HOUSTON--(BUSINESS WIRE)--Phillips 66 (NYSE: PSX), a leading integrated downstream energy provider, announced third-quarter earnings.
“Our employees continue to execute our strategic priorities, deliver strong operating performance and leverage the benefits of our differentiated downstream portfolio,” said Mark Lashier, chairman and CEO of Phillips 66.
“We have achieved our cost reduction and Midstream synergy targets,” said Lashier. “In addition, we have significantly advanced our asset disposition program with recently announced transactions. Our commitment to operational excellence and disciplined capital allocation continues to create long-term shareholder value.”
Financial Results Summary
(in millions of dollars, except as indicated)
|
|
3Q 2024 |
2Q 2024 |
||
Earnings |
$ |
346 |
|
1,015 |
|
Adjusted Earnings1 |
|
859 |
|
984 |
|
Adjusted EBITDA1 |
|
1,998 |
|
2,183 |
|
Earnings Per Share |
|
|
|||
Earnings Per Share - Diluted |
|
0.82 |
|
2.38 |
|
Adjusted Earnings Per Share - Diluted1 |
|
2.04 |
|
2.31 |
|
Cash Flow From Operations |
|
1,132 |
|
2,097 |
|
Cash Flow From Operations, Excluding Working Capital1 |
|
1,513 |
|
1,181 |
|
Capital Expenditures & Investments2 |
|
358 |
|
367 |
|
Return of Capital to Shareholders |
|
1,277 |
|
1,325 |
|
Share repurchases |
|
800 |
|
840 |
|
Dividends paid |
|
477 |
|
485 |
|
Cash |
|
1,637 |
|
2,444 |
|
Debt |
|
19,998 |
|
19,960 |
|
Debt-to-capital ratio |
|
40 |
% |
40 |
% |
Net debt-to-capital ratio1 |
|
38 |
% |
36 |
% |
1Represents a non-GAAP financial measure. Reconciliations of these non-GAAP financial measures to the most comparable GAAP financial measure are included within this release. |
|||||
2 Excludes acquisitions of $567 million in the third quarter of 2024, and purchases of government obligations of $1.1 billion in third-quarter of 2024. |
|||||
Segment Financial and Operating Highlights
(in millions of dollars, except as indicated)
|
|
3Q 2024 |
2Q 2024 |
Change |
|||
Earnings1 |
$ |
346 |
|
1,015 |
|
(669 |
) |
Midstream |
|
644 |
|
767 |
|
(123 |
) |
Chemicals |
|
342 |
|
222 |
|
120 |
|
Refining |
|
(108 |
) |
302 |
|
(410 |
) |
Marketing and Specialties |
|
(22 |
) |
415 |
|
(437 |
) |
Renewable Fuels |
|
(116 |
) |
(55 |
) |
(61 |
) |
Corporate and Other |
|
(327 |
) |
(340 |
) |
13 |
|
Income tax expense |
|
(44 |
) |
(291 |
) |
247 |
|
Noncontrolling interests |
|
(23 |
) |
(5 |
) |
(18 |
) |
|
|
|
|
||||
Adjusted Earnings1,2 |
$ |
859 |
|
984 |
|
(125 |
) |
Midstream |
|
672 |
|
753 |
|
(81 |
) |
Chemicals |
|
342 |
|
222 |
|
120 |
|
Refining |
|
(67 |
) |
302 |
|
(369 |
) |
Marketing and Specialties |
|
583 |
|
415 |
|
168 |
|
Renewable Fuels |
|
(116 |
) |
(55 |
) |
(61 |
) |
Corporate and Other |
|
(327 |
) |
(340 |
) |
13 |
|
Income tax expense |
|
(205 |
) |
(278 |
) |
73 |
|
Noncontrolling interests |
|
(23 |
) |
(35 |
) |
12 |
|
|
|
|
|
||||
Adjusted EBITDA2 |
$ |
1,998 |
|
2,183 |
|
(185 |
) |
Midstream |
|
892 |
|
971 |
|
(79 |
) |
Chemicals |
|
466 |
|
348 |
|
118 |
|
Refining |
|
188 |
|
531 |
|
(343 |
) |
Marketing and Specialties |
|
656 |
|
484 |
|
172 |
|
Renewable Fuels |
|
(92 |
) |
(43 |
) |
(49 |
) |
Corporate and Other |
|
(112 |
) |
(108 |
) |
(4 |
) |
|
|
|
|
||||
Operating Highlights |
|
|
|
||||
Midstream NGL Fractionated Volumes (MBD) |
|
728 |
|
744 |
|
(16 |
) |
Chemicals Global O&P Utilization |
|
98 |
% |
98 |
% |
— |
% |
Refining |
|
|
|
||||
Turnaround Expense ($) |
|
137 |
|
100 |
|
37 |
|
Realized Margin ($/BBL)2 |
|
8.31 |
|
10.01 |
|
(1.70 |
) |
Crude Capacity Utilization |
|
94 |
% |
98 |
% |
(4 |
%) |
Clean Product Yield |
|
87 |
% |
86 |
% |
1 |
% |
Renewable Fuels Produced (MBD) |
|
44 |
|
31 |
|
13 |
|
