Hedging losses drive big profit drop at Phillips 66 (NYSE: PSX) in Q1 2026
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
Phillips 66 reported a sharp earnings slowdown for the first quarter of 2026. Net income was $207 million, or $0.51 per diluted share, down from $2.9 billion in the prior quarter. Adjusted earnings were $200 million, or $0.49 per share.
Results were heavily affected by $839 million of mark‑to‑market losses on short derivative positions used to hedge commodity price risk, while the related inventory gains are not recognized under LIFO accounting. Refining ran at 95% crude capacity utilization with an 87% clean product yield, and the company increased its annualized quarterly dividend by 7%.
Liquidity remained significant at about $6.0 billion, including $5.2 billion of cash and $800 million of committed credit facilities. Total debt rose to $27.1 billion, lifting the debt‑to‑capital ratio to 48% from 39% in the prior quarter.
Positive
- Dividend increase and capacity growth: Phillips 66 raised its annualized quarterly dividend by 7% and formally increased Sweeny NGL fractionation capacity and Freeport LPG export dock capacity by 23% and 15%, respectively, supporting long-term midstream cash flow potential.
Negative
- Earnings and leverage deterioration: First-quarter 2026 net income fell to $207 million from $2.9 billion in the prior quarter, pressured by $839 million of mark-to-market derivative losses, while total debt rose to $27.1 billion and the debt-to-capital ratio increased to 48%.
Insights
Quarter shows hedging-driven earnings drop and higher leverage despite solid operations.
Phillips 66 generated first-quarter 2026 earnings of $207 million, far below the prior quarter’s $2.9 billion. Adjusted EBITDA fell to $1.27 billion from $2.53 billion. The main swing factor was $839 million of mark-to-market losses on short commodity derivatives used as economic hedges.
Operationally, the business remained strong: Refining ran at 95% crude capacity utilization with 87% clean product yield, and Midstream adjusted EBITDA was $860 million. However, cash flow from operations was negative $2.26 billion due largely to working capital movements, while capital spending and an acquisition totaled $648 million.
The company ended the quarter with liquidity of about $6.0 billion, but total debt increased to $27.1 billion, raising the debt-to-capital ratio to 48%. Management still raised the annualized dividend by 7%, signaling confidence, yet the combination of weaker earnings, large non-cash hedging losses and higher leverage represents a cautious data point until subsequent quarters clarify how margins and derivatives perform.
8-K Event Classification
2 items: 2.02, 9.01
2 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Reported earnings: $207 million
Adjusted earnings: $200 million
Adjusted EBITDA: $1.268 billion
+5 more
8 metrics
Reported earnings
$207 million
Net income Q1 2026 vs $2.906 billion in Q4 2025
Adjusted earnings
$200 million
Q1 2026 adjusted net income vs $1.002 billion in Q4 2025
Adjusted EBITDA
$1.268 billion
Q1 2026 adjusted EBITDA vs $2.532 billion in Q4 2025
Mark-to-market losses
$839 million
Pre-tax losses on short derivative positions in Q1 2026
Dividend increase
7%
Increase in annualized quarterly dividend announced with Q1 2026 results
Liquidity
$6.0 billion
Cash and available committed credit as of March 31, 2026
Total debt
$27.124 billion
Debt as of March 31, 2026 vs $19.716 billion at prior quarter end
Refining realized margin
$10.11/BBL
Worldwide realized refining margin Q1 2026 vs $12.48/BBL in Q4 2025
Key Terms
mark-to-market losses, Adjusted EBITDA, debt-to-capital ratio, clean product yield, +1 more
5 terms
mark-to-market losses financial
"financial results were impacted by mark-to-market losses of $839 million related to short derivative positions"
Adjusted EBITDA financial
"Adjusted EBITDA 1 | | 1,268 | 2,532"
Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.
debt-to-capital ratio financial
"Debt-to-Capital Ratio | | 48% | 39%"
The debt-to-capital ratio measures how much of a company’s total funding comes from borrowed money versus owned money, calculated by dividing its debt by the sum of debt plus equity. Think of it like a household that compares its mortgage to the total value of the home plus savings; a higher share of debt means more fixed obligations and greater risk for investors, while a lower share suggests more financial cushion and flexibility.
clean product yield financial
"Refining operated at 95% capacity utilization with 87% clean product yield"
The percentage of usable, purified product recovered after manufacturing and cleanup steps, showing how much of the raw material becomes saleable output. For investors, it matters because higher clean product yield means lower waste and production cost per unit, better use of capacity, and more predictable revenue—like getting more finished cookies from the same batch of dough after removing broken ones.
last-in, first-out (LIFO) accounting financial
"underlying physical inventory is not reflected in book value under last-in, first-out (LIFO) accounting"
Earnings Snapshot
Net income: $207 million
Q1 2026
Net income
$207 million
Compared with $2.906 billion in Q4 2025
Adjusted earnings
$200 million
Compared with $1.002 billion in Q4 2025
Diluted EPS
$0.51
Compared with $7.17 in Q4 2025
Adjusted diluted EPS
$0.49
Compared with $2.47 in Q4 2025
Adjusted EBITDA
$1.268 billion
Compared with $2.532 billion in Q4 2025
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934
Date of Report (date of earliest event reported)
(Exact name of registrant as specified in its charter)
| (State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) | ||||||
(Address of Principal Executive Offices and Zip Code)
(832 ) 765-3010
Registrant's telephone number, including area code
Not Applicable
(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition.
On April 29, 2026, Phillips 66 issued a press release announcing the company's financial and operating results for the quarter ended March 31, 2026. A copy of the press release is furnished as Exhibit 99.1 hereto and incorporated herein by reference. Additional financial and operating information about the quarter is furnished as Exhibit 99.2 hereto and incorporated herein by reference.
The information in this report and the exhibits attached hereto shall not be deemed to be “filed” for purposes of the Securities Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, regardless of any general incorporation language in such filing.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
99.1 | — | Press release issued by Phillips 66 on April 29, 2026 | |||||||||
99.2 | — | Supplemental financial and operating information. | |||||||||
| 104 | — | Cover Page Interactive Data File (embedded within the Inline XBRL document). | |||||||||
1
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| PHILLIPS 66 | ||||||||
| By: | /s/ Ann M. Kluppel | |||||||
Ann M. Kluppel Senior Vice President and Controller | ||||||||
Date: April 29, 2026
2
Exhibit 99.1
•Reported first-quarter earnings of $207 million or $0.51 per share; adjusted earnings of $200 million or $0.49 per share
•Formally increased Sweeny NGL fractionation capacity and Freeport LPG export dock capacity by 23% and 15%, respectively, reflecting 2025 debottlenecking
•Refining operated at 95% capacity utilization with 87% clean product yield
•Increased the annualized quarterly dividend by 7%
•Ended the quarter with liquidity of approximately $6.0 billion
HOUSTON, April 29, 2026 – Phillips 66 (NYSE: PSX) announced first-quarter earnings.
“We are confident in our ability to navigate market volatility due to our integrated business and the strength of our balance sheet. Backed by disciplined execution and strong operating performance, we remain well positioned to provide energy to the global market,” said Mark Lashier, chairman and CEO of Phillips 66.
“Attractive fundamentals across our businesses further support our position to deliver strong returns and long-term shareholder value. We remain committed to our previously stated shareholder return and debt reduction targets.”
Business Highlights and Strategic Priorities Progress
•Recently announced advancement of Western Gateway Pipeline following a successful second open season securing long-term shipper commitments.
•Iron Mesa gas plant, with design capacity of 300 MMCFD, continues construction as planned and is on schedule for startup in the first quarter of 2027.
•In April 2026, completed acquisition of Lindsey Oil Refinery and logistics assets with the plan to utilize select assets, enhancing our U.K. integrated business.
•Progressed Chemicals Golden Triangle Polymers Project in Orange, Texas, and Ras Laffan Polymers Project in Qatar with full operations expected in 2027.
Financial Results Summary
(in millions of dollars, except as indicated)
| 1Q 2026 | 4Q 2025 | |||||||
| Earnings | $ | 207 | 2,906 | |||||
Adjusted Earnings1 | 200 | 1,002 | ||||||
Adjusted EBITDA1 | 1,268 | 2,532 | ||||||
| Earnings Per Share | ||||||||
| Earnings Per Share - Diluted | 0.51 | 7.17 | ||||||
Adjusted Earnings Per Share - Diluted1 | 0.49 | 2.47 | ||||||
| Cash Flow from (Used in) Operations | (2,264) | 2,752 | ||||||
Cash Flow from Operations, Excluding Working Capital1 | 699 | 2,044 | ||||||
| Capital Expenditures & Investments | 582 | 682 | ||||||
| Acquisitions, Net of Cash Acquired | 66 | 1,288 | ||||||
| Proceeds from Asset Dispositions | 7 | 1,489 | ||||||
| Return of Capital to Shareholders | 778 | 756 | ||||||
| Repurchases of Common stock | 269 | 274 | ||||||
| Dividends paid on Common stock | 509 | 482 | ||||||
| Cash and Cash Equivalents | 5,150 | 1,116 | ||||||
| Debt | 27,124 | 19,716 | ||||||
| Debt-to-Capital Ratio | 48% | 39% | ||||||
Net Debt-to-Capital Ratio1 | 43% | 38% | ||||||
1 Represents a non-GAAP financial measure. Reconciliations of these non-GAAP financial measures to the most comparable GAAP financial measure are included within this release. | ||||||||
Segment Financial and Operating Highlights
(Millions of dollars, except as indicated)
| 1Q 2026 | 4Q 2025 | Change | |||||||||
Earnings (Loss)1 | $ | 207 | 2,906 | (2,699) | |||||||
| Midstream | 591 | 638 | (47) | ||||||||
| Chemicals | 114 | (12) | 126 | ||||||||
| Refining | 208 | 822 | (614) | ||||||||
| Marketing and Specialties | (161) | 2,396 | (2,557) | ||||||||
| Renewable Fuels | (41) | (19) | (22) | ||||||||
| Corporate and Other | (451) | (372) | (79) | ||||||||
| Income tax expense | (41) | (526) | 485 | ||||||||
| Noncontrolling interests | (12) | (21) | 9 | ||||||||
Adjusted Earnings (Loss)1,2 | $ | 200 | 1,002 | (802) | |||||||
| Midstream | 591 | 717 | (126) | ||||||||
| Chemicals | 85 | 19 | 66 | ||||||||
| Refining | 208 | 542 | (334) | ||||||||
| Marketing and Specialties | (141) | 439 | (580) | ||||||||
| Renewable Fuels | (41) | (19) | (22) | ||||||||
| Corporate and Other | (451) | (363) | (88) | ||||||||
| Income tax expense | (39) | (302) | 263 | ||||||||
| Noncontrolling interests | (12) | (31) | 19 | ||||||||
Adjusted EBITDA2 | $ | 1,268 | 2,532 | (1,264) | |||||||
| Midstream | 860 | 952 | (92) | ||||||||
| Chemicals | 250 | 145 | 105 | ||||||||
| Refining | 423 | 1,019 | (596) | ||||||||
| Marketing and Specialties | (86) | 488 | (574) | ||||||||
| Renewable Fuels | (18) | 5 | (23) | ||||||||
| Corporate and Other | (161) | (77) | (84) | ||||||||
| Operating Highlights | |||||||||||
NGL Pipeline Throughput - Y-Grade to Market (MBD)3 | 930 | 1,006 | (76) | ||||||||
| NGL Fractionated (MBD) | 980 | 1,018 | (38) | ||||||||
| Chemicals Global O&P Capacity Utilization | 94% | 97% | (3%) | ||||||||
| Refining | |||||||||||
| Turnaround Expense | 178 | 135 | 43 | ||||||||
Realized Margin ($/BBL)2 | 10.11 | 12.48 | (2.37) | ||||||||
Crude Capacity Utilization4 | 95% | 99% | (4%) | ||||||||
| Clean Product Yield | 87% | 88% | (1%) | ||||||||
| Renewable Fuels Produced (MBD) | 40 | 32 | 8 | ||||||||
1 Segment reporting is pre-tax. | |||||||||||
2 Represents a non-GAAP financial measure. Reconciliations of these non-GAAP financial measures to the most comparable GAAP financial measure are included within this release. | |||||||||||
3 Represents volumes delivered to fractionation hubs, including Mont Belvieu, Sweeny and Conway. Includes 100% of DCP Midstream Class A Segment and Phillips 66's direct interest in DCP Sand Hills Pipeline, LLC and DCP Southern Hills Pipeline, LLC. | |||||||||||
4 Beginning October 1, 2025, excludes Los Angeles Refinery and includes 100% of Wood River and Borger refineries. As of January 1, 2026, the Refining segment’s net crude throughput capacity increased by 45 MBD to 1,993 MBD. | |||||||||||
First-Quarter 2026 Financial Results
Reported earnings were $207 million for the first quarter of 2026 versus $2.9 billion in the fourth quarter of 2025. First-quarter earnings included pre-tax special item adjustments of $29 million in the Chemicals segment and $(20) million in the Marketing and Specialties segment. Adjusted earnings for the first quarter were $200 million versus adjusted earnings of $1.0 billion in the fourth quarter of 2025.
As a result of a sharp increase in commodity prices during the first quarter, the company’s financial results were impacted by mark-to-market losses of $839 million related to short derivative positions used as economic hedges to manage price risk on certain physical positions. However, the increase in current market value of the associated underlying physical inventory is not reflected in book value under last-in, first-out (LIFO) accounting. The impacts during the quarter were as follows:
| Mark-to-Market Pre-Tax Losses by Segment | |||||
| Millions of Dollars | |||||
| 1Q 2026 | |||||
| Refining | $ | (396) | |||
| Marketing and Specialties | (323) | ||||
| Renewable Fuels | (120) | ||||
•Midstream adjusted pre-tax income decreased compared with the fourth quarter mainly due to lower volumes largely associated with impacts from Winter Storm Fern, lower margins driven primarily by customer recontracting, as well as accelerated depreciation related to a Permian Basin gas plant.
•Chemicals adjusted pre-tax income increased mainly due to higher margins and equity earnings of affiliates, partially offset by lower volumes and higher costs, mainly driven by turnaround expense.
•Refining adjusted pre-tax income decreased mainly due to lower margins and volumes, partially offset by the absence of accelerated depreciation at the Los Angeles Refinery. Lower margins were primarily driven by mark-to-market impacts, which were partially offset by higher clean product differentials. Additionally, lower volumes in the quarter were primarily driven by planned turnaround activities.
•Marketing and Specialties adjusted pre-tax loss was a decrease compared to the fourth quarter due to lower margins mainly driven by mark-to-market impacts.
•Renewable Fuels pre-tax loss was a decrease compared to the fourth quarter mainly due to mark-to-market impacts, partially offset by higher credits.
•Corporate and Other adjusted pre-tax loss increased primarily due to the inclusion of costs associated with the decommissioning and redevelopment of the idled Los Angeles Refinery site, along with higher employee-related costs and net interest expense.
As of March 31, 2026, the company had liquidity of approximately $6.0 billion, reflecting $5.2 billion of cash and cash equivalents and total committed capacity available under credit facilities of $800 million.
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 first-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, Texas, 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.
- # # # -
| Investor Relations | ||||||||
| investorrelations@p66.com | ||||||||
| Media Relations | ||||||||
| phillips66media@p66.com | ||||||||
Use of Non-GAAP Financial Information—This news release includes the terms “adjusted earnings (loss),” “adjusted pre-tax income (loss),” “adjusted EBITDA,” “adjusted earnings per share,” “adjusted controllable cost,” “cash from (used in) operations, excluding working capital,” “realized refining margin” and “net debt-to-capital ratio.” These are non-GAAP financial measures that are included to help facilitate comparisons of operating performance across periods, to help facilitate comparisons with other companies in our industry and to help facilitate determination of enterprise value. 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 in the release to shareholder distributions refers to the sum of dividends paid to Phillips 66 stockholders and proceeds used by Phillips 66 to repurchase shares of its common stock.
Basis of Presentation— Phillips 66 and Refining results included herein through September 30, 2025, includes our proportional share of WRB Refining LP equity earnings and beginning October 1, 2025, includes 100% of Borger Refinery and Wood River Refinery consolidated due to the acquisition of the remaining 50% of WRB.
