8-K
Phillips 66 (PSX)
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
November 9, 2022
Date of Report (date of earliest event reported)
Phillips 66
(Exact name of registrant as specified in its charter)
| Delaware | 001-35349 | 45-3779385 |
|---|---|---|
| (State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) |
2331 CityWest Boulevard
Houston, Texas 77042
(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:
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
|---|---|---|
| Common stock, $0.01 par value | PSX | New York Stock Exchange |
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 November 9, 2022, Phillips 66 (the "Company") posted additional supplemental financial and operating information regarding the quarter ended September 30, 2022 to the "Events & Presentations" section of the Company's website. The additional supplemental information about the quarter is furnished as Exhibit 99.1 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 | — | Additional supplemental financial and operating information. |
|---|---|---|
| 104 | — | Cover Page Interactive Data File (embedded within the Inline XBRL document). |
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/ J. Scott Pruitt |
| J. Scott Pruitt<br><br>Vice President and Controller |
Date: November 9, 2022
2
Document
| Exhibit 99.1 | ||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Phillips 66 Earnings Release Supplemental Data | CONSOLIDATED STATEMENT OF OPERATIONS* | |||||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |||
| Millions of Dollars, Except as Indicated | ||||||||||||||||||||||
| 2022 | 2021 | |||||||||||||||||||||
| 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 | 36,179 | 48,577 | 44,955 | 129,711 | 21,627 | 27,002 | 30,243 | 32,604 | 111,476 | |||||||||||||
| Equity in earnings of affiliates | 685 | 917 | 782 | 2,384 | 285 | 830 | 982 | 807 | 2,904 | |||||||||||||
| Net gain on dispositions | 1 | — | 1 | 2 | — | 2 | 9 | 7 | 18 | |||||||||||||
| Other income (loss)** | (143) | (185) | 3,026 | 2,698 | 15 | 51 | 238 | 150 | 454 | |||||||||||||
| Total Revenues and Other Income | 36,722 | 49,309 | 48,764 | 134,795 | 21,927 | 27,885 | 31,472 | 33,568 | 114,852 | |||||||||||||
| Costs and Expenses | ||||||||||||||||||||||
| Purchased crude oil and products | 33,495 | 42,645 | 38,646 | 114,786 | 20,065 | 25,218 | 27,529 | 29,290 | 102,102 | |||||||||||||
| Operating expenses | 1,340 | 1,431 | 1,612 | 4,383 | 1,380 | 1,175 | 1,166 | 1,426 | 5,147 | |||||||||||||
| Selling, general and administrative expenses | 433 | 488 | 617 | 1,538 | 408 | 433 | 424 | 479 | 1,744 | |||||||||||||
| Depreciation and amortization | 338 | 359 | 430 | 1,127 | 356 | 364 | 361 | 524 | 1,605 | |||||||||||||
| Impairments | — | 2 | — | 2 | 198 | — | 1,298 | 2 | 1,498 | |||||||||||||
| Taxes other than income taxes | 149 | 118 | 133 | 400 | 139 | 119 | 85 | 67 | 410 | |||||||||||||
| Accretion on discounted liabilities | 6 | 6 | 5 | 17 | 6 | 6 | 6 | 6 | 24 | |||||||||||||
| Interest and debt expense | 135 | 133 | 158 | 426 | 146 | 143 | 151 | 141 | 581 | |||||||||||||
| Foreign currency transaction (gains) losses | (2) | 21 | 5 | 24 | — | (9) | 4 | 6 | 1 | |||||||||||||
| Total Costs and Expenses | 35,894 | 45,203 | 41,606 | 122,703 | 22,698 | 27,449 | 31,024 | 31,941 | 113,112 | |||||||||||||
| Income (loss) before income taxes | 828 | 4,106 | 7,158 | 12,092 | (771) | 436 | 448 | 1,627 | 1,740 | |||||||||||||
| Income tax expense (benefit) | 171 | 924 | 1,618 | 2,713 | (132) | 62 | (40) | 256 | 146 | |||||||||||||
| Net Income (Loss) | 657 | 3,182 | 5,540 | 9,379 | (639) | 374 | 488 | 1,371 | 1,594 | |||||||||||||
| Less: net income attributable to noncontrolling interests | 75 | 15 | 149 | 239 | 15 | 78 | 86 | 98 | 277 | |||||||||||||
| Net Income (Loss) Attributable to Phillips 66 | 582 | 3,167 | 5,391 | 9,140 | (654) | 296 | 402 | 1,273 | 1,317 | |||||||||||||
| Net Income (Loss) Attributable to Phillips 66 Per Share of Common Stock (dollars) | ||||||||||||||||||||||
| Basic | 1.29 | 6.55 | 11.19 | 19.37 | (1.49) | 0.66 | 0.91 | 2.89 | 2.97 | |||||||||||||
| Diluted | 1.29 | 6.53 | 11.16 | 19.31 | (1.49) | 0.66 | 0.91 | 2.88 | 2.97 | |||||||||||||
| Weighted-Average Common Shares Outstanding (thousands) | ||||||||||||||||||||||
| Basic | 449,298 | 483,088 | 481,388 | 471,375 | 439,504 | 439,940 | 440,193 | 440,469 | 440,028 | |||||||||||||
| Diluted | 450,011 | 485,035 | 483,036 | 473,452 | 439,504 | 440,396 | 440,368 | 441,584 | 440,364 | |||||||||||||
| Effective tax rate (%) | 20.7 | % | 22.5 | % | 22.6 | % | 22.4 | % | 17.1 | % | 14.2 | % | (8.9) | % | 15.7 | % | 8.4 | % | ||||
| Adjusted effective tax rate (%) | 20.7 | % | 21.9 | % | 22.3 | % | 22.0 | % | 15.9 | % | 18.9 | % | 16.1 | % | 20.2 | % | 18.6 | % | ||||
| * Refer to Change in Basis of Presentation discussion on page 14. | ||||||||||||||||||||||
| ** Includes the unrealized investment gain (loss) on our investment in NOVONIX Limited (NOVONIX). See NOVONIX Investment table on page 5 for more details. |
Page 1
| Phillips 66 Earnings Release Supplemental Data | | --- || RECONCILIATION OF INCOME (LOSS) BEFORE INCOME TAXES BY SEGMENT TO | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | NET INCOME (LOSS) ATTRIBUTABLE TO PHILLIPS 66 | | | | | | | | | | | | | Millions of Dollars | | | | | | | | | | | | 2022 | | | | | 2021 | | | | | | | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | | Midstream* | 242 | 292 | 3,645 | | 4,179 | 76 | 312 | 629 | 593 | 1,610 | | Chemicals | 396 | 273 | 135 | | 804 | 154 | 623 | 631 | 436 | 1,844 | | Refining | 123 | 3,036 | 2,851 | | 6,010 | (1,040) | (729) | (1,126) | 346 | (2,549) | | Marketing and Specialties | 316 | 765 | 847 | | 1,928 | 290 | 476 | 545 | 498 | 1,809 | | Corporate and Other | (249) | (260) | (320) | | (829) | (251) | (246) | (231) | (246) | (974) | | Income (loss) before income taxes | 828 | 4,106 | 7,158 | | 12,092 | (771) | 436 | 448 | 1,627 | 1,740 | | Less: income tax expense (benefit) | 171 | 924 | 1,618 | | 2,713 | (132) | 62 | (40) | 256 | 146 | | Net Income (Loss) | 657 | 3,182 | 5,540 | | 9,379 | (639) | 374 | 488 | 1,371 | 1,594 | | Less: net income attributable to noncontrolling interests | 75 | 15 | 149 | | 239 | 15 | 78 | 86 | 98 | 277 | | Net Income (Loss) Attributable to Phillips 66 | 582 | 3,167 | 5,391 | | 9,140 | (654) | 296 | 402 | 1,273 | 1,317 | | * Refer to Change in Basis of Presentation discussion on page 14. | | | | | | | | | | | | RECONCILIATION OF ADJUSTED INCOME (LOSS) BEFORE INCOME TAXES BY SEGMENT TO | | | | | | | | | | | | ADJUSTED NET INCOME (LOSS) ATTRIBUTABLE TO PHILLIPS 66 | | | | | | | | | | | | | Millions of Dollars | | | | | | | | | | | | 2022 | | | | | 2021 | | | | | | | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | | Midstream | | | | | | | | | | | | Transportation* | 278 | 250 | 229 | | 757 | 206 | 224 | 254 | 273 | 957 | | NGL and Other* | 122 | 282 | 449 | | 853 | 70 | 92 | 164 | 249 | 575 | | NOVONIX** | (158) | (240) | (33) | | (431) | — | — | 224 | 146 | 370 | | Total Midstream | 242 | 292 | 645 | | 1,179 | 276 | 316 | 642 | 668 | 1,902 | | Chemicals | 396 | 273 | 135 | | 804 | 184 | 657 | 634 | 424 | 1,899 | | Refining | | | | | | | | | | | | Atlantic Basin/Europe | 143 | 1,102 | 521 | | 1,766 | (152) | (108) | 93 | 114 | (53) | | Gulf Coast | 21 | 915 | 702 | | 1,638 | (247) | (253) | (31) | 80 | (451) | | Central Corridor | (135) | 512 | 1,342 | | 1,719 | (241) | (76) | 232 | 145 | 60 | | West Coast | 111 | 603 | 262 | | 976 | (386) | (269) | (110) | 65 | (700) | | Total Refining | 140 | 3,132 | 2,827 | | 6,099 | (1,026) | (706) | 184 | 404 | (1,144) | | Marketing and Specialties | | | | | | | | | | | | Marketing and Other | 203 | 656 | 717 | | 1,576 | 211 | 392 | 454 | 402 | 1,459 | | Specialties | 113 | 109 | 130 | | 352 | 79 | 87 | 93 | 97 | 356 | | Total Marketing and Specialties | 316 | 765 | 847 | | 1,928 | 290 | 479 | 547 | 499 | 1,815 | | Corporate and Other | (249) | (235) | (246) | | (730) | (251) | (244) | (230) | (245) | (970) | | Adjusted income (loss) before income taxes | 845 | 4,227 | 4,208 | | 9,280 | (527) | 502 | 1,777 | 1,750 | 3,502 | | Less: adjusted income tax expense (benefit) | 175 | 927 | 937 | | 2,039 | (84) | 95 | 286 | 354 | 651 | | Adjusted Net Income (Loss) | 670 | 3,300 | 3,271 | | 7,241 | (443) | 407 | 1,491 | 1,396 | 2,851 | | Less: adjusted net income attributable to noncontrolling interests | 75 | 15 | 149 | | 239 | 66 | 78 | 88 | 98 | 330 | | Adjusted Net Income (Loss) Attributable to Phillips 66 | 595 | 3,285 | 3,122 | | 7,002 | (509) | 329 | 1,403 | 1,298 | 2,521 | | * Refer to Change in Basis of Presentation discussion on page 14. | | | | | | | | | | | | ** Represents the change in fair value of our investment in NOVONIX. See NOVONIX Investments table on page 5 for more details. | | | | | | | | | | |
Page 2
| Phillips 66 Earnings Release Supplemental Data | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| SPECIAL ITEMS INCLUDED IN INCOME (LOSS) BEFORE INCOME TAXES BY SEGMENT | |||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| AND NET INCOME (LOSS) ATTRIBUTABLE TO PHILLIPS 66 | |||||||||
| 2021 | |||||||||
| 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | |
| Midstream | |||||||||
| Impairments | — | — | — | (198) | — | (10) | — | (208) | |
| Pension settlement expense | — | — | — | — | (4) | (3) | (1) | (8) | |
