10/29/2024 | Press release | Distributed by Public on 10/29/2024 07:37
3Q 2024 | 2Q 2024 | ||
Earnings | $ | 346 | 1,015 |
Adjusted Earnings1
|
859 | 984 | |
Adjusted EBITDA1
|
1,998 | 2,183 | |
Earnings Per Share | |||
Earnings Per Share - Diluted | 0.82 | 2.38 | |
Adjusted Earnings Per Share - Diluted1
|
2.04 | 2.31 | |
Cash Flow From Operations | 1,132 | 2,097 | |
Cash Flow From Operations, Excluding Working Capital1
|
1,513 | 1,181 | |
Capital Expenditures & Investments2
|
358 | 367 | |
Return of Capital to Shareholders | 1,277 | 1,325 | |
Share repurchases | 800 | 840 | |
Dividends paid | 477 | 485 | |
Cash | 1,637 | 2,444 | |
Debt | 19,998 | 19,960 | |
Debt-to-capital ratio | 40% | 40% | |
Net debt-to-capital ratio1
|
38% | 36% | |
1Represents a non-GAAP financial measure. Reconciliations of these non-GAAP financial measures to the most comparable GAAP financial measure are included within this release.
|
|||
2 Excludes acquisitions of $567 million in the third quarter of 2024 and purchases of government obligations of $1.1 billion in third-quarter of 2024.
|
3Q 2024 | 2Q 2024 | Change | ||
Earnings1
|
$ | 346 | 1,015 | (669) |
Midstream | 644 | 767 | (123) | |
Chemicals | 342 | 222 | 120 | |
Refining | (108) | 302 | (410) | |
Marketing and Specialties | (22) | 415 | (437) | |
Renewable Fuels | (116) | (55) | (61) | |
Corporate and Other | (327) | (340) | 13 | |
Income tax expense | (44) | (291) | 247 | |
Noncontrolling interests | (23) | (5) | (18) | |
Adjusted Earnings1,2
|
$ | 859 | 984 | (125) |
Midstream | 672 | 753 | (81) | |
Chemicals | 342 | 222 | 120 | |
Refining | (67) | 302 | (369) | |
Marketing and Specialties | 583 | 415 | 168 | |
Renewable Fuels | (116) | (55) | (61) | |
Corporate and Other | (327) | (340) | 13 | |
Income tax expense | (205) | (278) | 73 | |
Noncontrolling interests | (23) | (35) | 12 | |
Adjusted EBITDA2
|
$ | 1,998 | 2,183 | (185) |
Midstream | 892 | 971 | (79) | |
Chemicals | 466 | 348 | 118 | |
Refining | 188 | 531 | (343) | |
Marketing and Specialties | 656 | 484 | 172 | |
Renewable Fuels | (92) | (43) | (49) | |
Corporate and Other | (112) | (108) | (4) | |
Operating Highlights | ||||
Midstream NGL Fractionated Volumes (MBD) | 728 | 744 | (16) | |
Chemicals Global O&P Utilization | 98% | 98% | -% | |
Refining | ||||
Turnaround Expense ($) | 137 | 100 | 37 | |
Realized Margin ($/BBL)2
|
8.31 | 10.01 | (1.70) | |
Crude Capacity Utilization | 94% | 98% | (4%) | |
Clean Product Yield | 87% | 86% | 1% | |
Renewable Fuels Produced (MBD) | 44 | 31 | 13 | |
1Segment reporting is pre-tax.
|
||||
2Represents a non-GAAP financial measure. Reconciliations of these non-GAAP financial measures to the most comparable GAAP financial measure are included within this release.