1Segment reporting is pre-tax. |
|
|
|
||||
2Represents a non-GAAP financial measure. Reconciliations of these non-GAAP financial measures to the most comparable GAAP financial measure are included within this release. |
|||||||
Third-Quarter 2024 Financial Results
Reported earnings were $346 million for the third quarter of 2024 versus $1.0 billion in the second quarter. Third-quarter earnings included a legal accrual of $605 million in the Marketing and Specialties segment, costs related to the planned shutdown of the Los Angeles Refinery of $41 million in the Refining segment, and an impairment of $28 million in the Midstream segment. Second-quarter earnings included a gain on sale of investment of $238 million and an impairment of $224 million, both impacting the Midstream segment. Adjusted earnings for the third quarter were $859 million versus $984 million in the second quarter.
- Midstream third-quarter 2024 adjusted pre-tax income decreased compared with the second quarter mainly due to seasonal maintenance costs and lower equity earnings, partially offset by higher export margins.
- Chemicals reported pre-tax income increased mainly due to higher margins and lower costs.
- Refining adjusted pre-tax loss was a decrease compared to the second quarter, primarily due to a decline in realized margins largely driven by lower market crack spreads.
- Marketing and Specialties adjusted pre-tax income increased primarily due to higher margins.
- Renewable Fuels reported pre-tax loss increased primarily due to lower realized margins, partially offset by higher volumes.
As of September 30, 2024, the company had $1.6 billion of cash and cash equivalents and $5.3 billion of committed capacity available under credit facilities.
Business Highlights and Strategic Priorities Progress
- Distributed $12.5 billion through share repurchases and dividends since July 2022 and on pace to achieve the company’s $13 billion to $15 billion target by year-end.
- Achieved $1.4 billion in run-rate business transformation savings, delivering on the company’s target ahead of schedule.
- Expanded its Midstream NGL wellhead-to-market business with the acquisition of Pinnacle Midstream and approved a follow-on processing plant expansion in the Midland Basin expected to be completed in mid-year 2025.
- Achieved target of over $400 million of run-rate synergies from the successful integration of DCP Midstream.
- Received proceeds of $1.3 billion since 2022 toward the company’s $3 billion asset disposition target. In addition, the company recently agreed to sell its 49% interest in a Switzerland-based retail joint venture for $1.24 billion, and its interests in non-core Midstream assets in North Dakota.
Investor Webcast
Members of Phillips 66 executive management will host a webcast at noon ET to provide an update on the company’s strategic initiatives and discuss the company’s third-quarter performance. To access the webcast and view related presentation materials, go to phillips66.com/investors and click on “Events & Presentations.” For detailed supplemental information, go to phillips66.com/supplemental.
About Phillips 66
Phillips 66 (NYSE: PSX) is a leading integrated downstream energy provider that manufactures, transports and markets products that drive the global economy. The company’s portfolio includes Midstream, Chemicals, Refining, Marketing and Specialties, and Renewable Fuels businesses. Headquartered in Houston, Phillips 66 has employees around the globe who are committed to safely and reliably providing energy and improving lives while pursuing a lower-carbon future. For more information, visit phillips66.com or follow @Phillips66Co on LinkedIn.