| Hurricane-related costs | — | — | — | — | — | — | (4) | (4) | |
| Winter-storm-related costs | — | — | — | (2) | — | — | — | (2) | |
| Alliance shutdown-related costs* | — | — | — | — | — | — | (70) | (70) | |
| Merger transaction costs | — | (13) | (13) | — | — | — | — | — | |
| Gain related to merger of businesses | — | 3,013 | 3,013 | — | — | — | — | — | |
| Total Midstream | — | 3,000 | 3,000 | (200) | (4) | (13) | (75) | (292) | |
| Chemicals | |||||||||
| Pension settlement expense | — | — | — | — | (18) | (2) | (2) | (22) | |
| Hurricane-related costs | — | — | — | — | — | (1) | — | (1) | |
| Winter-storm-related costs | — | — | — | (30) | (16) | — | 14 | (32) | |
| Total Chemicals | — | — | — | (30) | (34) | (3) | 12 | (55) | |
| Refining | |||||||||
| Impairments | — | — | — | — | — | (1,288) | — | (1,288) | |
| Certain tax impacts | — | — | — | — | — | — | 11 | 11 | |
| Pension settlement expense | — | — | — | — | (20) | (12) | (5) | (37) | |
| Hurricane-related costs | — | 24 | 7 | — | — | (10) | (30) | (40) | |
| Winter-storm-related costs | — | — | — | (14) | (3) | — | — | (17) | |
| Alliance shutdown-related costs* | (26) | — | (26) | — | — | — | (122) | (122) | |
| Regulatory compliance costs | (70) | — | (70) | — | — | — | 88 | 88 | |
| Total Refining | (96) | 24 | (89) | (14) | (23) | (1,310) | (58) | (1,405) | |
| Marketing and Specialties | |||||||||
| Pension settlement expense | — | — | — | — | (3) | (2) | (1) | (6) | |
| Total Marketing and Specialties | — | — | — | — | (3) | (2) | (1) | (6) | |
| Corporate and Other | |||||||||
| Pension settlement expense | — | — | — | — | (2) | (1) | (1) | (4) | |
| Restructuring costs | (25) | (74) | (99) | — | — | — | — | — | |
| Total Corporate and Other | (25) | (74) | (99) | — | (2) | (1) | (1) | (4) | |
| Total Special Items (Pre-tax) | (121) | 2,950 | 2,812 | (244) | (66) | (1,329) | (123) | (1,762) | |
| Less: Income Tax Expense (Benefit) | |||||||||
| Tax impact of pre-tax special items** | (28) | 681 | 649 | (48) | (16) | (323) | (33) | (420) | |
| Other tax impacts | 25 | — | 25 | — | (17) | (3) | (65) | (85) | |
| Total Income Tax Expense (Benefit) | (3) | 681 | 674 | (48) | (33) | (326) | (98) | (505) | |
| Less: Income (Loss) Attributable to Noncontrolling Interests | |||||||||
| Impairments | — | — | — | (51) | — | (2) | — | (53) | |
| Total Income (Loss) Attributable to Noncontrolling Interests | — | — | — | (51) | — | (2) | — | (53) | |
| Total Phillips 66 Special Items (After-tax) | (118) | 2,269 | 2,138 | (145) | (33) | (1,001) | (25) | (1,204) | |
| * Costs related to the shutdown of the Alliance Refinery totaled 192 million pre-tax in the fourth quarter of 2021. Shutdown-related costs recorded in the Refining segment include pre-tax charges for asset retirements of 91 million recorded in depreciation and amortization expense, and severance and other exit costs of 31 million. Shutdown-related costs in the Midstream segment include asset retirements of 70 million pre-tax recorded in depreciation and amortization expense. Costs related to the shutdown of the Alliance Refinery totaled 26 million pre-tax in the second quarter of 2022. Shutdown-related costs recorded in the Refining segment include pre-tax charges for the disposal of materials and supplies of 20 million, and asset retirements of 6 million recorded in depreciation and amortization expense. | |||||||||
| ** 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 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. | |||||||||
| SPECIAL ITEMS INCLUDED IN INCOME (LOSS) BEFORE INCOME TAXES BY BUSINESS LINES/REGIONS | |||||||||
| 2021 | |||||||||
| 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | |
| Midstream | |||||||||
| Transportation | — | 182 | 182 | (199) | — | (10) | (70) | (279) | |
| NGL and Other | — | 2,818 | 2,818 | (1) | (4) | (3) | (5) | (13) | |
| NOVONIX | — | — | — | — | — | — | — | — | |
| Total Midstream | — | 3,000 | 3,000 | (200) | (4) | (13) | (75) | (292) | |
| Refining | |||||||||
| Atlantic Basin/Europe | (9) | — | (9) | (1) | (2) | (3) | 23 | 17 | |
| Gulf Coast | (52) | 24 | (45) | (6) | (11) | (1,302) | (119) | (1,438) | |
| Central Corridor | (22) | — | (22) | (7) | (6) | (3) | 26 | 10 | |
| West Coast | (13) | — | (13) | — | (4) | (2) | 12 | 6 | |
| Total Refining | (96) | 24 | (89) | (14) | (23) | (1,310) | (58) | (1,405) | |
| Marketing and Specialties | |||||||||
| Marketing and Other | — | — | — | — | (3) | (2) | (1) | (6) | |
| Specialties | — | — | — | — | — | — | — | — | |
| Total Marketing and Specialties | — | — | — | — | (3) | (2) | (1) | (6) |
All values are in US Dollars.
Page 3
| Phillips 66 Earnings Release Supplemental Data | | --- || CASH FLOW INFORMATION* | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | Millions of Dollars | | | | | | | | | | | | 2022 | | | | | 2021 | | | | | | | 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 (loss) | 657 | 3,182 | 5,540 | | 9,379 | (639) | 374 | 488 | 1,371 | 1,594 | | Depreciation and amortization | 338 | 359 | 430 | | 1,127 | 356 | 364 | 361 | 524 | 1,605 | | Impairments | — | 2 | — | | 2 | 198 | — | 1,298 | 2 | 1,498 | | Accretion on discounted liabilities | 6 | 6 | 5 | | 17 | 6 | 6 | 6 | 6 | 24 | | Deferred income taxes | 142 | 148 | 856 | | 1,146 | (103) | 266 | (453) | 18 | (272) | | Undistributed equity earnings | (100) | (390) | (495) | | (985) | 217 | (218) | (77) | (50) | (128) | | Net gain on dispositions | (1) | — | (1) | | (2) | — | (2) | (3) | (2) | (7) | | Gain related to merger of businesses | — | — | (3,013) | | (3,013) | — | — | — | — | — | | Unrealized investment (gain) loss** | 169 | 221 | 28 | | 418 | — | — | (224) | (141) | (365) | | Other | 40 | 80 | (105) | | 15 | 138 | 120 | 31 | (340) | (51) | | Net working capital changes | (115) | (1,825) | (101) | | (2,041) | 98 | 833 | 776 | 412 | 2,119 | | Net Cash Provided by Operating Activities | 1,136 | 1,783 | 3,144 | | 6,063 | 271 | 1,743 | 2,203 | 1,800 | 6,017 | | Cash Flows From Investing Activities | | | | | | | | | | | | Capital expenditures and investments | (370) | (376) | (735) | | (1,481) | (331) | (380) | (552) | (597) | (1,860) | | Return of investments in equity affiliates | 15 | 33 | 30 | | 78 | 58 | 100 | 78 | 31 | 267 | | Proceeds from asset dispositions | 1 | 1 | 1 | | 3 | — | 24 | 2 | 1 | 27 | | Advances/loans—related parties | — | (75) | — | | (75) | (155) | (90) | (65) | — | (310) | | Collection of advances/loans—related parties | — | 101 | 135 | | 236 | — | — | 1 | 1 | 2 | | Other | (74) | 25 | 32 | | (17) | (39) | (6) | 40 | 7 | 2 | | Net Cash Used in Investing Activities | (428) | (291) | (537) | | (1,256) | (467) | (352) | (496) | (557) | (1,872) | | Cash Flows From Financing Activities | | | | | | | | | | | | Issuance of debt | — | — | — | | — | 450 | 15 | (15) | 993 | 1,443 | | Repayment of debt | (24) | (1,457) | (476) | | (1,957) | (925) | (54) | (506) | (1,469) | (2,954) | | Issuance of common stock | 23 | 44 | — | | 67 | 20 | 4 | — | 2 | 26 | | Repurchase of common stock | — | (66) | (694) | | (760) | — | — | — | — | — | | Dividends paid on common stock | (404) | (467) | (466) | | (1,337) | (394) | (394) | (394) | (403) | (1,585) | | Distributions to noncontrolling interests | (77) | (24) | (3) | | (104) | (76) | (82) | (81) | (85) | (324) | | Repurchase of noncontrolling interests | — | — | — | | — | — | (24) | — | — | (24) | | Other | (30) | (7) | (18) | | (55) | (20) | (7) | (9) | (16) | (52) | | Net Cash Used in Financing Activities | (512) | (1,977) | (1,657) | | (4,146) | (945) | (542) | (1,005) | (978) | (3,470) | | Effect of Exchange Rate Changes on Cash and Cash Equivalents | (8) | (41) | (15) | | (64) | (22) | 7 | (12) | (15) | (42) | | Net Change in Cash and Cash Equivalents | 188 | (526) | 935 | | 597 | (1,163) | 856 | 690 | 250 | 633 | | Cash and cash equivalents at beginning of period | 3,147 | 3,335 | 2,809 | | 3,147 | 2,514 | 1,351 | 2,207 | 2,897 | 2,514 | | Cash and Cash Equivalents at End of Period | 3,335 | 2,809 | 3,744 | | 3,744 | 1,351 | 2,207 | 2,897 | 3,147 | 3,147 | | * Refer to Change in Basis of Presentation discussion on page 14. | | | | | | | | | | | | ** Represents the unrealized gain (loss) on our investment in NOVONIX. See NOVONIX Investment table on page 5 for more details. | | | | | | | | | | | | CAPITAL PROGRAM | | | | | | | | | | | | | Millions of Dollars | | | | | | | | | | | | 2022 | | | | | 2021 | | | | | | | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | | Consolidated Capital Expenditures and Investments | | | | | | | | | | | | Midstream* | 164 | 106 | 462 | | 732 | 100 | 141 | 328 | 169 | 738 | | Chemicals | — | — | — | | — | — | — | — | — | — | | Refining | 171 | 220 | 210 | | 601 | 184 | 186 | 158 | 251 | 779 | | Marketing and Specialties | 11 | 19 | 30 | | 60 | 22 | 22 | 28 | 130 | 202 | | Corporate and Other | 24 | 31 | 33 | | 88 | 25 | 31 | 38 | 47 | 141 | | Consolidated Capital Expenditures and Investments | 370 | 376 | 735 | | 1,481 | 331 | 380 | 552 | 597 | 1,860 | | * Includes 100% of DCP Midstream, LLC Class A Segment (DCP Midstream Class A Segment), DCP Sand Hills Pipeline, LLC (DCP Sand Hills) and DCP Southern Hills Pipeline, LLC (DCP Southern Hills) capital expenditures and investments from August 18, 2022, forward, net of acquired cash. | | | | | | | | | | | | Proportional Share of Selected Equity Affiliates Capital Expenditures and Investments* | | | | | | | | | | | | CPChem (Chemicals) | 113 | 161 | 158 | | 432 | 79 | 72 | 88 | 128 | 367 | | WRB (Refining) | 42 | 47 | 36 | | 125 | 59 | 47 | 61 | 62 | 229 | | Selected Equity Affiliates | 155 | 208 | 194 | | 557 | 138 | 119 | 149 | 190 | 596 | | * Our share of joint ventures' capital spending, excluding DCP Midstream, LLC (DCP Midstream) due to the consolidation of DCP Midstream Class A Segment. Refer to Change in Basis of Presentation discussion on page 14. | | | | | | | | | | |
