Strong Portfolio and Strategic Priorities Support Phillips 66 Third-Quarter Results
Phillips 66 (PSX) reported third-quarter 2024 earnings of $346 million ($0.82 per share), with adjusted earnings of $859 million ($2.04 per share), down from Q2's $1.0 billion. The company returned $1.3 billion to shareholders through dividends ($477M) and share repurchases ($800M). Notable achievements include reaching a $1.4 billion run-rate business transformation savings target and progressing toward a $3 billion asset disposition goal, with recent agreements including the sale of a 49% stake in a Switzerland retail venture for $1.24 billion. The quarter saw mixed segment performance, with Chemicals improving while Refining and Renewable Fuels segments declined.
Phillips 66 (PSX) ha riportato un utile del terzo trimestre 2024 di $346 milioni ($0.82 per azione), con utili corretti di $859 milioni ($2.04 per azione), in calo rispetto ai $1,0 miliardi del secondo trimestre. L'azienda ha restituito $1,3 miliardi agli azionisti attraverso dividendi ($477M) e riacquisti di azioni ($800M). Tra i risultati notevoli c'è il raggiungimento di un obiettivo di risparmi di trasformazione aziendale di $1,4 miliardi e progressi verso un obiettivo di dismissione di beni di $3 miliardi, con recenti accordi che includono la vendita di una partecipazione del 49% in un'iniziativa di vendita al dettaglio in Svizzera per $1,24 miliardi. Durante il trimestre si è registrato un andamento misto tra i segmenti, con un miglioramento della Chimica mentre i segmenti della Raffinazione e dei Combustibili Rinnovabili hanno visto un declino.
Phillips 66 (PSX) reportó ganancias de $346 millones ($0.82 por acción) en el tercer trimestre de 2024, con ganancias ajustadas de $859 millones ($2.04 por acción), una disminución respecto a los $1.0 mil millones del segundo trimestre. La compañía devolvió $1.3 mil millones a los accionistas a través de dividendos ($477M) y recompra de acciones ($800M). Logros notables incluyen alcanzar un objetivo de ahorro por transformación empresarial de $1.4 mil millones y avanzar hacia una meta de disposición de activos de $3 mil millones, con acuerdos recientes que incluyen la venta de una participación del 49% en una empresa minorista en Suiza por $1.24 mil millones. El trimestre mostró un desempeño mixto entre los segmentos, con mejoras en Químicos mientras que los segmentos de Refinación y Combustibles Renovables cayeron.
필립스 66 (PSX)가 2024년 3분기 순이익을 3억 4,600만 달러($0.82 주당)로 보고하며, 조정된 이익은 8억 5,900만 달러($2.04 주당)로, 2분기의 10억 달러에서 감소했습니다. 이 회사는 배당금($4억 7,700만)과 자사주 매입($8억 달러)을 통해 주주에게 13억 달러를 환원했습니다. 주목할 만한 성과로는 14억 달러의 사업 변혁 절감 목표를 달성했으며, 30억 달러 자산 처분 목표를 향해 진전을 보였고, 최근에는 스위스 소매 벤처의 49% 지분을 12억 4천만 달러에 매각하는 계약을 체결했습니다. 이번 분기에서는 화학 분야가 개선되는 반면, 정제 및 재생 연료 부문은 감소세를 보였습니다.
Phillips 66 (PSX) a annoncé un bénéfice de 346 millions de dollars (0,82 $ par action) pour le troisième trimestre 2024, avec un bénéfice ajusté de 859 millions de dollars (2,04 $ par action), en baisse par rapport aux 1,0 milliard de dollars du deuxième trimestre. L'entreprise a distribué 1,3 milliard de dollars aux actionnaires par le biais de dividendes (477 millions de dollars) et de rachats d'actions (800 millions de dollars). Parmi les résultats notables, on trouve l'atteinte d'un objectif d'économies de transformation des affaires de 1,4 milliard de dollars et des progrès vers un objectif de cession d'actifs de 3 milliards de dollars, avec des accords récents incluant la vente d'une participation de 49 % dans une entreprise de vente au détail en Suisse pour 1,24 milliard de dollars. Le trimestre a connu des performances segmentaires mixtes, avec une amélioration des produits chimiques tandis que les segments de raffinage et de carburants renouvelables ont connu un déclin.
