Phillips 66 10-Q for FY2026 Q2

Phillips 66 (PSX)

10-Q 2026-08-05 For: 2026-06-30

Added on August 05, 2026

About this 10-Q

Phillips 66 filed this 10-Q on August 5, 2026, covering the quarter ended June 30, 2026 (FY2026 Q2).

Headline figures

Quarter ended June 30, 2026, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $51B; up 53.1% from $33.32B a year earlier
Net income: $3.85B; up 338.7% from net income of $877M a year earlier
Diluted EPS: $9.55; up 344.2% from $2.15 a year earlier

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Delaware						45-3779385
(State or other jurisdiction of incorporation or organization)						(I.R.S. Employer Identification No.)


			Page
Part I – Financial Information

Item 1. Financial Statements
Consolidated Statement of Income			1
Consolidated Statement of Comprehensive Income			2
Consolidated Balance Sheet			3
Consolidated Statement of Cash Flows			4
Consolidated Statement of Changes in Equity			6
Notes to Consolidated Financial Statements			8

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations			39

Item 3. Quantitative and Qualitative Disclosures About Market Risk			70

Item 4. Controls and Procedures			70

Part II – Other Information

Item 1. Legal Proceedings			71

Item 1A. Risk Factors			72

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds			72

Item 5. Other Information			72

Item 6. Exhibits			73

Signatures			74


	Millions of Dollars
	Three Months Ended June 30			Six Months Ended June 30
	2026		2025		2026	2025
Revenues and Other Income
Sales and other operating revenues	$	51,004	33,323		83,544	63,753
Equity in earnings of affiliates	635		153		887	306
Net gain (loss) on dispositions	117		(93)		123	994
Other income	288		139		492	195
Total Revenues and Other Income	52,044		33,522		85,046	65,248

Costs and Expenses
Purchased crude oil and products	43,664		29,077		72,880	56,737
Operating expenses	1,810		1,440		3,691	3,062
Selling, general and administrative expenses	538		582		1,075	1,101
Depreciation and amortization	585		816		1,143	1,607
Impairments	9		4		17	30
Taxes other than income taxes	127		218		361	451
Accretion on discounted liabilities	13		10		25	22
Interest and debt expense	314		264		600	485
Foreign currency transaction (gains) losses	13		(9)		23	(15)
Total Costs and Expenses	47,073		32,402		79,815	63,480
Income before income taxes	4,971		1,120		5,231	1,768
Income tax expense	1,092		212		1,133	334
Net Income	3,879		908		4,098	1,434
Less: net income attributable to noncontrolling interests	32		31		44	70
Net Income Attributable to Phillips 66	$	3,847	877		4,054	1,364

Net Income Attributable to Phillips 66 Per Share of Common Stock (dollars)
Basic	$	9.59	2.15		10.09	3.33
Diluted	9.55		2.15		10.05	3.32



Weighted-Average Common Shares Outstanding (thousands)
Basic	400,954		406,763		401,493	407,966
Diluted	402,618		407,929		403,472	409,448
See Notes to Consolidated Financial Statements.


	Millions of Dollars
	Three Months Ended June 30			Six Months Ended June 30
	2026		2025		2026	2025

Net Income	$	3,879	908		4,098	1,434
Other comprehensive income (loss)
Defined benefit plans

Amortization of net actuarial loss and settlements	2		4		6	9
Plans sponsored by equity affiliates	1		1		3	3
Income taxes on defined benefit plans	(1)		(2)		(2)	(3)
Defined benefit plans, net of income taxes	2		3		7	9
Foreign currency translation adjustments	(28)		196		(97)	286
Income taxes on foreign currency translation adjustments	1		(4)		1	(6)
Foreign currency translation adjustments, net of income taxes	(27)		192		(96)	280




Other Comprehensive Income (Loss), Net of Income Taxes	(25)		195		(89)	289
Comprehensive Income	3,854		1,103		4,009	1,723
Less: comprehensive income attributable to noncontrolling interests	32		31		44	70
Comprehensive Income Attributable to Phillips 66	$	3,822	1,072		3,965	1,653