Page 4
| Phillips 66 Earnings Release Supplemental Data | | --- || MIDSTREAM | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | Millions of Dollars, Except as Indicated | | | | | | | | | | | | 2022 | | | | | 2021 | | | | | | | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | | Income (Loss) before Income Taxes | | | | | | | | | | | | Transportation* | 278 | 250 | 411 | | 939 | 7 | 224 | 244 | 203 | 678 | | NGL and Other* | 122 | 282 | 3,267 | | 3,671 | 69 | 88 | 161 | 244 | 562 | | NOVONIX | (158) | (240) | (33) | | (431) | — | — | 224 | 146 | 370 | | Income (Loss) before Income Taxes | 242 | 292 | 3,645 | | 4,179 | 76 | 312 | 629 | 593 | 1,610 | | * Refer to Change in Basis of Presentation discussion on page 14. | | | | | | | | | | | | Equity in Earnings of Affiliates | | | | | | | | | | | | Transportation | 154 | 133 | 133 | | 420 | 126 | 120 | 140 | 142 | 528 | | NGL and Other | 73 | 186 | 81 | | 340 | 71 | 52 | 72 | 154 | 349 | | NOVONIX | — | — | — | | — | — | — | — | — | — | | Total | 227 | 319 | 214 | | 760 | 197 | 172 | 212 | 296 | 877 | | NOVONIX Investment | | | | | | | | | | | | Unrealized Investment Gain (Loss) | (169) | (221) | (28) | | (418) | — | — | 224 | 141 | 365 | | Unrealized Foreign Currency Transaction Gain (Loss) | 11 | (19) | (5) | | (13) | — | — | — | 5 | 5 | | Change in Fair Value of NOVONIX Investment | (158) | (240) | (33) | | (431) | — | — | 224 | 146 | 370 | | Depreciation and Amortization* | | | | | | | | | | | | Transportation | 39 | 43 | 46 | | 128 | 40 | 40 | 45 | 109 | 234 | | NGL and Other | 55 | 55 | 118 | | 228 | 52 | 52 | 52 | 53 | 209 | | NOVONIX | — | — | — | | — | — | — | — | — | — | | Total | 94 | 98 | 164 | | 356 | 92 | 92 | 97 | 162 | 443 | | * Excludes D&A of all non-consolidated affiliates. | | | | | | | | | | | | Operating and SG&A Expenses* | | | | | | | | | | | | Transportation | 186 | 187 | 224 | | 597 | 173 | 189 | 188 | 209 | 759 | | NGL and Other | 107 | 116 | 309 | | 532 | 122 | 88 | 86 | 114 | 410 | | NOVONIX | — | — | — | | — | — | — | — | — | — | | Total | 293 | 303 | 533 | | 1,129 | 295 | 277 | 274 | 323 | 1,169 | | * Excludes operating and SG&A expenses of all non-consolidated affiliates. | | | | | | | | | | | | Transportation Volumes (MB/D) | | | | | | | | | | | | Pipelines* | 3,099 | 3,066 | 3,084 | | 3,083 | 2,801 | 3,424 | 3,483 | 3,370 | 3,271 | | Terminals | 2,900 | 2,917 | 3,066 | | 2,962 | 2,675 | 2,786 | 2,771 | 2,927 | 2,790 | | * Pipelines represent the sum of volumes transported through each separately tariffed consolidated pipeline segment, excluding NGL pipelines. | | | | | | | | | | | | PSX Other Volumes | | | | | | | | | | | | NGL Fractionated (MB/D)* | 452 | 469 | 508 | | 477 | 363 | 401 | 420 | 454 | 410 | | NGL Production (MB/D)** | 400 | 438 | 434 | | 424 | 356 | 406 | 398 | 416 | 394 | | * Includes 100% of DCP Midstream Class A Segment from August 18, 2022, forward. | | | | | | | | | | | | ** Includes 100% of DCP Midstream Class A Segment. | | | | | | | | | | | | Market Indicator | | | | | | | | | | | | Weighted-Average NGL Price ($/gal)* | 1.10 | 1.15 | 0.98 | | 1.08 | 0.69 | 0.71 | 0.91 | 1.00 | 0.83 | | * Based on index prices from the Mont Belvieu market hub, which are weighted by NGL component mix. | | | | | | | | | | |
Page 5
| Phillips 66 Earnings Release Supplemental Data | | --- || MIDSTREAM (continued) | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | Millions of Dollars | | | | | | | | | | | | 2022 | | | | | 2021 | | | | | | | 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 | 242 | 292 | 3,645 | | 4,179 | 76 | 312 | 629 | 593 | 1,610 | | Plus: | | | | | | | | | | | | Depreciation and amortization | 94 | 98 | 164 | | 356 | 92 | 92 | 97 | 162 | 443 | | EBITDA* | 336 | 390 | 3,809 | | 4,535 | 168 | 404 | 726 | 755 | 2,053 | | Special Item Adjustments (pre-tax): | | | | | | | | | | | | Impairments | — | — | — | | — | 198 | — | 10 | — | 208 | | Pension settlement expense | — | — | — | | — | — | 4 | 3 | 1 | 8 | | Hurricane-related costs | — | — | — | | — | — | — | — | 4 | 4 | | Winter-storm-related costs | — | — | — | | — | 2 | — | — | — | 2 | | Merger transaction costs | — | — | 13 | | 13 | — | — | — | — | — | | Gain related to merger of businesses | — | — | (3,013) | | (3,013) | — | — | — | — | — | | Total Special Item Adjustments (pre-tax) | — | — | (3,000) | | (3,000) | 200 | 4 | 13 | 5 | 222 | | Change in Fair Value of NOVONIX Investment** | 158 | 240 | 33 | | 431 | — | — | (224) | (146) | (370) | | EBITDA, Adjusted for Special Items and Change in Fair Value of NOVONIX Investment* | 494 | 630 | 842 | | 1,966 | 368 | 408 | 515 | 614 | 1,905 | | Other Adjustments (pre-tax): | | | | | | | | | | | | Proportional share of selected equity affiliates income taxes | 2 | 4 | 4 | | 10 | 2 | 4 | 4 | 4 | 14 | | Proportional share of selected equity affiliates net interest | 41 | 39 | 26 | | 106 | 43 | 43 | 42 | 41 | 169 | | Proportional share of selected equity affiliates depreciation and amortization | 56 | 57 | 51 | | 164 | 57 | 57 | 58 | 57 | 229 | | Adjusted EBITDA attributable to noncontrolling interests, excluding PSXP | (24) | (21) | (206) | | (251) | (18) | (20) | (22) | (21) | (81) | | Adjusted EBITDA* | 569 | 709 | 717 | | 1,995 | 452 | 492 | 597 | 695 | 2,236 | | * Refer to Change in Basis of Presentation discussion on page 14. | | | | | | | | | | | | ** See NOVONIX Investment table on page 5 for more details. | | | | | | | | | | |
Page 6
| Phillips 66 Earnings Release Supplemental Data | | --- || MIDSTREAM (continued) | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | Millions of Dollars | | | | | | | | | | | | 2022 | | | | | 2021 | | | | | | | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | | Transportation | | | | | | | | | | | | Income before income taxes | 278 | 250 | 411 | | 939 | 7 | 224 | 244 | 203 | 678 | | Plus: | | | | | | | | | | | | Depreciation and amortization | 39 | 43 | 46 | | 128 | 40 | 40 | 45 | 109 | 234 | | EBITDA* | 317 | 293 | 457 | | 1,067 | 47 | 264 | 289 | 312 | 912 | | Special Item Adjustments (pre-tax): | | | | | | | | | | | | Impairments | — | — | — | | — | 198 | — | 10 | — | 208 | | Winter-storm-related costs | — | — | — | | — | 1 | — | — | — | 1 | | Gain related to merger of businesses | — | — | (182) | | (182) | — | — | — | — | — | | EBITDA, Adjusted for Special Items* | 317 | 293 | 275 | | 885 | 246 | 264 | 299 | 312 | 1,121 | | Other Adjustments (pre-tax): | | | | | | | | | | | | Proportional share of selected equity affiliates income taxes | 2 | 3 | 4 | | 9 | 2 | 4 | 4 | 4 | 14 | | Proportional share of selected equity affiliates net interest | 21 | 19 | 16 | | 56 | 21 | 21 | 21 | 21 | 84 | | Proportional share of selected equity affiliates depreciation and amortization | 37 | 38 | 34 | | 109 | 37 | 37 | 38 | 38 | 150 | | Adjusted EBITDA attributable to noncontrolling interests, excluding PSXP | (24) | (21) | (11) | | (56) | (18) | (20) | (22) | (21) | (81) | | Adjusted EBITDA* | 353 | 332 | 318 | | 1,003 | 288 | 306 | 340 | 354 | 1,288 | | * Refer to Change in Basis of Presentation discussion on page 14. | | | | | | | | | | | | NGL and Other | | | | | | | | | | | | Income before income taxes | 122 | 282 | 3,267 | | 3,671 | 69 | 88 | 161 | 244 | 562 | | Plus: | | | | | | | | | | | | Depreciation and amortization | 55 | 55 | 118 | | 228 | 52 | 52 | 52 | 53 | 209 | | EBITDA* | 177 | 337 | 3,385 | | 3,899 | 121 | 140 | 213 | 297 | 771 | | Special Item Adjustments (pre-tax): | | | | | | | | | | | | Pension settlement expense | — | — | — | | — | — | 4 | 3 | 1 | 8 | | Hurricane-related costs | — | — | — | | — | — | — | — | 4 | 4 | | Winter-storm-related costs | — | — | — | | — | 1 | — | — | — | 1 | | Merger transaction costs | — | — | 13 | | 13 | — | — | — | — | — | | Gain related to merger of businesses | — | — | (2,831) | | (2,831) | — | — | — | — | — | | EBITDA, Adjusted for Special Items* | 177 | 337 | 567 | | 1,081 | 122 | 144 | 216 | 302 | 784 | | Other Adjustments (pre-tax): | | | | | | | | | | | | Proportional share of selected equity affiliates income taxes | — | 1 | — | | 1 | — | — | — | — | — | | Proportional share of selected equity affiliates net interest | 20 | 20 | 10 | | 50 | 22 | 22 | 21 | 20 | 85 | | Proportional share of selected equity affiliates depreciation and amortization | 19 | 19 | 17 | | 55 | 20 | 20 | 20 | 19 | 79 | | Adjusted EBITDA attributable to noncontrolling interests, excluding PSXP | — | — | (195) | | (195) | — | — | — | — | — | | Adjusted EBITDA* | 216 | 377 | 399 | | 992 | 164 | 186 | 257 | 341 | 948 | | * Refer to Change in Basis of Presentation discussion on page 14. | | | | | | | | | | |
Page 7