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 relating to NGL, crude oil, natural gas, refined petroleum or renewable fuels products pricing, regulation or taxation, including exports; our ability to timely obtain or maintain permits, including those necessary for capital projects; fluctuations in NGL, crude oil, refined petroleum products, renewable fuels, renewable feedstocks and natural gas prices, and refined product, marketing and petrochemical margins; the effects of any widespread public health crisis and its negative impact on commercial activity and demand for our products; changes to 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 biofuels; liability resulting from pending or future litigation or other legal proceedings; liability for remedial actions, including removal and reclamation obligations under environmental regulations; unexpected changes in costs or technical requirements for constructing, modifying or operating our facilities or transporting our products; our ability to successfully complete, or any material delay in the completion of, any asset disposition, acquisition, shutdown or conversion that we may pursue, including receipt of any necessary regulatory approvals or permits related thereto; unexpected technological or commercial difficulties in manufacturing, refining or transporting our products, including chemical products; the level and success of producers’ drilling plans and the amount and quality of 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; changes in the cost or availability of adequate and reliable transportation for our NGL, crude oil, natural gas and refined petroleum and renewable fuels products; failure to complete definitive agreements and feasibility studies for, and to complete construction of, announced and future capital projects on time or within budget; our ability to comply with governmental regulations or make capital expenditures to maintain compliance; limited access to capital or significantly higher cost of capital related to our credit profile or illiquidity or uncertainty in the domestic or international financial markets; damage to our facilities due to accidents, weather and climate events, civil unrest, insurrections, political events, terrorism or cyberattacks; domestic and international economic and political developments including war and armed hostilities, instability in the financial services and banking sector, excess inflation, expropriation of assets and changes in fiscal policy, including interest rates; international monetary conditions and exchange controls; changes in estimates or projections used to assess fair value of intangible assets, goodwill and properties, plants and equipment and/or strategic decisions or other developments with respect to our asset portfolio that cause impairment charges; substantial investments required, or reduced demand for products, as a result of existing or future environmental rules and regulations, including greenhouse gas emissions reductions and reduced consumer demand for refined petroleum products; changes in tax, environmental and other laws and regulations (including alternative energy mandates) applicable to our business; 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 our joint ventures that we do not control; the potential impact of activist shareholder actions or tactics; 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 (Loss) | ||||||||||||||
| Millions of Dollars | ||||||||||||||
| 2026 | 2025 | |||||||||||||
| 1Q | 4Q | 1Q | ||||||||||||
| Midstream | $ | 591 | 638 | 751 | ||||||||||
| Chemicals | 114 | (12) | 113 | |||||||||||
| Refining | 208 | 822 | (937) | |||||||||||
| Marketing and Specialties | (161) | 2,396 | 1,282 | |||||||||||
| Renewable Fuels | (41) | (19) | (185) | |||||||||||
| Corporate and Other | (451) | (372) | (376) | |||||||||||
| Pre-Tax Income | 260 | 3,453 | 648 | |||||||||||
| Less: Income tax expense | 41 | 526 | 122 | |||||||||||
| Less: Noncontrolling interests | 12 | 21 | 39 | |||||||||||
| Phillips 66 | $ | 207 | 2,906 | 487 | ||||||||||
| Adjusted Earnings (Loss) | ||||||||||||||
| Millions of Dollars | ||||||||||||||
| 2026 | 2025 | |||||||||||||
| 1Q | 4Q | 1Q | ||||||||||||
| Midstream | $ | 591 | 717 | 683 | ||||||||||
| Chemicals | 85 | 19 | 113 | |||||||||||
| Refining | 208 | 542 | (937) | |||||||||||
| Marketing and Specialties | (141) | 439 | 265 | |||||||||||
| Renewable Fuels | (41) | (19) | (185) | |||||||||||
| Corporate and Other | (451) | (363) | (355) | |||||||||||
| Pre-Tax Income (Loss) | 251 | 1,335 | (416) | |||||||||||
| Less: Income tax expense (benefit) | 39 | 302 | (78) | |||||||||||
| Less: Noncontrolling interests | 12 | 31 | 30 | |||||||||||
| Phillips 66 | $ | 200 | 1,002 | (368) | ||||||||||
Page 1
Exhibit 99.1
| Millions of Dollars | ||||||||||||||
| Except as Indicated | ||||||||||||||
| 2026 | 2025 | |||||||||||||
| 1Q | 4Q | 1Q | ||||||||||||
| Reconciliation of Consolidated Earnings to Adjusted Earnings | ||||||||||||||
| Consolidated Earnings | $ | 207 | 2,906 | 487 | ||||||||||
| Pre-tax adjustments: | ||||||||||||||
| Certain tax impacts | — | (11) | — | |||||||||||
| Impairments | — | 79 | 21 | |||||||||||
Net gain on asset dispositions1 | — | (1,978) | (1,085) | |||||||||||
| Pending claims and settlements | — | (123) | — | |||||||||||
| Lower-of-cost-or-market inventory adjustments | (29) | 31 | — | |||||||||||
| Los Angeles Refinery cessation costs | — | 35 | — | |||||||||||
| Interest expense | — | 9 | — | |||||||||||
Legal accrual2 | 20 | 21 | — | |||||||||||
| Legal settlement | — | (181) | — | |||||||||||
Tax impact of adjustments3 | 2 | 19 | 200 | |||||||||||
| Other tax impacts | — | 205 | — | |||||||||||
| Noncontrolling interests | — | (10) | 9 | |||||||||||
| Adjusted earnings (loss) | $ | 200 | 1,002 | (368) | ||||||||||
Earnings per share of common stock (dollars) | $ | 0.51 | 7.17 | 1.18 | ||||||||||
Adjusted earnings (loss) per share of common stock (dollars) | $ | 0.49 | 2.47 | (0.90) | ||||||||||
Adjusted weighted-average diluted common shares outstanding (thousands) | 403,273 | 404,733 | 409,182 | |||||||||||
| Reconciliation of Segment Pre-Tax Income (Loss) to Adjusted Pre-Tax Income (Loss) | ||||||||||||||
| Midstream Pre-Tax Income | $ | 591 | 638 | 751 | ||||||||||
| Pre-tax adjustments: | ||||||||||||||
| Impairments | — | 79 | — | |||||||||||
Net gain on asset dispositions1 | — | — | (68) | |||||||||||
| Adjusted pre-tax income | $ | 591 | 717 | 683 | ||||||||||
| Chemicals Pre-Tax Income (Loss) | $ | 114 | (12) | 113 | ||||||||||
| Pre-tax adjustments: | ||||||||||||||
| Lower-of-cost-or-market inventory adjustments | (29) | 31 | — | |||||||||||
| Adjusted pre-tax income | $ | 85 | 19 | 113 | ||||||||||
| Refining Pre-Tax Income (Loss) | $ | 208 | 822 | (937) | ||||||||||
| Pre-tax adjustments: | ||||||||||||||
| Los Angeles Refinery cessation costs | — | 35 | — | |||||||||||
| Certain tax impacts | — | (11) | — | |||||||||||
| Pending claims and settlements | — | (123) | — | |||||||||||
| Legal settlement | — | (181) | — | |||||||||||
Page 2
Exhibit 99.1
| Adjusted pre-tax income (loss) | $ | 208 | 542 | (937) | ||||||||||
| Marketing and Specialties Pre-Tax Income (Loss) | $ | (161) | 2,396 | 1,282 | ||||||||||
| Pre-tax adjustments: | ||||||||||||||
Net gain on asset dispositions1 | — | (1,978) | (1,017) | |||||||||||
Legal accrual2 | 20 | 21 | — | |||||||||||
| Adjusted pre-tax income (loss) | $ | (141) | 439 | 265 | ||||||||||
| Renewable Fuels Pre-Tax Loss | $ | (41) | (19) | (185) | ||||||||||
| Pre-tax adjustments: | ||||||||||||||
| None | — | — | — | |||||||||||
| Adjusted pre-tax income (loss) | $ | (41) | (19) | (185) | ||||||||||
| Corporate and Other Pre-Tax Loss | $ | (451) | (372) | (376) | ||||||||||
| Pre-tax adjustments: | ||||||||||||||
| Impairments | — | — | 21 | |||||||||||
| Interest expense | — | 9 | — | |||||||||||
| Adjusted pre-tax loss | $ | (451) | (363) | (355) | ||||||||||
1 Net gain on asset dispositions includes the sale of a 65% interest in our Germany and Austria retail marketing business in the fourth quarter 2025. In connection with this sale, in the second and third quarters of 2025, we recognized before-tax unrealized (gain) loss from foreign currency derivatives impacting the Marketing and Specialties segment. In the first quarter of 2025, we sold our 49% non-operated equity interest in Coop Mineraloel AG. Also in the first quarter 2025, was a gain on disposition of DCP Midstream, LP’s 25% interest in Gulf Coast Express Pipeline LLC. | ||||||||||||||
2 Legal accrual primarily related to ongoing litigation with Propel Fuels, Inc. | ||||||||||||||
3 We generally tax effect taxable U.S.-based special items using a combined federal and state annual statutory income tax rate of approximately 24%. Taxable special items attributable to foreign locations likewise generally use a local statutory income tax rate, but certain transactions may be partially exempt, which could result in a lower overall effective tax rate on these items. 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. | ||||||||||||||
Page 3
Exhibit 99.1
| Millions of Dollars Except as Indicated | |||||||||||
| 2026 | 2025 | ||||||||||
| 1Q | 4Q | ||||||||||
| Reconciliation of Consolidated Net Income to Adjusted EBITDA Attributable to Phillips 66 | |||||||||||
| Net Income | $ | 219 | 2,927 | ||||||||
| Plus: | |||||||||||
| Income tax expense | 41 | 526 | |||||||||
| Net interest expense | 255 | 256 | |||||||||
| Depreciation and amortization | 558 | 818 | |||||||||
| Phillips 66 EBITDA | $ | 1,073 | 4,527 | ||||||||
| Special Item Adjustments (pre-tax): | |||||||||||
| Certain tax impacts | — | (11) | |||||||||
| Impairments | — | 79 | |||||||||
| Pending claims and settlements | — | (123) | |||||||||
| Lower-of-cost-or-market inventory adjustments | (29) | 31 | |||||||||
| Net gain on asset dispositions | — | (1,978) | |||||||||
| Los Angeles Refinery cessation costs | — | 35 | |||||||||
| Legal accrual | 20 | 21 | |||||||||
| Legal settlement | — | (181) | |||||||||
| Total Special Item Adjustments (pre-tax) | (9) | (2,127) | |||||||||
| Change in Fair Value of NOVONIX Investment | 9 | 2 | |||||||||
| Phillips 66 EBITDA, Adjusted for Special Items and Change in Fair Value of NOVONIX Investment | $ | 1,073 | 2,402 | ||||||||
| Other Adjustments (pre-tax): | |||||||||||
| Proportional share of selected equity affiliates income taxes | 27 | 4 | |||||||||
| Proportional share of selected equity affiliates net interest | 12 | 14 | |||||||||
| Proportional share of selected equity affiliates depreciation and amortization | 190 | 162 | |||||||||
| Adjusted EBITDA attributable to noncontrolling interests | (34) | (50) | |||||||||
| Phillips 66 Adjusted EBITDA | $ | 1,268 | 2,532 | ||||||||
| Reconciliation of Segment Income before Income Taxes to Adjusted EBITDA | |||||||||||
| Midstream Income before income taxes | $ | 591 | 638 | ||||||||
| Plus: | |||||||||||
| Depreciation and amortization | 274 | 259 | |||||||||
| Midstream EBITDA | $ | 865 | 897 | ||||||||
| Special Item Adjustments (pre-tax): | |||||||||||
| Impairments | — | 79 | |||||||||
| Midstream EBITDA, Adjusted for Special Items | $ | 865 | 976 | ||||||||
Page 4
Exhibit 99.1
| Other Adjustments (pre-tax): | |||||||||||
| Proportional share of selected equity affiliates income taxes | 3 | 2 | |||||||||
| Proportional share of selected equity affiliates net interest | 3 | 3 | |||||||||
| Proportional share of selected equity affiliates depreciation and amortization | 23 | 21 | |||||||||
| Adjusted EBITDA attributable to noncontrolling interests | (34) | (50) | |||||||||
| Midstream Adjusted EBITDA | $ | 860 | 952 | ||||||||
| Chemicals Income (loss) before income taxes | $ | 114 | (12) | ||||||||
| Plus: | |||||||||||
| None | — | — | |||||||||
| Chemicals EBITDA | $ | 114 | (12) | ||||||||
| Special Item Adjustments (pre-tax): | |||||||||||
| Lower-of-cost-or-market inventory adjustment | (29) | 31 | |||||||||
| Chemicals EBITDA, Adjusted for Special Items | $ | 85 | 19 | ||||||||
| Other Adjustments (pre-tax): | |||||||||||
| Proportional share of selected equity affiliates income taxes | 21 | 2 | |||||||||
| Proportional share of selected equity affiliates net interest | — | 1 | |||||||||
| Proportional share of selected equity affiliates depreciation and amortization | 144 | 123 | |||||||||
| Chemicals Adjusted EBITDA | $ | 250 | 145 | ||||||||
| Refining Income before income taxes | $ | 208 | 822 | ||||||||
| Plus: | |||||||||||
| Depreciation and amortization | 215 | 477 | |||||||||
| Refining EBITDA | $ | 423 | 1,299 | ||||||||
| Special Item Adjustments (pre-tax): | |||||||||||
| Certain tax impacts | — | (11) | |||||||||
| Los Angeles Refinery cessation costs | — | 35 | |||||||||
| Legal settlement | — | (181) | |||||||||
| Pending claims and settlements | — | (123) | |||||||||
| Refining EBITDA, Adjusted for Special Items | $ | 423 | 1,019 | ||||||||
| Other Adjustments (pre-tax): | |||||||||||
| None | — | — | |||||||||
| Refining Adjusted EBITDA | $ | 423 | 1,019 | ||||||||
| Marketing and Specialties Income (loss) before income taxes | $ | (161) | 2,396 | ||||||||
| Plus: | |||||||||||
| Depreciation and amortization | 20 | 21 | |||||||||
| Marketing and Specialties EBITDA | $ | (141) | 2,417 | ||||||||
| Special Item Adjustments (pre-tax): | |||||||||||
| Legal accrual | 20 | 21 | |||||||||
| Net gain on asset dispositions | — | (1,978) | |||||||||
| Marketing and Specialties EBITDA, Adjusted for Special Items | $ | (121) | 460 | ||||||||
| Other Adjustments (pre-tax): | |||||||||||
| Proportional share of selected equity affiliates income taxes | 3 | — | |||||||||
| Proportional share of selected equity affiliates net interest | 9 | 10 | |||||||||
| Proportional share of selected equity affiliates depreciation and amortization | 23 | 18 | |||||||||
| Marketing and Specialties Adjusted EBITDA | $ | (86) | 488 | ||||||||
Page 5
Exhibit 99.1
| Renewable Fuels Loss before income taxes | $ | (41) | (19) | ||||||||
| Plus: | |||||||||||
| Depreciation and amortization | 23 | 24 | |||||||||
| Renewable Fuels EBITDA | $ | (18) | 5 | ||||||||
| Special Item Adjustments (pre-tax): | |||||||||||
| None | — | — | |||||||||
| Renewable Fuels EBITDA, Adjusted for Special Items | $ | (18) | 5 | ||||||||
| Corporate and Other Loss before income taxes | $ | (451) | (372) | ||||||||
| Plus: | |||||||||||
| Net interest expense | 255 | 256 | |||||||||
| Depreciation and amortization | 26 | 37 | |||||||||
| Corporate and Other EBITDA | $ | (170) | (79) | ||||||||
| Special Item Adjustments (pre-tax): | |||||||||||
| None | — | — | |||||||||
| Total Special Item Adjustments (pre-tax) | — | — | |||||||||
| Change in Fair Value of NOVONIX Investment | 9 | 2 | |||||||||
| Corporate EBITDA, Adjusted for Special Items and Change in Fair Value of NOVONIX Investment | $ | (161) | (77) | ||||||||
| Millions of Dollars Except as Indicated | |||||||||||
| 2026 | 2025 | ||||||||||
| 1Q | 4Q | ||||||||||
| Debt-to-Capital Ratio | |||||||||||
| Total Debt | $ | 27,124 | 19,716 | ||||||||
| Total Equity | 29,681 | 30,241 | |||||||||
| Debt-to-Capital Ratio | 48% | 39% | |||||||||
| Cash and Cash Equivalents | 5,150 | 1,116 | |||||||||
| Net Debt-to-Capital Ratio | 43% | 38% | |||||||||
Page 6
Exhibit 99.1
| Millions of Dollars Except as Indicated | |||||||||||
| 2026 | 2025 | ||||||||||
| 1Q | 4Q | ||||||||||
| Reconciliation of Refining Income Before Income Taxes to Realized Refining Margins | |||||||||||
| Income before income taxes | $ | 208 | 822 | ||||||||
| Plus: | |||||||||||
| Taxes other than income taxes | 106 | 63 | |||||||||
| Depreciation, amortization and impairments | 217 | 477 | |||||||||
| Selling, general and administrative expenses | 52 | 52 | |||||||||
| Operating expenses | 1,229 | 1,229 | |||||||||
| Equity in losses of affiliates | — | 3 | |||||||||
| Other segment (income) expense, net | (11) | 11 | |||||||||
| Proportional share of refining gross margins contributed by equity affiliates | 26 | 25 | |||||||||
| Special items: | |||||||||||
| Certain tax impacts | — | (11) | |||||||||
| Legal settlement | — | (181) | |||||||||
| Pending claims and settlements | — | (123) | |||||||||
| Realized refining margins | $ | 1,827 | 2,367 | ||||||||
Total processed inputs (thousands of barrels) | 180,801 | 189,465 | |||||||||