Use of Non-GAAP Financial Information—This news release includes the terms “adjusted earnings,” “adjusted pre-tax income (loss),” “adjusted EBITDA,” “adjusted earnings per share,” “refining realized margin per barrel,” “cash from operations, excluding working capital,” and “net debt-to-capital ratio.” These are non-GAAP financial measures that are included to help facilitate comparisons of operating performance across periods and to help facilitate comparisons with other companies in our industry. Where applicable, these measures exclude items that do not reflect the core operating results of our businesses in the current period or other adjustments to reflect how management analyzes results. Reconciliations of these non-GAAP financial measures to the most comparable GAAP financial measure are included within this release.
References in the release to earnings refer to net income attributable to Phillips 66. References to run-rate business transformation savings include cost savings and other benefits that will be captured in the sales and other operating revenues impacting gross margin; purchased crude oil and products costs impacting gross margin; operating expenses; selling, general and administrative expenses; and equity in earnings of affiliates lines on our consolidated statement of income when realized. Run-rate savings include run-rate sustaining capital savings. Run-rate sustaining capital savings include savings that will be captured in the capital expenditures and investments on our consolidated statement of cash flows when realized.
Basis of Presentation— Effective April 1, 2024, we changed the internal financial information reviewed by our chief executive officer to evaluate performance and allocate resources to our operating segments. This included changes in the composition of our operating segments, as well as measurement changes for certain activities between our operating segments. The primary effects of this realignment included establishment of a Renewable Fuels operating segment, which includes renewable fuels activities and assets historically reported in our Refining, Marketing and Specialties (M&S), and Midstream segments; change in method of allocating results for certain Gulf Coast distillate export activities from our M&S segment to our Refining segment; reclassification of certain crude oil and international clean products trading activities between our M&S segment and our Refining segment; and change in reporting of our 16% investment in NOVONIX from our Midstream segment to Corporate and Other. Accordingly, prior period results have been recast for comparability.
In the third quarter of 2024, we began presenting the line item “Capital expenditures and investments” on our consolidated statement of cash flows exclusive of acquisitions, net of cash acquired. Accordingly, prior period information has been reclassified for comparability.
Cautionary Statement for the Purposes of the “Safe Harbor” Provisions of the Private Securities Litigation Reform Act of 1995—This news release contains forward-looking statements within the meaning of the federal securities laws relating to Phillips 66’s operations, strategy and performance. Words such as “anticipated,” “estimated,” “expected,” “planned,” “scheduled,” “targeted,” “believe,” “continue,” “intend,” “will,” “would,” “objective,” “goal,” “project,” “efforts,” “strategies” and similar expressions that convey the prospective nature of events or outcomes generally indicate forward-looking statements. However, the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements included in this news release are based on management’s expectations, estimates and projections as of the date they are made. These statements are not guarantees of future events or performance, and you should not unduly rely on them as they involve certain risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecast in such forward-looking statements. Factors that could cause actual results or events to differ materially from those described in the forward-looking statements include: changes in governmental policies or laws that relate to our operations, including regulations that seek to limit or restrict refining, marketing and midstream operations or regulate profits, pricing, or taxation of our products or feedstocks, or other regulations that restrict feedstock imports or product exports; our ability to timely obtain or maintain permits necessary for projects; fluctuations in NGL, crude oil, refined petroleum, renewable fuels and natural gas prices, and refining, marketing and petrochemical margins; the effects of any widespread public health crisis and its negative impact on commercial activity and demand for refined petroleum or renewable fuels products; changes to worldwide government policies relating to renewable fuels and greenhouse gas emissions that adversely affect programs including the renewable fuel standards program, low carbon fuel standards and tax credits for renewable fuels; potential liability from pending or future litigation; liability for remedial actions, including removal and reclamation obligations under existing or future environmental regulations; unexpected changes in costs for constructing, modifying or operating our facilities; our ability to successfully complete, or any material delay in the completion of, any asset disposition, acquisition, shutdown or conversion that we have announced or may pursue, including receipt of any necessary regulatory approvals or permits related thereto; unexpected difficulties in manufacturing, refining or transporting our products; the level and success of drilling and production volumes around our midstream assets; risks and uncertainties with respect to the actions of actual or potential competitive suppliers and transporters of refined petroleum products, renewable fuels or specialty products; lack of, or disruptions in, adequate and reliable transportation for our products; failure to complete construction of capital projects on time or within budget; our ability to comply with governmental regulations or make capital expenditures to maintain compliance with laws; limited access to capital or significantly higher cost of capital related to illiquidity or uncertainty in the domestic or international financial markets, which may also impact our ability to repurchase shares and declare and pay dividends; potential disruption of our operations due to accidents, weather events, including as a result of climate change, acts of terrorism or cyberattacks; general domestic and international economic and political developments, including armed hostilities (such as the Russia-Ukraine war), expropriation of assets, and other diplomatic developments; international monetary conditions and exchange controls; changes in estimates or projections used to assess fair value of intangible assets, goodwill and property and equipment and/or strategic decisions with respect to our asset portfolio that cause impairment charges; investments required, or reduced demand for products, as a result of environmental rules and regulations; changes in tax, environmental and other laws and regulations (including alternative energy mandates); political and societal concerns about climate change that could result in changes to our business or increase expenditures, including litigation-related expenses; the operation, financing and distribution decisions of equity affiliates we do not control; and other economic, business, competitive and/or regulatory factors affecting Phillips 66’s businesses generally as set forth in our filings with the Securities and Exchange Commission. Phillips 66 is under no obligation (and expressly disclaims any such obligation) to update or alter its forward-looking statements, whether as a result of new information, future events or otherwise.