| Phillips 66 Earnings Release Supplemental Data | | --- || CHEMICALS | | | | | | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | Millions of Dollars, Except as Indicated | | | | | | | | | | | | | | | | | | | | | 2022 | | | | | | | | | 2021 | | | | | | | | | | | | 1st Qtr | | 2nd Qtr | | 3rd Qtr | | 4th Qtr | YTD | | 1st Qtr | | 2nd Qtr | | 3rd Qtr | | 4th Qtr | | YTD | | | Income before Income Taxes | 396 | | 273 | | 135 | | | 804 | | 154 | | 623 | | 631 | | 436 | | 1,844 | | | Equity in Earnings of Affiliate | 393 | | 271 | | 129 | | | 793 | | 152 | | 620 | | 627 | | 433 | | 1,832 | | | 100% CPChem Results | | | | | | | | | | | | | | | | | | | | | Net Income (Loss), excludes parent company income tax related to CPChem's earnings | | | | | | | | | | | | | | | | | | | | | Olefins and Polyolefins | 736 | | 433 | | 209 | | | 1,378 | | 288 | | 1,124 | | 1,224 | | 851 | | 3,487 | | | Specialties, Aromatics and Styrenics | 60 | | 118 | | 120 | | | 298 | | 53 | | 157 | | 73 | | 76 | | 359 | | | Corporate and Other | (32) | | (7) | | (72) | | | (111) | | (37) | | (41) | | (44) | | (40) | | (162) | | | Total | 764 | | 544 | | 257 | | | 1,565 | | 304 | | 1,240 | | 1,253 | | 887 | | 3,684 | | | Income (Loss) before Income Taxes | | | | | | | | | | | | | | | | | | | | | Olefins and Polyolefins | 750 | | 443 | | 220 | | | 1,413 | | 299 | | 1,143 | | 1,237 | | 872 | | 3,551 | | | Specialties, Aromatics and Styrenics | 69 | | 130 | | 127 | | | 326 | | 58 | | 164 | | 80 | | 82 | | 384 | | | Corporate and Other | (32) | | (7) | | (72) | | | (111) | | (37) | | (41) | | (41) | | (40) | | (159) | | | Total | 787 | | 566 | | 275 | | | 1,628 | | 320 | | 1,266 | | 1,276 | | 914 | | 3,776 | | | Depreciation and Amortization | 141 | | 144 | | 145 | | | 430 | | 146 | | 144 | | 151 | | 151 | | 592 | | | Net Interest Expense* | 23 | | 11 | | 12 | | | 46 | | 22 | | 24 | | 24 | | 24 | | 94 | | | * Net of interest income. | | | | | | | | | | | | | | | | | | | | | Investing Cash Flows—Outflows/(Inflows) | | | | | | | | | | | | | | | | | | | | | Capital Expenditures and Investments | 225 | | 322 | | 317 | | | 864 | | 157 | | 144 | | 177 | | 255 | | 733 | | | Return of Investments from Equity Companies | (26) | | (34) | | (5) | | | (65) | | (30) | | (107) | | (82) | | (46) | | (265) | | | Olefins and Polyolefins Capacity Utilization (%) | 99 | % | 94 | % | 90 | % | | 95 | % | 79 | % | 102 | % | 102 | % | 97 | % | 95 | % | | Market Indicators* | | | | | | | | | | | | | | | | | | | | | U.S. Industry Prices | | | | | | | | | | | | | | | | | | | | | Ethylene, Average Acquisition Contract (cents/lb) | 39.5 | | 35.0 | | 31.6 | | | 35.4 | | 41.9 | | 41.1 | | 45.6 | | 38.4 | | 41.8 | | | HDPE Blow Molding, Domestic Spot (cents/lb) | 69.8 | | 69.8 | | 52.9 | | | 64.2 | | 71.9 | | 88.3 | | 98.8 | | 84.8 | | 86.0 | | | U.S. Industry Costs | | | | | | | | | | | | | | | | | | | | | Ethylene, Cash Cost Weighted Average Feed (cents/lb) | 22.1 | | 28.0 | | 26.5 | | | 25.5 | | 13.2 | | 12.5 | | 16.1 | | 20.8 | | 15.7 | | | HDPE Blow Molding, Total Cash Cost (cents/lb) | 53.9 | | 49.8 | | 46.6 | | | 50.1 | | 55.7 | | 54.9 | | 59.7 | | 52.8 | | 55.8 | | | Ethylene to High-Density Polyethylene Chain Cash Margin (cents/lb) | 33.4 | | 26.9 | | 11.4 | | | 23.9 | | 44.9 | | 62.0 | | 68.6 | | 49.6 | | 56.3 | | | * Source: IHS, Inc. | | | | | | | | | | | | | | | | | | | | | Reconciliation of Chemicals Income before Income Taxes to Adjusted EBITDA | | | | | | | | | | | | | | | | | | | | | Income before income taxes | 396 | | 273 | | 135 | | | 804 | | 154 | | 623 | | 631 | | 436 | | 1,844 | | | Plus: | | | | | | | | | | | | | | | | | | | | | None | — | | — | | — | | | — | | — | | — | | — | | — | | — | | | EBITDA | 396 | | 273 | | 135 | | | 804 | | 154 | | 623 | | 631 | | 436 | | 1,844 | | | Special Item Adjustments (pre-tax): | | | | | | | | | | | | | | | | | | | | | Pension settlement expense | — | | — | | — | | | — | | — | | 18 | | 2 | | 2 | | 22 | | | Hurricane-related costs | — | | — | | — | | | — | | — | | — | | 1 | | — | | 1 | | | Winter-storm-related costs | — | | — | | — | | | — | | 30 | | 16 | | — | | (14) | | 32 | | | EBITDA, Adjusted for Special Items | 396 | | 273 | | 135 | | | 804 | | 184 | | 657 | | 634 | | 424 | | 1,899 | | | Other Adjustments (pre-tax): | | | | | | | | | | | | | | | | | | | | | Proportional share of selected equity affiliates income taxes | 29 | | 38 | | 25 | | | 92 | | 28 | | 48 | | 33 | | 35 | | 144 | | | Proportional share of selected equity affiliates net interest | 11 | | 6 | | 5 | | | 22 | | 11 | | 12 | | 12 | | 13 | | 48 | | | Proportional share of selected equity affiliates depreciation and amortization | 101 | | 103 | | 103 | | | 307 | | 103 | | 102 | | 102 | | 104 | | 411 | | | Adjusted EBITDA | 537 | | 420 | | 268 | | | 1,225 | | 326 | | 819 | | 781 | | 576 | | 2,502 | |
Page 8
| Phillips 66 Earnings Release Supplemental Data | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| REFINING | |||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| 2021 | |||||||||
| 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | |
| Income (Loss) before Income Taxes | |||||||||
| Atlantic Basin/Europe | 1,093 | 521 | 1,757 | (153) | (110) | 90 | 137 | (36) | |
| Gulf Coast | 863 | 726 | 1,593 | (253) | (264) | (1,333) | (39) | (1,889) | |
| Central Corridor | 490 | 1,342 | 1,697 | (248) | (82) | 229 | 171 | 70 | |
| West Coast | 590 | 262 | 963 | (386) | (273) | (112) | 77 | (694) | |
| Income (Loss) before Income Taxes | 3,036 | 2,851 | 6,010 | (1,040) | (729) | (1,126) | 346 | (2,549) | |
| Income (Loss) before Income Taxes (/BBL) | |||||||||
| Atlantic Basin/Europe | 21.92 | 10.54 | 11.93 | (3.57) | (2.20) | 1.88 | 2.85 | (0.19) | |
| Gulf Coast | 16.43 | 14.39 | 10.27 | (4.64) | (3.81) | (20.82) | (0.74) | (7.84) | |
| Central Corridor | 21.65 | 53.32 | 23.74 | (12.55) | (3.49) | 8.68 | 6.58 | 0.73 | |
| West Coast | 19.54 | 9.07 | 10.95 | (14.89) | (9.70) | (3.67) | 2.71 | (6.14) | |
| Worldwide | 19.56 | 18.52 | 13.01 | (7.27) | (4.26) | (6.67) | 2.23 | (3.99) | |
| Realized Refining Margins (/BBL)* | |||||||||
| Atlantic Basin/Europe | 30.39 | 19.22 | 20.55 | 4.86 | 4.63 | 9.27 | 11.00 | 7.48 | |
| Gulf Coast | 24.80 | 21.29 | 17.91 | 3.39 | 2.10 | 5.75 | 9.19 | 4.92 | |
| Central Corridor | 26.72 | 38.76 | 24.93 | 5.97 | 6.40 | 12.47 | 12.60 | 9.65 | |
| West Coast | 33.13 | 28.64 | 26.58 | 3.33 | 3.37 | 7.46 | 15.41 | 7.49 | |
| Worldwide | 28.31 | 26.58 | 21.88 | 4.36 | 3.92 | 8.57 | 11.60 | 7.15 | |
| * 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. | |||||||||
| Equity in Earnings (Losses) of Affiliates | |||||||||
| Atlantic Basin/Europe | (2) | (2) | (7) | (2) | (2) | (3) | (2) | (9) | |
| Gulf Coast | (3) | (1) | (6) | (3) | — | (1) | (7) | (11) | |
| Central Corridor | 228 | 294 | 506 | (117) | (65) | 31 | (13) | (164) | |
| West Coast | — | — | — | — | — | — | — | — | |
| Total | 223 | 291 | 493 | (122) | (67) | 27 | (22) | (184) | |
| Depreciation and Amortization* | |||||||||
| Atlantic Basin/Europe | 51 | 50 | 153 | 52 | 52 | 52 | 54 | 210 | |
| Gulf Coast | 62 | 55 | 168 | 77 | 77 | 73 | 150 | 377 | |
| Central Corridor | 36 | 36 | 107 | 34 | 34 | 34 | 37 | 139 | |
| West Coast | 63 | 76 | 199 | 54 | 57 | 57 | 72 | 240 | |
| Total | 212 | 217 | 627 | 217 | 220 | 216 | 313 | 966 | |
| * Excludes D&A of all equity affiliates. | |||||||||
| Operating and SG&A Expenses* | |||||||||
| Atlantic Basin/Europe | 312 | 338 | 960 | 244 | 235 | 258 | 314 | 1,051 | |
| Gulf Coast | 325 | 275 | 918 | 331 | 313 | 327 | 388 | 1,359 | |
| Central Corridor | 278 | 194 | 670 | 212 | 132 | 136 | 199 | 679 | |
| West Coast | 315 | 461 | 1,090 | 393 | 291 | 277 | 300 | 1,261 | |
| Total | 1,230 | 1,268 | 3,638 | 1,180 | 971 | 998 | 1,201 | 4,350 | |
| * Excludes operating and SG&A expenses of all equity affiliates. | |||||||||
| Turnaround Expense, included in Operating and SG&A Expenses* | |||||||||
| Atlantic Basin/Europe | 22 | 44 | 79 | 17 | 13 | 32 | 34 | 96 | |
| Gulf Coast | 40 | 53 | 124 | 33 | 9 | 24 | 27 | 93 | |
| Central Corridor | 117 | 17 | 160 | 17 | 36 | 13 | 28 | 94 | |
| West Coast | 44 | 111 | 187 | 125 | 60 | 12 | 17 | 214 | |
| Total | 223 | 225 | 550 | 192 | 118 | 81 | 106 | 497 | |
| * Excludes turnaround expense of all equity affiliates. | |||||||||
| Taxes Other than Income Taxes | |||||||||
| Atlantic Basin/Europe | 14 | 14 | 47 | 20 | 18 | 15 | 16 | 69 | |
| Gulf Coast | 21 | 18 | 66 | 27 | 25 | 13 | 8 | 73 | |
| Central Corridor | 18 | 16 | 52 | 15 | 11 | 12 | 13 | 51 | |
| West Coast | 19 | 31 | 74 | 23 | 22 | 4 | — | 49 | |
| Total | 72 | 79 | 239 | 85 | 76 | 44 | 37 | 242 | |
| Foreign Currency Gains (Losses) Pre-Tax | (10) | (5) | (23) | 1 | 9 | (4) | (10) | (4) | |
| Refining—Equity Affiliate Information | |||||||||
| Equity in earnings (losses) of affiliates | 223 | 291 | 493 | (122) | (67) | 27 | (22) | (184) | |
| Less: Share of equity affiliate gross margin included in Realized Refining Margin and other equity affiliate-related costs* | (495) | (539) | (1,262) | (129) | (167) | (220) | (216) | (732) | |
| Equity affiliate-related expenses not included in Realized Refining Margins | (272) | (248) | (769) | (251) | (234) | (193) | (238) | (916) | |
| Regional Totals | |||||||||
| Atlantic Basin/Europe | (28) | (24) | (78) | (45) | (44) | (22) | (21) | (132) | |
| Gulf Coast | (3) | (1) | (6) | (3) | — | (1) | (7) | (11) | |
| Central Corridor | (241) | (223) | (685) | (203) | (190) | (170) | (210) | (773) | |
| Total | (272) | (248) | (769) | (251) | (234) | (193) | (238) | (916) | |
| * Other costs associated with equity affiliates which do not flow through equity earnings (losses). |
All values are in US Dollars.