Income before income taxes (dollars per barrel)1 | $ | 1.15 | 4.34 | ||||||||
Realized refining margins (dollars per barrel)2 | $ | 10.11 | 12.48 | ||||||||
1 Income before income taxes divided by total processed inputs. | |||||||||||
2 Realized refining margins per barrel, as presented, are calculated using the underlying realized refining margin amounts, in dollars, divided by 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. | |||||||||||
Page 7
| Exhibit 99.2 | |||||||||||||||||||||||||||||||||||||||||||||||
| Phillips 66 Earnings Release Supplemental Data | |||||||||||||||||||||||||||||||||||||||||||||||
 | |||||||||||||||||||||||||||||||||||||||||||||||
| CONSOLIDATED INCOME STATEMENT ¹ | ||||||||||||||||||||||||||||||||||||||||||||
| Millions of Dollars, Except as Indicated | ||||||||||||||||||||||||||||||||||||||||||||
| 2025 | 2025 | |||||||||||||||||||||||||||||||||||||||||||
| 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | |||||||||||||||||||||||||||||||||||
| Revenues and Other Income | ||||||||||||||||||||||||||||||||||||||||||||
| Sales and other operating revenues | 32,540 | 32,540 | 30,430 | 33,323 | 34,515 | 34,108 | 132,376 | |||||||||||||||||||||||||||||||||||||
| Equity in earnings of affiliates | 252 | 252 | 153 | 153 | 337 | 119 | 762 | |||||||||||||||||||||||||||||||||||||
| Net gain (loss) on dispositions | 6 | 6 | 1,087 | (93) | 11 | 1,979 | 2,984 | |||||||||||||||||||||||||||||||||||||
| Other income | 204 | 204 | 56 | 139 | 116 | 127 | 438 | |||||||||||||||||||||||||||||||||||||
| Total Revenues and Other Income | 33,002 | 33,002 | 31,726 | 33,522 | 34,979 | 36,333 | 136,560 | |||||||||||||||||||||||||||||||||||||
| Costs and Expenses | ||||||||||||||||||||||||||||||||||||||||||||
| Purchased crude oil and products | 29,216 | 29,216 | 27,660 | 29,077 | 30,219 | 29,137 | 116,093 | |||||||||||||||||||||||||||||||||||||
| Operating expenses | 1,881 | 1,881 | 1,622 | 1,440 | 1,492 | 1,869 | 6,423 | |||||||||||||||||||||||||||||||||||||
| Selling, general and administrative expenses | 537 | 537 | 519 | 582 | 792 | 544 | 2,437 | |||||||||||||||||||||||||||||||||||||
| Depreciation and amortization | 558 | 558 | 791 | 816 | 826 | 818 | 3,251 | |||||||||||||||||||||||||||||||||||||
| Impairments | 8 | 8 | 26 | 4 | 951 | 79 | 1,060 | |||||||||||||||||||||||||||||||||||||
| Taxes other than income taxes | 234 | 234 | 233 | 218 | 221 | 119 | 791 | |||||||||||||||||||||||||||||||||||||
| Accretion on discounted liabilities | 12 | 12 | 12 | 10 | 12 | 13 | 47 | |||||||||||||||||||||||||||||||||||||
| Interest and debt expense | 286 | 286 | 221 | 264 | 259 | 295 | 1,039 | |||||||||||||||||||||||||||||||||||||
| Foreign currency transaction (gains) losses | 10 | 10 | (6) | (9) | 8 | 6 | (1) | |||||||||||||||||||||||||||||||||||||
| Total Costs and Expenses | 32,742 | 32,742 | 31,078 | 32,402 | 34,780 | 32,880 | 131,140 | |||||||||||||||||||||||||||||||||||||
| Income before income taxes | 260 | 260 | 648 | 1,120 | 199 | 3,453 | 5,420 | |||||||||||||||||||||||||||||||||||||
| Income tax expense | 41 | 41 | 122 | 212 | 32 | 526 | 892 | |||||||||||||||||||||||||||||||||||||
| Net Income | 219 | 219 | 526 | 908 | 167 | 2,927 | 4,528 | |||||||||||||||||||||||||||||||||||||
| Less: net income attributable to noncontrolling interests | 12 | 12 | 39 | 31 | 34 | 21 | 125 | |||||||||||||||||||||||||||||||||||||
| Net Income Attributable to Phillips 66 | 207 | 207 | 487 | 877 | 133 | 2,906 | 4,403 | |||||||||||||||||||||||||||||||||||||
| Net Income Attributable to Phillips 66 Per Share of Common Stock (dollars) | ||||||||||||||||||||||||||||||||||||||||||||
| Basic | 0.51 | 0.51 | 1.19 | 2.15 | 0.32 | 7.20 | 10.82 | |||||||||||||||||||||||||||||||||||||
| Diluted | 0.51 | 0.51 | 1.18 | 2.15 | 0.32 | 7.17 | 10.79 | |||||||||||||||||||||||||||||||||||||
| Weighted-Average Common Shares Outstanding (thousands) | ||||||||||||||||||||||||||||||||||||||||||||
| Basic | 402,036 | 402,036 | 409,182 | 406,763 | 404,508 | 403,122 | 406,008 | |||||||||||||||||||||||||||||||||||||
| Diluted | 403,273 | 403,273 | 410,505 | 407,929 | 405,549 | 405,146 | 408,053 | |||||||||||||||||||||||||||||||||||||
| Effective tax rate (%) ² | 15.9 | % | 15.9 | % | 18.8 | % | 19.0 | % | 16.0 | % | 15.2 | % | 16.5 | % | ||||||||||||||||||||||||||||||
| Adjusted effective tax rate (%) ² | 15.7 | % | 15.7 | % | 18.8 | % | 22.0 | % | 22.9 | % | 22.6 | % | 22.9 | % | ||||||||||||||||||||||||||||||
| 1 Refer to Change in Basis of Presentation on page 15. | ||||||||||||||||||||||||||||||||||||||||||||
| 2 Effective tax rate (%) and Adjusted effective tax rate (%), as presented, are calculated using the underlying Income Tax Expense divided by Income Before Income Taxes. As such, recalculated tax rate percentages using the rounded Income Before Income Taxes and Income Tax Expense may differ from the presented tax rates (%). | ||||||||||||||||||||||||||||||||||||||||||||
Page 1
| Phillips 66 Earnings Release Supplemental Data | |||||||||||||||||||||||||||||||||||||||||||||||
| RECONCILIATION OF INCOME (LOSS) BEFORE INCOME TAXES BY SEGMENT TO | ||||||||||||||||||||||||||||||||||||||||||||
| NET INCOME ATTRIBUTABLE TO PHILLIPS 66 | ||||||||||||||||||||||||||||||||||||||||||||
| Millions of Dollars | ||||||||||||||||||||||||||||||||||||||||||||
| 2026 | 2025 | |||||||||||||||||||||||||||||||||||||||||||
| 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | |||||||||||||||||||||||||||||||||||
| Midstream | 591 | 591 | 751 | 731 | 697 | 638 | 2,817 | |||||||||||||||||||||||||||||||||||||
| Chemicals | 114 | 114 | 113 | 20 | 176 | (12) | 297 | |||||||||||||||||||||||||||||||||||||
| Refining ¹ | 208 | 208 | (937) | 359 | (518) | 822 | (274) | |||||||||||||||||||||||||||||||||||||
| Marketing and Specialties | (161) | (161) | 1,282 | 571 | 251 | 2,396 | 4,500 | |||||||||||||||||||||||||||||||||||||
| Renewable Fuels | (41) | (41) | (185) | (133) | (43) | (19) | (380) | |||||||||||||||||||||||||||||||||||||
| Corporate and Other | (451) | (451) | (376) | (428) | (364) | (372) | (1,540) | |||||||||||||||||||||||||||||||||||||
| Income before income taxes | 260 | 260 | 648 | 1,120 | 199 | 3,453 | 5,420 | |||||||||||||||||||||||||||||||||||||
| Less: income tax expense | 41 | 41 | 122 | 212 | 32 | 526 | 892 | |||||||||||||||||||||||||||||||||||||
| Net Income | 219 | 219 | 526 | 908 | 167 | 2,927 | 4,528 | |||||||||||||||||||||||||||||||||||||
| Less: net income attributable to noncontrolling interests | 12 | 12 | 39 | 31 | 34 | 21 | 125 | |||||||||||||||||||||||||||||||||||||
| Net Income Attributable to Phillips 66 | 207 | 207 | 487 | 877 | 133 | 2,906 | 4,403 | |||||||||||||||||||||||||||||||||||||
| RECONCILIATION OF ADJUSTED INCOME (LOSS) BEFORE INCOME TAXES BY SEGMENT TO | ||||||||||||||||||||||||||||||||||||||||||||
| ADJUSTED NET INCOME ATTRIBUTABLE TO PHILLIPS 66 | ||||||||||||||||||||||||||||||||||||||||||||
| Millions of Dollars | ||||||||||||||||||||||||||||||||||||||||||||
| 2026 | 2025 | |||||||||||||||||||||||||||||||||||||||||||
| 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | |||||||||||||||||||||||||||||||||||
| Midstream | ||||||||||||||||||||||||||||||||||||||||||||
| Transportation | 247 | 247 | 243 | 242 | 194 | 239 | 918 | |||||||||||||||||||||||||||||||||||||
| NGL | 344 | 344 | 440 | 489 | 503 | 478 | 1,910 | |||||||||||||||||||||||||||||||||||||
| Total Midstream | 591 | 591 | 683 | 731 | 697 | 717 | 2,828 | |||||||||||||||||||||||||||||||||||||
| Chemicals | 85 | 85 | 113 | 20 | 176 | 19 | 328 | |||||||||||||||||||||||||||||||||||||
| Refining | ||||||||||||||||||||||||||||||||||||||||||||
| Atlantic Basin/Europe | 367 | 367 | (199) | 82 | 250 | 291 | 424 | |||||||||||||||||||||||||||||||||||||
| Gulf Coast | 204 | 204 | (333) | 101 | 119 | 252 | 139 | |||||||||||||||||||||||||||||||||||||
| Central Corridor ¹ | (418) | (418) | (50) | 392 | 368 | 367 | 1,077 | |||||||||||||||||||||||||||||||||||||
| West Coast | 55 | 55 | (355) | (183) | (307) | (368) | (1,213) | |||||||||||||||||||||||||||||||||||||
| Total Refining | 208 | 208 | (937) | 392 | 430 | 542 | 427 | |||||||||||||||||||||||||||||||||||||
| Marketing and Specialties | (141) | (141) | 265 | 660 | 477 | 439 | 1,841 | |||||||||||||||||||||||||||||||||||||
| Renewable Fuels | (41) | (41) | (185) | (133) | (43) | (19) | (380) | |||||||||||||||||||||||||||||||||||||
| Corporate and Other | (451) | (451) | (355) | (383) | (364) | (363) | (1,465) | |||||||||||||||||||||||||||||||||||||
| Adjusted income (loss) before income taxes | 251 | 251 | (416) | 1,287 | 1,373 | 1,335 | 3,579 | |||||||||||||||||||||||||||||||||||||
| Less: adjusted income tax expense (benefit) | 39 | 39 | (78) | 283 | 314 | 302 | 821 | |||||||||||||||||||||||||||||||||||||
| Adjusted Net Income (Loss) | 212 | 212 | (338) | 1,004 | 1,059 | 1,033 | 2,758 | |||||||||||||||||||||||||||||||||||||
| Less: adjusted net income attributable to noncontrolling interests | 12 | 12 | 30 | 31 | 34 | 31 | 126 | |||||||||||||||||||||||||||||||||||||
| Adjusted Net Income (Loss) Attributable to Phillips 66 | 200 | 200 | (368) | 973 | 1,025 | 1,002 | 2,632 | |||||||||||||||||||||||||||||||||||||
| Adjusted Net Income (Loss) Attributable to Phillips 66 Per Share of Common Stock (dollars) | ||||||||||||||||||||||||||||||||||||||||||||
| Diluted ² | 0.49 | 0.49 | (0.90) | 2.38 | 2.52 | 2.47 | 6.44 | |||||||||||||||||||||||||||||||||||||
| Adjusted Weighted-Average Common Shares Outstanding (thousands) | ||||||||||||||||||||||||||||||||||||||||||||
| Diluted | 403,273 | 403,273 | 409,182 | 407,934 | 406,045 | 404,733 | 407,605 | |||||||||||||||||||||||||||||||||||||
| ADJUSTED EBITDA BY SEGMENT ³ | ||||||||||||||||||||||||||||||||||||||||||||
| Millions of Dollars | ||||||||||||||||||||||||||||||||||||||||||||
| 2026 | 2025 | |||||||||||||||||||||||||||||||||||||||||||
| 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | |||||||||||||||||||||||||||||||||||
| Midstream | ||||||||||||||||||||||||||||||||||||||||||||
| Transportation | 306 | 306 | 300 | 301 | 292 | 299 | 1,192 | |||||||||||||||||||||||||||||||||||||
| NGL | 554 | 554 | 585 | 671 | 672 | 653 | 2,581 | |||||||||||||||||||||||||||||||||||||
| Total Midstream | 860 | 860 | 885 | 972 | 964 | 952 | 3,773 | |||||||||||||||||||||||||||||||||||||
| Chemicals | 250 | 250 | 244 | 148 | 308 | 145 | 845 | |||||||||||||||||||||||||||||||||||||
| Refining ¹ | 423 | 423 | (452) | 867 | 904 | 1,019 | 2,338 | |||||||||||||||||||||||||||||||||||||
| Marketing and Specialties | (86) | (86) | 315 | 718 | 525 | 488 | 2,046 | |||||||||||||||||||||||||||||||||||||
| Renewable Fuels | (18) | (18) | (162) | (110) | (18) | 5 | (285) | |||||||||||||||||||||||||||||||||||||
| Corporate and Other | (161) | (161) | (94) | (94) | (89) | (77) | (354) | |||||||||||||||||||||||||||||||||||||
| Adjusted EBITDA | 1,268 | 1,268 | 736 | 2,501 | 2,594 | 2,532 | 8,363 | |||||||||||||||||||||||||||||||||||||
| 1 Refer to Change in Basis of Presentation on page 15. | ||||||||||||||||||||||||||||||||||||||||||||
| 2 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. Recalculated diluted EPS using the rounded components may differ from the presented diluted EPS. | ||||||||||||||||||||||||||||||||||||||||||||
| 3 Refer to Use of Non-GAAP Financial Information on page 15. Also, refer to reconciliations of income (loss) before income taxes to segment Adjusted EBITDA in the "Midstream", "Chemicals", "Refining", "Marketing and Specialties", "Renewable Fuels", "Corporate and Other" sections, as well as the "Reconciliation of Consolidated Net Income to Adjusted EBITDA Attributable to Phillips 66" on page 15. Adjusted EBITDA and Adjusted EBITDA by segment presented includes our proportional share of selected equity affiliates. | ||||||||||||||||||||||||||||||||||||||||||||
Page 2
| Phillips 66 Earnings Release Supplemental Data | |||||||||||||||||||||||||||||||||||||||||||||||
| SPECIAL ITEMS INCLUDED IN INCOME (LOSS) BEFORE INCOME TAXES BY SEGMENT | ||||||||||||||||||||||||||||||||||||||||||||
| AND NET INCOME ATTRIBUTABLE TO PHILLIPS 66 | ||||||||||||||||||||||||||||||||||||||||||||
| Millions of Dollars | ||||||||||||||||||||||||||||||||||||||||||||
| 2026 | 2025 | |||||||||||||||||||||||||||||||||||||||||||
| 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | |||||||||||||||||||||||||||||||||||
| Midstream | ||||||||||||||||||||||||||||||||||||||||||||
| Net gain on asset dispositions | — | — | 68 | — | — | — | 68 | |||||||||||||||||||||||||||||||||||||
| Impairments | — | — | — | — | — | (79) | (79) | |||||||||||||||||||||||||||||||||||||
| Total Midstream | — | — | 68 | — | — | (79) | (11) | |||||||||||||||||||||||||||||||||||||
| Chemicals | ||||||||||||||||||||||||||||||||||||||||||||
| Winter-storm-related recovery | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||
| Lower of cost or market inventory adjustment | 29 | 29 | — | — | — | (31) | (31) | |||||||||||||||||||||||||||||||||||||
| Total Chemicals | 29 | 29 | — | — | — | (31) | (31) | |||||||||||||||||||||||||||||||||||||
| Refining | ||||||||||||||||||||||||||||||||||||||||||||
| Certain tax impacts | — | — | — | — | — | 11 | 11 | |||||||||||||||||||||||||||||||||||||
| Impairments | — | — | — | — | (948) | — | (948) | |||||||||||||||||||||||||||||||||||||
| Los Angeles Refinery cessation costs | — | — | — | — | — | (35) | (35) | |||||||||||||||||||||||||||||||||||||
| Legal accrual | — | — | — | (33) | — | — | (33) | |||||||||||||||||||||||||||||||||||||
| Legal settlement | — | — | — | — | — | 181 | 181 | |||||||||||||||||||||||||||||||||||||
| Pending claims and settlements | — | — | — | — | — | 123 | 123 | |||||||||||||||||||||||||||||||||||||
| Total Refining | — | — | — | (33) | (948) | 280 | (701) | |||||||||||||||||||||||||||||||||||||
| Marketing and Specialties | ||||||||||||||||||||||||||||||||||||||||||||
| Legal settlement | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||
| Legal accrual ¹ | (20) | (20) | — | — | (241) | (21) | (262) | |||||||||||||||||||||||||||||||||||||
| Net gain (loss) on asset dispositions | — | — | 1,017 | (89) | 15 | 1,978 | 2,921 | |||||||||||||||||||||||||||||||||||||
| Total Marketing and Specialties | (20) | (20) | 1,017 | (89) | (226) | 1,957 | 2,659 | |||||||||||||||||||||||||||||||||||||
| Renewable Fuels | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||
| Corporate and Other | ||||||||||||||||||||||||||||||||||||||||||||
| Impairments | — | — | (21) | — | — | — | (21) | |||||||||||||||||||||||||||||||||||||
| Los Angeles Refinery cessation costs | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||
| Professional advisory fees | — | — | — | (45) | — | — | (45) | |||||||||||||||||||||||||||||||||||||
| Interest Expense | — | — | — | — | — | (9) | (9) | |||||||||||||||||||||||||||||||||||||
| Total Corporate and Other | — | — | (21) | (45) | — | (9) | (75) | |||||||||||||||||||||||||||||||||||||
| Total Special Items (Pre-tax) | 9 | 9 | 1,064 | (167) | (1,174) | 2,118 | 1,841 | |||||||||||||||||||||||||||||||||||||
| Less: Income Tax Expense (Benefit) | ||||||||||||||||||||||||||||||||||||||||||||
| Tax impact of pre-tax special items ² | 2 | 2 | 200 | (40) | (282) | 19 | (103) | |||||||||||||||||||||||||||||||||||||
| Other tax impacts | — | — | — | (31) | — | 205 | 174 | |||||||||||||||||||||||||||||||||||||
| Total Income Tax Expense (Benefit) | 2 | 2 | 200 | (71) | (282) | 224 | 71 | |||||||||||||||||||||||||||||||||||||
| Less: Income (Loss) Attributable to Noncontrolling Interests | ||||||||||||||||||||||||||||||||||||||||||||
| Net gain on asset dispositions | — | — | 9 | — | — | — | 9 | |||||||||||||||||||||||||||||||||||||
| Impairment of certain DCP assets | — | — | — | — | — | (10) | (10) | |||||||||||||||||||||||||||||||||||||
| Total Income (Loss) Attributable to Noncontrolling Interests | — | — | 9 | — | — | (10) | (1) | |||||||||||||||||||||||||||||||||||||
| Total Phillips 66 Special Items (After-tax) | 7 | 7 | 855 | (96) | (892) | 1,904 | 1,771 | |||||||||||||||||||||||||||||||||||||
| SPECIAL ITEMS INCLUDED IN INCOME (LOSS) BEFORE INCOME TAXES BY BUSINESS LINES/REGIONS | ||||||||||||||||||||||||||||||||||||||||||||
| Millions of Dollars | ||||||||||||||||||||||||||||||||||||||||||||
| 2026 | 2025 | |||||||||||||||||||||||||||||||||||||||||||
| 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | |||||||||||||||||||||||||||||||||||
| Midstream | ||||||||||||||||||||||||||||||||||||||||||||