Earnings |
|
|
|
|
|
|
||||||
|
Millions of Dollars |
|||||||||||
|
2024 |
|
2023 |
|||||||||
|
3Q |
|
2Q |
|
Sep YTD |
|
3Q |
|
Sep YTD |
|||
Midstream |
$ |
644 |
|
767 |
|
1,965 |
|
|
724 |
|
2,060 |
|
Chemicals |
|
342 |
|
222 |
|
769 |
|
|
104 |
|
494 |
|
Refining |
|
(108 |
) |
302 |
|
410 |
|
|
1,712 |
|
4,481 |
|
Marketing and Specialties |
|
(22 |
) |
415 |
|
759 |
|
|
605 |
|
1,501 |
|
Renewable Fuels |
|
(116 |
) |
(55 |
) |
(226 |
) |
|
22 |
|
164 |
|
Corporate and Other |
|
(327 |
) |
(340 |
) |
(989 |
) |
|
(354 |
) |
(992 |
) |
Pre-Tax Income |
|
413 |
|
1,311 |
|
2,688 |
|
|
2,813 |
|
7,708 |
|
Less: Income tax expense |
|
44 |
|
291 |
|
538 |
|
|
670 |
|
1,754 |
|
Less: Noncontrolling interests |
|
23 |
|
5 |
|
41 |
|
|
46 |
|
199 |
|
Phillips 66 |
$ |
346 |
|
1,015 |
|
2,109 |
|
|
2,097 |
|
5,755 |
|
|
|
|
|
|
|
|
||||||
Adjusted Earnings |
|
|
|
|
|
|
||||||
|
Millions of Dollars |
|||||||||||
|
2024 |
|
2023 |
|||||||||
|
3Q |
2Q |
Sep YTD |
|
3Q |
Sep YTD |
||||||
Midstream |
$ |
672 |
|
753 |
|
2,038 |
|
|
581 |
|
1,915 |
|
Chemicals |
|
342 |
|
222 |
|
769 |
|
|
104 |
|
494 |
|
Refining |
|
(67 |
) |
302 |
|
548 |
|
|
1,742 |
|
4,525 |
|
Marketing and Specialties |
|
583 |
|
415 |
|
1,305 |
|
|
605 |
|
1,501 |
|
Renewable Fuels |
|
(116 |
) |
(55 |
) |
(226 |
) |
|
22 |
|
164 |
|
Corporate and Other |
|
(327 |
) |
(340 |
) |
(989 |
) |
|
(303 |
) |
(812 |
) |
Pre-Tax Income |
|
1,087 |
|
1,297 |
|
3,445 |
|
|
2,751 |
|
7,787 |
|
Less: Income tax expense |
|
205 |
|
278 |
|
709 |
|
|
660 |
|
1,768 |
|
Less: Noncontrolling interests |
|
23 |
|
35 |
|
71 |
|
|
21 |
|
218 |
|
Phillips 66 |
$ |
859 |
|
984 |
|
2,665 |
|
|
2,070 |
|
5,801 |
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
||||||
|
Millions of Dollars |
|||||||||||
|
Except as Indicated |
|||||||||||
|
2024 |
|
2023 |
|||||||||
|
3Q |
2Q |
Sep YTD |
|
3Q |
Sep YTD |
||||||
Reconciliation of Consolidated Earnings to Adjusted Earnings |
|
|
|
|
|
|
||||||
Consolidated Earnings |
$ |
346 |
|
1,015 |
|
2,109 |
|
|
2,097 |
|
5,755 |
|
Pre-tax adjustments: |
|
|
|
|
|
|
||||||
Impairments1 |
|
28 |
|
224 |
|
415 |
|
|
— |
|
— |
|
Net gain on asset dispositions |
|
— |
|
(238 |
) |
(238 |
) |
|
(101 |
) |
(123 |
) |
Change in inventory method for acquired business |
|
— |
|
— |
|
— |
|
|
(46 |
) |
(46 |
) |
Los Angeles Refinery shutdown-related costs2 |
|
41 |
|
— |
|
41 |
|
|
— |
|
— |
|
Legal accrual3 |
|
605 |
|
— |
|
605 |
|
|
30 |
|
30 |
|
Legal settlement |
|
— |
|
— |
|
(66 |
) |
|
— |
|
— |
|
Business transformation restructuring costs |
|
— |
|
— |
|
— |
|
|
51 |
|
127 |
|
Loss on early redemption of DCP debt |
|
— |
|
— |
|
— |
|
|
— |
|
53 |
|
DCP integration restructuring costs |
|
— |
|
— |
|
— |
|
|
4 |
|
38 |
|
Tax impact of adjustments4 |
|
(161 |
) |
13 |
|
(171 |
) |
|
10 |
|
(14 |
) |
Noncontrolling interests |
|
— |
|
(30 |
) |
(30 |
) |
|
25 |
|