	Millions of Dollars
	June 30 2026		December 31 2025
Assets
Cash and cash equivalents	$	4,099	1,116
Accounts and notes receivable (net of allowances of $66 million in 2026 and $68 million in 2025)	11,052		9,158
Accounts and notes receivable—related parties	665		613
Inventories	5,922		5,097
Prepaid expenses and other current assets	2,483		1,287

Total Current Assets	24,221		17,271
Investments and long-term receivables	12,347		11,905
Net properties, plants and equipment	39,649		39,097
Goodwill	1,433		1,433
Intangibles	955		978
Other assets	3,205		2,996
Total Assets	$	81,810	73,680

Liabilities
Accounts payable	$	11,643	8,581
Accounts payable—related parties	406		286
Short-term debt	1,797		1,038
Accrued income and other taxes	2,012		1,362
Employee benefit obligations	497		680
Other accruals	1,999		1,379

Total Current Liabilities	18,354		13,326
Long-term debt	18,768		18,678
Asset retirement obligations and accrued environmental costs	1,082		1,022
Deferred income taxes	7,448		7,308
Employee benefit obligations	592		573
Other liabilities and deferred credits	2,863		2,532
Total Liabilities	49,107		43,439

Equity
Common stock (2,500,000,000 shares authorized at $0.01 par value) Issued (2026—661,175,772 shares; 2025—659,391,484 shares)
Par value	7		7
Capital in excess of par	20,063		19,948
Treasury stock (at cost: 2026—262,154,856 shares; 2025—258,252,603 shares)	(24,578)		(23,934)
Retained earnings	36,270		33,239
Accumulated other comprehensive loss	(256)		(167)
Total Stockholders’ Equity	31,506		29,093
Noncontrolling interests	1,197		1,148
Total Equity	32,703		30,241
Total Liabilities and Equity	$	81,810	73,680


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


	Millions of Dollars
	Three Months Ended June 30
	Attributable to Phillips 66
	Common Stock
	Par Value		Capital in Excess of Par	Treasury Stock	Retained Earnings	Accum. Other Comprehensive Loss	Noncontrolling Interests	Total

March 31, 2026	$	7	20,021	(24,203)	32,934	(231)	1,153	29,681
Net income	—		—	—	3,847	—	32	3,879
Other comprehensive loss	—		—	—	—	(25)	—	(25)
Dividends paid on common stock ($1.27 per share)	—		—	—	(508)	—	—	(508)
Repurchase of common stock	—		—	(375)	—	—	—	(375)
Distributions to noncontrolling interests	—		—	—	—	—	(24)	(24)
Contributions from noncontrolling interests	—		—	—	—	—	36	36
Benefit plan activity	—		42	—	(3)	—	—	39
June 30, 2026	$	7	20,063	(24,578)	36,270	(256)	1,197	32,703

March 31, 2025	$	7	19,789	(22,995)	30,785	(313)	1,080	28,353
Net income	—		—	—	877	—	31	908
Other comprehensive income	—		—	—	—	195	—	195
Dividends paid on common stock ($1.20 per share)	—		—	—	(487)	—	—	(487)
Repurchase of common stock	—		—	(395)	—	—	—	(395)
Distributions to noncontrolling interests	—		—	—	—	—	(81)	(81)
Contributions from noncontrolling interests	—		—	—	—	—	106	106
Benefit plan activity	—		31	—	(3)	—	—	28
June 30, 2025	$	7	19,820	(23,390)	31,172	(118)	1,136	28,627


	Shares
	Three Months Ended June 30
	Common Stock Issued	Treasury Stock

March 31, 2026	660,921,696	259,986,676
Repurchase of common stock	—	2,168,180
Shares issued—share-based compensation	254,076	—

June 30, 2026	661,175,772	262,154,856

March 31, 2025	658,173,402	250,591,516
Repurchase of common stock	—	3,545,412
Shares issued—share-based compensation	87,791	—

June 30, 2025	658,261,193	254,136,928










See Notes to Consolidated Financial Statements.