Page 9
| Phillips 66 Earnings Release Supplemental Data | ||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| REFINING (continued) | ||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| 2021 | ||||||||||||||||||
| 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 | 3,036 | 2,851 | 6,010 | (1,040) | (729) | (1,126) | 346 | (2,549) | ||||||||||
| Plus: | ||||||||||||||||||
| Depreciation and amortization | 212 | 217 | 627 | 217 | 220 | 216 | 313 | 966 | ||||||||||
| EBITDA | 3,248 | 3,068 | 6,637 | (823) | (509) | (910) | 659 | (1,583) | ||||||||||
| Special Item Adjustments (pre-tax): | ||||||||||||||||||
| Impairments | — | — | — | — | — | 1,288 | — | 1,288 | ||||||||||
| Certain tax impacts | — | — | — | — | — | — | (11) | (11) | ||||||||||
| Pension settlement expense | — | — | — | — | 20 | 12 | 5 | 37 | ||||||||||
| Hurricane-related costs | — | (24) | (7) | — | — | 10 | 30 | 40 | ||||||||||
| Winter-storm-related costs | — | — | — | 14 | 3 | — | — | 17 | ||||||||||
| Alliance shutdown-related costs | 20 | — | 20 | — | — | — | 31 | 31 | ||||||||||
| Regulatory compliance costs | 70 | — | 70 | — | — | — | (88) | (88) | ||||||||||
| EBITDA, Adjusted for Special Items | 3,338 | 3,044 | 6,720 | (809) | (486) | 400 | 626 | (269) | ||||||||||
| Other Adjustments (pre-tax): | ||||||||||||||||||
| Proportional share of selected equity affiliates income taxes | — | 1 | 1 | (2) | (1) | — | 3 | — | ||||||||||
| Proportional share of selected equity affiliates net interest | 3 | 1 | 6 | 2 | 2 | 1 | 4 | 9 | ||||||||||
| Proportional share of selected equity affiliates depreciation and amortization | 23 | 22 | 68 | 25 | 26 | 27 | 25 | 103 | ||||||||||
| Adjusted EBITDA | 3,364 | 3,068 | 6,795 | (784) | (459) | 428 | 658 | (157) | ||||||||||
| Operating Statistics | ||||||||||||||||||
| Atlantic Basin/Europe* | ||||||||||||||||||
| Crude Oil Charge Input (MB/D) | 526 | 525 | 518 | 438 | 513 | 487 | 478 | 479 | ||||||||||
| Total Processed Inputs (MB/D) | 548 | 538 | 540 | 476 | 549 | 519 | 523 | 517 | ||||||||||
| Crude Oil Capacity Utilization (%) | % | 98 | % | 98 | % | 96 | % | 82 | % | 96 | % | 91 | % | 89 | % | 89 | % | |
| Clean Product Yield (%) | % | 83 | % | 82 | % | 83 | % | 86 | % | 83 | % | 84 | % | 84 | % | 84 | % | |
| * Includes our proportionate share of a refinery complex in Karlsruhe, Germany. | ||||||||||||||||||
| Gulf Coast | ||||||||||||||||||
| Crude Oil Charge Input (MB/D) | 500 | 481 | 493 | 553 | 687 | 623 | 505 | 592 | ||||||||||
| Total Processed Inputs (MB/D) | 577 | 548 | 568 | 606 | 762 | 697 | 575 | 660 | ||||||||||
| Crude Oil Capacity Utilization (%) | % | 94 | % | 91 | % | 93 | % | 71 | % | 88 | % | 80 | % | 95 | % | 82 | % | |
| Clean Product Yield (%) | % | 79 | % | 81 | % | 79 | % | 73 | % | 78 | % | 78 | % | 80 | % | 77 | % | |
| Central Corridor* | ||||||||||||||||||
| Crude Oil Charge Input (MB/D) | 435 | 492 | 460 | 384 | 462 | 493 | 503 | 461 | ||||||||||
| Total Processed Inputs (MB/D) | 446 | 509 | 475 | 397 | 475 | 506 | 519 | 474 | ||||||||||
| Crude Oil Capacity Utilization (%) | % | 82 | % | 93 | % | 87 | % | 72 | % | 87 | % | 93 | % | 95 | % | 87 | % | |
| Clean Product Yield (%) | % | 87 | % | 88 | % | 88 | % | 86 | % | 87 | % | 88 | % | 90 | % | 88 | % | |
| * Includes our proportionate share of the Borger Refinery and Wood River Refinery. | ||||||||||||||||||
| West Coast | ||||||||||||||||||
| Crude Oil Charge Input (MB/D) | 306 | 290 | 297 | 268 | 286 | 302 | 278 | 284 | ||||||||||
| Total Processed Inputs (MB/D) | 332 | 314 | 322 | 288 | 309 | 332 | 308 | 310 | ||||||||||
| Crude Oil Capacity Utilization (%) | % | 84 | % | 80 | % | 81 | % | 74 | % | 79 | % | 83 | % | 76 | % | 78 | % | |
| Clean Product Yield (%) | % | 85 | % | 90 | % | 88 | % | 86 | % | 83 | % | 90 | % | 92 | % | 88 | % | |
| Worldwide—Including Proportionate Share of Equity Affiliates | ||||||||||||||||||
| Crude Oil Charge Input (MB/D) | 1,767 | 1,788 | 1,768 | 1,643 | 1,948 | 1,905 | 1,764 | 1,816 | ||||||||||
| Total Processed Inputs (MB/D) | 1,903 | 1,909 | 1,905 | 1,767 | 2,095 | 2,054 | 1,925 | 1,961 | ||||||||||
| Crude Oil Capacity Utilization (%) | % | 90 | % | 91 | % | 90 | % | 74 | % | 88 | % | 86 | % | 90 | % | 84 | % | |
| Clean Product Yield (%) | % | 83 | % | 85 | % | 84 | % | 82 | % | 82 | % | 84 | % | 86 | % | 83 | % |
All values are in US Dollars.
Page 10
| Phillips 66 Earnings Release Supplemental Data | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| REFINING (continued) | |||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| 2021 | |||||||||
| 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* | |||||||||
| Gasoline | 221 | 210 | 219 | 220 | 242 | 232 | 237 | 233 | |
| Distillates | 216 | 215 | 214 | 175 | 197 | 188 | 190 | 188 | |
| Other | 113 | 114 | 110 | 87 | 113 | 103 | 101 | 101 | |
| Total | 550 | 539 | 543 | 482 | 552 | 523 | 528 | 522 | |
| * Includes our proportionate share of a refinery complex in Karlsruhe, Germany. | |||||||||
| Gulf Coast | |||||||||
| Gasoline | 231 | 223 | 230 | 219 | 310 | 281 | 243 | 263 | |
| Distillates | 206 | 200 | 200 | 201 | 257 | 235 | 195 | 222 | |
| Other | 149 | 134 | 148 | 183 | 196 | 184 | 146 | 177 | |
| Total | 586 | 557 | 578 | 603 | 763 | 700 | 584 | 662 | |
| Central Corridor* | |||||||||
| Gasoline | 211 | 246 | 230 | 191 | 227 | 255 | 266 | 235 | |
| Distillates | 176 | 200 | 184 | 149 | 183 | 187 | 201 | 180 | |
| Other | 59 | 66 | 63 | 58 | 65 | 68 | 55 | 61 | |
| Total | 446 | 512 | 477 | 398 | 475 | 510 | 522 | 476 | |
| * Includes our proportionate share of the Borger Refinery and Wood River Refinery. | |||||||||
| West Coast | |||||||||
| Gasoline | 156 | 158 | 160 | 138 | 138 | 166 | 170 | 153 | |
| Distillates | 126 | 124 | 124 | 110 | 118 | 131 | 113 | 118 | |
| Other | 48 | 30 | 37 | 40 | 51 | 32 | 26 | 37 | |
| Total | 330 | 312 | 321 | 288 | 307 | 329 | 309 | 308 | |
| Worldwide—Including Proportionate Share of Equity Affiliates | |||||||||
| Gasoline | 819 | 837 | 839 | 768 | 917 | 934 | 916 | 884 | |
| Distillates | 724 | 739 | 722 | 635 | 755 | 741 | 699 | 708 | |
| Other | 369 | 344 | 358 | 368 | 425 | 387 | 328 | 376 | |
| Total | 1,912 | 1,920 | 1,919 | 1,771 | 2,097 | 2,062 | 1,943 | 1,968 | |
| Market Indicators* | |||||||||
| Crude and Crude Differentials (/BBL) | |||||||||
| WTI | 108.66 | 91.76 | 98.30 | 57.84 | 66.09 | 70.58 | 77.35 | 67.96 | |
| Brent | 113.78 | 100.85 | 105.35 | 60.90 | 68.83 | 73.47 | 79.73 | 70.73 | |
| LLS | 110.15 | 94.19 | 100.37 | 59.98 | 67.95 | 71.51 | 78.40 | 69.46 | |
| ANS | 112.48 | 99.12 | 102.40 | 60.76 | 68.44 | 72.73 | 79.81 | 70.44 | |
| WTI less Maya | 4.87 | 7.30 | 5.93 | 1.44 | 3.21 | 4.37 | 5.59 | 3.65 | |
| WTI less WCS (settlement differential) | 12.80 | 19.86 | 15.73 | 12.47 | 11.49 | 13.58 | 14.64 | 13.04 | |
| Natural Gas (/MMBtu) | |||||||||
| Henry Hub | 7.39 | 7.96 | 6.65 | 3.51 | 2.88 | 4.28 | 4.74 | 3.85 | |
| Product Margins (/BBL) | |||||||||
| Atlantic Basin/Europe | |||||||||
| East Coast Gasoline less Brent | 41.02 | 25.69 | 26.76 | 11.73 | 18.61 | 21.15 | 17.90 | 17.35 | |
| East Coast Distillate less Brent | 68.16 | 49.04 | 48.53 | 12.09 | 15.24 | 16.07 | 20.47 | 15.97 | |
| Gulf Coast | |||||||||
| Gulf Coast Gasoline less LLS | 32.87 | 17.21 | 22.11 | 11.22 | 15.47 | 18.61 | 14.64 | 14.99 | |
| Gulf Coast Distillate less LLS | 57.49 | 52.51 | 46.17 | 11.30 | 14.03 | 15.87 | 19.12 | 15.08 | |
| Central Corridor | |||||||||
| Central Gasoline less WTI | 36.31 | 27.38 | 26.62 | 14.90 | 19.96 | 20.83 | 13.87 | 17.39 | |
| Central Distillate less WTI | 60.45 | 60.24 | 49.33 | 17.24 | 18.40 | 19.38 | 19.73 | 18.69 | |
| West Coast | |||||||||
| West Coast Gasoline less ANS | 51.66 | 46.29 | 43.29 | 16.88 | 24.76 | 23.54 | 22.75 | 21.98 | |
| West Coast Distillate less ANS | 58.37 | 50.26 | 46.97 | 14.14 | 15.28 | 18.55 | 22.44 | 17.60 | |
| Worldwide Market Crack Spread (/BBL)** | 46.72 | 36.29 | 34.98 | 13.23 | 17.76 | 19.44 | 17.93 | 17.09 | |
| * Based on daily spot prices, unless otherwise noted. | |||||||||
| ** Weighted average based on Phillips 66 crude capacity. |
All values are in US Dollars.