|
CONTACTS | ||
Jeff Dietert (investors) | Owen Simpson (investors) | Thaddeus Herrick (media) |
832-765-2297 | 832-765-2297 | 855-841-2368 |
[email protected] | [email protected] | [email protected] |
Earnings | ||||||
Millions of Dollars | ||||||
2024 | 2023 | |||||
3Q | 2Q | Sep YTD | 3Q | Sep YTD | ||
Midstream | $ | 644 | 767 | 1,965 | 724 | 2,060 |
Chemicals | 342 | 222 | 769 | 104 | 494 | |
Refining | (108) | 302 | 410 | 1,712 | 4,481 | |
Marketing and Specialties | (22) | 415 | 759 | 605 | 1,501 | |
Renewable Fuels | (116) | (55) | (226) | 22 | 164 | |
Corporate and Other | (327) | (340) | (989) | (354) | (992) | |
Pre-Tax Income | 413 | 1,311 | 2,688 | 2,813 | 7,708 | |
Less: Income tax expense | 44 | 291 | 538 | 670 | 1,754 | |
Less: Noncontrolling interests | 23 | 5 | 41 | 46 | 199 | |
Phillips 66 | $ | 346 | 1,015 | 2,109 | 2,097 | 5,755 |
Adjusted Earnings | ||||||
Millions of Dollars | ||||||
2024 | 2023 | |||||
3Q | 2Q | Sep YTD | 3Q | Sep YTD | ||
Midstream | $ | 672 | 753 | 2,038 | 581 | 1,915 |
Chemicals | 342 | 222 | 769 | 104 | 494 | |
Refining | (67) | 302 | 548 | 1,742 | 4,525 | |
Marketing and Specialties | 583 | 415 | 1,305 | 605 | 1,501 | |
Renewable Fuels | (116) | (55) | (226) | 22 | 164 | |
Corporate and Other | (327) | (340) | (989) | (303) | (812) | |
Pre-Tax Income | 1,087 | 1,297 | 3,445 | 2,751 | 7,787 | |
Less: Income tax expense | 205 | 278 | 709 | 660 | 1,768 | |
Less: Noncontrolling interests | 23 | 35 | 71 | 21 | 218 | |
Phillips 66 | $ | 859 | 984 | 2,665 | 2,070 | 5,801 |
|
Millions of Dollars | ||||||
Except as Indicated | ||||||
2024 | 2023 | |||||
3Q | 2Q | Sep YTD | 3Q | Sep YTD | ||
Reconciliation of Consolidated Earnings to Adjusted Earnings | ||||||
Consolidated Earnings | $ | 346 | 1,015 | 2,109 | 2,097 | 5,755 |
Pre-tax adjustments: | ||||||
Impairments1
|
28 | 224 | 415 | - | - | |
Net gain on asset dispositions | - | (238) | (238) | (101) | (123) | |
Change in inventory method for acquired business |
- | - | - | (46) | (46) | |
Los Angeles Refinery shutdown-related costs2
|
41 | - | 41 | - | - | |
Legal accrual3
|
605 | - | 605 | 30 | 30 | |
Legal settlement | - | - | (66) | - | - | |
Business transformation restructuring costs | - | - | - | 51 | 127 | |
Loss on early redemption of DCP debt | - | - | - | - | 53 | |
DCP integration restructuring costs | - | - | - | 4 | 38 | |
Tax impact of adjustments4
|
(161) | 13 | (171) | 10 | (14) | |
Noncontrolling interests | - | (30) | (30) | 25 | (19) | |
Adjusted earnings | $ | 859 | 984 | 2,665 | 2,070 | 5,801 |
Earnings per share of common stock
(dollars)
|
$ | 0.82 | 2.38 | 4.94 | 4.69 | 12.61 |
Adjusted earnings per share of common stock (dollars)5
|
$ | 2.04 | 2.31 | 6.25 | 4.63 | 12.71 |
Reconciliation of Segment Pre-Tax Income (Loss) to Adjusted Pre-Tax Income (Loss) | ||||||
Midstream Pre-Tax Income | $ | 644 | 767 | 1,965 | 724 | 2,060 |
Pre-tax adjustments: | ||||||
Impairments1
|
28 | 224 | 311 | - | - | |
Net gain on asset disposition | - | (238) | (238) | (101) | (137) | |
Change in inventory method for acquired business |
- | - | - | (46) | (46) | |
DCP integration restructuring costs | - | - | - | 4 | 38 | |
Adjusted pre-tax income | $ | 672 | 753 | 2,038 | 581 | 1,915 |
Chemicals Pre-Tax Income | $ | 342 | 222 | 769 | 104 | 494 |
Pre-tax adjustments: | ||||||
None | - | - | - | - | - | |
Adjusted pre-tax income | $ | 342 | 222 | 769 | 104 | 494 |
Refining Pre-Tax Income (Loss) | $ | (108) | 302 | 410 | 1,712 | 4,481 |
Pre-tax adjustments: | ||||||
Impairments1
|
- | - | 104 | - | - | |
Los Angeles Refinery shutdown-related costs2
|
41 | - | 41 | - | - | |
Net loss on asset disposition | - | - | - | - | 14 | |
Legal accrual3
|
- | - | - | 30 | 30 | |
Legal settlement | - | - | (7) | - | - | |
Adjusted pre-tax income (loss) | $ | (67) | 302 | 548 | 1,742 | 4,525 |
Marketing and Specialties Pre-Tax Income (Loss) |
$ | (22) | 415 | 759 | 605 | 1,501 |
Pre-tax adjustments: | ||||||
Legal accrual3
|
605 | - | 605 | - | - | |
Legal settlement | - | - | (59) | - | - | |
Adjusted pre-tax income | $ | 583 | 415 | 1,305 | 605 | 1,501 |
Renewable Fuels Pre-Tax Income (Loss) | $ | (116) | (55) | (226) | 22 | 164 |
Pre-tax adjustments: | ||||||
None | - | - | - | - | - | |
Adjusted pre-tax income (loss) | $ | (116) | (55) | (226) | 22 | 164 |
Corporate and Other Pre-Tax Loss | $ | (327) | (340) | (989) | (354) | (992) |
Pre-tax adjustments: | ||||||
Business transformation restructuring costs | - | - | - | 51 | 127 | |
Loss on early redemption of DCP debt | - | - | - | - | 53 | |
Adjusted pre-tax loss | $ | (327) | (340) | (989) | (303) | (812) |
1 Impairments primarily related to certain gathering and processing assets in the Midstream segment, as well as certain crude oil processing and logistics assets in California, reported in the Refining segment.