	Millions of Dollars
	Six Months Ended June 30
	Attributable to Phillips 66
	Common Stock
	Par Value		Capital in Excess of Par	Treasury Stock	Retained Earnings	Accum. Other Comprehensive Loss	Noncontrolling Interests	Total

December 31, 2025	$	7	19,948	(23,934)	33,239	(167)	1,148	30,241
Net income	—		—	—	4,054	—	44	4,098
Other comprehensive loss	—		—	—	—	(89)	—	(89)
Dividends paid on common stock ($2.54 per share)	—		—	—	(1,017)	—	—	(1,017)
Repurchase of common stock	—		—	(644)	—	—	—	(644)
Distributions to noncontrolling interests	—		—	—	—	—	(46)	(46)
Contributions from noncontrolling interests	—		—	—	—	—	51	51
Benefit plan activity	—		115	—	(6)	—	—	109
June 30, 2026	$	7	20,063	(24,578)	36,270	(256)	1,197	32,703

December 31, 2024	$	7	19,788	(22,751)	30,771	(407)	1,055	28,463
Net income	—		—	—	1,364	—	70	1,434
Other comprehensive income	—		—	—	—	289	—	289
Dividends paid on common stock ($2.35 per share)	—		—	—	(956)	—	—	(956)
Repurchase of common stock	—		—	(639)	—	—	—	(639)
Distributions to noncontrolling interests	—		—	—	—	—	(95)	(95)
Contributions from noncontrolling interests	—		—	—	—	—	106	106
Benefit plan activity	—		32	—	(7)	—	—	25
June 30, 2025	$	7	19,820	(23,390)	31,172	(118)	1,136	28,627


	Millions of Dollars

Cash paid to Cenovus	$	1,340
Fair value of previously held equity interest in WRB	1,304
Settlement of relationships with Phillips 66 and WRB	793
Total acquisition consideration	$	3,437


	Open Position Long / (Short)
	June 30 2026	December 31 2025
Commodity
Crude oil, refined petroleum products, NGL and renewable feedstocks (millions of barrels)	(36)	(33)
Natural gas (billions of cubic feet)	(17)	(17)


	Millions of Dollars
	June 30, 2026
	Fair Value Hierarchy				Total Fair Value of Gross Assets & Liabilities	Effect of Counterparty Netting	Effect of Collateral Netting	Difference in Carrying Value and Fair Value	Net Carrying Value Presented on the Balance Sheet
	Level 1		Level 2	Level 3
Commodity Derivative Assets
Exchange-cleared instruments	$	9,451	—	—	9,451	(8,963)	(160)	—	328

Physical forward contracts	—		342	7	349	(34)	—	—	315

Rabbi trust assets	127		—	—	127	N/A	N/A	—	127
Investment in NOVONIX	9		—	—	9	N/A	N/A	—	9

	$	9,587	342	7	9,936	(8,997)	(160)	—	779

Commodity Derivative Liabilities
Exchange-cleared instruments	$	8,980	—	—	8,980	(8,963)	(12)	—	5

Physical forward contracts	—		419	5	424	(34)	—	—	390

Floating-rate debt	—		1,249	—	1,249	N/A	N/A	—	1,249
Fixed-rate debt, excluding finance leases and software obligations	—		18,118	—	18,118	N/A	N/A	732	18,850
	$	8,980	19,786	5	28,771	(8,997)	(12)	732	20,494


	Millions of Dollars
	Pension Benefits					Other Benefits
	2026			2025		2026	2025
	U.S.		Int’l.	U.S.	Int’l.
Components of Net Periodic Benefit Cost
Three Months Ended June 30
Service cost	$	33	2	30	3	1	1
Interest cost	32		8	32	10	1	2
Expected return on plan assets	(41)		(11)	(38)	(12)	—	—

Amortization of net actuarial loss (gain)	3		(1)	4	(1)	(1)	(2)
Settlements	1		—	2	—	—	—
Net periodic benefit cost (credit)*	$	28	(2)	30	—	1	1

Six Months Ended June 30
Service cost	$	67	4	61	6	1	1
Interest cost	64		17	64	18	3	4
Expected return on plan assets	(82)		(23)	(76)	(23)	—	—

Amortization of net actuarial loss (gain)	6		(1)	8	(1)	(2)	(3)
Settlements	3		—	4	—	—	—
Net periodic benefit cost (credit)*	$	58	(3)	61	—	2	2
* Included within the “Operating expenses” and “Selling, general and administrative expenses” line items on our consolidated statement of income.