(19 |
) |
Adjusted earnings |
$ |
859 |
|
984 |
|
2,665 |
|
|
2,070 |
|
5,801 |
|
Earnings per share of common stock (dollars) |
$ |
0.82 |
|
2.38 |
|
4.94 |
|
|
4.69 |
|
12.61 |
|
Adjusted earnings per share of common stock (dollars)5 |
$ |
2.04 |
|
2.31 |
|
6.25 |
|
|
4.63 |
|
12.71 |
|
|
|
|
|
|
|
|
||||||
Reconciliation of Segment Pre-Tax Income (Loss) to Adjusted Pre-Tax Income (Loss) |
||||||||||||
Midstream Pre-Tax Income |
$ |
644 |
|
767 |
|
1,965 |
|
|
724 |
|
2,060 |
|
Pre-tax adjustments: |
|
|
|
|
|
|
||||||
Impairments1 |
|
28 |
|
224 |
|
311 |
|
|
— |
|
— |
|
Net gain on asset disposition |
|
— |
|
(238 |
) |
(238 |
) |
|
(101 |
) |
(137 |
) |
Change in inventory method for acquired business |
|
— |
|
— |
|
— |
|
|
(46 |
) |
(46 |
) |
DCP integration restructuring costs |
|
— |
|
— |
|
— |
|
|
4 |
|
38 |
|
Adjusted pre-tax income |
$ |
672 |
|
753 |
|
2,038 |
|
|
581 |
|
1,915 |
|
Chemicals Pre-Tax Income |
$ |
342 |
|
222 |
|
769 |
|
|
104 |
|
494 |
|
Pre-tax adjustments: |
|
|
|
|
|
|
||||||
None |
|
— |
|
— |
|
— |
|
|
— |
|
— |
|
Adjusted pre-tax income |
$ |
342 |
|
222 |
|
769 |
|
|
104 |
|
494 |
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
||||||
Refining Pre-Tax Income (Loss) |
$ |
(108 |
) |
302 |
|
410 |
|
|
1,712 |
|
4,481 |
|
Pre-tax adjustments: |
|
|
|
|
|
|
||||||
Impairments1 |
|
— |
|
— |
|
104 |
|
|
— |
|
— |
|
Los Angeles Refinery shutdown-related costs2 |
|
41 |
|
— |
|
41 |
|
|
— |
|
— |
|
Net loss on asset disposition |
|
— |
|
— |
|
— |
|
|
— |
|
14 |
|
Legal accrual3 |
|
— |
|
— |
|
— |
|
|
30 |
|
30 |
|
Legal settlement |
|
— |
|
— |
|
(7 |
) |
|
— |
|
— |
|
Adjusted pre-tax income (loss) |
$ |
(67 |
) |
302 |
|
548 |
|
|
1,742 |
|
4,525 |
|
Marketing and Specialties Pre-Tax Income (Loss) |
$ |
(22 |
) |
415 |
|
759 |
|
|
605 |
|
1,501 |
|
Pre-tax adjustments: |
|
|
|
|
|
|
||||||
Legal accrual3 |
|
605 |
|
— |
|
605 |
|
|
— |
|
— |
|
Legal settlement |
|
— |
|
— |
|
(59 |
) |
|
— |
|
— |
|
Adjusted pre-tax income |
$ |
583 |
|
415 |
|
1,305 |
|
|
605 |
|
1,501 |
|
Renewable Fuels Pre-Tax Income (Loss) |
$ |
(116 |
) |
(55 |
) |
(226 |
) |
|
22 |
|
164 |
|
Pre-tax adjustments: |
|
|
|
|
|
|
||||||
None |
|
— |
|
— |
|
— |
|
|
— |
|
— |
|
Adjusted pre-tax income (loss) |
$ |
(116 |
) |
(55 |
) |
(226 |
) |
|
22 |
|
164 |
|
Corporate and Other Pre-Tax Loss |
$ |
(327 |
) |
(340 |
) |
(989 |
) |
|
(354 |
) |
(992 |
) |
Pre-tax adjustments: |
|
|
|
|
|
|
||||||
Business transformation restructuring costs |
|
— |
|
— |
|
— |
|
|
51 |
|
127 |
|
Loss on early redemption of DCP debt |
|
— |
|
— |
|
— |
|
|
— |
|
53 |
|
Adjusted pre-tax loss |
$ |
(327 |
) |
(340 |
) |
(989 |
) |
|
(303 |
) |
(812 |
) |
|
|
|
|
|
|
|
||||||
1 Impairments primarily related to certain gathering and processing assets in the Midstream segment, as well as certain crude oil processing and logistics assets in California, reported in the Refining segment. |