|
||||||
2 Shutdown-related costs recorded in the Refining segment include pre-tax charges for severance costs.
|
||||||
3 Legal accrual primarily related to ongoing litigation.
|
||||||
4 We generally tax effect taxable U.S.-based special items using a combined federal and state statutory income tax rate of approximately 24%. Taxable special items attributable to foreign locations likewise use a local statutory income tax rate. Nontaxable events reflect zero income tax. These events include, but are not limited to, most goodwill impairments, transactions legislatively exempt from income tax, transactions related to entities for which we have made an assertion that the undistributed earnings are permanently reinvested, or transactions occurring in jurisdictions with a valuation allowance.
|
||||||
5 YTD 2024,Q3 2024 and Q3 2023 are based on adjusted weighted-average diluted shares of 426,301 thousand, 419,827 thousand and 447,255 thousand, respectively. Other periods are based on the same weighted-average diluted shares outstanding as that used in the GAAP diluted earnings per share calculation. Income allocated to participating securities, if applicable, in the adjusted earnings per share calculation is the same as that used in the GAAP diluted earnings per share calculation.
|
Millions of Dollars | |||
Except as Indicated | |||
2024 | |||
3Q | 2Q | ||
Reconciliation of Consolidated Net Income to Adjusted EBITDA | |||
Net Income | $ | 369 | 1,020 |
Plus: | |||
Income tax expense | 44 | 291 | |
Net interest expense | 191 | 200 | |
Depreciation and amortization | 543 | 497 | |
Phillips 66 EBITDA | $ | 1,147 | 2,008 |
Special Item Adjustments (pre-tax): | |||
Impairments | 28 | 224 | |
Net gain on asset disposition | - | (238) | |
Los Angeles Refinery shutdown-related costs | 41 | - | |
Legal accrual | 605 | - | |
Legal settlement | - | - | |
Total Special Item Adjustments (pre-tax) | 674 | (14) | |
Change in Fair Value of NOVONIX Investment | - | 7 | |
Phillips 66 EBITDA, Adjusted for Special Items and Change in Fair Value of NOVONIX Investment | $ | 1,821 | 2,001 |
Other Adjustments (pre-tax): | |||
Proportional share of selected equity affiliates income taxes | 24 | 26 | |
Proportional share of selected equity affiliates net interest | 12 | 19 | |
Proportional share of selected equity affiliates depreciation and amortization | 188 | 195 | |
Adjusted EBITDA attributable to noncontrolling interests | (47) | (58) | |
Phillips 66 Adjusted EBITDA | $ | 1,998 | 2,183 |
Reconciliation of Segment Income before Income Taxes to Adjusted EBITDA |
|||
Midstream Income before income taxes | $ | 644 | 767 |
Plus: | |||
Depreciation and amortization | 233 | 224 | |
Midstream EBITDA | $ | 877 | 991 |
Special Item Adjustments (pre-tax): | |||
Net gain on asset disposition | - | (238) | |
Impairments | 28 | 224 | |
Midstream EBITDA, Adjusted for Special Items | $ | 905 | 977 |
Other Adjustments (pre-tax): | |||
Proportional share of selected equity affiliates income taxes | 5 | 5 | |
Proportional share of selected equity affiliates net interest | 3 | 10 | |
Proportional share of selected equity affiliates depreciation and amortization |
26 | 37 | |
Adjusted EBITDA attributable to noncontrolling interests | (47) | (58) | |
Midstream Adjusted EBITDA | $ | 892 | 971 |
Chemicals Income before income taxes | $ | 342 | 222 |
Plus: | |||
None | - | - | |
Chemicals EBITDA | $ | 342 | 222 |
Special Item Adjustments (pre-tax): | |||
None | - | - | |
Chemicals EBITDA, Adjusted for Special Items | $ | 342 | 222 |
Other Adjustments (pre-tax): | |||
Proportional share of selected equity affiliates income taxes | 13 | 15 | |
Proportional share of selected equity affiliates net interest | (2) | - | |
Proportional share of selected equity affiliates depreciation and amortization |
113 | 111 | |
Chemicals Adjusted EBITDA | $ | 466 | 348 |
Refining Income (loss) before income taxes | $ | (108) | 302 |
Plus: | |||
Depreciation and amortization | 230 | 204 | |
Refining EBITDA | $ | 122 | 506 |