	Millions of Dollars
	Defined Benefit Plans		Foreign Currency Translation	Hedging	Accumulated Other Comprehensive Loss

December 31, 2025	$	(113)	(49)	(5)	(167)
Other comprehensive income (loss) before reclassifications	3		(96)	—	(93)
Amounts reclassified from accumulated other comprehensive loss
Defined benefit plans*
Amortization of net actuarial loss and settlements	4		—	—	4
Foreign currency translation	—		—	—	—
Hedging	—		—	—	—
Net current period other comprehensive income (loss)	7		(96)	—	(89)
June 30, 2026	$	(106)	(145)	(5)	(256)

December 31, 2024	$	(140)	(262)	(5)	(407)
Other comprehensive income before reclassifications	2		292	—	294
Amounts reclassified from accumulated other comprehensive loss
Defined benefit plans*
Amortization of net actuarial loss and settlements	7		—	—	7
Foreign currency translation**	—		(12)	—	(12)
Hedging	—		—	—	—
Net current period other comprehensive income	9		280	—	289

June 30, 2025	$	(131)	18	(5)	(118)
* Included within the computation of net periodic benefit cost. See Note 15—Pension and Postretirement Plans, for additional information.
** Included within the gain on sale of Coop, recognized in the “Net gain (loss) on dispositions” line item on our consolidated statement of income. See Note 6—Investments, Loans and Long-Term Receivables, for additional information.


Commission file number:			001-35349


	Millions of Dollars
	Three Months Ended June 30			Six Months Ended June 30
	2026		2025	2026	2025
Product Line and Services
Refined petroleum products and renewable fuels	$	36,976	24,211	61,854	46,460
Crude oil resales	8,262		4,151	12,586	7,253
Natural gas liquids and natural gas	4,650		4,076	9,191	8,582
Services and other*	1,116		885	(87)	1,458
Consolidated sales and other operating revenues	$	51,004	33,323	83,544	63,753

Geographic Location**
United States	$	41,216	26,022	67,006	50,181
United Kingdom	5,842		3,389	9,616	6,351
Germany	806		1,309	1,515	2,527
Other countries	3,140		2,603	5,407	4,694
Consolidated sales and other operating revenues	$	51,004	33,323	83,544	63,753
* Includes economic hedging losses associated with derivatives-related activities. See Note 13—Derivatives and Financial Instruments, for additional information.
** Sales and other operating revenues are attributable to countries based on the location of the operations generating the revenues.


	Millions of Dollars
	June 30, 2026				December 31, 2025
	Gross PP&E		Accum. D&A	Net PP&E	Gross PP&E	Accum. D&A	Net PP&E

Midstream	$	30,851	6,391	24,460	29,558	5,771	23,787
Chemicals	—		—	—	—	—	—
Refining	22,880		10,940	11,940	25,955	13,685	12,270
Marketing and Specialties	1,038		562	476	1,014	543	471
Renewable Fuels	3,792		1,813	1,979	3,772	1,762	2,010
Corporate and Other	4,598		3,804	794	1,492	933	559
	$	63,159	23,510	39,649	61,791	22,694	39,097


	Millions of Dollars
	Three Months Ended June 30, 2026
	Operating Segments
	Midstream		Chemicals	Refining	M&S	Renewable Fuels	Corporate and Other	Consolidating Adjustments	Total Consolidated
Revenues and Other Income
Third-party sales and other operating revenues	$	5,231	—	13,618	31,297	849	9	—	51,004
Intercompany revenues	1,069		—	22,314	789	1,714	1	(25,887)	—
Total sales and other operating revenues	6,300		—	35,932	32,086	2,563	10	(25,887)	51,004
Equity in earnings (loss) of affiliates	99		403	(1)	135	(1)	—	—	635
Net gain on dispositions	—		—	—	110	—	7	—	117
Other income	(6)		—	81	(13)	136	90	—	288
Total Revenues and Other Income	6,393		403	36,012	32,318	2,698	107	(25,887)	52,044

Costs and Expenses
Purchased crude oil and products	4,639		—	31,453	31,354	2,074	—	(25,856)	43,664
Operating expenses*	568		1	1,144	22	79	27	(31)	1,810
Selling, general and administrative expenses*	54		(2)	25	332	19	110	—	538
Depreciation and amortization	284		—	221	26	24	30	—	585
Impairments	—		—	1	—	—	8	—	9
Taxes other than income taxes	60		—	88	2	(41)	18	—	127
Interest and debt expense	—		—	—	—	—	314	—	314
Other segment items**	3		—	18	(1)	(1)	7	—	26
Total Costs and Expenses	5,608		(1)	32,950	31,735	2,154	514	(25,887)	47,073