| Transportation | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||
| NGL | — | — | 68 | — | — | (79) | (11) | |||||||||||||||||||||||||||||||||||||
| Total Midstream | — | — | 68 | — | — | (79) | (11) | |||||||||||||||||||||||||||||||||||||
| Refining | ||||||||||||||||||||||||||||||||||||||||||||
| Atlantic Basin/Europe | — | — | — | (33) | — | 11 | (22) | |||||||||||||||||||||||||||||||||||||
| Gulf Coast | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||
| Central Corridor | — | — | — | — | (948) | 304 | (644) | |||||||||||||||||||||||||||||||||||||
| West Coast | — | — | — | — | — | (35) | (35) | |||||||||||||||||||||||||||||||||||||
| Total Refining | — | — | — | (33) | (948) | 280 | (701) | |||||||||||||||||||||||||||||||||||||
| 1 Legal accruals related to ongoing litigation with Propel Fuels, Inc | ||||||||||||||||||||||||||||||||||||||||||||
| 2 We generally tax effect taxable U.S.-based special items using a combined federal and state annual statutory income tax rate of approximately 24%. Taxable special items attributable to foreign locations likewise generally use a local statutory income tax rate, but certain transactions may be partially exempt, which could result in a lower overall effective tax rate on these items. 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. | ||||||||||||||||||||||||||||||||||||||||||||
Page 3
| Phillips 66 Earnings Release Supplemental Data | |||||||||||||||||||||||||||||||||||||||||||||||
| CASH FLOW INFORMATION ¹ | ||||||||||||||||||||||||||||||||||||||||||||
| Millions of Dollars | ||||||||||||||||||||||||||||||||||||||||||||
| 2026 | 2025 | |||||||||||||||||||||||||||||||||||||||||||
| 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | |||||||||||||||||||||||||||||||||||
| Cash Flows From Operating Activities | ||||||||||||||||||||||||||||||||||||||||||||
| Net income | 219 | 219 | 526 | 908 | 167 | 2,927 | 4,528 | |||||||||||||||||||||||||||||||||||||
| Depreciation and amortization | 558 | 558 | 791 | 816 | 826 | 818 | 3,251 | |||||||||||||||||||||||||||||||||||||
| Impairments | 8 | 8 | 26 | 4 | 951 | 79 | 1,060 | |||||||||||||||||||||||||||||||||||||
| Accretion on discounted liabilities | 12 | 12 | 12 | 10 | 12 | 13 | 47 | |||||||||||||||||||||||||||||||||||||
| Deferred income taxes | 67 | 67 | (133) | (48) | 14 | 345 | 178 | |||||||||||||||||||||||||||||||||||||
| Undistributed equity earnings | (86) | (86) | 120 | 75 | (55) | (20) | 120 | |||||||||||||||||||||||||||||||||||||
| Net (gain) loss on dispositions | (6) | (6) | (1,087) | 93 | (11) | (1,979) | (2,984) | |||||||||||||||||||||||||||||||||||||
| Unrealized investment (gain) loss ² | 9 | 9 | 10 | 4 | (4) | 2 | 12 | |||||||||||||||||||||||||||||||||||||
| Other | (82) | (82) | (6) | 58 | 20 | (141) | (69) | |||||||||||||||||||||||||||||||||||||
| Net working capital changes | (2,963) | (2,963) | (72) | (1,075) | (742) | 708 | (1,181) | |||||||||||||||||||||||||||||||||||||
| Net Cash Provided by (Used in) Operating Activities | (2,264) | (2,264) | 187 | 845 | 1,178 | 2,752 | 4,962 | |||||||||||||||||||||||||||||||||||||
| Cash Flows From Investing Activities | ||||||||||||||||||||||||||||||||||||||||||||
| Capital expenditures and investments | (582) | (582) | (423) | (587) | (541) | (682) | (2,233) | |||||||||||||||||||||||||||||||||||||
| Acquisitions, net of cash acquired | (66) | (66) | — | (2,220) | 10 | (1,288) | (3,498) | |||||||||||||||||||||||||||||||||||||
| Return of investments in equity affiliates | 26 | 26 | 25 | 18 | 15 | 32 | 90 | |||||||||||||||||||||||||||||||||||||
| Proceeds from asset dispositions | 7 | 7 | 2,034 | (3) | — | 1,489 | 3,520 | |||||||||||||||||||||||||||||||||||||
| Other | 9 | 9 | (45) | 58 | 29 | (18) | 46 | |||||||||||||||||||||||||||||||||||||
| Net Cash Provided by (Used in) Investing Activities | (606) | (606) | 1,591 | (2,734) | (487) | (467) | (2,097) | |||||||||||||||||||||||||||||||||||||
| Cash Flows From Financing Activities | ||||||||||||||||||||||||||||||||||||||||||||
| Issuance of debt | 9,629 | 9,629 | — | 3,499 | 2,450 | 2,446 | 8,395 | |||||||||||||||||||||||||||||||||||||
| Repayment of debt | (1,965) | (1,965) | (1,287) | (1,088) | (1,612) | (4,787) | (8,774) | |||||||||||||||||||||||||||||||||||||
| Issuance of common stock | 84 | 84 | 23 | 2 | 68 | 14 | 107 | |||||||||||||||||||||||||||||||||||||
| Repurchase of common stock | (269) | (269) | (247) | (419) | (267) | (274) | (1,207) | |||||||||||||||||||||||||||||||||||||
| Dividends paid on common stock | (509) | (509) | (469) | (487) | (484) | (482) | (1,922) | |||||||||||||||||||||||||||||||||||||
| Distributions to noncontrolling interests | (22) | (22) | (14) | (81) | (28) | (41) | (164) | |||||||||||||||||||||||||||||||||||||
| Contributions from noncontrolling interests | 15 | 15 | — | 106 | 18 | 8 | 132 | |||||||||||||||||||||||||||||||||||||
| Other | (43) | (43) | (55) | (6) | (33) | (10) | (104) | |||||||||||||||||||||||||||||||||||||
| Net Cash Provided by (Used in) Financing Activities | 6,920 | 6,920 | (2,049) | 1,526 | 112 | (3,126) | (3,537) | |||||||||||||||||||||||||||||||||||||
| Effect of Exchange Rate Changes on Cash and Cash Equivalents | (16) | (16) | 22 | 18 | 3 | 7 | 50 | |||||||||||||||||||||||||||||||||||||
| Net Change in Cash and Cash Equivalents, including cash classified within Assets held for sale | 4,034 | 4,034 | (249) | (345) | 806 | (834) | (622) | |||||||||||||||||||||||||||||||||||||
| Cash and cash equivalents at beginning of period | 1,116 | 1,116 | 1,738 | 1,489 | 1,144 | 1,950 | 1,738 | |||||||||||||||||||||||||||||||||||||
| Cash and Cash Equivalents at End of Period, including cash classified within Assets held for sale | 5,150 | 5,150 | 1,489 | 1,144 | 1,950 | 1,116 | 1,116 | |||||||||||||||||||||||||||||||||||||
| Reconciliation of Cash and Cash Equivalents at end of period | ||||||||||||||||||||||||||||||||||||||||||||
| Cash and Cash equivalents | 5,150 | 5,150 | 1,489 | 1,052 | 1,845 | 1,116 | 1,116 | |||||||||||||||||||||||||||||||||||||
| Cash and cash equivalents included in Assets held for sale | — | — | — | 92 | 105 | — | — | |||||||||||||||||||||||||||||||||||||
| Cash and cash equivalents at end of period, including cash classified within Assets held for sale | 5,150 | 5,150 | 1,489 | 1,144 | 1,950 | 1,116 | 1,116 | |||||||||||||||||||||||||||||||||||||
| CAPITAL PROGRAM | ||||||||||||||||||||||||||||||||||||||||||||
| Millions of Dollars | ||||||||||||||||||||||||||||||||||||||||||||
| 2026 | 2025 | |||||||||||||||||||||||||||||||||||||||||||
| 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | |||||||||||||||||||||||||||||||||||
| Consolidated Capital Expenditures and Investments ³ | ||||||||||||||||||||||||||||||||||||||||||||
| Midstream | 343 | 343 | 216 | 384 | 347 | 284 | 1,231 | |||||||||||||||||||||||||||||||||||||
| Chemicals | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||
| Refining¹ | 210 | 210 | 176 | 148 | 145 | 307 | 776 | |||||||||||||||||||||||||||||||||||||
| Marketing and Specialties | 9 | 9 | 15 | 34 | 26 | 43 | 118 | |||||||||||||||||||||||||||||||||||||
| Renewable Fuels | 10 | 10 | 9 | 9 | 15 | 23 | 56 | |||||||||||||||||||||||||||||||||||||
| Corporate and Other | 10 | 10 | 7 | 12 | 8 | 25 | 52 | |||||||||||||||||||||||||||||||||||||
| Consolidated Capital Expenditures and Investments | 582 | 582 | 423 | 587 | 541 | 682 | 2,233 | |||||||||||||||||||||||||||||||||||||
| Consolidated Capital Expenditures and Investments ¹ ³ ⁴ | ||||||||||||||||||||||||||||||||||||||||||||
| Growth | 336 | 336 | 229 | 379 | 289 | 332 | 1,229 | |||||||||||||||||||||||||||||||||||||
| Sustaining | 246 | 246 | 194 | 208 | 252 | 350 | 1,004 | |||||||||||||||||||||||||||||||||||||
| Consolidated Capital Expenditures and Investments | 582 | 582 | 423 | 587 | 541 | 682 | 2,233 | |||||||||||||||||||||||||||||||||||||
| Proportional Share of Selected Equity Affiliates Capital Expenditures and Investments | ||||||||||||||||||||||||||||||||||||||||||||
| CPChem (Chemicals) | 133 | 133 | 182 | 225 | 202 | 187 | 796 | |||||||||||||||||||||||||||||||||||||
| WRB (Refining) ¹ | — | — | 21 | 44 | 34 | — | 99 | |||||||||||||||||||||||||||||||||||||
| Selected Equity Affiliates | 133 | 133 | 203 | 269 | 236 | 187 | 895 | |||||||||||||||||||||||||||||||||||||
| 1 Refer to Change in Basis of Presentation on page 15. | ||||||||||||||||||||||||||||||||||||||||||||
| 2 Represents the unrealized loss on our investment in NOVONIX. See NOVONIX Investment table on page 14 for more details. | ||||||||||||||||||||||||||||||||||||||||||||
| 3 Excludes net acquisitions of $66MM, $1,288MM, $(10)MM, $2,220MM and $58MM in Q1 2026, Q4 2025, Q3 2025, Q2 2025, respectively. | ||||||||||||||||||||||||||||||||||||||||||||
| 4 See note on the use of non-GAAP measures. | ||||||||||||||||||||||||||||||||||||||||||||
Page 4
| Phillips 66 Earnings Release Supplemental Data | |||||||||||||||||||||||||||||||||||||||||||||||
| MIDSTREAM | ||||||||||||||||||||||||||||||||||||||||||||
| Millions of Dollars, Except as Indicated | ||||||||||||||||||||||||||||||||||||||||||||
| 2026 | 2025 | |||||||||||||||||||||||||||||||||||||||||||
| 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | |||||||||||||||||||||||||||||||||||
| Income before Income Taxes | ||||||||||||||||||||||||||||||||||||||||||||
| Transportation | 247 | 247 | 243 | 242 | 194 | 239 | 918 | |||||||||||||||||||||||||||||||||||||
| NGL | 344 | 344 | 508 | 489 | 503 | 399 | 1,899 | |||||||||||||||||||||||||||||||||||||
| Income before Income Taxes | 591 | 591 | 751 | 731 | 697 | 638 | 2,817 | |||||||||||||||||||||||||||||||||||||
| Equity in Earnings of Affiliates | ||||||||||||||||||||||||||||||||||||||||||||
| Transportation | 92 | 92 | 97 | 87 | 82 | 87 | 353 | |||||||||||||||||||||||||||||||||||||
| NGL | 11 | 11 | 13 | 11 | 11 | 11 | 46 | |||||||||||||||||||||||||||||||||||||
| Total | 103 | 103 | 110 | 98 | 93 | 98 | 399 | |||||||||||||||||||||||||||||||||||||
| Depreciation and Amortization ¹ | ||||||||||||||||||||||||||||||||||||||||||||
| Transportation | 45 | 45 | 44 | 43 | 73 | 50 | 210 | |||||||||||||||||||||||||||||||||||||
| NGL | 229 | 229 | 189 | 217 | 205 | 209 | 820 | |||||||||||||||||||||||||||||||||||||
| Total | 274 | 274 | 233 | 260 | 278 | 259 | 1,030 | |||||||||||||||||||||||||||||||||||||
| Operating and SG&A Expenses ² | ||||||||||||||||||||||||||||||||||||||||||||
| Transportation | 184 | 184 | 173 | 191 | 205 | 194 | 763 | |||||||||||||||||||||||||||||||||||||
| NGL | 413 | 413 | 338 | 373 | 354 | 410 | 1,475 | |||||||||||||||||||||||||||||||||||||
| Total | 597 | 597 | 511 | 564 | 559 | 604 | 2,238 | |||||||||||||||||||||||||||||||||||||
| Transportation Volumes (MB/D) | ||||||||||||||||||||||||||||||||||||||||||||
| Pipelines ³ | 2,932 | 2,932 | 2,893 | 3,093 | 3,111 | 2,993 | 3,023 | |||||||||||||||||||||||||||||||||||||
| Terminals | 3,180 | 3,180 | 2,938 | 3,074 | 3,127 | 3,226 | 3,092 | |||||||||||||||||||||||||||||||||||||
| PSX Other Volumes | ||||||||||||||||||||||||||||||||||||||||||||
| Wellhead Volume (Bcf/D) ⁴ | 4.4 | 4.4 | 4.1 | 4.2 | 4.3 | 4.4 | 4.3 | |||||||||||||||||||||||||||||||||||||
| NGL Production (MB/D) ⁴ | 446 | 446 | 437 | 456 | 483 | 470 | 462 | |||||||||||||||||||||||||||||||||||||
| NGL Pipeline Throughput–Y-Grade to Market (MB/D) ⁵ | 930 | 930 | 704 | 956 | 999 | 1,006 | 917 | |||||||||||||||||||||||||||||||||||||
| NGL Fractionated (MB/D) | 980 | 980 | 748 | 883 | 930 | 1,018 | 896 | |||||||||||||||||||||||||||||||||||||
| Market Indicators | ||||||||||||||||||||||||||||||||||||||||||||
| Weighted-Average NGL Price ($/gal) ⁶ | 0.62 | 0.62 | 0.74 | 0.64 | 0.60 | 0.59 | 0.64 | |||||||||||||||||||||||||||||||||||||
| Henry Hub Natural Gas Price ($/MMBtu) ⁷ | 4.87 | 4.87 | 4.27 | 3.16 | 3.03 | 3.69 | 3.54 | |||||||||||||||||||||||||||||||||||||
| WTI ($/BBL) ⁷ | 71.98 | 71.98 | 71.46 | 63.86 | 65.03 | 59.22 | 64.89 | |||||||||||||||||||||||||||||||||||||
| 1 Excludes D&A of all non-consolidated affiliates. | ||||||||||||||||||||||||||||||||||||||||||||
| 2 Excludes operating and SG&A expenses of all non-consolidated affiliates. | ||||||||||||||||||||||||||||||||||||||||||||
| 3 Pipelines represent the sum of volumes transported through each separately tariffed consolidated pipeline segment, excluding NGL's pipelines. | ||||||||||||||||||||||||||||||||||||||||||||
| 4 Includes 100% of DCP Midstream Class A Segment. | ||||||||||||||||||||||||||||||||||||||||||||
| 5 Represents volumes delivered to fractionation market hubs, including Mont Belvieu, Sweeny and Conway. Includes 100% of DCP Midstream Class A Segment and Phillips 66's direct interest in DCP Sand Hills Pipeline, LLC and DCP Southern Hills Pipeline, LLC. | ||||||||||||||||||||||||||||||||||||||||||||
| 6 Based on index prices from the Mont Belvieu market hub, which are weighted by NGL component mix. | ||||||||||||||||||||||||||||||||||||||||||||
| 7 Based on daily spot prices. | ||||||||||||||||||||||||||||||||||||||||||||
Page 5
| Phillips 66 Earnings Release Supplemental Data | |||||||||||||||||||||||||||||||||||||||||||||||
| MIDSTREAM (continued) | ||||||||||||||||||||||||||||||||||||||||||||
| Millions of Dollars | ||||||||||||||||||||||||||||||||||||||||||||
| 2026 | 2025 | |||||||||||||||||||||||||||||||||||||||||||
| 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | |||||||||||||||||||||||||||||||||||
| Reconciliation of Midstream Income before Income Taxes to Adjusted EBITDA | ||||||||||||||||||||||||||||||||||||||||||||
| Income before income taxes | 591 | 591 | 751 | 731 | 697 | 638 | 2,817 | |||||||||||||||||||||||||||||||||||||
| Plus: | ||||||||||||||||||||||||||||||||||||||||||||
| Depreciation and amortization | 274 | 274 | 233 | 260 | 278 | 259 | 1,030 | |||||||||||||||||||||||||||||||||||||
| EBITDA | 865 | 865 | 984 | 991 | 975 | 897 | 3,847 | |||||||||||||||||||||||||||||||||||||
| Special Item Adjustments (pre-tax): | ||||||||||||||||||||||||||||||||||||||||||||
| Net gain on asset dispositions | — | — | (68) | — | — | — | (68) | |||||||||||||||||||||||||||||||||||||
| Impairments | — | — | — | — | — | 79 | 79 | |||||||||||||||||||||||||||||||||||||
| EBITDA, Adjusted for Special Items | 865 | 865 | 916 | 991 | 975 | 976 | 3,858 | |||||||||||||||||||||||||||||||||||||
| Other Adjustments (pre-tax): | ||||||||||||||||||||||||||||||||||||||||||||
| Proportional share of selected equity affiliates income taxes | 3 | 3 | 3 | 4 | 4 | 2 | 13 | |||||||||||||||||||||||||||||||||||||
| Proportional share of selected equity affiliates net interest | 3 | 3 | 3 | 3 | 3 | 3 | 12 | |||||||||||||||||||||||||||||||||||||
| Proportional share of selected equity affiliates depreciation and amortization | 23 | 23 | 23 | 24 | 33 | 21 | 101 | |||||||||||||||||||||||||||||||||||||
| Adjusted EBITDA attributable to noncontrolling interests | (34) | (34) | (60) | (50) | (51) | (50) | (211) | |||||||||||||||||||||||||||||||||||||
| Adjusted EBITDA | 860 | 860 | 885 | 972 | 964 | 952 | 3,773 | |||||||||||||||||||||||||||||||||||||
Page 6
| Phillips 66 Earnings Release Supplemental Data | |||||||||||||||||||||||||||||||||||||||||||||||
| MIDSTREAM (continued) | ||||||||||||||||||||||||||||||||||||||||||||
| Millions of Dollars | ||||||||||||||||||||||||||||||||||||||||||||
| 2026 | 2025 | |||||||||||||||||||||||||||||||||||||||||||
| 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | |||||||||||||||||||||||||||||||||||
| Transportation | ||||||||||||||||||||||||||||||||||||||||||||
| Income before income taxes | 247 | 247 | 243 | 242 | 194 | 239 | 918 | |||||||||||||||||||||||||||||||||||||
| Plus: | ||||||||||||||||||||||||||||||||||||||||||||
| Depreciation and amortization | 45 | 45 | 44 | 43 | 73 | 50 | 210 | |||||||||||||||||||||||||||||||||||||
| EBITDA | 292 | 292 | 287 | 285 | 267 | 289 | 1,128 | |||||||||||||||||||||||||||||||||||||
| Special Item Adjustments (pre-tax): | ||||||||||||||||||||||||||||||||||||||||||||
| None | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||
| EBITDA, Adjusted for Special Items | 292 | 292 | 287 | 285 | 267 | 289 | 1,128 | |||||||||||||||||||||||||||||||||||||
| Other Adjustments (pre-tax): | ||||||||||||||||||||||||||||||||||||||||||||
| Proportional share of selected equity affiliates income taxes | 3 | 3 | 3 | 4 | 4 | 2 | 13 | |||||||||||||||||||||||||||||||||||||