||||||||||||
2 Shutdown-related costs recorded in the Refining segment include pre-tax charges for severance costs. |
||||||||||||
3 Legal accrual primarily related to ongoing litigation. |
||||||||||||
4 We generally tax effect taxable U.S.-based special items using a combined federal and state statutory income tax rate of approximately 24%. Taxable special items attributable to foreign locations likewise use a local statutory income tax rate. Nontaxable events reflect zero income tax. These events include, but are not limited to, most goodwill impairments, transactions legislatively exempt from income tax, transactions related to entities for which we have made an assertion that the undistributed earnings are permanently reinvested, or transactions occurring in jurisdictions with a valuation allowance. |
||||||||||||
5 YTD 2024, Q3 2024, Q3 2023 are based on adjusted weighted-average diluted shares of 426,301 thousand, 419,827 thousand, and 447,255 thousand, respectively. Other periods are based on the same weighted-average diluted shares outstanding as that used in the GAAP diluted earnings per share calculation. Income allocated to participating securities, if applicable, in the adjusted earnings per share calculation is the same as that used in the GAAP diluted earnings per share calculation. |
||||||||||||
|
Millions of Dollars |
||||
|
Except as Indicated |
||||
|
2024 |
||||
|
3Q |
2Q |
|||
Reconciliation of Consolidated Net Income to Adjusted EBITDA |
|
|
|||
Net Income |
$ |
369 |
|
1,020 |
|
Plus: |
|
|
|||
Income tax expense |
|
44 |
|
291 |
|
Net interest expense |
|
191 |
|
200 |
|
Depreciation and amortization |
|
543 |
|
497 |
|
Phillips 66 EBITDA |
$ |
1,147 |
|
2,008 |
|
Special Item Adjustments (pre-tax): |
|
|
|||
Impairments |
|
28 |
|
224 |
|
Net gain on asset disposition |
|
— |
|
(238 |
) |
Los Angeles Refinery shutdown-related costs |
|
41 |
|
— |
|
Legal accrual |
|
605 |
|
— |
|
Legal settlement |
|
— |
|
— |
|
Total Special Item Adjustments (pre-tax) |
|
674 |
|
(14 |
) |
Change in Fair Value of NOVONIX Investment |
|
— |
|
7 |
|
Phillips 66 EBITDA, Adjusted for Special Items and Change in Fair Value of NOVONIX Investment |
$ |
1,821 |
|
2,001 |
|
Other Adjustments (pre-tax): |
|
|
|||
Proportional share of selected equity affiliates income taxes |
|
24 |
|
26 |
|
Proportional share of selected equity affiliates net interest |
|
12 |
|
19 |
|
Proportional share of selected equity affiliates depreciation and amortization |
|
188 |
|
195 |
|
Adjusted EBITDA attributable to noncontrolling interests |
|
(47 |
) |
(58 |
) |
Phillips 66 Adjusted EBITDA |
$ |
1,998 |
|
2,183 |
|
|
|
|
|||
Reconciliation of Segment Income before Income Taxes to Adjusted EBITDA |
|
|
|||
Midstream Income before income taxes |
$ |
644 |
|
767 |
|
Plus: |
|
|
|||
Depreciation and amortization |
|
233 |
|
224 |
|
Midstream EBITDA |