Special Item Adjustments (pre-tax): | |||
Los Angeles Refinery shutdown-related costs | 41 | - | |
Refining EBITDA, Adjusted for Special Items | $ | 163 | 506 |
Other Adjustments (pre-tax): | |||
Proportional share of selected equity affiliates income taxes | (1) | 1 | |
Proportional share of selected equity affiliates net interest | (1) | (2) | |
Proportional share of selected equity affiliates depreciation and amortization |
27 | 26 | |
Refining Adjusted EBITDA | $ | 188 | 531 |
Marketing and Specialties Income (loss) before income taxes | $ | (22) | 415 |
Plus: | |||
Depreciation and amortization | 32 | 32 | |
Marketing and Specialties EBITDA | $ | 10 | 447 |
Special Item Adjustments (pre-tax): | |||
Legal accrual | 605 | - | |
Marketing and Specialties EBITDA, Adjusted for Special Items | $ | 615 | 447 |
Other Adjustments (pre-tax): | |||
Proportional share of selected equity affiliates income taxes | 7 | 5 | |
Proportional share of selected equity affiliates net interest | 12 | 11 | |
Proportional share of selected equity affiliates depreciation and amortization |
22 | 21 | |
Marketing and Specialties Adjusted EBITDA | $ | 656 | 484 |
Renewable Fuels Loss before income taxes | $ | (116) | (55) |
Plus: | |||
Depreciation and amortization | 24 | 12 | |
Renewable Fuels EBITDA | $ | (92) | (43) |
Special Item Adjustments (pre-tax): | |||
None | - | - |
Renewable Fuels EBITDA, Adjusted for Special Items | $ | (92) | (43) |
Corporate and Other Loss before income taxes | $ | (327) | (340) |
Plus: | |||
Net interest expense | 191 | 200 | |
Depreciation and amortization | 24 | 25 | |
Corporate and Other EBITDA | $ | (112) | (115) |
Special Item Adjustments (pre-tax): | |||
None | - | - | |
Total Special Item Adjustments (pre-tax) | - | - | |
Change in Fair Value of NOVONIX Investment | - | 7 | |
Corporate EBITDA, Adjusted for Special Items and Change in Fair Value of NOVONIX Investment |
$ | (112) | (108) |
Millions of Dollars | ||
Except as Indicated | ||
September 30, 2024 | ||
Debt-to-Capital Ratio | ||
Total Debt | $ | 19,998 |
Total Equity | 29,784 | |
Debt-to-Capital Ratio | 40 | % |
Total Cash | 1,637 | |
Net Debt-to-Capital Ratio | 38 | % |
Millions of Dollars | ||
September 30, 2024 | ||
Reconciliation of Net Cash Used in Operating Activities to Operating Cash Flow, Excluding Working Capital |
||
Net Cash Used in Operating Activities | $ | 1,132 |
Less: Net Working Capital Changes | (381) | |
Operating Cash Flow, Excluding Working Capital | $ | 1,513 |
Millions of Dollars | |||
Except as Indicated | |||
2024 | |||
3Q | 2Q | ||
Reconciliation of Refining Income (Loss) Before Income Taxes to Realized Refining Margins |
|||
Income (loss) before income taxes | $ | (108) | 302 |
Plus: | |||
Taxes other than income taxes | 100 | 74 | |
Depreciation, amortization and impairments | 230 | 203 | |
Selling, general and administrative expenses | 60 | 51 | |
Operating expenses | 922 | 884 | |
Equity in earnings of affiliates | 12 | (33) | |
Other segment expense, net | (4) | (1) | |
Proportional share of refining gross margins contributed by equity affiliates | 193 | 260 | |
Special items: | |||
None | - | - | |
Realized refining margins | $ | 1,405 | 1,740 |
Total processed inputs (thousands of barrels)
|
145,440 | 151,296 | |
Adjusted total processed inputs (thousands of barrels)*
|
168,951 | 174,107 | |
Income (loss) before income taxes (dollars per barrel)**
|
$ | (0.74) | 2.00 |
Realized refining margins (dollars per barrel)*****
|
$ | 8.31 | 10.01 |
*Adjusted total processed inputs include our proportional share of processed inputs of an equity affiliate. | |||
**Income before income taxes divided by total processed inputs. | |||
***Realized refining margins per barrel, as presented, are calculated using the underlying realized refining margin amounts, in dollars, divided by adjusted total processed inputs, in barrels. As such, recalculated per barrel amounts using the rounded margins and barrels presented may differ from the presented per barrel amounts. |