| Proportional share of selected equity affiliates net interest | 3 | 3 | 3 | 3 | 3 | 3 | 12 | |||||||||||||||||||||||||||||||||||||
| Proportional share of selected equity affiliates depreciation and amortization | 15 | 15 | 15 | 15 | 23 | 12 | 65 | |||||||||||||||||||||||||||||||||||||
| Adjusted EBITDA attributable to noncontrolling interests | (7) | (7) | (8) | (6) | (5) | (7) | (26) | |||||||||||||||||||||||||||||||||||||
| Adjusted EBITDA | 306 | 306 | 300 | 301 | 292 | 299 | 1,192 | |||||||||||||||||||||||||||||||||||||
| NGL | ||||||||||||||||||||||||||||||||||||||||||||
| Income before income taxes | 344 | 344 | 508 | 489 | 503 | 399 | 1,899 | |||||||||||||||||||||||||||||||||||||
| Plus: | ||||||||||||||||||||||||||||||||||||||||||||
| Depreciation and amortization | 229 | 229 | 189 | 217 | 205 | 209 | 820 | |||||||||||||||||||||||||||||||||||||
| EBITDA | 573 | 573 | 697 | 706 | 708 | 608 | 2,719 | |||||||||||||||||||||||||||||||||||||
| Special Item Adjustments (pre-tax): | ||||||||||||||||||||||||||||||||||||||||||||
| Net gain on asset disposition | — | — | (68) | — | — | — | (68) | |||||||||||||||||||||||||||||||||||||
| Impairments | — | — | — | — | — | 79 | 79 | |||||||||||||||||||||||||||||||||||||
| EBITDA, Adjusted for Special Items | 573 | 573 | 629 | 706 | 708 | 687 | 2,730 | |||||||||||||||||||||||||||||||||||||
| Other Adjustments (pre-tax): | ||||||||||||||||||||||||||||||||||||||||||||
| Proportional share of selected equity affiliates income taxes | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||
| Proportional share of selected equity affiliates net interest | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||
| Proportional share of selected equity affiliates depreciation and amortization | 8 | 8 | 8 | 9 | 10 | 9 | 36 | |||||||||||||||||||||||||||||||||||||
| Adjusted EBITDA attributable to noncontrolling interests | (27) | (27) | (52) | (44) | (46) | (43) | (185) | |||||||||||||||||||||||||||||||||||||
| Adjusted EBITDA | 554 | 554 | 585 | 671 | 672 | 653 | 2,581 | |||||||||||||||||||||||||||||||||||||
Page 7
| Phillips 66 Earnings Release Supplemental Data | |||||||||||||||||||||||||||||||||||||||||||||||
| CHEMICALS | ||||||||||||||||||||||||||||||||||||||||||||
| Millions of Dollars, Except as Indicated | ||||||||||||||||||||||||||||||||||||||||||||
| 2026 | 2025 | |||||||||||||||||||||||||||||||||||||||||||
| 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | |||||||||||||||||||||||||||||||||||
| Income (loss) before Income Taxes | 114 | 114 | 113 | 20 | 176 | (12) | 297 | |||||||||||||||||||||||||||||||||||||
| Equity in Earnings (Losses) of Affiliate | 114 | 114 | 113 | 20 | 176 | (12) | 297 | |||||||||||||||||||||||||||||||||||||
| 100% CPChem Results | ||||||||||||||||||||||||||||||||||||||||||||
| Net Income, excludes parent company income tax related to CPChem's earnings | 228 | 228 | 226 | 40 | 351 | (24) | 593 | |||||||||||||||||||||||||||||||||||||
| Income (loss) before Income Taxes | 238 | 238 | 235 | 50 | 360 | (14) | 631 | |||||||||||||||||||||||||||||||||||||
| Depreciation and Amortization | 180 | 180 | 170 | 166 | 177 | 183 | 696 | |||||||||||||||||||||||||||||||||||||
| Net Interest Expense ¹ | — | — | (2) | (1) | (1) | — | (4) | |||||||||||||||||||||||||||||||||||||
| Investing Cash Flows – Outflows/(Inflows) | ||||||||||||||||||||||||||||||||||||||||||||
| Capital Expenditures and Investments | 266 | 266 | 363 | 450 | 405 | 374 | 1,592 | |||||||||||||||||||||||||||||||||||||
| Return of Investments from Equity Companies | — | — | — | (7) | (18) | (25) | (50) | |||||||||||||||||||||||||||||||||||||
| Olefins and Polyolefins Capacity Utilization (%) | 94 | % | 94 | % | 100 | % | 92 | % | 104 | % | 97 | % | 98 | % | ||||||||||||||||||||||||||||||
| Market Indicator ² | ||||||||||||||||||||||||||||||||||||||||||||
| Ethylene to High-Density Polyethylene Chain Cash Margin (cents/lb) | 10.7 | 10.7 | 10.9 | 7.4 | 7.6 | 2.6 | 7.1 | |||||||||||||||||||||||||||||||||||||
| Reconciliation of Chemicals Income before Income Taxes to Adjusted EBITDA | ||||||||||||||||||||||||||||||||||||||||||||
| Income (loss) before income taxes | 114 | 114 | 113 | 20 | 176 | (12) | 297 | |||||||||||||||||||||||||||||||||||||
| Plus: | ||||||||||||||||||||||||||||||||||||||||||||
| None | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||
| EBITDA | 114 | 114 | 113 | 20 | 176 | (12) | 297 | |||||||||||||||||||||||||||||||||||||
| Special Item Adjustments (pre-tax): | ||||||||||||||||||||||||||||||||||||||||||||
| Lower of cost or market inventory adjustment | (29) | (29) | — | — | — | 31 | 31 | |||||||||||||||||||||||||||||||||||||
| EBITDA, Adjusted for Special Items | 85 | 85 | 113 | 20 | 176 | 19 | 328 | |||||||||||||||||||||||||||||||||||||
| Other Adjustments (pre-tax): | ||||||||||||||||||||||||||||||||||||||||||||
| Proportional share of selected equity affiliates income taxes | 21 | 21 | 13 | 13 | 11 | 2 | 39 | |||||||||||||||||||||||||||||||||||||
| Proportional share of selected equity affiliates net interest | — | — | (1) | (1) | (1) | 1 | (2) | |||||||||||||||||||||||||||||||||||||
| Proportional share of selected equity affiliates depreciation and amortization | 144 | 144 | 119 | 116 | 122 | 123 | 480 | |||||||||||||||||||||||||||||||||||||
| Adjusted EBITDA | 250 | 250 | 244 | 148 | 308 | 145 | 845 | |||||||||||||||||||||||||||||||||||||
| 1 Net of interest income. | ||||||||||||||||||||||||||||||||||||||||||||
| 2 Source: IHS, Inc. | ||||||||||||||||||||||||||||||||||||||||||||
Page 8
| Phillips 66 Earnings Release Supplemental Data | |||||||||||||||||||||||||||||||||||||||||||||||
| REFINING | ||||||||||||||||||||||||||||||||||||||||||||
| Millions of Dollars, Except as Indicated | ||||||||||||||||||||||||||||||||||||||||||||
| 2026 | 2025 | |||||||||||||||||||||||||||||||||||||||||||
| 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | |||||||||||||||||||||||||||||||||||
| Income (Loss) before Income Taxes | ||||||||||||||||||||||||||||||||||||||||||||
| Atlantic Basin/Europe | 367 | 367 | (199) | 49 | 250 | 302 | 402 | |||||||||||||||||||||||||||||||||||||
| Gulf Coast | 204 | 204 | (333) | 101 | 119 | 252 | 139 | |||||||||||||||||||||||||||||||||||||
| Central Corridor ¹ | (418) | (418) | (50) | 392 | (580) | 671 | 433 | |||||||||||||||||||||||||||||||||||||
| West Coast | 55 | 55 | (355) | (183) | (307) | (403) | (1,248) | |||||||||||||||||||||||||||||||||||||
| Income (Loss) before Income Taxes | 208 | 208 | (937) | 359 | (518) | 822 | (274) | |||||||||||||||||||||||||||||||||||||
| Income (Loss) before Income Taxes ($/BBL) | ||||||||||||||||||||||||||||||||||||||||||||
| Atlantic Basin/Europe | 7.21 | 7.21 | (5.15) | 1.00 | 4.94 | 5.65 | 2.09 | |||||||||||||||||||||||||||||||||||||
| Gulf Coast | 3.87 | 3.87 | (8.95) | 1.93 | 2.19 | 5.10 | 0.72 | |||||||||||||||||||||||||||||||||||||
| Central Corridor ¹ | (6.12) | (6.12) | (1.85) | 13.67 | (20.61) | 8.74 | 2.70 | |||||||||||||||||||||||||||||||||||||
| West Coast | 6.41 | 6.41 | (16.60) | (8.37) | (15.06) | (41.08) | (16.99) | |||||||||||||||||||||||||||||||||||||
| Worldwide | 1.15 | 1.15 | (7.53) | 2.36 | (3.38) | 4.34 | (0.44) | |||||||||||||||||||||||||||||||||||||
| Realized Refining Margins ($/BBL) ² | ||||||||||||||||||||||||||||||||||||||||||||
| Atlantic Basin/Europe | 15.62 | 15.62 | 7.08 | 8.16 | 11.94 | 12.60 | 10.18 | |||||||||||||||||||||||||||||||||||||
| Gulf Coast | 11.31 | 11.31 | 4.43 | 8.71 | 8.74 | 12.48 | 8.86 | |||||||||||||||||||||||||||||||||||||
| Central Corridor ¹ | 4.60 | 4.60 | 8.29 | 15.61 | 15.82 | 13.06 | 13.26 | |||||||||||||||||||||||||||||||||||||
| West Coast | 13.12 | 13.12 | 7.12 | 14.06 | 12.31 | 8.85 | 10.86 | |||||||||||||||||||||||||||||||||||||
| Worldwide | 10.11 | 10.11 | 6.81 | 11.25 | 12.15 | 12.48 | 10.88 | |||||||||||||||||||||||||||||||||||||
| Equity in Earnings (Losses) of Affiliates | ||||||||||||||||||||||||||||||||||||||||||||
| Atlantic Basin/Europe | — | — | (2) | (2) | (2) | (3) | (9) | |||||||||||||||||||||||||||||||||||||
| Gulf Coast | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||
| Central Corridor ¹ | — | — | (103) | — | 33 | — | (70) | |||||||||||||||||||||||||||||||||||||
| West Coast | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||
| Total | — | — | (105) | (2) | 31 | (3) | (79) | |||||||||||||||||||||||||||||||||||||
| Depreciation and Amortization ³ | ||||||||||||||||||||||||||||||||||||||||||||
| Atlantic Basin/Europe | 57 | 57 | 56 | 53 | 54 | 53 | 216 | |||||||||||||||||||||||||||||||||||||
| Gulf Coast | 66 | 66 | 72 | 67 | 66 | 66 | 271 | |||||||||||||||||||||||||||||||||||||
| Central Corridor ¹ | 76 | 76 | 41 | 41 | 43 | 79 | 204 | |||||||||||||||||||||||||||||||||||||
| West Coast | 16 | 16 | 287 | 282 | 281 | 279 | 1,129 | |||||||||||||||||||||||||||||||||||||
| Total | 215 | 215 | 456 | 443 | 444 | 477 | 1,820 | |||||||||||||||||||||||||||||||||||||
| Operating and SG&A Expenses ³ | ||||||||||||||||||||||||||||||||||||||||||||
| Atlantic Basin/Europe | 317 | 317 | 379 | 289 | 256 | 280 | 1,204 | |||||||||||||||||||||||||||||||||||||
| Gulf Coast | 299 | 299 | 390 | 262 | 263 | 275 | 1,190 | |||||||||||||||||||||||||||||||||||||
| Central Corridor ¹ | 613 | 613 | 171 | 159 | 180 | 522 | 1,032 | |||||||||||||||||||||||||||||||||||||
| West Coast | 52 | 52 | 180 | 170 | 250 | 204 | 804 | |||||||||||||||||||||||||||||||||||||
| Total | 1,281 | 1,281 | 1,120 | 880 | 949 | 1,281 | 4,230 | |||||||||||||||||||||||||||||||||||||
| Turnaround Expense, included in Operating and SG&A Expenses ³ | ||||||||||||||||||||||||||||||||||||||||||||
| Atlantic Basin/Europe | 30 | 30 | 97 | 18 | 5 | 11 | 131 | |||||||||||||||||||||||||||||||||||||
| Gulf Coast | 41 | 41 | 164 | 27 | 15 | 40 | 246 | |||||||||||||||||||||||||||||||||||||
| Central Corridor ¹ | 105 | 105 | 2 | 2 | 10 | 77 | 91 | |||||||||||||||||||||||||||||||||||||
| West Coast | 2 | 2 | 7 | 6 | 6 | 7 | 26 | |||||||||||||||||||||||||||||||||||||
| Total | 178 | 178 | 270 | 53 | 36 | 135 | 494 | |||||||||||||||||||||||||||||||||||||
| Taxes Other than Income Taxes | ||||||||||||||||||||||||||||||||||||||||||||
| Atlantic Basin/Europe | 20 | 20 | 22 | 20 | 17 | 18 | 77 | |||||||||||||||||||||||||||||||||||||
| Gulf Coast | 29 | 29 | 35 | 24 | 26 | 23 | 108 | |||||||||||||||||||||||||||||||||||||
| Central Corridor ¹ | 42 | 42 | 26 | 25 | 26 | 19 | 96 | |||||||||||||||||||||||||||||||||||||
| West Coast | 15 | 15 | 27 | 25 | 21 | 3 | 76 | |||||||||||||||||||||||||||||||||||||
| Total | 106 | 106 | 110 | 94 | 90 | 63 | 357 | |||||||||||||||||||||||||||||||||||||
| Foreign Currency Gains (Losses) Pre-Tax | (12) | (12) | 9 | 20 | (4) | (4) | 21 | |||||||||||||||||||||||||||||||||||||
| Refining—Equity Affiliate Information ¹ | ||||||||||||||||||||||||||||||||||||||||||||
| Equity in earnings (losses) of affiliates | — | — | (105) | (2) | 31 | (3) | (79) | |||||||||||||||||||||||||||||||||||||
| Less: Share of equity affiliate gross margin included in Realized Refining Margin and other equity affiliate-related costs ⁴ | (26) | (26) | (141) | (234) | (262) | (25) | (662) | |||||||||||||||||||||||||||||||||||||
| Equity affiliate-related expenses not included in Realized Refining Margins | (26) | (26) | (246) | (236) | (231) | (28) | (741) | |||||||||||||||||||||||||||||||||||||
| Proportional Share of Certain Equity Affiliate Operating and SG&A Expenses ¹ | 19 | 19 | 200 | 185 | 186 | 19 | 590 | |||||||||||||||||||||||||||||||||||||
| Proportional Share of Certain Equity Affiliate Turnaround Expense, included in Equity Affiliate Operating and SG&A Expenses ¹ | — | — | 27 | 24 | 23 | — | 74 | |||||||||||||||||||||||||||||||||||||
| Operating expenses | 1,229 | 1,229 | 1,074 | 848 | 909 | 1,229 | 4,060 | |||||||||||||||||||||||||||||||||||||
| Selling, general and administrative expenses | 52 | 52 | 46 | 32 | 40 | 52 | 170 | |||||||||||||||||||||||||||||||||||||
| Refining Controllable Costs ¹ ⁵ | 1,281 | 1,281 | 1,120 | 880 | 949 | 1,281 | 4,230 | |||||||||||||||||||||||||||||||||||||
| Refining Controllable Costs ($/BBL) ¹ ⁵ | 7.08 | 7.08 | 9.00 | 5.79 | 6.18 | 6.76 | 6.83 | |||||||||||||||||||||||||||||||||||||
| Refining Adjusted Controllable Costs, Excluding Adjusted Turnaround Expense ($/BBL) ⁶ | 6.21 | 6.21 | 7.03 | 5.46 | 6.07 | 5.96 | 6.09 | |||||||||||||||||||||||||||||||||||||
| 1 Refer to Change in Basis of Presentation on page 15. | ||||||||||||||||||||||||||||||||||||||||||||
| 2 See note on the use of non-GAAP measures. Also, reconciliations of income (loss) before income taxes to realized refining margin for each period and by region are included in the "Realized Margin Non-GAAP Reconciliations" section. | ||||||||||||||||||||||||||||||||||||||||||||
| 3 Excludes expenses of all equity affiliates. | ||||||||||||||||||||||||||||||||||||||||||||
| 4 Other costs associated with equity affiliates which do not flow through equity earnings (losses). | ||||||||||||||||||||||||||||||||||||||||||||
| 5 Excludes operating and SG&A expenses of all equity affiliates. See note on the use of non-GAAP measures. Also, see reconciliation of Refining operating and SG&A expenses to Refining Adjusted Controllable Costs per barrel included in the "Reconciliation of Refining Operating and SG&A Expenses to Refining Adjusted Controllable Costs" section. | ||||||||||||||||||||||||||||||||||||||||||||
| 6 See note on the use of non-GAAP measures. Also, see reconciliation of Refining operating and SG&A expenses to Refining Adjusted Controllable Costs included in the "Reconciliation of Refining Operating and SG&A Expenses to Refining Adjusted Controllable Costs" section. | ||||||||||||||||||||||||||||||||||||||||||||
Page 9
| Phillips 66 Earnings Release Supplemental Data | |||||||||||||||||||||||||||||||||||||||||||||||
| REFINING (continued) | ||||||||||||||||||||||||||||||||||||||||||||
| 2026 | 2025 | |||||||||||||||||||||||||||||||||||||||||||
| 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | |||||||||||||||||||||||||||||||||||
| Reconciliation of Refining Income (Loss) before Income Taxes to Adjusted EBITDA ($ Millions) | ||||||||||||||||||||||||||||||||||||||||||||
| Income (Loss) before income taxes | 208 | 208 | (937) | 359 | (518) | 822 | (274) | |||||||||||||||||||||||||||||||||||||
| Plus: | ||||||||||||||||||||||||||||||||||||||||||||
| Depreciation and amortization | 215 | 215 | 456 | 443 | 444 | 477 | 1,820 | |||||||||||||||||||||||||||||||||||||
| EBITDA | 423 | 423 | (481) | 802 | (74) | 1,299 | 1,546 | |||||||||||||||||||||||||||||||||||||
| Special Item Adjustments (pre-tax): | ||||||||||||||||||||||||||||||||||||||||||||
| Certain tax impacts | — | — | — | — | — | (11) | (11) | |||||||||||||||||||||||||||||||||||||
| Impairments | — | — | — | — | 948 | — | 948 | |||||||||||||||||||||||||||||||||||||
| Los Angeles Refinery cessation costs | — | — | — | — | — | 35 | 35 | |||||||||||||||||||||||||||||||||||||
| Legal accrual | — | — | — | 33 | — | — | 33 | |||||||||||||||||||||||||||||||||||||
| Legal settlement | — | — | — | — | — | (181) | (181) | |||||||||||||||||||||||||||||||||||||
| Pending claims and settlements | — | — | — | — | — | (123) | (123) | |||||||||||||||||||||||||||||||||||||
| EBITDA, Adjusted for Special Items | 423 | 423 | (481) | 835 | 874 | 1,019 | 2,247 | |||||||||||||||||||||||||||||||||||||
| Other Adjustments (pre-tax): | ||||||||||||||||||||||||||||||||||||||||||||
| Proportional share of selected equity affiliates income taxes | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||
| Proportional share of selected equity affiliates net interest | — | — | 2 | 3 | 1 | — | 6 | |||||||||||||||||||||||||||||||||||||
| Proportional share of selected equity affiliates depreciation and amortization | — | — | 27 | 29 | 29 | — | 85 | |||||||||||||||||||||||||||||||||||||
| Adjusted EBITDA | 423 | 423 | (452) | 867 | 904 | 1,019 | 2,338 | |||||||||||||||||||||||||||||||||||||
| Operating Statistics | ||||||||||||||||||||||||||||||||||||||||||||
| Atlantic Basin/Europe ¹ | ||||||||||||||||||||||||||||||||||||||||||||
| Crude Oil Charge Input (MB/D) | 531 | 531 | 359 | 518 | 534 | 553 | 492 | |||||||||||||||||||||||||||||||||||||
| Total Processed Inputs (MB/D) | 566 | 566 | 430 | 541 | 551 | 582 | 526 | |||||||||||||||||||||||||||||||||||||
| Crude Oil Capacity Utilization (%) | 96 | % | 96 | % | 67 | % | 97 | % | 99 | % | 103 | % | 92 | % | ||||||||||||||||||||||||||||||
