuations and the emergence of ESG as significant challenges. Despite these challenges, Crestwood thrived, culminating in its sale to Energy Transfer.

Personal Insights:

Bob shared his first memory of money and the importance of saving and investing wisely. He also discussed how his faith and Methodist upbringing influenced his leadership style and commitment to community and employee well-being.

The Energy Transfer Deal:

Bob detailed the process leading up to the sale of Crestwood to Energy Transfer. He expressed pride in the transaction, noting the positive reception from shareholders and the market.

This episode offers a deep dive into the career of a remarkable industry leader and provides valuable insights for professionals in the oil and gas sector. Bob's story is a testament to the importance of perseverance, strategic thinking, and ethical leadership in achieving long-term success.

As always, we encourage our listeners to reach out with any questions or ideas for future episodes at podcast@brownleewealthmanagement.com.

Thank you for tuning in, and we look forward to bringing you more insightful episodes in the future.

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Disclosure: This information is for informational purposes only. Nothing discussed during this video should be interpreted as tax, legal, or investment advice. If you have questions pertaining to your specific situation, please consult the appropriate qualified professional.