$ |
877 |
|
991 |
|
Special Item Adjustments (pre-tax): |
|
|
|||
Net gain on asset disposition |
|
— |
|
(238 |
) |
Impairments |
|
28 |
|
224 |
|
Midstream EBITDA, Adjusted for Special Items |
$ |
905 |
|
977 |
|
Other Adjustments (pre-tax): |
|
|
|||
Proportional share of selected equity affiliates income taxes |
|
5 |
|
5 |
|
Proportional share of selected equity affiliates net interest |
|
3 |
|
10 |
|
Proportional share of selected equity affiliates depreciation and amortization |
|
26 |
|
37 |
|
Adjusted EBITDA attributable to noncontrolling interests |
|
(47 |
) |
(58 |
) |
Midstream Adjusted EBITDA |
$ |
892 |
|
971 |
|
Chemicals Income before income taxes |
$ |
342 |
|
222 |
|
Plus: |
|
|
|||
None |
|
— |
|
— |
|
Chemicals EBITDA |
$ |
342 |
|
222 |
|
Special Item Adjustments (pre-tax): |
|
|
|||
None |
|
— |
|
— |
|
Chemicals EBITDA, Adjusted for Special Items |
$ |
342 |
|
222 |
|
Other Adjustments (pre-tax): |
|
|
|||
Proportional share of selected equity affiliates income taxes |
|
13 |
|
15 |
|
Proportional share of selected equity affiliates net interest |
|
(2 |
) |
— |
|
Proportional share of selected equity affiliates depreciation and amortization |
|
113 |
|
111 |
|
Chemicals Adjusted EBITDA |
$ |
466 |
|
348 |
|
Refining Income (loss) before income taxes |
$ |
(108 |
) |
302 |
|
Plus: |
|
|
|||
Depreciation and amortization |
|
230 |
|
204 |
|
Refining EBITDA |
$ |
122 |
|
506 |
|
Special Item Adjustments (pre-tax): |
|
|
|||
Los Angeles Refinery shutdown-related costs |
|
41 |
|
— |
|
Refining EBITDA, Adjusted for Special Items |
$ |
163 |
|
506 |
|
Other Adjustments (pre-tax): |
|
|
|||
Proportional share of selected equity affiliates income taxes |
|
(1 |
) |
1 |
|
Proportional share of selected equity affiliates net interest |
|
(1 |
) |
(2 |
) |
Proportional share of selected equity affiliates depreciation and amortization |
|
27 |
|
26 |
|
Refining Adjusted EBITDA |
$ |
188 |
|
531 |
|
Marketing and Specialties Income (loss) before income taxes |
$ |
(22 |
) |
415 |
|
Plus: |
|
|
|||
Depreciation and amortization |
|
32 |
|
32 |
|
Marketing and Specialties EBITDA |
$ |
10 |
|
447 |
|
Special Item Adjustments (pre-tax): |
|
|
|||
Legal accrual |
|
605 |
|
— |
|
Marketing and Specialties EBITDA, Adjusted for Special Items |
$ |
615 |
|
447 |
|
Other Adjustments (pre-tax): |
|
|
|||
Proportional share of selected equity affiliates income taxes |
|
7 |
|
5 |
|
Proportional share of selected equity affiliates net interest |
|
12 |
|
11 |
|
Proportional share of selected equity affiliates depreciation and amortization |
|
22 |
|
21 |
|
Marketing and Specialties Adjusted EBITDA |
$ |
656 |
|
484 |
|
Renewable Fuels Loss before income taxes |
$ |
(116 |
) |
(55 |
) |
Plus: |
|
|
|||
Depreciation and amortization |
|
24 |
|
12 |
|
Renewable Fuels EBITDA |
$ |
(92 |
) |
(43 |
) |
Special Item Adjustments (pre-tax): |
|
|
|||