| Clean Product Yield (%) | 88 | % | 88 | % | 89 | % | 87 | % | 88 | % | 87 | % | 88 | % | ||||||||||||||||||||||||||||||
| Gulf Coast | ||||||||||||||||||||||||||||||||||||||||||||
| Crude Oil Charge Input (MB/D) | 530 | 530 | 369 | 508 | 528 | 481 | 472 | |||||||||||||||||||||||||||||||||||||
| Total Processed Inputs (MB/D) | 587 | 587 | 413 | 573 | 590 | 538 | 529 | |||||||||||||||||||||||||||||||||||||
| Crude Oil Capacity Utilization (%) | 98 | % | 98 | % | 70 | % | 96 | % | 100 | % | 91 | % | 89 | % | ||||||||||||||||||||||||||||||
| Clean Product Yield (%) | 80 | % | 80 | % | 81 | % | 80 | % | 81 | % | 80 | % | 80 | % | ||||||||||||||||||||||||||||||
| Central Corridor ² | ||||||||||||||||||||||||||||||||||||||||||||
| Crude Oil Charge Input (MB/D) | 734 | 734 | 521 | 550 | 549 | 805 | 606 | |||||||||||||||||||||||||||||||||||||
| Total Processed Inputs (MB/D) | 760 | 760 | 536 | 566 | 567 | 834 | 626 | |||||||||||||||||||||||||||||||||||||
| Crude Oil Capacity Utilization (%) | 92 | % | 92 | % | 98 | % | 104 | % | 103 | % | 104 | % | 102 | % | ||||||||||||||||||||||||||||||
| Clean Product Yield (%) | 90 | % | 90 | % | 91 | % | 90 | % | 90 | % | 94 | % | 91 | % | ||||||||||||||||||||||||||||||
| West Coast | ||||||||||||||||||||||||||||||||||||||||||||
| Crude Oil Charge Input (MB/D) | 90 | 90 | 228 | 234 | 214 | 99 | 193 | |||||||||||||||||||||||||||||||||||||
| Total Processed Inputs (MB/D) | 96 | 96 | 237 | 241 | 222 | 107 | 201 | |||||||||||||||||||||||||||||||||||||
| Crude Oil Capacity Utilization (%) ³ | 86 | % | 86 | % | 93 | % | 96 | % | 88 | % | 95 | % | 93 | % | ||||||||||||||||||||||||||||||
| Clean Product Yield (%) | 91 | % | 91 | % | 89 | % | 90 | % | 87 | % | 91 | % | 89 | % | ||||||||||||||||||||||||||||||
| Worldwide—Including Proportional Share of Equity Affiliates ¹ | ||||||||||||||||||||||||||||||||||||||||||||
| Crude Oil Charge Input (MB/D) | 1,885 | 1,885 | 1,477 | 1,810 | 1,825 | 1,938 | 1,763 | |||||||||||||||||||||||||||||||||||||
| Total Processed Inputs (MB/D) | 2,009 | 2,009 | 1,616 | 1,921 | 1,930 | 2,061 | 1,882 | |||||||||||||||||||||||||||||||||||||
| Crude Oil Capacity Utilization (%) | 95 | % | 95 | % | 80 | % | 98 | % | 99 | % | 99 | % | 94 | % | ||||||||||||||||||||||||||||||
| Clean Product Yield (%) | 87 | % | 87 | % | 87 | % | 86 | % | 86 | % | 88 | % | 87 | % | ||||||||||||||||||||||||||||||
| 1 Includes our proportional share of a refinery complex in Karlsruhe, Germany. | ||||||||||||||||||||||||||||||||||||||||||||
| 2 Refer to Change in Basis of Presentation on page 15. | ||||||||||||||||||||||||||||||||||||||||||||
| 3 In the fourth quarter 2025, we ceased fuel production and began idling the facilities at our Los Angeles Refinery, and the associated crude oil capacity is excluded in the calculation of this statistic beginning on October 1, 2025. | ||||||||||||||||||||||||||||||||||||||||||||
Page 10
| Phillips 66 Earnings Release Supplemental Data | |||||||||||||||||||||||||||||||||||||||||||||||
| REFINING (continued) | ||||||||||||||||||||||||||||||||||||||||||||
| 2026 | 2025 | |||||||||||||||||||||||||||||||||||||||||||
| 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | |||||||||||||||||||||||||||||||||||
| Refined Petroleum Products Production (MB/D) | ||||||||||||||||||||||||||||||||||||||||||||
| Atlantic Basin/Europe ¹ | ||||||||||||||||||||||||||||||||||||||||||||
| Gasoline | 251 | 251 | 199 | 225 | 230 | 242 | 224 | |||||||||||||||||||||||||||||||||||||
| Distillates | 231 | 231 | 166 | 232 | 242 | 253 | 223 | |||||||||||||||||||||||||||||||||||||
| Other | 88 | 88 | 70 | 86 | 80 | 92 | 82 | |||||||||||||||||||||||||||||||||||||
| Total | 570 | 570 | 435 | 543 | 552 | 587 | 529 | |||||||||||||||||||||||||||||||||||||
| Gulf Coast | ||||||||||||||||||||||||||||||||||||||||||||
| Gasoline | 236 | 236 | 184 | 243 | 245 | 221 | 223 | |||||||||||||||||||||||||||||||||||||
| Distillates | 219 | 219 | 138 | 202 | 215 | 197 | 189 | |||||||||||||||||||||||||||||||||||||
| Other | 140 | 140 | 87 | 134 | 137 | 121 | 120 | |||||||||||||||||||||||||||||||||||||
| Total | 595 | 595 | 409 | 579 | 597 | 539 | 532 | |||||||||||||||||||||||||||||||||||||
| Central Corridor ² | ||||||||||||||||||||||||||||||||||||||||||||
| Gasoline | 379 | 379 | 263 | 276 | 271 | 432 | 311 | |||||||||||||||||||||||||||||||||||||
| Distillates | 302 | 302 | 223 | 233 | 235 | 347 | 260 | |||||||||||||||||||||||||||||||||||||
| Other | 84 | 84 | 56 | 63 | 65 | 63 | 62 | |||||||||||||||||||||||||||||||||||||
| Total | 765 | 765 | 542 | 572 | 571 | 842 | 633 | |||||||||||||||||||||||||||||||||||||
| West Coast | ||||||||||||||||||||||||||||||||||||||||||||
| Gasoline | 51 | 51 | 131 | 135 | 117 | 58 | 110 | |||||||||||||||||||||||||||||||||||||
| Distillates | 37 | 37 | 81 | 82 | 76 | 39 | 69 | |||||||||||||||||||||||||||||||||||||
| Other | 7 | 7 | 24 | 21 | 26 | 9 | 20 | |||||||||||||||||||||||||||||||||||||
| Total | 95 | 95 | 236 | 238 | 219 | 106 | 199 | |||||||||||||||||||||||||||||||||||||
| Worldwide—Including Proportional Share of Equity Affiliates | ||||||||||||||||||||||||||||||||||||||||||||
| Gasoline | 917 | 917 | 777 | 879 | 863 | 953 | 868 | |||||||||||||||||||||||||||||||||||||
| Distillates | 789 | 789 | 608 | 749 | 768 | 836 | 741 | |||||||||||||||||||||||||||||||||||||
| Other | 319 | 319 | 237 | 304 | 308 | 285 | 284 | |||||||||||||||||||||||||||||||||||||
| Total | 2,025 | 2,025 | 1,622 | 1,932 | 1,939 | 2,074 | 1,893 | |||||||||||||||||||||||||||||||||||||
| Market Indicators | ||||||||||||||||||||||||||||||||||||||||||||
| Crude and Crude Differentials ($/BBL) ³ | ||||||||||||||||||||||||||||||||||||||||||||
| WTI | 71.98 | 71.98 | 71.46 | 63.86 | 65.03 | 59.22 | 64.89 | |||||||||||||||||||||||||||||||||||||
| Brent | 80.61 | 80.61 | 75.66 | 67.82 | 69.07 | 63.69 | 69.06 | |||||||||||||||||||||||||||||||||||||
| ANS | 77.00 | 77.00 | 75.99 | 68.92 | 70.07 | 64.00 | 69.74 | |||||||||||||||||||||||||||||||||||||
| WTI less Maya | 5.52 | 5.52 | 6.36 | 5.39 | 4.03 | 4.90 | 5.17 | |||||||||||||||||||||||||||||||||||||
| WTI less WCS (settlement differential) | 14.13 | 14.13 | 12.65 | 10.20 | 10.38 | 11.19 | 11.11 | |||||||||||||||||||||||||||||||||||||
| Natural Gas ($/MMBtu) ³ | ||||||||||||||||||||||||||||||||||||||||||||
| Henry Hub | 4.87 | 4.87 | 4.27 | 3.16 | 3.03 | 3.69 | 3.54 | |||||||||||||||||||||||||||||||||||||
| 1 Includes our proportional share of a refinery complex in Karlsruhe, Germany. | ||||||||||||||||||||||||||||||||||||||||||||
| 2 Refer to Change in Basis of Presentation on page 15. | ||||||||||||||||||||||||||||||||||||||||||||
| 3 Based on daily spot prices, unless otherwise noted. | ||||||||||||||||||||||||||||||||||||||||||||
Page 11
| Phillips 66 Earnings Release Supplemental Data | |||||||||||||||||||||||||||||||||||||||||||||||
| MARKETING AND SPECIALTIES | ||||||||||||||||||||||||||||||||||||||||||||
| Millions of Dollars, Except as Indicated | ||||||||||||||||||||||||||||||||||||||||||||
| 2026 | 2025 | |||||||||||||||||||||||||||||||||||||||||||
| 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | |||||||||||||||||||||||||||||||||||
| Income (Loss) before Income Taxes | (161) | (161) | 1,282 | 571 | 251 | 2,396 | 4,500 | |||||||||||||||||||||||||||||||||||||
| Income (Loss) before Income Taxes ($/BBL) | ||||||||||||||||||||||||||||||||||||||||||||
| U.S. | (1.14) | (1.14) | 0.67 | 2.32 | 0.18 | 1.13 | 1.09 | |||||||||||||||||||||||||||||||||||||
| International | (3.27) | (3.27) | 39.88 | 1.96 | 4.55 | 70.99 | 28.39 | |||||||||||||||||||||||||||||||||||||
| Realized Marketing Fuel Margins ($/BBL) ¹ | ||||||||||||||||||||||||||||||||||||||||||||
| U.S. | (0.47) | (0.47) | 1.36 | 2.83 | 2.04 | 1.55 | 1.95 | |||||||||||||||||||||||||||||||||||||
| International | (3.53) | (3.53) | 4.87 | 7.11 | 5.37 | 5.00 | 5.58 | |||||||||||||||||||||||||||||||||||||
| Other Realized Margins and Revenues not included in Marketing Fuel Margins ² | 301 | 301 | 243 | 287 | 280 | 283 | 1,093 | |||||||||||||||||||||||||||||||||||||
| Equity in Earnings of Affiliates | 35 | 35 | 36 | 38 | 36 | 36 | 146 | |||||||||||||||||||||||||||||||||||||
| Depreciation and Amortization ³ | 20 | 20 | 20 | 33 | 23 | 21 | 97 | |||||||||||||||||||||||||||||||||||||
| Operating and SG&A Expenses ³ | 316 | 316 | 346 | 351 | 603 | 365 | 1,665 | |||||||||||||||||||||||||||||||||||||
| Refined Products Sales (MB/D) | ||||||||||||||||||||||||||||||||||||||||||||
| U.S. Marketing | ||||||||||||||||||||||||||||||||||||||||||||
| Gasoline | 1,144 | 1,144 | 1,080 | 1,191 | 1,164 | 1,196 | 1,158 | |||||||||||||||||||||||||||||||||||||
| Distillates | 785 | 785 | 735 | 809 | 828 | 1,003 | 844 | |||||||||||||||||||||||||||||||||||||
| Other | 19 | 19 | 13 | 28 | 13 | 19 | 18 | |||||||||||||||||||||||||||||||||||||
| Total | 1,948 | 1,948 | 1,828 | 2,028 | 2,005 | 2,218 | 2,020 | |||||||||||||||||||||||||||||||||||||
| International Marketing | ||||||||||||||||||||||||||||||||||||||||||||
| Gasoline | 73 | 73 | 114 | 110 | 176 | 156 | 139 | |||||||||||||||||||||||||||||||||||||
| Distillates | 131 | 131 | 171 | 162 | 165 | 151 | 162 | |||||||||||||||||||||||||||||||||||||
| Other | 30 | 30 | 27 | 42 | 29 | 11 | 27 | |||||||||||||||||||||||||||||||||||||
| Total | 234 | 234 | 312 | 314 | 370 | 318 | 328 | |||||||||||||||||||||||||||||||||||||
| Worldwide Marketing | ||||||||||||||||||||||||||||||||||||||||||||
| Gasoline | 1,217 | 1,217 | 1,194 | 1,301 | 1,340 | 1,352 | 1,297 | |||||||||||||||||||||||||||||||||||||
| Distillates | 916 | 916 | 906 | 971 | 993 | 1,154 | 1,006 | |||||||||||||||||||||||||||||||||||||
| Other | 49 | 49 | 40 | 70 | 42 | 30 | 45 | |||||||||||||||||||||||||||||||||||||
| Total | 2,182 | 2,182 | 2,140 | 2,342 | 2,375 | 2,536 | 2,348 | |||||||||||||||||||||||||||||||||||||
| Foreign Currency Gains (Losses) Pre-Tax | (2) | (2) | 2 | 1 | (4) | (1) | (2) | |||||||||||||||||||||||||||||||||||||
| Reconciliation of Marketing and Specialties Income (Loss) before Income Taxes to Adjusted EBITDA | ||||||||||||||||||||||||||||||||||||||||||||
| Income (Loss) before income taxes | (161) | (161) | 1,282 | 571 | 251 | 2,396 | 4,500 | |||||||||||||||||||||||||||||||||||||
| Plus: | ||||||||||||||||||||||||||||||||||||||||||||
| Depreciation and amortization | 20 | 20 | 20 | 33 | 23 | 21 | 97 | |||||||||||||||||||||||||||||||||||||
| EBITDA | (141) | (141) | 1,302 | 604 | 274 | 2,417 | 4,597 | |||||||||||||||||||||||||||||||||||||
| Special Item Adjustments (pre-tax): | ||||||||||||||||||||||||||||||||||||||||||||
| Legal accrual | 20 | 20 | — | — | 241 | 21 | 262 | |||||||||||||||||||||||||||||||||||||
| Net (gain) loss on asset dispositions | — | — | (1,017) | 89 | (15) | (1,978) | (2,921) | |||||||||||||||||||||||||||||||||||||
| EBITDA, Adjusted for Special Items | (121) | (121) | 285 | 693 | 500 | 460 | 1,938 | |||||||||||||||||||||||||||||||||||||
| Other Adjustments (pre-tax): | ||||||||||||||||||||||||||||||||||||||||||||
| Proportional share of selected equity affiliates income taxes | 3 | 3 | 2 | — | — | — | 2 | |||||||||||||||||||||||||||||||||||||
| Proportional share of selected equity affiliates net interest | 9 | 9 | 10 | 10 | 10 | 10 | 40 | |||||||||||||||||||||||||||||||||||||
| Proportional share of selected equity affiliates depreciation and amortization | 23 | 23 | 18 | 15 | 15 | 18 | 66 | |||||||||||||||||||||||||||||||||||||
| Adjusted EBITDA | (86) | (86) | 315 | 718 | 525 | 488 | 2,046 | |||||||||||||||||||||||||||||||||||||
| 1 See note on the use of non-GAAP measures. Also, reconciliations of income (loss) before income taxes to realized marketing fuel margin for each period and by region are included in the "Realized Margin Non-GAAP Reconciliations" section. | ||||||||||||||||||||||||||||||||||||||||||||
| 2 Excludes gain on dispositions and excise taxes on sales of refined products. | ||||||||||||||||||||||||||||||||||||||||||||
| 3 Excludes expenses of all equity affiliates. | ||||||||||||||||||||||||||||||||||||||||||||
Page 12
| Phillips 66 Earnings Release Supplemental Data | |||||||||||||||||||||||||||||||||||||||||||||||
| RENEWABLE FUELS | ||||||||||||||||||||||||||||||||||||||||||||
| Millions of Dollars, Except as Indicated | ||||||||||||||||||||||||||||||||||||||||||||
| 2026 | 2025 | |||||||||||||||||||||||||||||||||||||||||||
| 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | |||||||||||||||||||||||||||||||||||
| Income (Loss) before Income Taxes | (41) | (41) | (185) | (133) | (43) | (19) | (380) | |||||||||||||||||||||||||||||||||||||
| Operating and SG&A Expenses ¹ | 110 | 110 | 114 | 104 | 103 | 110 | 431 | |||||||||||||||||||||||||||||||||||||
| Operating Statistics | ||||||||||||||||||||||||||||||||||||||||||||
| Total Renewable Fuels Produced (MB/D) | 40 | 40 | 44 | 40 | 36 | 32 | 38 | |||||||||||||||||||||||||||||||||||||
| Total Renewable Fuel Sales (MB/D) | 53 | 53 | 63 | 71 | 63 | 65 | 66 | |||||||||||||||||||||||||||||||||||||
| Market Indicators² | ||||||||||||||||||||||||||||||||||||||||||||
| Chicago Board of Trade (CBOT) soybean oil (dollars per pound) | 0.58 | 0.58 | 0.44 | 0.49 | 0.53 | 0.50 | 0.49 | |||||||||||||||||||||||||||||||||||||
| California Low-Carbon Fuel Standard (LCFS) carbon credit (dollars per metric ton) | 65.48 | 65.48 | 66.28 | 52.33 | 53.40 | 53.50 | 56.38 | |||||||||||||||||||||||||||||||||||||
| California Air Resource Board (CARB) ULSD - San Francisco (dollars per gallon) | 2.93 | 2.93 | 2.44 | 2.52 | 2.55 | 2.37 | 2.47 | |||||||||||||||||||||||||||||||||||||
| Biodiesel Renewable Identification Number (RIN) (dollars per RIN) | 1.44 | 1.44 | 0.79 | 1.08 | 1.13 | 1.03 | 1.01 | |||||||||||||||||||||||||||||||||||||
| Reconciliation of Renewable Fuels Income (Loss) before Income Taxes to Adjusted EBITDA | ||||||||||||||||||||||||||||||||||||||||||||
| Income (Loss) before income taxes | (41) | (41) | (185) | (133) | (43) | (19) | (380) | |||||||||||||||||||||||||||||||||||||
| Plus: | ||||||||||||||||||||||||||||||||||||||||||||
| Depreciation and amortization | 23 | 23 | 23 | 23 | 25 | 24 | 95 | |||||||||||||||||||||||||||||||||||||
| EBITDA | (18) | (18) | (162) | (110) | (18) | 5 | (285) | |||||||||||||||||||||||||||||||||||||
| Special Item Adjustments (pre-tax): | ||||||||||||||||||||||||||||||||||||||||||||
| None | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||
| EBITDA, Adjusted for Special Items | (18) | (18) | (162) | (110) | (18) | 5 | (285) | |||||||||||||||||||||||||||||||||||||
| 1 Excludes operating and SG&A expenses of all equity affiliates. | ||||||||||||||||||||||||||||||||||||||||||||
| 2 Based on daily spot prices, unless otherwise noted. | ||||||||||||||||||||||||||||||||||||||||||||
Page 13
| Phillips 66 Earnings Release Supplemental Data | |||||||||||||||||||||||||||||||||||||||||||||||
| CORPORATE AND OTHER | ||||||||||||||||||||||||||||||||||||||||||||
| Millions of Dollars, Except as Indicated | ||||||||||||||||||||||||||||||||||||||||||||
| 2026 | 2025 | |||||||||||||||||||||||||||||||||||||||||||
| 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | |||||||||||||||||||||||||||||||||||
| Loss before Income Taxes | (451) | (451) | (376) | (428) | (364) | (372) | (1,540) | |||||||||||||||||||||||||||||||||||||
| Detail of Gain (Loss) before Income Taxes | ||||||||||||||||||||||||||||||||||||||||||||
| Net interest expense | (255) | (255) | (187) | (230) | (225) | (256) | (898) | |||||||||||||||||||||||||||||||||||||
| Corporate overhead and other ¹ | (187) | (187) | (174) | (196) | (145) | (114) | (629) | |||||||||||||||||||||||||||||||||||||
| NOVONIX | (9) | (9) | (15) | (2) | 6 | (2) | (13) | |||||||||||||||||||||||||||||||||||||
| Total | (451) | (451) | (376) | (428) | (364) | (372) | (1,540) | |||||||||||||||||||||||||||||||||||||
| Net Interest Expense | ||||||||||||||||||||||||||||||||||||||||||||
| Interest expense | (296) | (296) | (230) | (267) | (267) | (296) | (1,060) | |||||||||||||||||||||||||||||||||||||
| Capitalized interest | 10 | 10 | 9 | 3 | 8 | 1 | 21 | |||||||||||||||||||||||||||||||||||||
| Interest income | 31 | 31 | 34 | 34 | 34 | 39 | 141 | |||||||||||||||||||||||||||||||||||||
| Total | (255) | (255) | (187) | (230) | (225) | (256) | (898) | |||||||||||||||||||||||||||||||||||||
| NOVONIX Investment | ||||||||||||||||||||||||||||||||||||||||||||
| Unrealized Investment Gain (Loss) | (10) | (10) | (15) | (3) | 5 | (2) | (15) | |||||||||||||||||||||||||||||||||||||