Phillips 66 (PSX) hat im dritten Quartal 2024 einen Gewinn von 346 Millionen Dollar (0,82 Dollar pro Aktie) gemeldet, mit bereinigten Gewinnen von 859 Millionen Dollar (2,04 Dollar pro Aktie), ein Rückgang im Vergleich zu 1,0 Milliarden Dollar im zweiten Quartal. Das Unternehmen hat 1,3 Milliarden Dollar an die Aktionäre durch Dividenden (477 Millionen Dollar) und Aktienrückkäufe (800 Millionen Dollar) zurückgegeben. Zu den bemerkenswerten Errungenschaften gehört das Erreichen eines Einsparungsziels von 1,4 Milliarden Dollar durch Geschäftstransformation und Fortschritte in Richtung eines Ziels von 3 Milliarden Dollar bei der Vermögensveräußerung, wobei kürzlich Vereinbarungen, einschließlich des Verkaufs eines 49% Anteils an einem Einzelhandelsunternehmen in der Schweiz für 1,24 Milliarden Dollar, unterzeichnet wurden. Das Quartal zeigte gemischte Segmenteleistungen, wobei Chemie sich verbesserte, während die Segmente Raffination und Erneuerbare Brennstoffe zurückgingen.
- Achieved $1.4 billion run-rate business transformation savings ahead of schedule
- Returned $1.3 billion to shareholders in Q3 through dividends and share repurchases
- Chemical segment pre-tax income increased due to higher margins
- Marketing and Specialties adjusted pre-tax income improved on higher margins
- Strong crude capacity utilization at 94%
- Earnings declined to $346M in Q3 from $1.015B in Q2 2024
- Refining segment reported adjusted pre-tax loss due to lower margins
- Renewable Fuels losses increased to $116M from $55M in Q2
- Cash position decreased to $1.637B from $2.444B in Q2
- Legal accrual of $605M in Marketing and Specialties segment
Insights
Phillips 66's Q3 results show mixed performance with notable headwinds. Adjusted earnings dropped to
The achievement of
The downstream energy sector faces margin pressure, evident in PSX's performance. Marketing and Specialties showed resilience with adjusted pre-tax income growth, while Chemicals benefited from improved margins. The strategic asset dispositions, including the Switzerland retail joint venture sale for
The company's
-
Reported third-quarter earnings of
$346 million $0.82 $859 million $2.04 -
Returned
$1.3 billion -
Achieved business transformation
$1.4 billion $1 -
Progressed asset dispositions totaling
$2.7 billion $3 billion
“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 |
|||||
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
- 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
Business Highlights and Strategic Priorities Progress
-
Distributed
$12.5 billion $13 billion $15 billion -
Achieved
$1.4 billion - 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 -
Received proceeds of
$1.3 billion $3 billion 49% interest in aSwitzerland -based retail joint venture for$1.24 billion 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
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
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
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 |
||||||||||||
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 |
||||||||||||
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. |
|||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20241029179060/en/
Jeff Dietert (investors)
832-765-2297
jeff.dietert@p66.com
Owen Simpson (investors)
832-765-2297
owen.simpson@p66.com
Thaddeus Herrick (media)
855-841-2368
thaddeus.f.herrick@p66.com
Source: Phillips 66
FAQ
What was Phillips 66 (PSX) earnings per share in Q3 2024?
How much did Phillips 66 (PSX) return to shareholders in Q3 2024?
What was Phillips 66 (PSX) refining capacity utilization in Q3 2024?
How much cost savings did Phillips 66 (PSX) achieve in their business transformation?