Page 11
| Phillips 66 Earnings Release Supplemental Data | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| MARKETING AND SPECIALTIES | |||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| 2021 | |||||||||
| 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | |
| Income before Income Taxes | |||||||||
| Marketing and Other | 656 | 717 | 1,576 | 211 | 389 | 452 | 401 | 1,453 | |
| Specialties | 109 | 130 | 352 | 79 | 87 | 93 | 97 | 356 | |
| Income before Income Taxes | 765 | 847 | 1,928 | 290 | 476 | 545 | 498 | 1,809 | |
| Income before Income Taxes (/BBL) | |||||||||
| U.S. | 2.86 | 2.16 | 2.05 | 1.36 | 2.15 | 1.93 | 1.44 | 1.74 | |
| International | 7.30 | 12.60 | 7.06 | 2.24 | 1.96 | 4.84 | 7.13 | 4.13 | |
| Realized Marketing Fuel Margins (/BBL)* | |||||||||
| U.S. | 3.24 | 2.49 | 2.44 | 1.94 | 2.62 | 2.29 | 1.87 | 2.19 | |
| International | 8.20 | 12.40 | 7.73 | 4.01 | 2.89 | 6.75 | 9.81 | 5.96 | |
| * See note on the use of non-GAAP measures. Also, reconciliations of income before income taxes to realized marketing fuel margin for each period and by region are included in the "Realized Margin Non-GAAP Reconciliations" section. | |||||||||
| Other Realized Margins and Revenues not included in Marketing Fuel Margins* | |||||||||
| Marketing and Other | 202 | 242 | 611 | 104 | 138 | 111 | 122 | 475 | |
| Specialties | 90 | 78 | 269 | 84 | 64 | 61 | 77 | 286 | |
| Total | 292 | 320 | 880 | 188 | 202 | 172 | 199 | 761 | |
| * Excludes gain on dispositions and excise taxes on sales of refined petroleum products. | |||||||||
| Equity in Earnings of Affiliates | |||||||||
| Marketing and Other | 48 | 61 | 142 | 26 | 46 | 48 | 41 | 161 | |
| Specialties | 56 | 87 | 195 | 32 | 59 | 68 | 59 | 218 | |
| Total | 104 | 148 | 337 | 58 | 105 | 116 | 100 | 379 | |
| Depreciation and Amortization* | |||||||||
| Marketing and Other | 25 | 22 | 70 | 23 | 24 | 23 | 25 | 95 | |
| Specialties | 4 | 5 | 13 | 4 | 6 | 4 | 4 | 18 | |
| Total | 29 | 27 | 83 | 27 | 30 | 27 | 29 | 113 | |
| * Excludes D&A of all equity affiliates. | |||||||||
| Operating and SG&A Expenses* | |||||||||
| Marketing and Other | 329 | 317 | 934 | 258 | 284 | 280 | 318 | 1,140 | |
| Specialties | 32 | 29 | 93 | 29 | 30 | 30 | 33 | 122 | |
| Total | 361 | 346 | 1,027 | 287 | 314 | 310 | 351 | 1,262 | |
| * Excludes operating and SG&A expenses of all equity affiliates. | |||||||||
| Refined Petroleum Products Sales (MB/D) | |||||||||
| U.S. Marketing | |||||||||
| Gasoline | 1,089 | 1,096 | 1,077 | 960 | 1,095 | 1,098 | 1,142 | 1,074 | |
| Distillates | 789 | 757 | 793 | 660 | 776 | 895 | 822 | 789 | |
| Other | — | — | — | — | — | — | — | — | |
| Total | 1,878 | 1,853 | 1,870 | 1,620 | 1,871 | 1,993 | 1,964 | 1,863 | |
| International Marketing | |||||||||
| Gasoline | 87 | 94 | 88 | 63 | 81 | 91 | 82 | 80 | |
| Distillates | 171 | 178 | 175 | 158 | 171 | 179 | 174 | 170 | |
| Other | 19 | 16 | 17 | 18 | 18 | 17 | 17 | 17 | |
| Total | 277 | 288 | 280 | 239 | 270 | 287 | 273 | 267 | |
| Worldwide Marketing | |||||||||
| Gasoline | 1,176 | 1,190 | 1,165 | 1,023 | 1,176 | 1,189 | 1,224 | 1,154 | |
| Distillates | 960 | 935 | 968 | 818 | 947 | 1,074 | 996 | 959 | |
| Other | 19 | 16 | 17 | 18 | 18 | 17 | 17 | 17 | |
| Total | 2,155 | 2,141 | 2,150 | 1,859 | 2,141 | 2,280 | 2,237 | 2,130 | |
| Foreign Currency Gains (Losses) Pre-Tax | 7 | 6 | 14 | — | 1 | — | (1) | — | |
| Reconciliation of Marketing and Specialties Income before Income Taxes to Adjusted EBITDA | |||||||||
| Income before income taxes | 765 | 847 | 1,928 | 290 | 476 | 545 | 498 | 1,809 | |
| Plus: | |||||||||
| Depreciation and amortization | 29 | 27 | 83 | 27 | 30 | 27 | 29 | 113 | |
| EBITDA | 794 | 874 | 2,011 | 317 | 506 | 572 | 527 | 1,922 | |
| Special Item Adjustments (pre-tax): | |||||||||
| Pension settlement expense | — | — | — | — | 3 | 2 | 1 | 6 | |
| EBITDA, Adjusted for Special Items | 794 | 874 | 2,011 | 317 | 509 | 574 | 528 | 1,928 | |
| Other Adjustments (pre-tax): | |||||||||
| Proportional share of selected equity affiliates income taxes | 6 | 7 | 19 | 5 | 6 | 7 | 6 | 24 | |
| Proportional share of selected equity affiliates net interest | 5 | 6 | 16 | 4 | 4 | 4 | 4 | 16 | |
| Proportional share of selected equity affiliates depreciation and amortization | 18 | 18 | 57 | 17 | 17 | 17 | 18 | 69 | |
| Adjusted EBITDA | 823 | 905 | 2,103 | 343 | 536 | 602 | 556 | 2,037 |
All values are in US Dollars.
Page 12
| Phillips 66 Earnings Release Supplemental Data | | --- || CORPORATE AND OTHER | | | | | | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | Millions of Dollars, Except as Indicated | | | | | | | | | | | | | | | | | | | | | 2022 | | | | | | | | | 2021 | | | | | | | | | | | | 1st Qtr | | 2nd Qtr | | 3rd Qtr | | 4th Qtr | YTD | | 1st Qtr | | 2nd Qtr | | 3rd Qtr | | 4th Qtr | | YTD | | | Loss before Income Taxes* | (249) | | (260) | | (320) | | | (829) | | (251) | | (246) | | (231) | | (246) | | (974) | | | * Refer to Change in Basis of Presentation discussion on page 14. | | | | | | | | | | | | | | | | | | | | | Detail of Loss before Income Taxes | | | | | | | | | | | | | | | | | | | | | Net interest expense | (132) | | (127) | | (136) | | | (395) | | (143) | | (141) | | (148) | | (151) | | (583) | | | Corporate overhead and other | (117) | | (133) | | (184) | | | (434) | | (108) | | (105) | | (83) | | (95) | | (391) | | | Total | (249) | | (260) | | (320) | | | (829) | | (251) | | (246) | | (231) | | (246) | | (974) | | | Net Interest Expense | | | | | | | | | | | | | | | | | | | | | Interest expense | (144) | | (141) | | (167) | | | (452) | | (150) | | (148) | | (159) | | (151) | | (608) | | | Capitalized interest | 9 | | 8 | | 9 | | | 26 | | 4 | | 5 | | 8 | | 10 | | 27 | | | Loss on early debt retirement | — | | — | | — | | | — | | — | | — | | — | | (13) | | (13) | | | Interest income | 3 | | 6 | | 22 | | | 31 | | 3 | | 2 | | 3 | | 3 | | 11 | | | Total | (132) | | (127) | | (136) | | | (395) | | (143) | | (141) | | (148) | | (151) | | (583) | | | Reconciliation of Corporate and Other Loss before Income Taxes to Adjusted EBITDA | | | | | | | | | | | | | | | | | | | | | Loss before income taxes | (249) | | (260) | | (320) | | | (829) | | (251) | | (246) | | (231) | | (246) | | (974) | | | Plus: | | | | | | | | | | | | | | | | | | | | | Net interest expense | 132 | | 127 | | 136 | | | 395 | | 143 | | 141 | | 148 | | 151 | | 583 | | | Depreciation and amortization | 19 | | 20 | | 22 | | | 61 | | 20 | | 22 | | 21 | | 20 | | 83 | | | EBITDA | (98) | | (113) | | (162) | | | (373) | | (88) | | (83) | | (62) | | (75) | | (308) | | | Special Item Adjustments (pre-tax): | | | | | | | | | | | | | | | | | | | | | Pension settlement expense | — | | — | | — | | | — | | — | | 2 | | 1 | | 1 | | 4 | | | Restructuring costs | — | | 25 | | 74 | | | 99 | | — | | — | | — | | — | | — | | | EBITDA, Adjusted for Special Items | (98) | | (88) | | (88) | | | (274) | | (88) | | (81) | | (61) | | (74) | | (304) | | | Other Adjustments (pre-tax): | | | | | | | | | | | | | | | | | | | | | None | — | | — | | — | | | — | | — | | — | | — | | — | | — | | | Adjusted EBITDA | (98) | | (88) | | (88) | | | (274) | | (88) | | (81) | | (61) | | (74) | | (304) | | | Foreign Currency Losses Pre-Tax | (1) | | — | | (1) | | | (2) | | (1) | | (1) | | — | | — | | (2) | | | Phillips 66 Total Company Debt | | | | | | | | | | | | | | | | | | | | | Total Debt | 14,434 | | 12,969 | | 17,657 | | | 17,657 | | 15,422 | | 15,413 | | 14,910 | | 14,448 | | 14,448 | | | Debt-to-Capital Ratio (%) | 39 | % | 35 | % | 35 | % | | 35 | % | 43 | % | 43 | % | 42 | % | 40 | % | 40 | % | | Total Equity | 22,121 | | 24,573 | | 33,309 | | | 33,309 | | 20,457 | | 20,602 | | 20,597 | | 21,637 | | 21,637 | |
Page 13