| Unrealized Foreign Currency Transaction Gain | 1 | 1 | — | 1 | 1 | — | 2 | |||||||||||||||||||||||||||||||||||||
| Change in Fair Value of NOVONIX Investment | (9) | (9) | (15) | (2) | 6 | (2) | (13) | |||||||||||||||||||||||||||||||||||||
| Reconciliation of Corporate and Other Loss before Income Taxes to Adjusted EBITDA | ||||||||||||||||||||||||||||||||||||||||||||
| Loss before income taxes | (451) | (451) | (376) | (428) | (364) | (372) | (1,540) | |||||||||||||||||||||||||||||||||||||
| Plus: | ||||||||||||||||||||||||||||||||||||||||||||
| Net interest expense | 255 | 255 | 187 | 230 | 225 | 256 | 898 | |||||||||||||||||||||||||||||||||||||
| Depreciation and amortization | 26 | 26 | 59 | 57 | 56 | 37 | 209 | |||||||||||||||||||||||||||||||||||||
| EBITDA | (170) | (170) | (130) | (141) | (83) | (79) | (433) | |||||||||||||||||||||||||||||||||||||
| Special Item Adjustments (pre-tax): | ||||||||||||||||||||||||||||||||||||||||||||
| Impairment | — | — | 21 | — | — | — | 21 | |||||||||||||||||||||||||||||||||||||
| Professional advisory fees | — | — | — | 45 | — | — | 45 | |||||||||||||||||||||||||||||||||||||
| Total Special Item Adjustments (pre-tax) | — | — | 21 | 45 | — | — | 66 | |||||||||||||||||||||||||||||||||||||
| Change in Fair Value of NOVONIX Investment | 9 | 9 | 15 | 2 | (6) | 2 | 13 | |||||||||||||||||||||||||||||||||||||
| EBITDA, Adjusted for Special Items and Change in Fair Value of NOVONIX Investment | (161) | (161) | (94) | (94) | (89) | (77) | (354) | |||||||||||||||||||||||||||||||||||||
| Other Adjustments (pre-tax): | ||||||||||||||||||||||||||||||||||||||||||||
| None | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||
| Adjusted EBITDA | (161) | (161) | (94) | (94) | (89) | (77) | (354) | |||||||||||||||||||||||||||||||||||||
| Foreign Currency Losses Pre-Tax | — | — | (2) | (4) | (4) | (2) | (12) | |||||||||||||||||||||||||||||||||||||
| Phillips 66 Company | ||||||||||||||||||||||||||||||||||||||||||||
| Total Debt | 27,124 | 27,124 | 18,803 | 20,935 | 21,755 | 19,716 | 19,716 | |||||||||||||||||||||||||||||||||||||
| Total Equity | 29,681 | 29,681 | 28,353 | 28,626 | 28,077 | 30,241 | 30,241 | |||||||||||||||||||||||||||||||||||||
| Debt-to-Capital Ratio (%) | 48 | % | 48 | % | 40 | % | 42 | % | 44 | % | 39 | % | 39 | % | ||||||||||||||||||||||||||||||
| Cash and cash equivalents at end of period, including cash classified within Assets held for sale | 5,150 | 5,150 | 1,489 | 1,144 | 1,950 | 1,116 | 1,116 | |||||||||||||||||||||||||||||||||||||
| Net Debt-to-Capital Ratio (%) | 43 | % | 43 | % | 38 | % | 41 | % | 41 | % | 38 | % | 38 | % | ||||||||||||||||||||||||||||||
| 1 Includes 2026 costs associated with idled Los Angeles Refinery and San Francisco Refinery of $43 million. | ||||||||||||||||||||||||||||||||||||||||||||
Page 14
| Phillips 66 Earnings Release Supplemental Data | |||||||||||||||||||||||||||||||||||||||||||||||
| RECONCILIATION OF CONSOLIDATED NET INCOME TO ADJUSTED EBITDA ATTRIBUTABLE TO PHILLIPS 66 | ||||||||||||||||||||||||||||||||||||||||||||
| Millions of Dollars | ||||||||||||||||||||||||||||||||||||||||||||
| 2026 | 2025 | |||||||||||||||||||||||||||||||||||||||||||
| 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | |||||||||||||||||||||||||||||||||||
| Net income | 219 | 219 | 526 | 908 | 167 | 2,927 | 4,528 | |||||||||||||||||||||||||||||||||||||
| Plus: | ||||||||||||||||||||||||||||||||||||||||||||
| Income tax expense (benefit) | 41 | 41 | 122 | 212 | 32 | 526 | 892 | |||||||||||||||||||||||||||||||||||||
| Net interest expense | 255 | 255 | 187 | 230 | 225 | 256 | 898 | |||||||||||||||||||||||||||||||||||||
| Depreciation and amortization | 558 | 558 | 791 | 816 | 826 | 818 | 3,251 | |||||||||||||||||||||||||||||||||||||
| Phillips 66 EBITDA ¹ | 1,073 | 1,073 | 1,626 | 2,166 | 1,250 | 4,527 | 9,569 | |||||||||||||||||||||||||||||||||||||
| Special Item Adjustments (pre-tax): | ||||||||||||||||||||||||||||||||||||||||||||
| Certain tax impacts | — | — | — | — | — | (11) | (11) | |||||||||||||||||||||||||||||||||||||
| Net (gain) loss on asset dispositions | — | — | (1,085) | 89 | (15) | (1,978) | (2,989) | |||||||||||||||||||||||||||||||||||||
| Impairments | — | — | 21 | — | 948 | 79 | 1,048 | |||||||||||||||||||||||||||||||||||||
| Los Angeles Refinery cessation costs | — | — | — | — | — | 35 | 35 | |||||||||||||||||||||||||||||||||||||
| Legal accrual | 20 | 20 | — | 33 | 241 | 21 | 295 | |||||||||||||||||||||||||||||||||||||
| Legal settlement | — | — | — | — | — | (181) | (181) | |||||||||||||||||||||||||||||||||||||
| Professional advisory fees | — | — | — | 45 | — | — | 45 | |||||||||||||||||||||||||||||||||||||
| Pending claims and settlements | — | — | — | — | — | (123) | (123) | |||||||||||||||||||||||||||||||||||||
| Lower of cost or market inventory adjustment | (29) | (29) | — | — | — | 31 | 31 | |||||||||||||||||||||||||||||||||||||
| Total Special Item Adjustments (pre-tax) | (9) | (9) | (1,064) | 167 | 1,174 | (2,127) | (1,850) | |||||||||||||||||||||||||||||||||||||
| Change in Fair Value of NOVONIX Investment ² | 9 | 9 | 15 | 2 | (6) | 2 | 13 | |||||||||||||||||||||||||||||||||||||
| Phillips 66 EBITDA, Adjusted for Special Items and Change in Fair Value of NOVONIX Investment ¹ | 1,073 | 1,073 | 577 | 2,335 | 2,418 | 2,402 | 7,732 | |||||||||||||||||||||||||||||||||||||
| Other Adjustments (pre-tax): | ||||||||||||||||||||||||||||||||||||||||||||
| Proportional share of selected equity affiliates income taxes | 27 | 27 | 18 | 17 | 15 | 4 | 54 | |||||||||||||||||||||||||||||||||||||
| Proportional share of selected equity affiliates net interest | 12 | 12 | 14 | 15 | 13 | 14 | 56 | |||||||||||||||||||||||||||||||||||||
| Proportional share of selected equity affiliates depreciation and amortization | 190 | 190 | 187 | 184 | 199 | 162 | 732 | |||||||||||||||||||||||||||||||||||||
| Adjusted EBITDA attributable to noncontrolling interests | (34) | (34) | (60) | (50) | (51) | (50) | (211) | |||||||||||||||||||||||||||||||||||||
| Phillips 66 Adjusted EBITDA ¹ | 1,268 | 1,268 | 736 | 2,501 | 2,594 | 2,532 | 8,363 | |||||||||||||||||||||||||||||||||||||
| 1 Refer to Change in Basis of Presentation on page 15. | ||||||||||||||||||||||||||||||||||||||||||||
| 2 See NOVONIX Investment table on page 14 for more details. | ||||||||||||||||||||||||||||||||||||||||||||
| Use of Non-GAAP Financial Information—This earnings release supplemental data includes the terms "EBITDA," "adjusted EBITDA," "realized refining margin per barrel," "realized marketing fuel margin per barrel," and "refining adjusted controllable costs per barrel." These are non-GAAP financial measures. EBITDA and adjusted EBITDA are included to help facilitate comparisons of operating performance across periods, to help facilitate comparisons with other companies in our industry and to help facilitate determination of enterprise value. The GAAP measures most directly comparable to EBITDA and adjusted EBITDA are net income for consolidated company information and income before income taxes for segment information. Reconciliations of net income (loss) and income (loss) before income taxes to EBITDA and adjusted EBITDA are included in this earnings release supplemental data. Realized refining margin per barrel is calculated on a similar basis as industry crack spreads and we believe it provides a useful measure of how well we performed relative to benchmark industry margins. Realized marketing fuel margin per barrel demonstrates the value uplift our marketing operations provide by optimizing the placement and ultimate sale of our refineries' fuel production. The GAAP measure most directly comparable to both realized margin per barrel measures is income before income taxes per barrel. Reconciliations of income (loss) before income taxes per barrel to realized refining margin and realized marketing fuel margin are included in this earnings release supplemental data. Refining controllable cost and Refining adjusted controllable costs per barrel are included to help facilitate comparisons with other companies in our industry on refinery operational performance. The GAAP measures most directly comparable to Refining controllable cost are operating expenses and selling, general and administrative expenses (SG&A). A reconciliation of refining operating and SG&A expenses to refining adjusted controllable costs plus our proportional share of operating and SG&A expenses of two refining equity affiliates that are reflected in earnings of affiliates, is included in this earnings release supplemental data. Adjusted effective tax rate demonstrates the effective tax rate with the consideration of the tax effect on special items. The GAAP financial measure most comparable to adjusted effective tax rate is effective tax rate. A reconciliation of effective tax rate to adjusted effective tax rate is included in this earnings release supplemental data. | ||||||||||||||||||||||||||||||||||||||||||||
| Sustaining capital expenditures demonstrate the capital required to maintain and extend the life of existing assets to ensure the ongoing operation and integrity of assets, including equipment, infrastructure, and facilities. A reconciliation of sustaining capital to consolidated capital expenditures and investments, excluding acquisitions and purchases of government obligations, is included in this earnings release supplemental data. | ||||||||||||||||||||||||||||||||||||||||||||
Changes in Basis of Presentation - in connection with the acquisition of the remaining 50% equity interest in WRB Refining (WRB), beginning October 1, 2025, the results in our Refining segment, correlating to our Central Corridor business, reflect consolidated results of 100% of the Borger Refinery and Wood River Refinery. Prior to October 1, 2025, our 50% investment in WRB was accounted for using the equity method and prior periods reflect our proportional share of our equity method investment. | ||||||||||||||||||||||||||||||||||||||||||||
Page 15
| Phillips 66 Earnings Release Supplemental Data | |||||||||||||||||||||||||||||||||||||||||||||||
| REALIZED MARGIN NON-GAAP RECONCILIATIONS | ||||||||||||||||||||||||||||||||||||||||||||
| RECONCILIATION OF INCOME (LOSS) BEFORE INCOME TAXES TO REALIZED REFINING MARGINS | ||||||||||||||||||||||||||||||||||||||||||||
| Millions of Dollars, Except as Indicated | ||||||||||||||||||||||||||||||||||||||||||||
| 2026 | 2025 | |||||||||||||||||||||||||||||||||||||||||||
| 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | |||||||||||||||||||||||||||||||||||
| ATLANTIC BASIN/EUROPE | ||||||||||||||||||||||||||||||||||||||||||||
| Income (loss) before income taxes | 367 | 367 | (199) | 49 | 250 | 302 | 402 | |||||||||||||||||||||||||||||||||||||
| Plus: | ||||||||||||||||||||||||||||||||||||||||||||
| Taxes other than income taxes | 20 | 20 | 22 | 20 | 17 | 18 | 77 | |||||||||||||||||||||||||||||||||||||
| Depreciation, amortization and impairments | 59 | 59 | 56 | 53 | 56 | 53 | 218 | |||||||||||||||||||||||||||||||||||||
| Selling, general and administrative expenses | 9 | 9 | 6 | 8 | 7 | 10 | 31 | |||||||||||||||||||||||||||||||||||||
| Operating expenses | 308 | 308 | 373 | 281 | 249 | 270 | 1,173 | |||||||||||||||||||||||||||||||||||||
| Equity in losses of affiliates | — | — | 2 | 2 | 2 | 3 | 9 | |||||||||||||||||||||||||||||||||||||
| Other segment (income) expense, net | 9 | 9 | (6) | (33) | (1) | 1 | (39) | |||||||||||||||||||||||||||||||||||||
| Proportional share of refining gross margins contributed by equity affiliates | 26 | 26 | 21 | 22 | 24 | 25 | 92 | |||||||||||||||||||||||||||||||||||||
| Special items: | ||||||||||||||||||||||||||||||||||||||||||||
| Certain tax impacts | — | — | — | — | — | (11) | (11) | |||||||||||||||||||||||||||||||||||||
| Realized refining margins | 798 | 798 | 275 | 402 | 604 | 671 | 1,952 | |||||||||||||||||||||||||||||||||||||
| Total processed inputs (MB) ¹ | 50,907 | 50,907 | 38,716 | 49,270 | 50,624 | 53,499 | 192,109 | |||||||||||||||||||||||||||||||||||||
| Adjusted total processed inputs (MB) ¹ | 50,907 | 50,907 | 38,716 | 49,270 | 50,624 | 53,499 | 192,109 | |||||||||||||||||||||||||||||||||||||
| Income (loss) before income taxes ($/BBL) ² | 7.21 | 7.21 | (5.15) | 1.00 | 4.94 | 5.65 | 2.09 | |||||||||||||||||||||||||||||||||||||
| Realized refining margins ($/BBL) ³ | 15.62 | 15.62 | 7.08 | 8.16 | 11.94 | 12.60 | 10.18 | |||||||||||||||||||||||||||||||||||||
| GULF COAST | ||||||||||||||||||||||||||||||||||||||||||||
| Income (loss) before income taxes | 204 | 204 | (333) | 101 | 119 | 252 | 139 | |||||||||||||||||||||||||||||||||||||
| Plus: | ||||||||||||||||||||||||||||||||||||||||||||
| Taxes other than income taxes | 29 | 29 | 35 | 24 | 26 | 23 | 108 | |||||||||||||||||||||||||||||||||||||
| Depreciation, amortization and impairments | 66 | 66 | 72 | 67 | 66 | 66 | 271 | |||||||||||||||||||||||||||||||||||||
| Selling, general and administrative expenses | 1 | 1 | 9 | 5 | 7 | 7 | 28 | |||||||||||||||||||||||||||||||||||||
| Operating expenses | 298 | 298 | 381 | 257 | 256 | 268 | 1,162 | |||||||||||||||||||||||||||||||||||||
| Equity in earnings of affiliates | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||
| Other segment expense, net | — | — | 1 | — | — | 1 | 2 | |||||||||||||||||||||||||||||||||||||
| Special items: | ||||||||||||||||||||||||||||||||||||||||||||
| None | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||
| Realized refining margins | 598 | 598 | 165 | 454 | 474 | 617 | 1,710 | |||||||||||||||||||||||||||||||||||||
| Total processed inputs (MB) | 52,864 | 52,864 | 37,206 | 52,111 | 54,239 | 49,459 | 193,015 | |||||||||||||||||||||||||||||||||||||
| Adjusted total processed inputs (MB) | 52,864 | 52,864 | 37,206 | 52,111 | 54,239 | 49,459 | 193,015 | |||||||||||||||||||||||||||||||||||||
| Income (loss) before income taxes ($/BBL) ² | 3.87 | 3.87 | (8.95) | 1.93 | 2.19 | 5.10 | 0.72 | |||||||||||||||||||||||||||||||||||||
| Realized refining margins ($/BBL) ³ | 11.31 | 11.31 | 4.43 | 8.71 | 8.74 | 12.48 | 8.86 | |||||||||||||||||||||||||||||||||||||
| CENTRAL CORRIDOR ⁴ | ||||||||||||||||||||||||||||||||||||||||||||
| Income (loss) before income taxes | (418) | (418) | (50) | 392 | (580) | 671 | 433 | |||||||||||||||||||||||||||||||||||||
| Plus: | ||||||||||||||||||||||||||||||||||||||||||||
| Taxes other than income taxes | 42 | 42 | 26 | 25 | 26 | 19 | 96 | |||||||||||||||||||||||||||||||||||||
| Depreciation, amortization and impairments | 76 | 76 | 41 | 44 | 992 | 79 | 1,156 | |||||||||||||||||||||||||||||||||||||
| Selling, general and administrative expenses | 39 | 39 | 23 | 13 | 18 | 26 | 80 | |||||||||||||||||||||||||||||||||||||
| Operating expenses | 574 | 574 | 148 | 146 | 162 | 496 | 952 | |||||||||||||||||||||||||||||||||||||
| Equity in (earnings) losses of affiliates | — | — | 103 | — | (33) | — | 70 | |||||||||||||||||||||||||||||||||||||
| Other segment (income) expense, net | 3 | 3 | (12) | (28) | 1 | 3 | (36) | |||||||||||||||||||||||||||||||||||||
| Proportional share of refining gross margins contributed by equity affiliates | — | — | 120 | 212 | 238 | — | 570 | |||||||||||||||||||||||||||||||||||||
| Special items: | ||||||||||||||||||||||||||||||||||||||||||||
| Legal settlement | — | — | — | — | — | (181) | (181) | |||||||||||||||||||||||||||||||||||||
| Pending claims and settlements | — | — | — | — | — | (123) | (123) | |||||||||||||||||||||||||||||||||||||
| Realized refining margins | 316 | 316 | 399 | 804 | 824 | 990 | 3,017 | |||||||||||||||||||||||||||||||||||||
| Total processed inputs (MB) | 68,400 | 68,400 | 27,169 | 28,710 | 28,113 | 76,703 | 160,695 | |||||||||||||||||||||||||||||||||||||
| Adjusted total processed inputs (MB) ¹ | 68,400 | 68,400 | 48,275 | 51,477 | 52,127 | 76,703 | 228,582 | |||||||||||||||||||||||||||||||||||||
| Income (loss) before income taxes ($/BBL) ² | (6.12) | (6.12) | (1.85) | 13.67 | (20.61) | 8.74 | 2.70 | |||||||||||||||||||||||||||||||||||||
| Realized refining margins ($/BBL) ³ | 4.60 | 4.60 | 8.29 | 15.61 | 15.82 | 13.06 | 13.26 | |||||||||||||||||||||||||||||||||||||
| 1 Includes our proportional share of processed inputs of an equity affiliate. | ||||||||||||||||||||||||||||||||||||||||||||
| 2 Income (loss) before income taxes divided by total processed inputs. | ||||||||||||||||||||||||||||||||||||||||||||
| 3 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. | ||||||||||||||||||||||||||||||||||||||||||||