Income (loss) before income taxes	$	785	404	3,062	583	544	(407)	—	4,971
* These significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM. The total of the line items "Operating expenses" and "Selling, general and administrative expenses" is considered "Controllable costs" and is provided to the CODM.
** “Other segment items” for each reportable segment includes the following line items on our consolidated statement of income: “Accretion on discounted liabilities” and “Foreign currency transaction (gains) losses.”


	Millions of Dollars
	Three Months Ended June 30, 2025
	Operating Segments
	Midstream		Chemicals	Refining	M&S	Renewable Fuels	Corporate and Other	Consolidating Adjustments	Total Consolidated
Revenues and Other Income
Third-party sales and other operating revenues	$	4,528	—	7,105	20,899	781	10	—	33,323
Intercompany revenues	528		—	11,589	518	834	2	(13,471)	—
Total sales and other operating revenues	5,056		—	18,694	21,417	1,615	12	(13,471)	33,323
Equity in earnings (losses) of affiliates	98		20	(2)	38	(1)	—	—	153
Net loss on dispositions	(4)		—	—	(89)	—	—	—	(93)
Other income	3		—	34	15	44	43	—	139
Total Revenues and Other Income	5,153		20	18,726	21,381	1,658	55	(13,471)	33,522

Costs and Expenses
Purchased crude oil and products	3,514		—	16,960	20,420	1,633	—	(13,450)	29,077
Operating expenses*	512		1	848	17	90	(7)	(21)	1,440
Selling, general and administrative expenses*	52		(1)	32	334	14	151	—	582
Depreciation and amortization	260		—	443	33	23	57	—	816
Impairments	—		—	3	1	—	—	—	4
Taxes other than income taxes	83		—	94	6	23	12	—	218
Interest and debt expense	—		—	—	—	—	264	—	264
Other segment items**	1		—	(13)	(1)	8	6	—	1
Total Costs and Expenses	4,422		—	18,367	20,810	1,791	483	(13,471)	32,402

Income (loss) before income taxes	$	731	20	359	571	(133)	(428)	—	1,120
* These significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM. The total of the line items "Operating expenses" and "Selling, general and administrative expenses" is considered "Controllable costs" and is provided to the CODM.
** “Other segment items” for each reportable segment includes the following line items on our consolidated statement of income: “Accretion on discounted liabilities” and “Foreign currency transaction (gains) losses.”


	Millions of Dollars
	Six Months Ended June 30, 2026
	Operating Segments
	Midstream		Chemicals	Refining	M&S	Renewable Fuels	Corporate and Other	Consolidating Adjustments	Total Consolidated
Revenues and Other Income
Third-party sales and other operating revenues	$	9,949		21,390	50,841	1,345	19	—	83,544
Intercompany revenues	1,875		—	37,076	1,445	2,765	3	(43,164)	—
Total sales and other operating revenues	11,824		—	58,466	52,286	4,110	22	(43,164)	83,544
Equity in earnings (losses) of affiliates	202		517	(1)	170	(1)	—	—	887
Net gain on dispositions	6		—	—	110	—	7	—	123
Other income	13		—	107	49	210	115	(2)	492
Total Revenues and Other Income	12,045		517	58,572	52,615	4,319	144	(43,166)	85,046

Costs and Expenses
Purchased crude oil and products	8,748		—	52,186	51,472	3,572	1	(43,099)	72,880
Operating expenses*	1,109		3	2,373	41	168	64	(67)	3,691
Selling, general and administrative expenses*	110		(4)	77	629	40	223	—	1,075
Depreciation and amortization	558		—	436	46	47	56	—	1,143
Impairments	4		—	3	—	2	8	—	17
Taxes other than income taxes	135		—	194	4	(10)	38	—	361
Interest and debt expense	—		—	—	—	—	600	—	600
Other segment items**	5		—	33	1	(3)	12	—	48
Total Costs and Expenses	10,669		(1)	55,302	52,193	3,816	1,002	(43,166)	79,815

Income (loss) before income taxes	$	1,376	518	3,270	422	503	(858)	—	5,231
* These significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM. The total of the line items "Operating expenses" and "Selling, general and administrative expenses" is considered "Controllable costs" and is provided to the CODM.
** “Other segment items” for each reportable segment includes the following line items on our consolidated statement of income: “Accretion on discounted liabilities” and “Foreign currency transaction (gains) losses.”


