Company Reports

Phillips 66 offers greater diversification than competitors, thanks to its substantial marketing, chemical, and midstream assets. While refining primarily drives near-term earnings, management prioritizes midstream growth.

Phillips 66’s second-quarter 2026 earnings easily surpassed expectations on a combination of favorable market and strong operating performance. Results were strong across all segments, with meaningful sequential and year-over-year improvements, except in marketing.

Phillips 66 offers greater diversification than competitors, with its substantial marketing, chemical, and midstream assets. While refining primarily drives near-term earnings, management prioritizes midstream growth.

Phillips 66’s first-quarter 2026 earnings topped expectations, as refining performed better than what was guided to a few weeks ago. Volatility during the quarter resulted in $839 million in mark-to-market hedging pretax losses, a large working capital build, and an increase in short-term debt.

Phillips 66 offers greater diversification than competitors, with its substantial marketing, chemical, and midstream assets. While refining primarily drives near-term earnings, management prioritizes midstream growth.

Phillips 66’s fourth-quarter 2025 earnings topped expectations. Adjusted earnings of $1.0 billion improved from a loss a year ago on strong improvement in the refining and marketing segments. Midstream adjusted EBITDA rose year over year, on track to hit a $4.5 billion run rate by year-end 2027.

On the morning of Jan. 3, 2026, US forces deposed Venezuelan leader Nicolas Maduro. US President Donald Trump indicated the US will run Venezuela until there can be a "proper transition" and has highlighted his desire to substantially increase US private investment in Venezuela's oil infrastructure.

Phillips 66 offers greater diversification than competitors, with its substantial marketing, chemical, and midstream assets. While refining primarily drives near-term earnings, management prioritizes midstream growth.

Phillips 66’s third-quarter 2025 earnings exceeded expectations. Adjusted earnings rose year over year as stronger refining results offset weaker chemicals and marketing results. The company also agreed to buy the remaining 50% of WRB Refining that it didn’t own.

Phillips 66 offers greater diversification than competitors, with its substantial marketing, chemical, and midstream assets. While refining primarily drives near-term earnings, management prioritizes midstream growth.

Phillips 66's second-quarter 2025 earnings exceeded market expectations. Adjusted earnings fell from the year before due to weaker renewable fuels and chemical results, but refining improved, posting a strong operational quarter, after a poor first quarter.

Phillips 66's first-quarter 2025 earnings fell short of market expectations. Weaker margins and a high level of maintenance hit refining while renewable fuels posted a large loss and chemical earnings fell, offsetting midstream gains. Management retracted its 2027 strategic priorities.

Phillips 66 offers greater diversification than competitors, with its substantial marketing, chemical, and midstream assets. While refining primarily drives near-term earnings, management prioritizes midstream growth.

Phillips 66's fourth-quarter earnings fell short of market expectations. Overall, the quarter reflected weak market conditions, with losses in the refining segment and much weaker results in the marketing, specialties, and chemical segments compared with the year before.

Phillips 66's third-quarter earnings exceeded market expectations despite falling sharply from the year before due to weakened refining results. Otherwise, performance was strong thanks to nonrefining segments, the realization of midstream synergy targets, and cost reductions.

Phillips 66 reported second-quarter adjusted earnings of $984 million versus $1.8 billion a year ago, surpassing market expectations. A steep decline in refining earnings was largely the reason for the decline, as refining margins weakened during the quarter from the year before, falling toward midcycle levels. The midstream and chemicals segments registered earnings increases, while marketing-segment earnings fell from a year ago. Adjusted earnings for the refining segment fell to $302 million from $1.2 billion a year ago on a decrease in realized margins to $10.01 per barrel, from $15.55/bbl a year ago. Capture rates deteriorated to 64% during the quarter from 70% in the first quarter. We still expect performance to improve in the long term, as Phillips 66 has projects underway to improve capture by 5% by 2025.

Phillips 66 remains the most diversified independent refiner with greater interests in marketing, chemical, and midstream assets than peers. While the performance of its refining segment will be the primary determinant of earnings in the near term, the midstream segment will increasingly be the value driver over time as Phillips 66 aims to grow its potential midcycle EBITDA by $4 billion (initially $3 billion) to $14 billion by 2025.

Phillips 66 reported first-quarter adjusted earnings of $822 million versus $2.0 billion a year ago, falling short of market expectations. A sharp drop in refining earnings was largely the reason for the decline, although the midstream and marketing segments also reported declines. Adjusted earnings for the refining segment fell to $228 million from $1.6 billion a year ago on a decrease in realized margins to $10.91 per barrel, from $20.72/bbl a year ago, which was due in part to a weaker capture rate of 69% during the quarter. Ongoing conversion of the Rodeo facility to produce biofuels played a role—that project is due for completion later this year—and as such, we expect Phillips 66 to register improvements in the future given projects underway to improve capture by 5% by 2025.

Phillips 66 remains the most diversified independent refiner with greater interests in marketing, chemical, and midstream assets than peers. While the performance of its refining segment will be the primary determinant of earnings in the near term, the midstream segment will increasingly be the value driver over time as Phillips 66 aims to grow its potential midcycle EBITDA by $4 billion (initially $3 billion) to $14 billion by 2025.

Phillips 66 reported fourth-quarter adjusted earnings of $1.4 billion versus $1.9 billion a year ago, exceeding market expectations. A decline in refining margins from the year before was the primary culprit for the earnings decline as most of the other segments reported gains. Adjusted earnings for the refining segment fell to $797 million from $1.6 billion a year ago on a decrease in realized margins to $14.41 per barrel, from $19.73/bbl a year ago. However, the margin capture rate was an impressive 107% on a mix of favorable market conditions and commercial execution. These levels probably won’t be maintained in the near term, but Phillips 66 should see improvement over time, given projects underway to improve capture by 5% by 2025.