| 4 Refer to Change in Basis of Presentation on page 15. | ||||||||||||||||||||||||||||||||||||||||||||
Page 16
| Phillips 66 Earnings Release Supplemental Data | |||||||||||||||||||||||||||||||||||||||||||||||
| RECONCILIATION OF INCOME (LOSS) BEFORE INCOME TAXES TO REALIZED REFINING MARGINS (continued) | ||||||||||||||||||||||||||||||||||||||||||||
| Millions of Dollars, Except as Indicated | ||||||||||||||||||||||||||||||||||||||||||||
| 2026 | 2025 | |||||||||||||||||||||||||||||||||||||||||||
| 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | |||||||||||||||||||||||||||||||||||
| WEST COAST | ||||||||||||||||||||||||||||||||||||||||||||
| Income (loss) before income taxes | 55 | 55 | (355) | (183) | (307) | (403) | (1,248) | |||||||||||||||||||||||||||||||||||||
| Plus: | ||||||||||||||||||||||||||||||||||||||||||||
| Taxes other than income taxes | 15 | 15 | 27 | 25 | 21 | 3 | 76 | |||||||||||||||||||||||||||||||||||||
| Depreciation, amortization and impairments | 16 | 16 | 288 | 282 | 281 | 279 | 1,130 | |||||||||||||||||||||||||||||||||||||
| Selling, general and administrative expenses | 3 | 3 | 8 | 6 | 8 | 9 | 31 | |||||||||||||||||||||||||||||||||||||
| Operating expenses | 49 | 49 | 172 | 164 | 242 | 195 | 773 | |||||||||||||||||||||||||||||||||||||
| Other segment (income) expense, net | (23) | (23) | 12 | 14 | 7 | 6 | 39 | |||||||||||||||||||||||||||||||||||||
| Realized refining margins | 115 | 115 | 152 | 308 | 252 | 89 | 801 | |||||||||||||||||||||||||||||||||||||
| Total processed inputs (MB) | 8,630 | 8,630 | 21,362 | 21,914 | 20,403 | 9,804 | 73,483 | |||||||||||||||||||||||||||||||||||||
| Adjusted total processed inputs (MB) | 8,630 | 8,630 | 21,362 | 21,914 | 20,403 | 9,804 | 73,483 | |||||||||||||||||||||||||||||||||||||
| Income (loss) before income taxes ($/BBL) ¹ | 6.41 | 6.41 | (16.60) | (8.37) | (15.06) | (41.08) | (16.99) | |||||||||||||||||||||||||||||||||||||
| Realized refining margins ($/BBL) ² | 13.12 | 13.12 | 7.12 | 14.06 | 12.31 | 8.85 | 10.86 | |||||||||||||||||||||||||||||||||||||
| WORLDWIDE ³ | ||||||||||||||||||||||||||||||||||||||||||||
| Income (loss) before income taxes | 208 | 208 | (937) | 359 | (518) | 822 | (274) | |||||||||||||||||||||||||||||||||||||
| Plus: | ||||||||||||||||||||||||||||||||||||||||||||
| Taxes other than income taxes | 106 | 106 | 110 | 94 | 90 | 63 | 357 | |||||||||||||||||||||||||||||||||||||
| Depreciation, amortization and impairments | 217 | 217 | 457 | 446 | 1,395 | 477 | 2,775 | |||||||||||||||||||||||||||||||||||||
| Selling, general and administrative expenses | 52 | 52 | 46 | 32 | 40 | 52 | 170 | |||||||||||||||||||||||||||||||||||||
| Operating expenses | 1,229 | 1,229 | 1,074 | 848 | 909 | 1,229 | 4,060 | |||||||||||||||||||||||||||||||||||||
| Equity in (earnings) losses of affiliates | — | — | 105 | 2 | (31) | 3 | 79 | |||||||||||||||||||||||||||||||||||||
| Other segment (income) expense, net | (11) | (11) | (5) | (47) | 7 | 11 | (34) | |||||||||||||||||||||||||||||||||||||
| Proportional share of refining gross margins contributed by equity affiliates | 26 | 26 | 141 | 234 | 262 | 25 | 662 | |||||||||||||||||||||||||||||||||||||
| Special items: | ||||||||||||||||||||||||||||||||||||||||||||
| Certain tax impacts | — | — | — | — | — | (11) | (11) | |||||||||||||||||||||||||||||||||||||
| Legal settlement | — | — | — | — | — | (181) | (181) | |||||||||||||||||||||||||||||||||||||
| Pending claims and settlements | — | — | — | — | — | (123) | (123) | |||||||||||||||||||||||||||||||||||||
| Realized refining margins | 1,827 | 1,827 | 991 | 1,968 | 2,154 | 2,367 | 7,480 | |||||||||||||||||||||||||||||||||||||
| Total processed inputs (MB) | 180,801 | 180,801 | 124,453 | 152,005 | 153,379 | 189,465 | 619,302 | |||||||||||||||||||||||||||||||||||||
| Adjusted total processed inputs (MB) ¹ ⁴ | 180,801 | 180,801 | 145,559 | 174,772 | 177,393 | 189,465 | 687,189 | |||||||||||||||||||||||||||||||||||||
| Income (loss) before income taxes ($/BBL) ¹ | 1.15 | 1.15 | (7.53) | 2.36 | (3.38) | 4.34 | (0.44) | |||||||||||||||||||||||||||||||||||||
| Realized refining margins ($/BBL) ² | 10.11 | 10.11 | 6.81 | 11.25 | 12.15 | 12.48 | 10.88 | |||||||||||||||||||||||||||||||||||||
| OPERATING AND SG&A EXPENSES NON-GAAP RECONCILIATION | ||||||||||||||||||||||||||||||||||||||||||||
| RECONCILIATION OF REFINING OPERATING AND SG&A EXPENSES TO REFINING ADJUSTED CONTROLLABLE COSTS | ||||||||||||||||||||||||||||||||||||||||||||
| Millions of Dollars, Except as Indicated | ||||||||||||||||||||||||||||||||||||||||||||
| 2026 | 2025 | |||||||||||||||||||||||||||||||||||||||||||
| 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | |||||||||||||||||||||||||||||||||||
| WORLDWIDE ³ | ||||||||||||||||||||||||||||||||||||||||||||
| Turnaround expenses | 178 | 178 | 270 | 53 | 36 | 135 | 494 | |||||||||||||||||||||||||||||||||||||
| Other operating expenses | 1,051 | 1,051 | 804 | 795 | 873 | 1,094 | 3,566 | |||||||||||||||||||||||||||||||||||||
| Total operating expenses | 1,229 | 1,229 | 1,074 | 848 | 909 | 1,229 | 4,060 | |||||||||||||||||||||||||||||||||||||
| Selling, general and administrative expenses | 52 | 52 | 46 | 32 | 40 | 52 | 170 | |||||||||||||||||||||||||||||||||||||
| Refining Controllable Costs | 1,281 | 1,281 | 1,120 | 880 | 949 | 1,281 | 4,230 | |||||||||||||||||||||||||||||||||||||
| Plus: | ||||||||||||||||||||||||||||||||||||||||||||
| Proportional share of equity affiliate turnaround expenses⁵ | — | — | 27 | 24 | 23 | — | 74 | |||||||||||||||||||||||||||||||||||||
| Proportional share of equity affiliate other operating and SG&A expenses ⁵ | 19 | 19 | 173 | 161 | 163 | 19 | 516 | |||||||||||||||||||||||||||||||||||||
| Total proportional share of equity affiliate operating and SG&A expenses ⁵ | 19 | 19 | 200 | 185 | 186 | 19 | 590 | |||||||||||||||||||||||||||||||||||||
| Special item adjustments (pre-tax): | ||||||||||||||||||||||||||||||||||||||||||||
| Legal accrual | — | — | — | (33) | — | — | (33) | |||||||||||||||||||||||||||||||||||||
| Los Angeles Refinery cessation costs | — | — | — | — | — | (35) | (35) | |||||||||||||||||||||||||||||||||||||
| Refining Adjusted Controllable Costs | 1,300 | 1,300 | 1,320 | 1,032 | 1,135 | 1,265 | 4,752 | |||||||||||||||||||||||||||||||||||||
| Total processed inputs (MB) | 180,801 | 180,801 | 124,453 | 152,005 | 153,379 | 189,465 | 619,302 | |||||||||||||||||||||||||||||||||||||
| Adjusted total processed inputs (MB) ⁴ | 180,801 | 180,801 | 145,559 | 174,772 | 177,393 | 189,465 | 687,189 | |||||||||||||||||||||||||||||||||||||
| Refining Controllable Costs ($/BBL) ⁶ | 7.08 | 7.08 | 9.00 | 5.79 | 6.18 | 6.76 | 6.83 | |||||||||||||||||||||||||||||||||||||
| Refining turnaround expense ($/BBL) ⁶ | 0.98 | 0.98 | 2.17 | 0.35 | 0.23 | 0.71 | 0.80 | |||||||||||||||||||||||||||||||||||||
| Refining controllable costs, excluding turnaround expense ($/BBL) ⁶ | 6.10 | 6.10 | 6.83 | 5.44 | 5.95 | 6.05 | 6.03 | |||||||||||||||||||||||||||||||||||||
| Refining Adjusted Controllable Costs ($/BBL) ⁷ | 7.19 | 7.19 | 9.07 | 5.90 | 6.40 | 6.67 | 6.92 | |||||||||||||||||||||||||||||||||||||
| Refining adjusted turnaround expense ($/BBL) ⁷ | 0.98 | 0.98 | 2.04 | 0.44 | 0.33 | 0.71 | 0.83 | |||||||||||||||||||||||||||||||||||||
| Refining adjusted controllable costs, excluding adjusted turnaround expense ($/BBL) ⁷ | 6.21 | 6.21 | 7.03 | 5.46 | 6.07 | 5.96 | 6.09 | |||||||||||||||||||||||||||||||||||||
| 1 Income (loss) before income taxes divided by total processed inputs. | ||||||||||||||||||||||||||||||||||||||||||||
| 2 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. | ||||||||||||||||||||||||||||||||||||||||||||
| 3 Refer to Change in Basis of Presentation on page 15. | ||||||||||||||||||||||||||||||||||||||||||||
| 4 Includes our proportional share of processed inputs of an equity affiliate. | ||||||||||||||||||||||||||||||||||||||||||||
| 5 Represents proportional share of operating and SG&A of equity affiliates for our Refining segment that are reflected as a component of equity in earnings of affiliates on our consolidated statement of income. | ||||||||||||||||||||||||||||||||||||||||||||
| 6 Denominator is total processed inputs. | ||||||||||||||||||||||||||||||||||||||||||||
| 7 Denominator is adjusted total processed inputs. | ||||||||||||||||||||||||||||||||||||||||||||
Page 17
| Phillips 66 Earnings Release Supplemental Data | |||||||||||||||||||||||||||||||||||||||||||||||
| RECONCILIATION OF INCOME BEFORE INCOME TAXES TO REALIZED MARKETING FUEL MARGINS | ||||||||||||||||||||||||||||||||||||||||||||
| Millions of Dollars, Except as Indicated | ||||||||||||||||||||||||||||||||||||||||||||
| 2026 | 2025 | |||||||||||||||||||||||||||||||||||||||||||
| 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | |||||||||||||||||||||||||||||||||||
| UNITED STATES | ||||||||||||||||||||||||||||||||||||||||||||
| Income (loss) before income taxes | (200) | (200) | 111 | 429 | 34 | 230 | 804 | |||||||||||||||||||||||||||||||||||||
| Plus: | ||||||||||||||||||||||||||||||||||||||||||||
| Depreciation and amortization | 12 | 12 | 13 | 12 | 11 | 12 | 48 | |||||||||||||||||||||||||||||||||||||
| Selling, general and administrative expenses | 229 | 229 | 203 | 202 | 460 | 223 | 1,088 | |||||||||||||||||||||||||||||||||||||
| Equity in earnings of affiliates | (9) | (9) | (7) | (11) | (13) | (16) | (47) | |||||||||||||||||||||||||||||||||||||
| Other operating revenues ¹ | (122) | (122) | (105) | (121) | (129) | (116) | (471) | |||||||||||||||||||||||||||||||||||||
| Other (income) expense, net | 7 | 7 | 9 | 12 | 13 | (15) | 19 | |||||||||||||||||||||||||||||||||||||
| Special items: | ||||||||||||||||||||||||||||||||||||||||||||
| None | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||
| Realized marketing fuel margins | (83) | (83) | 224 | 523 | 376 | 318 | 1,441 | |||||||||||||||||||||||||||||||||||||
| Total fuel sales volumes (MB) | 175,331 | 175,331 | 164,499 | 184,591 | 184,435 | 204,076 | 737,601 | |||||||||||||||||||||||||||||||||||||
| Income (loss) before income taxes ($/BBL) | (1.14) | (1.14) | 0.67 | 2.32 | 0.18 | 1.13 | 1.09 | |||||||||||||||||||||||||||||||||||||
| Realized marketing fuel margins ($/BBL) ² | (0.47) | (0.47) | 1.36 | 2.83 | 2.04 | 1.55 | 1.95 | |||||||||||||||||||||||||||||||||||||
| INTERNATIONAL | ||||||||||||||||||||||||||||||||||||||||||||
| Income before income taxes | (69) | (69) | 1,117 | 56 | 155 | 2,073 | 3,401 | |||||||||||||||||||||||||||||||||||||
| Plus: | ||||||||||||||||||||||||||||||||||||||||||||
| Depreciation and amortization | 2 | 2 | 2 | 13 | 5 | 2 | 22 | |||||||||||||||||||||||||||||||||||||
| Selling, general and administrative expenses | 9 | 9 | 65 | 72 | 63 | 62 | 262 | |||||||||||||||||||||||||||||||||||||
| Equity in earnings of affiliates | (17) | (17) | (8) | (1) | (1) | — | (10) | |||||||||||||||||||||||||||||||||||||
| Other operating revenues ¹ | (1) | (1) | (12) | (8) | (9) | (7) | (36) | |||||||||||||||||||||||||||||||||||||
| Other (income) expense, net | 1 | 1 | 3 | — | — | 4 | 7 | |||||||||||||||||||||||||||||||||||||
| Special items: | ||||||||||||||||||||||||||||||||||||||||||||
| Net (gain) loss on asset dispositions | — | — | (1,017) | 89 | (15) | (1,978) | (2,921) | |||||||||||||||||||||||||||||||||||||
| Marketing margins | (75) | (75) | 150 | 221 | 198 | 156 | 725 | |||||||||||||||||||||||||||||||||||||
| Less: margin for nonfuel related sales | — | — | 14 | 18 | 15 | 10 | 57 | |||||||||||||||||||||||||||||||||||||
| Realized marketing fuel margins | (75) | (75) | 136 | 203 | 183 | 146 | 668 | |||||||||||||||||||||||||||||||||||||
| Total fuel sales volumes (MB) | 21,090 | 21,090 | 28,011 | 28,560 | 34,035 | 29,202 | 119,808 | |||||||||||||||||||||||||||||||||||||
| Income (loss) before income taxes ($/BBL) | (3.27) | (3.27) | 39.88 | 1.96 | 4.55 | 70.99 | 28.39 | |||||||||||||||||||||||||||||||||||||
| Realized marketing fuel margins ($/BBL) ² | (3.53) | (3.53) | 4.87 | 7.11 | 5.37 | 5.00 | 5.58 | |||||||||||||||||||||||||||||||||||||
| ADJUSTED EFFECTIVE TAX RATE NON-GAAP RECONCILIATION | ||||||||||||||||||||||||||||||||||||||||||||
| RECONCILIATION OF EFFECTIVE TAX RATE TO ADJUSTED EFFECTIVE TAX RATE | ||||||||||||||||||||||||||||||||||||||||||||
| Millions of Dollars, Except as Indicated | ||||||||||||||||||||||||||||||||||||||||||||
| 2026 | 2025 | |||||||||||||||||||||||||||||||||||||||||||
| 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | |||||||||||||||||||||||||||||||||||
| EFFECTIVE TAX RATES | ||||||||||||||||||||||||||||||||||||||||||||
| Income before income taxes | 260 | 260 | 648 | 1,120 | 199 | 3,453 | 5,420 | |||||||||||||||||||||||||||||||||||||
| Special items | (9) | (9) | (1,064) | 167 | 1,174 | (2,118) | (1,841) | |||||||||||||||||||||||||||||||||||||
| Adjusted income (loss) before income taxes | 251 | 251 | (416) | 1,287 | 1,373 | 1,335 | 3,579 | |||||||||||||||||||||||||||||||||||||
| Income tax expense | 41 | 41 | 122 | 212 | 32 | 526 | 892 | |||||||||||||||||||||||||||||||||||||
| Special items | (2) | (2) | (200) | 71 | 282 | (224) | (71) | |||||||||||||||||||||||||||||||||||||
| Adjusted income tax expense (benefit) | 39 | 39 | (78) | 283 | 314 | 302 | 821 | |||||||||||||||||||||||||||||||||||||
| Effective tax rate (%) ³ | 15.9 | % | 15.9 | % | 18.8 | % | 19.0 | % | 16.0 | % | 15.2 | % | 16.5 | % | ||||||||||||||||||||||||||||||
| Adjusted effective tax rate (%) ³ | 15.7 | % | 15.7 | % | 18.8 | % | 22.0 | % | 22.9 | % | 22.6 | % | 22.9 | % | ||||||||||||||||||||||||||||||
| 1 Includes other nonfuel revenues and expenses. | ||||||||||||||||||||||||||||||||||||||||||||
| 2 Realized marketing fuel margins per barrel, as presented, are calculated using the underlying realized marketing fuel margin amounts, in dollars, divided by sales volumes, in barrels. As such, recalculated per barrel amounts using the rounded margins and barrels presented may differ from the presented per barrel amounts. | ||||||||||||||||||||||||||||||||||||||||||||
| 3 Effective tax rate (%) and Adjusted effective tax rate (%), as presented, are calculated using the underlying Income Tax Expense (Benefit) divided by Income (Loss) Before Income Taxes. As such, recalculated tax rate percentages using the rounded Income (Loss) Before Income Taxes and Income Tax Expense (Benefit) may differ from the presented tax rates (%). | ||||||||||||||||||||||||||||||||||||||||||||
Page 18
FAQ
How did Phillips 66 (PSX) perform financially in Q1 2026?
Phillips 66 reported Q1 2026 net income of $207 million, or $0.51 per diluted share. Adjusted earnings were $200 million, or $0.49 per share, compared with adjusted earnings of $1.0 billion and $2.47 per share in Q4 2025.
What drove the large earnings decline at Phillips 66 in Q1 2026?
Earnings declined mainly due to $839 million in mark-to-market losses on short derivative positions used as economic hedges. These losses were not offset in reported results because associated inventory gains are not recognized under LIFO accounting, materially reducing quarter-over-quarter profitability.
What were Phillips 66’s key operating metrics in Q1 2026?
Refining operated at 95% crude capacity utilization with an 87% clean product yield. Midstream adjusted EBITDA was $860 million, Chemicals adjusted EBITDA was $250 million, and Renewable Fuels produced 40 thousand barrels per day, reflecting broad activity across the portfolio.
What is Phillips 66’s liquidity and debt position after Q1 2026?
As of March 31, 2026, Phillips 66 had liquidity of about $6.0 billion, including $5.2 billion of cash and $800 million of committed credit facilities. Total debt increased to $27.1 billion, raising the debt-to-capital ratio to 48% from 39% in Q4 2025.
How did cash flow look for Phillips 66 in Q1 2026?
Cash flow from operations was negative $2.26 billion, but cash flow from operations excluding working capital was $699 million. Capital expenditures and investments totaled $582 million, while acquisitions, net of cash acquired, were $66 million during the quarter.
What strategic projects did Phillips 66 advance in early 2026?
The company advanced the Western Gateway Pipeline after a successful second open season, continued construction of the Iron Mesa gas plant targeting startup in Q1 2027, completed acquisition of the Lindsey Oil Refinery assets, and progressed major polymer projects in Texas and Qatar.