	Millions of Dollars
	Six Months Ended June 30, 2025
	Operating Segments
	Midstream		Chemicals	Refining	M&S	Renewable Fuels	Corporate and Other	Consolidating Adjustments	Total Consolidated
Revenues and Other Income
Third-party sales and other operating revenues	$	9,355	—	12,807	40,062	1,509	20	—	63,753
Intercompany revenues	1,159		—	21,762	996	1,615	4	(25,536)	—
Total sales and other operating revenues	10,514		—	34,569	41,058	3,124	24	(25,536)	63,753
Equity in earnings (losses) of affiliates	208		133	(107)	74	(2)	—	—	306
Net gain on dispositions	65		—	—	929	—	—	—	994
Other income	13		—	37	21	63	61	—	195
Total Revenues and Other Income	10,800		133	34,499	42,082	3,185	85	(25,536)	65,248

Costs and Expenses
Purchased crude oil and products	7,603		—	31,985	39,465	3,169	—	(25,485)	56,737
Operating expenses*	970		3	1,922	35	186	(3)	(51)	3,062
Selling, general and administrative expenses*	105		(3)	78	662	32	227	—	1,101
Depreciation and amortization	493		—	899	53	46	116	—	1,607
Impairments	—		—	4	1	—	25	—	30
Taxes other than income taxes	144		—	204	15	58	30	—	451
Interest and debt expense	—		—	—	—	—	485	—	485
Other segment items**	3		—	(15)	(2)	12	9	—	7
Total Costs and Expenses	9,318		—	35,077	40,229	3,503	889	(25,536)	63,480

Income (loss) before income taxes	$	1,482	133	(578)	1,853	(318)	(804)	—	1,768
* These significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM. The total of the line items "Operating expenses" and "Selling, general and administrative expenses" is considered "Controllable costs" and is provided to the CODM.
** “Other segment items” for each reportable segment includes the following line items on our consolidated statement of income: “Accretion on discounted liabilities” and “Foreign currency transaction (gains) losses.”


	Thousands of Barrels Daily
Transportation Volumes
Pipelines*	3,142	3,093	3,038	2,994
Terminals	3,433	3,074	3,307	3,007
Operating Statistics
Wellhead Volume (billion cubic feet per day)**	4.5	4.2	4.4	4.2
NGL production**	465	456	455	447
Pipeline Throughput–Y-Grade to Market***†	943	956	937	831
NGL fractionated†	1,020	883	1,000	816


	Millions of Pounds

CPChem Externally Marketed Sales Volumes*	5,006	6,128	10,714	12,259
* Represents 100% of CPChem’s outside sales of produced petrochemical products, as well as commission sales from equity affiliates.


Global Olefins and Polyolefins Capacity Utilization (percent)	91	%	92	92	96


	Dollars Per Barrel
Income (Loss) Before Income Taxes
Atlantic Basin/Europe	$	7.20	1.00	7.20	(1.70)
Gulf Coast	17.80		1.93	10.88	(2.60)
Central Corridor*	21.07		13.67	8.18	6.13
West Coast	18.69		(8.37)	12.49	(12.43)
Worldwide	16.39		2.36	8.90	(2.09)

Realized Refining Margins**
Atlantic Basin/Europe	$	14.44	8.16	15.04	7.68
Gulf Coast	24.25		8.71	17.82	6.92
Central Corridor*	29.56		15.61	17.73	12.07
West Coast	29.65		14.06	21.31	10.64
Worldwide	24.08		11.25	17.21	9.23




	Dollars Per Gallon
U.S. Average Wholesale Prices*
Gasoline	$	3.48	2.56	3.00	2.53
Distillates	4.05		2.60	3.50	2.58
* On third-party branded petroleum product sales.


