Phillips Petroleum Exercise Phillips Petroleum is an integrated oil and gas company with headquarters in Bartlesville, Oklahoma, where it was founded in 1917. The company engages in petroleum exploration and production and in natural gas gathering and processing. In the mid-1980s, Philips engaged in a major restructuring following two failed takeover attempts. The restructuring resulted in a $4.5 billion plan to exchange a package of cash and debt securities for roughly half the company’s shares and to sell $2 billion worth of assets. Phillips’s long-term debt increased from $3.4 billion in late 1984 to a peak of $8.6 billion in April 1985. During 1992, Phillips was able to reduce its dependence on debt financing. This resulted in a debt-to-capital ratio that was still high, but at least gave some relief from the debt burden of previous years.
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