None |
|
— |
|
— |
|
Renewable Fuels EBITDA, Adjusted for Special Items |
$ |
(92 |
) |
(43 |
) |
Corporate and Other Loss before income taxes |
$ |
(327 |
) |
(340 |
) |
Plus: |
|
|
|||
Net interest expense |
|
191 |
|
200 |
|
Depreciation and amortization |
|
24 |
|
25 |
|
Corporate and Other EBITDA |
$ |
(112 |
) |
(115 |
) |
Special Item Adjustments (pre-tax): |
|
|
|||
None |
|
— |
|
— |
|
Total Special Item Adjustments (pre-tax) |
|
— |
|
— |
|
Change in Fair Value of NOVONIX Investment |
|
— |
|
7 |
|
Corporate EBITDA, Adjusted for Special Items and Change in Fair Value of NOVONIX Investment |
$ |
(112 |
) |
(108 |
) |
|
|
|
|||
|
|
||
|
|
||
|
Millions of Dollars |
||
|
Except as Indicated |
||
|
September 30, 2024 |
||
Debt-to-Capital Ratio |
|
||
Total Debt |
$ |
19,998 |
|
Total Equity |
|
29,784 |
|
Debt-to-Capital Ratio |
|
40 |
% |
Total Cash |
|
1,637 |
|
Net Debt-to-Capital Ratio |
|
38 |
% |
|
|||
|
|
||
|
|
||
|
Millions of Dollars |
||
|
September 30, 2024 |
||
Reconciliation of Net Cash Used in Operating Activities to Operating Cash Flow, Excluding Working Capital |
|
||
Net Cash Used in Operating Activities |
$ |
1,132 |
|
Less: Net Working Capital Changes |
|
(381 |
) |
Operating Cash Flow, Excluding Working Capital |
$ |
1,513 |
|
|
|
||
|
Millions of Dollars |
||||
|
Except as Indicated |
||||
|
2024 |
||||
|
3Q |
2Q |
|||
Reconciliation of Refining Income (Loss) Before Income Taxes to Realized Refining Margins |
|
|
|||
Income (loss) before income taxes |
$ |
(108 |
) |
302 |
|
Plus: |
|
|
|||
Taxes other than income taxes |
|
100 |
|
74 |
|
Depreciation, amortization and impairments |
|
230 |
|
203 |
|
Selling, general and administrative expenses |
|
60 |
|
51 |
|
Operating expenses |
|
922 |
|
884 |
|
Equity in earnings of affiliates |
|
12 |
|
(33 |
) |
Other segment expense, net |
|
(4 |
) |
(1 |
) |
Proportional share of refining gross margins contributed by equity affiliates |
|
193 |
|
260 |
|
Special items: |
|
|
|||
None |
|
— |
|
— |
|
Realized refining margins |
$ |
1,405 |
|
1,740 |
|
Total processed inputs (thousands of barrels) |
|
145,440 |
|
151,296 |
|
Adjusted total processed inputs (thousands of barrels)* |
|
168,951 |
|
174,107 |
|
Income (loss) before income taxes (dollars per barrel)** |
$ |
(0.74 |
) |
2.00 |
|
Realized refining margins (dollars per barrel)*** |
$ |
8.31 |
|
10.01 |
|
*Adjusted total processed inputs include our proportional share of processed inputs of an equity affiliate. |
|||||
**Income before income taxes divided by total processed inputs. |
|||||
***Realized refining margins per barrel, as presented, are calculated using the underlying realized refining margin amounts, in dollars, divided by adjusted total processed inputs, in barrels. As such, recalculated per barrel amounts using the rounded margins and barrels presented may differ from the presented per barrel amounts. |
|||||