	Thousands of Barrels Daily


Marketing Refined Product Sales
Gasoline	1,277	1,301	1,247	1,248
Distillates	992	971	954	938
Other	60	70	54	55
	2,329	2,342	2,255	2,241


	Thousands of Barrels Daily
Operating Statistics
Total Renewable Fuels Produced	53	40	47	42
Total Renewable Fuel Sales	65	71	59	67


Market Indicators

Chicago Board of Trade (CBOT) soybean oil (dollars per pound)	$	0.73	0.49	0.66	0.47
California Low-Carbon Fuel Standard (LCFS) carbon credit (dollars per metric ton)	68.65		52.33	67.07	59.30
California Air Resource Board (CARB) ultra-low-sulfur diesel (ULSD) - San Francisco (dollars per gallon)	4.19		2.52	3.56	2.48
Biodiesel Renewable Identification Number (RIN) (dollars per RIN)	2.12		1.08	1.78	0.94


	Millions of Dollars, Except as Indicated
	June 30 2026		December 31 2025

Cash and cash equivalents	$	4,099	1,116
Short-term debt	1,797		1,038
Total debt	20,565		19,716
Total equity	32,703		30,241
Percent of total debt to capital*	39%		39
Percent of floating-rate debt to total debt	6%		2
* Capital includes total debt and total equity.


Summarized Combined Statement of Income	Millions of Dollars
	Six Months Ended June 30, 2026

Sales and other operating revenues	$	63,574
Revenues and other income—non-guarantor subsidiaries	17,665
Purchased crude oil and products—third parties	46,855
Purchased crude oil and products—related parties	1,206
Purchased crude oil and products—non-guarantor subsidiaries	27,311

Income before income taxes	2,543
Net income	2,000


Summarized Combined Balance Sheet	Millions of Dollars
	June 30 2026		December 31 2025

Accounts and notes receivable—third parties	$	1,240	1,348
Accounts and notes receivable—related parties	437		254
Due from non-guarantor subsidiaries, current	5,316		3,825
Total current assets	13,825		9,676
Investments and long-term receivables	8,950		8,502
Net properties, plants and equipment	10,857		10,964
Goodwill	906		906
Due from non-guarantor subsidiaries, noncurrent	650		548
Other assets associated with non-guarantor subsidiaries	868		1,015
Total noncurrent assets	25,061		24,575
Total assets	38,886		34,251

Due to non-guarantor subsidiaries, current	$	6,663	5,892
Total current liabilities	18,168		13,788
Long-term debt	15,461		15,465
Due to non-guarantor subsidiaries, noncurrent	10,175		10,859
Total noncurrent liabilities	32,987		33,243
Total liabilities	51,155		47,031
Total equity	(12,269)		(12,780)
Total liabilities and equity	38,886		34,251


	Millions of Dollars, Except as Indicated
Realized Refining Margins	Atlantic Basin/ Europe		Gulf Coast	Central Corridor	†	West Coast	Worldwide

Three Months Ended June 30, 2026
Income before income taxes	$	352	953	1,599		158	3,062
Plus:

Taxes other than income taxes	16		25	41		6	88
Depreciation, amortization and impairments	58		67	81		16	222
Selling, general and administrative expenses	12		8	(5)		10	25
Operating expenses	314		247	530		53	1,144
Equity in losses of affiliates	1		—	—		—	1
Other segment (income) expense, net	(66)		(2)	(3)		8	(63)
Proportional share of refining gross margins contributed by equity affiliates	20		—	—		—	20





Realized refining margins	$	707	1,298	2,243		251	4,499

Total processed inputs (thousands of barrels)	48,969		53,522	75,902		8,467	186,860


Income before income taxes per barrel (dollars per barrel)**	$	7.20	17.80	21.07		18.69	16.39
Realized refining margins (dollars per barrel)***	14.44		24.25	29.56		29.65	24.08

Three Months Ended June 30, 2025
Income (loss) before income taxes	$	49	101	392		(183)	359
Plus:

Taxes other than income taxes	20		24	25		25	94
Depreciation, amortization and impairments	53		67	44		282	446
Selling, general and administrative expenses	8		5	13		6	32
Operating expenses	281		257	146		164	848
Equity in losses of affiliates	2		—	—		—	2
Other segment (income) expense, net	(33)		—	(28)		14	(47)
Proportional share of refining gross margins contributed by equity affiliates	22		—	212		—	234