| Phillips 66 Earnings Release Supplemental Data | | --- || RECONCILIATION OF CONSOLIDATED NET INCOME (LOSS) TO ADJUSTED EBITDA ATTRIBUTABLE TO PHILLIPS 66 | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | Millions of Dollars | | | | | | | | | | | | 2022 | | | | | 2021 | | | | | | | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | | Net income (loss) | 657 | 3,182 | 5,540 | | 9,379 | (639) | 374 | 488 | 1,371 | 1,594 | | Plus: | | | | | | | | | | | | Income tax expense (benefit) | 171 | 924 | 1,618 | | 2,713 | (132) | 62 | (40) | 256 | 146 | | Net interest expense | 132 | 127 | 136 | | 395 | 143 | 141 | 148 | 151 | 583 | | Depreciation and amortization | 338 | 359 | 430 | | 1,127 | 356 | 364 | 361 | 524 | 1,605 | | Phillips 66 EBITDA* | 1,298 | 4,592 | 7,724 | | 13,614 | (272) | 941 | 957 | 2,302 | 3,928 | | Special Item Adjustments (pre-tax): | | | | | | | | | | | | Impairments | — | — | — | | — | 198 | — | 1,298 | — | 1,496 | | Certain tax impacts | — | — | — | | — | — | — | — | (11) | (11) | | Pension settlement expense | — | — | — | | — | — | 47 | 20 | 10 | 77 | | Hurricane-related costs | 17 | — | (24) | | (7) | — | — | 11 | 34 | 45 | | Winter-storm-related costs | — | — | — | | — | 46 | 19 | — | (14) | 51 | | Alliance shutdown-related costs | — | 20 | — | | 20 | — | — | — | 31 | 31 | | Regulatory compliance costs | — | 70 | — | | 70 | — | — | — | (88) | (88) | | Restructuring costs | — | 25 | 74 | | 99 | — | — | — | — | — | | Merger transaction costs | — | — | 13 | | 13 | — | — | — | — | — | | Gain related to merger of businesses | — | — | (3,013) | | (3,013) | — | — | — | — | — | | Total Special Item Adjustments (pre-tax) | 17 | 115 | (2,950) | | (2,818) | 244 | 66 | 1,329 | (38) | 1,601 | | Change in Fair Value of NOVONIX Investment** | 158 | 240 | 33 | | 431 | — | — | (224) | (146) | (370) | | Phillips 66 EBITDA, Adjusted for Special Items and Change in Fair Value of NOVONIX Investment* | 1,473 | 4,947 | 4,807 | | 11,227 | (28) | 1,007 | 2,062 | 2,118 | 5,159 | | Other Adjustments (pre-tax): | | | | | | | | | | | | Proportional share of selected equity affiliates income taxes | 37 | 48 | 37 | | 122 | 33 | 57 | 44 | 48 | 182 | | Proportional share of selected equity affiliates net interest | 59 | 53 | 38 | | 150 | 60 | 61 | 59 | 62 | 242 | | Proportional share of selected equity affiliates depreciation and amortization | 201 | 201 | 194 | | 596 | 202 | 202 | 204 | 204 | 812 | | Adjusted EBITDA attributable to noncontrolling interests, excluding PSXP | (24) | (21) | (206) | | (251) | (18) | (20) | (22) | (21) | (81) | | Adjusted EBITDA attributable to public ownership interest in PSXP† | (82) | — | — | | (82) | (83) | (95) | (103) | (112) | (393) | | Phillips 66 Adjusted EBITDA* | 1,664 | 5,228 | 4,870 | | 11,762 | 166 | 1,212 | 2,244 | 2,299 | 5,921 | | * Refer to Change in Basis of Presentation discussion below. | | | | | | | | | | | | ** See NOVONIX Investment table on page 5 for more details. | | | | | | | | | | | | † On March 9, 2022, Phillips 66 Partners LP became a wholly owned subsidiary of Phillips 66. | | | | | | | | | | | | Use of Non-GAAP Financial Information—This earnings release supplemental data includes the terms "EBITDA," "adjusted EBITDA," "realized refining margin per barrel," and "realized marketing fuel margin 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. 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. | | | | | | | | | | | | Changes in Basis of Presentation – In connection with the merger of DCP Midstream and Gray Oak Holdings LLC (Gray Oak Holdings), the results of our Transportation business reflect a decrease in our indirect economic interest in Gray Oak Pipeline, LLC (Gray Oak Pipeline) to 6.5% from August 18, 2022, forward. Prior to August 18, 2022, the Transportation results presented herein reflect Gray Oak Holdings' 65% economic interests in Gray Oak Pipeline. The results of our NGL and Other business include the consolidated results of DCP Midstream Class A Segment, DCP Sand Hills and DCP Southern Hills from August 18, 2022, forward. Prior to August 18, 2022, our investments in DCP Midstream, DCP Sand Hills and DCP Southern Hills were accounted for using the equity method. As a result of the merger and consolidation, in the third quarter of 2022, we began presenting the results of DCP Midstream Class A Segment within the results of our NGL and Other business. Prior periods also have been updated to reflect the results from our equity investment in DCP Midstream prior to August 18, 2022, within the results of our NGL and Other business. In addition, the DCP Midstream Class A Segment's net interest expense is reflected in our Corporate segment from August 18, 2022, forward. See Note 1 and Note 2 in the Notes to the Consolidated Financial Statements of our third quarter 2022 Form 10-Q for further details. | | | | | | | | | | |
Page 14
| Phillips 66 Earnings Release Supplemental Data | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| REALIZED MARGIN NON-GAAP RECONCILIATIONS | |||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| RECONCILIATION OF INCOME (LOSS) BEFORE INCOME TAXES TO REALIZED REFINING MARGINS | |||||||||
| 2021 | |||||||||
| 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | |
| ATLANTIC BASIN/OPE | |||||||||
| Income (loss) before income taxes | 1,093 | 521 | 1,757 | (153) | (110) | 90 | 137 | (36) | |
| Plus: | |||||||||
| Taxes other than income taxes | 14 | 14 | 47 | 20 | 18 | 15 | 16 | 69 | |
| Depreciation, amortization and impairments | 51 | 50 | 153 | 52 | 52 | 52 | 54 | 210 | |
| Selling, general and administrative expenses | 16 | 27 | 57 | 14 | 18 | 19 | 19 | 70 | |
| Operating expenses | 296 | 311 | 903 | 230 | 217 | 239 | 295 | 981 | |
| Equity in losses of affiliates | 2 | 2 | 7 | 2 | 2 | 3 | 2 | 9 | |
| Other segment (income) expense, net | 8 | 2 | 22 | — | (8) | 6 | 11 | 9 | |
| Proportional share of refining gross margins contributed by equity affiliates | 26 | 22 | 71 | 43 | 42 | 19 | 19 | 123 | |
| Special items: | |||||||||
| Certain tax impacts | — | — | — | — | — | — | (4) | (4) | |
| Regulatory compliance costs | 9 | — | 9 | — | — | — | (20) | (20) | |
| Realized refining margins | 1,515 | 949 | 3,026 | 208 | 231 | 443 | 529 | 1,411 | |
| Total processed inputs (MB) | 49,854 | 49,420 | 147,289 | 42,826 | 49,979 | 47,792 | 48,100 | 188,697 | |
| Adjusted total processed inputs (MB) | 49,854 | 49,420 | 147,289 | 42,826 | 49,979 | 47,792 | 48,100 | 188,697 | |
| Income (loss) before income taxes (/BBL)** | 21.92 | 10.54 | 11.93 | (3.57) | (2.20) | 1.88 | 2.85 | (0.19) | |
| Realized refining margins (/BBL)*** | 30.39 | 19.22 | 20.55 | 4.86 | 4.63 | 9.27 | 11.00 | 7.48 | |
| GULF COAST | |||||||||
| Income (loss) before income taxes | 863 | 726 | 1,593 | (253) | (264) | (1,333) | (39) | (1,889) | |
| Plus: | |||||||||
| Taxes other than income taxes | 21 | 18 | 66 | 27 | 25 | 13 | 8 | 73 | |
| Depreciation, amortization and impairments | 64 | 54 | 169 | 77 | 77 | 1,361 | 150 | 1,665 | |
| Selling, general and administrative expenses | 14 | 12 | 37 | 10 | 14 | 15 | 11 | 50 | |
| Operating expenses | 311 | 263 | 881 | 321 | 299 | 312 | 377 | 1,309 | |
| Equity in losses of affiliates | 3 | 1 | 6 | 3 | — | 1 | 7 | 11 | |
| Other segment (income) expense, net | 1 | — | 1 | — | (6) | (1) | — | (7) | |
| Proportional share of refining gross margins contributed by equity affiliates | — | — | — | — | — | — | — | — | |
| Special items: | |||||||||
| Regulatory compliance costs | 26 | — | 26 | — | — | — | (28) | (28) | |
| Realized refining margins | 1,303 | 1,074 | 2,779 | 185 | 145 | 368 | 486 | 1,184 | |
| Total processed inputs (MB) | 52,523 | 50,435 | 155,109 | 54,560 | 69,364 | 64,016 | 52,919 | 240,859 | |
| Adjusted total processed inputs (MB) | 52,523 | 50,435 | 155,109 | 54,560 | 69,364 | 64,016 | 52,919 | 240,859 | |
| Income (loss) before income taxes (/BBL)** | 16.43 | 14.39 | 10.27 | (4.64) | (3.81) | (20.82) | (0.74) | (7.84) | |
| Realized refining margins (/BBL)*** | 24.80 | 21.29 | 17.91 | 3.39 | 2.10 | 5.75 | 9.19 | 4.92 | |
| CENTRAL CORRIDOR | |||||||||
| Income (loss) before income taxes | 490 | 1,342 | 1,697 | (248) | (82) | 229 | 171 | 70 | |
| Plus: | |||||||||
| Taxes other than income taxes | 18 | 16 | 52 | 15 | 11 | 12 | 13 | 51 | |
| Depreciation, amortization and impairments | 36 | 36 | 107 | 34 | 34 | 34 | 37 | 139 | |
| Selling, general and administrative expenses | 13 | 17 | 44 | 7 | 7 | 10 | 8 | 32 | |
| Operating expenses | 264 | 178 | 626 | 205 | 125 | 126 | 191 | 647 | |
| Equity in (earnings) losses of affiliates | (228) | (294) | (506) | 117 | 65 | (31) | 13 | 164 | |
| Other segment (income) expense, net | 2 | 4 | 2 | (2) | (8) | — | (1) | (11) | |
| Proportional share of refining gross margins contributed by equity affiliates | 469 | 517 | 1,191 | 86 | 125 | 201 | 197 | 609 | |
| Special items: | |||||||||
| Regulatory compliance costs | 22 | — | 22 | — | — | — | (27) | (27) | |
| Realized refining margins | 1,086 | 1,816 | 3,235 | 214 | 277 | 581 | 602 | 1,674 | |
| Total processed inputs (MB) | 22,635 | 25,167 | 71,493 | 19,754 | 23,466 | 26,373 | 26,002 | 95,595 | |
| Adjusted total processed inputs (MB)* | 40,629 | 46,857 | 129,753 | 35,711 | 43,189 | 46,592 | 47,738 | 173,230 | |
| Income (loss) before income taxes (/BBL)** | 21.65 | 53.32 | 23.74 | (12.55) | (3.49) | 8.68 | 6.58 | 0.73 | |
| Realized refining margins (/BBL)*** | 26.72 | 38.76 | 24.93 | 5.97 | 6.40 | 12.47 | 12.60 | 9.65 |
All values are in Euros.