Realized refining margins	$	402	454	804		308	1,968

Total processed inputs (thousands of barrels)	49,270		52,111	28,710		21,914	152,005
Adjusted total processed inputs (thousands of barrels)*	49,270		52,111	51,477		21,914	174,772

Income (loss) before income taxes per barrel (dollars per barrel)**	$	1.00	1.93	13.67		(8.37)	2.36
Realized refining margins (dollars per barrel)***	8.16		8.71	15.61		14.06	11.25
* Adjusted total processed inputs include our proportional share of processed inputs of an equity affiliate.
** Income (loss) 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.
† Includes our proportional share of our equity method investment in WRB through September 30, 2025. Beginning on October 1, 2025, 100% of Borger Refinery and Wood River Refinery are included in consolidated results. Refer to Note 2—Business Combinations, in the Notes to Consolidated Financial Statements for additional information.


	Millions of Dollars, Except as Indicated
	Three Months Ended June 30, 2026			Three Months Ended June 30, 2025
	U.S.		International	U.S.	International
Realized Marketing Fuel Margins
Income before income taxes	$	217	232	429	56
Plus:


Depreciation and amortization	14		1	12	13
Selling, general and administrative expenses	271		8	202	72

Equity in earnings of affiliates	(17)		(40)	(11)	(1)
Other operating revenues*	(145)		(1)	(121)	(8)
Other expense, net	10		—	12	—
Special items:
Net (gain) loss on asset dispositions	—		(110)	—	89

Marketing margins	350		90	523	221
Less: margin for nonfuel related sales	—		—	—	18
Realized marketing fuel margins	$	350	90	523	203

Total fuel sales volumes (thousands of barrels)	192,410		19,466	184,591	28,560

Income before income taxes per barrel (dollars per barrel)	$	1.13	11.92	2.32	1.96
Realized marketing fuel margins (dollars per barrel)**	1.82		4.63	2.83	7.11
* Includes other nonfuel revenues.
** 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.


	Millions of Dollars, Except as Indicated
	Six Months Ended June 30, 2026			Six Months Ended June 30, 2025
	U.S.		International	U.S.	International
Realized Marketing Fuel Margins
Income before income taxes	$	17	163	540	1,173
Plus:


Depreciation and amortization	26		3	25	15
Selling, general and administrative expenses	500		17	405	137
Equity in earnings of affiliates	(26)		(57)	(18)	(9)
Other operating revenues*	(267)		(2)	(226)	(20)
Other expense, net	17		1	21	3
Special items:
Net gain on asset dispositions	—		(110)	—	(928)

Marketing margins	267		15	747	371
Less: margin for nonfuel related sales	—		—	—	32
Realized marketing fuel margins	$	267	15	747	339

Total fuel sales volumes (thousands of barrels)	367,741		40,556	349,090	56,571

Income before income taxes per barrel (dollars per barrel)	$	0.05	4.02	1.55	20.74
Realized marketing fuel margins (dollars per barrel)**	0.73		0.39	2.14	6.00
* Includes other nonfuel revenues.
** 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.


					Millions of Dollars
Period	Total Number of Shares Purchased*	Average Price Paid per Share**		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs***	Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs
April 1-30, 2026	780,330	$	166.42	780,330	$	1,905
May 1-31, 2026	678,880	177.36		678,880	1,785
June 1-30, 2026	708,970	177.69		708,970	1,659
Total	2,168,180	$	173.53	2,168,180
* Includes repurchase of shares of common stock from company employees in connection with the company’s broad-based employee incentive plans, when applicable.
** Average price paid per share includes excise taxes.
*** Since the inception of our share repurchase program in 2012, our Board of Directors has authorized an aggregate of $35 billion of repurchases of our outstanding common stock. Our share repurchase authorizations do not expire. Any future share repurchases will be made at the company’s discretion, subject to market conditions and other factors, and in accordance with applicable regulatory requirements. Shares of stock repurchased are held as treasury shares.


						PHILLIPS 66

						/s/ Ann M. Kluppel
						Ann M. Kluppel Senior Vice President and Controller (Chief Accounting and Duly Authorized Officer)