Page 15
| Phillips 66 Earnings Release Supplemental Data | | --- || RECONCILIATION OF INCOME (LOSS) BEFORE INCOME TAXES TO REALIZED REFINING MARGINS (continued) | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | Millions of Dollars, Except as Indicated | | | | | | | | | | | | 2022 | | | | | 2021 | | | | | | | 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 | 111 | 590 | 262 | | 963 | (386) | (273) | (112) | 77 | (694) | | Plus: | | | | | | | | | | | | Taxes other than income taxes | 24 | 19 | 31 | | 74 | 23 | 22 | 4 | — | 49 | | Depreciation, amortization and impairments | 60 | 63 | 76 | | 199 | 54 | 57 | 57 | 72 | 240 | | Selling, general and administrative expenses | 9 | 9 | 9 | | 27 | 11 | 10 | 11 | 9 | 41 | | Operating expenses | 305 | 306 | 452 | | 1,063 | 382 | 281 | 266 | 291 | 1,220 | | Other segment (income) expense, net | 1 | — | (1) | | — | 2 | (2) | 2 | 2 | 4 | | Special items: | | | | | | | | | | | | Regulatory compliance costs | — | 13 | — | | 13 | — | — | — | (13) | (13) | | Realized refining margins | 510 | 1,000 | 829 | | 2,339 | 86 | 95 | 228 | 438 | 847 | | Total processed inputs (MB) | 28,877 | 30,199 | 28,897 | | 87,973 | 25,917 | 28,158 | 30,558 | 28,361 | 112,994 | | Adjusted total processed inputs (MB) | 28,877 | 30,199 | 28,897 | | 87,973 | 25,917 | 28,158 | 30,558 | 28,361 | 112,994 | | Income (loss) before income taxes ($/BBL)** | 3.84 | 19.54 | 9.07 | | 10.95 | (14.89) | (9.70) | (3.67) | 2.71 | (6.14) | | Realized refining margins ($/BBL)*** | 17.68 | 33.13 | 28.64 | | 26.58 | 3.33 | 3.37 | 7.46 | 15.41 | 7.49 | | WORLDWIDE | | | | | | | | | | | | Income (loss) before income taxes | 123 | 3,036 | 2,851 | | 6,010 | (1,040) | (729) | (1,126) | 346 | (2,549) | | Plus: | | | | | | | | | | | | Taxes other than income taxes | 88 | 72 | 79 | | 239 | 85 | 76 | 44 | 37 | 242 | | Depreciation, amortization and impairments | 198 | 214 | 216 | | 628 | 217 | 220 | 1,504 | 313 | 2,254 | | Selling, general and administrative expenses | 48 | 52 | 65 | | 165 | 42 | 49 | 55 | 47 | 193 | | Operating expenses | 1,092 | 1,177 | 1,204 | | 3,473 | 1,138 | 922 | 943 | 1,154 | 4,157 | | Equity in (earnings) losses of affiliates | 21 | (223) | (291) | | (493) | 122 | 67 | (27) | 22 | 184 | | Other segment (income) expense, net | 9 | 11 | 5 | | 25 | — | (24) | 7 | 12 | (5) | | Proportional share of refining gross margins contributed by equity affiliates | 228 | 495 | 539 | | 1,262 | 129 | 167 | 220 | 216 | 732 | | Special items: | | | | | | | | | | | | Certain tax impacts | — | — | — | | — | — | — | — | (4) | (4) | | Regulatory compliance costs | — | 70 | — | | 70 | — | — | — | (88) | (88) | | Realized refining margins | 1,807 | 4,904 | 4,668 | | 11,379 | 693 | 748 | 1,620 | 2,055 | 5,116 | | Total processed inputs (MB) | 152,734 | 155,211 | 153,919 | | 461,864 | 143,057 | 170,967 | 168,739 | 155,382 | 638,145 | | Adjusted total processed inputs (MB)* | 171,310 | 173,205 | 175,609 | | 520,124 | 159,014 | 190,690 | 188,958 | 177,118 | 715,780 | | Income (loss) before income taxes ($/BBL)** | 0.81 | 19.56 | 18.52 | | 13.01 | (7.27) | (4.26) | (6.67) | 2.23 | (3.99) | | Realized refining margins ($/BBL)*** | 10.55 | 28.31 | 26.58 | | 21.88 | 4.36 | 3.92 | 8.57 | 11.60 | 7.15 | | * 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. | | | | | | | | | | |
Page 16
| Phillips 66 Earnings Release Supplemental Data | | --- || RECONCILIATION OF INCOME BEFORE INCOME TAXES TO REALIZED MARKETING FUEL MARGINS | | | | | | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | Millions of Dollars, Except as Indicated | | | | | | | | | | | | | | | | | | | | | 2022 | | | | | | | | | 2021 | | | | | | | | | | | | 1st Qtr | | 2nd Qtr | | 3rd Qtr | | 4th Qtr | YTD | | 1st Qtr | | 2nd Qtr | | 3rd Qtr | | 4th Qtr | | YTD | | | UNITED STATES | | | | | | | | | | | | | | | | | | | | | Income before income taxes | 191 | | 489 | | 368 | | | 1,048 | | 199 | | 366 | | 354 | | 261 | | 1,180 | | | Plus: | | | | | | | | | | | | | | | | | | | | | Depreciation and amortization | 3 | | 3 | | 4 | | | 10 | | 3 | | 5 | | 3 | | 3 | | 14 | | | Selling, general and administrative expenses | 182 | | 210 | | 218 | | | 610 | | 165 | | 198 | | 201 | | 194 | | 758 | | | Equity in earnings of affiliates | (7) | | (16) | | (30) | | | (53) | | (2) | | (15) | | (18) | | (13) | | (48) | | | Other operating revenues* | (107) | | (139) | | (141) | | | (387) | | (86) | | (110) | | (120) | | (108) | | (424) | | | Other expense, net | 6 | | 6 | | 6 | | | 18 | | 4 | | 2 | | 2 | | 1 | | 9 | | | Realized marketing fuel margins | 268 | | 553 | | 425 | | | 1,246 | | 283 | | 446 | | 422 | | 338 | | 1,489 | | | Total fuel sales volumes (MB) | 169,196 | | 170,899 | | 170,473 | | | 510,568 | | 145,794 | | 170,228 | | 183,332 | | 180,748 | | 680,102 | | | Income before income taxes ($/BBL) | 1.13 | | 2.86 | | 2.16 | | | 2.05 | | 1.36 | | 2.15 | | 1.93 | | 1.44 | | 1.74 | | | Realized marketing fuel margins ($/BBL)** | 1.59 | | 3.24 | | 2.49 | | | 2.44 | | 1.94 | | 2.62 | | 2.29 | | 1.87 | | 2.19 | | | INTERNATIONAL | | | | | | | | | | | | | | | | | | | | | Income before income taxes | 23 | | 185 | | 334 | | | 542 | | 48 | | 48 | | 128 | | 179 | | 403 | | | Plus: | | | | | | | | | | | | | | | | | | | | | Depreciation and amortization | 18 | | 19 | | 17 | | | 54 | | 19 | | 19 | | 18 | | 20 | | 76 | | | Selling, general and administrative expenses | 63 | | 62 | | 59 | | | 184 | | 60 | | 60 | | 64 | | 69 | | 253 | | | Equity in earnings of affiliates | (26) | | (32) | | (31) | | | (89) | | (24) | | (31) | | (30) | | (28) | | (113) | | | Other operating (revenues) expenses* | (12) | | (9) | | (35) | | | (56) | | (5) | | (10) | | 9 | | 14 | | 8 | | | Other (income) expense, net | 4 | | (3) | | (3) | | | (2) | | 1 | | — | | 2 | | 4 | | 7 | | | Marketing margins | 70 | | 222 | | 341 | | | 633 | | 99 | | 86 | | 191 | | 258 | | 634 | | | Less: margin for nonfuel related sales | 13 | | 14 | | 12 | | | 39 | | 13 | | 15 | | 13 | | 12 | | 53 | | | Realized marketing fuel margins | 57 | | 208 | | 329 | | | 594 | | 86 | | 71 | | 178 | | 246 | | 581 | | | Total fuel sales volumes (MB) | 24,926 | | 25,329 | | 26,501 | | | 76,756 | | 21,474 | | 24,539 | | 26,427 | | 25,089 | | 97,529 | | | Income before income taxes ($/BBL) | 0.92 | | 7.30 | | 12.60 | | | 7.06 | | 2.24 | | 1.96 | | 4.84 | | 7.13 | | 4.13 | | | Realized marketing fuel margins ($/BBL)** | 2.30 | | 8.20 | | 12.40 | | | 7.73 | | 4.01 | | 2.89 | | 6.75 | | 9.81 | | 5.96 | | | * Includes other nonfuel revenues and expenses. | | | | | | | | | | | | | | | | | | | | | ** 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. | | | | | | | | | | | | | | | | | | | | | ADJUSTED EFFECTIVE TAX RATE NON-GAAP RECONCILIATION | | | | | | | | | | | | | | | | | | | | | RECONCILIATION OF EFFECTIVE TAX RATE TO ADJUSTED EFFECTIVE TAX RATE | | | | | | | | | | | | | | | | | | | | | | Millions of Dollars, Except as Indicated | | | | | | | | | | | | | | | | | | | | | 2022 | | | | | | | | | 2021 | | | | | | | | | | | | 1st Qtr | | 2nd Qtr | | 3rd Qtr | | 4th Qtr | YTD | | 1st Qtr | | 2nd Qtr | | 3rd Qtr | | 4th Qtr | | YTD | | | EFFECTIVE TAX RATES | | | | | | | | | | | | | | | | | | | | | Income (loss) before income taxes | 828 | | 4,106 | | 7,158 | | | 12,092 | | (771) | | 436 | | 448 | | 1,627 | | 1,740 | | | Special items | 17 | | 121 | | (2,950) | | | (2,812) | | 244 | | 66 | | 1,329 | | 123 | | 1,762 | | | Adjusted income (loss) before income taxes | 845 | | 4,227 | | 4,208 | | | 9,280 | | (527) | | 502 | | 1,777 | | 1,750 | | 3,502 | | | Income tax expense (benefit) | 171 | | 924 | | 1,618 | | | 2,713 | | (132) | | 62 | | (40) | | 256 | | 146 | | | Special items | 4 | | 3 | | (681) | | | (674) | | 48 | | 33 | | 326 | | 98 | | 505 | | | Adjusted income tax expense (benefit) | 175 | | 927 | | 937 | | | 2,039 | | (84) | | 95 | | 286 | | 354 | | 651 | | | Effective tax rate (%) | 20.7 | % | 22.5 | % | 22.6 | % | | 22.4 | % | 17.1 | % | 14.2 | % | (8.9) | % | 15.7 | % | 8.4 | % | | Adjusted effective tax rate (%) | 20.7 | % | 21.9 | % | 22.3 | % | | 22.0 | % | 15.9 | % | 18.9 | % | 16.1 | % | 20.2 | % | 18.6 | % |
Page 17