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
January 31, 2023
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 January 31, 2023, Phillips 66 issued a press release announcing the company's financial and operating results for the quarter ended December 31, 2022. A copy of the press release is furnished as Exhibit 99.1 hereto and incorporated herein by reference. Additional financial and operating information about the quarter is furnished as Exhibit 99.2 hereto and incorporated herein by reference.
The information in this report and the exhibits attached hereto shall not be deemed to be “filed” for purposes of the Securities Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, regardless of any general incorporation language in such filing.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
| 99.1 | — | Press release issued by Phillips 66 on January 31, 2023 |
|---|---|---|
| 99.2 | — | 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: January 31, 2023
2
Document
| Exhibit 99.1 |
|---|
Phillips 66 Reports Fourth-Quarter 2022 Financial Results
Fourth Quarter
•Reported fourth-quarter earnings of $1.9 billion or $3.97 per share; adjusted earnings of $1.9 billion or $4.00 per share
•Generated $4.8 billion of operating cash flow
•Returned $1.2 billion to shareholders through dividends and share repurchases
•Authorized $5 billion increase to the share repurchase program
•Approved $2 billion 2023 capital program
•CPChem made final investment decisions on world-scale petrochemical projects
•Recently reached agreement to acquire all publicly held common units of DCP Midstream, LP
Full-Year 2022
•Reported 2022 earnings of $11.0 billion or $23.27 per share; adjusted earnings of $8.9 billion or $18.79 per share
•Generated $10.8 billion of operating cash flow
•Paid down $2.4 billion of debt and redeemed $500 million of DCP Midstream, LP’s preferred units
•Returned $3.3 billion to shareholders through dividends and share repurchases
•Increased quarterly dividend 5% to $0.97 per common share
HOUSTON, Jan. 31, 2023 – Phillips 66 (NYSE: PSX), a diversified energy company, announces fourth-quarter 2022 earnings of $1.9 billion, compared with earnings of $5.4 billion in the third quarter of 2022. Excluding special items of $15 million, the company had adjusted earnings of $1.9 billion in the fourth quarter, compared with third-quarter adjusted earnings of $3.1 billion.
“Our integrated portfolio positioned us to generate robust earnings and cash flow in 2022, supported by a favorable market environment, solid operations and strong safety performance,” said Mark Lashier, President and CEO of Phillips 66. “During 2022 we increased shareholder distributions and strengthened our balance sheet by repaying debt. Since July 2022, we have returned $2.4 billion to shareholders through share repurchases and dividends as we progress toward our commitment to return $10 billion to $12 billion by year-end 2024.
“We are focused on safely and reliably providing energy to meet the world’s growing energy needs. We are on track to deliver $1 billion of annualized savings by year-end 2023. In addition, we continue to grow our NGL business with the integration of DCP Midstream and recently reached an agreement to acquire all public common units. We remain committed to operating excellence and disciplined capital allocation as we execute our strategic priorities.”
Page 1
Phillips 66 Reports Fourth-Quarter 2022 Financial Results
Segment Results
During the fourth quarter, we made certain changes to the composition of our Midstream, Refining and Marketing and Specialties segments to align with how our chief executive officer evaluates results and allocates resources. Prior period results for the affected segments and business lines have been recast for comparability. See the Basis of Presentation section below for further information.
Midstream
| Millions of Dollars | |||||
|---|---|---|---|---|---|
| Pre-Tax Income | Adjusted Pre-Tax Income | ||||
| Q4 2022 | Q3 2022 | Q4 2022 | Q3 2022 | ||
| Transportation | $ | 237 | 411 | 237 | 229 |
| NGL and Other | 430 | 3,230 | 448 | 412 | |
| NOVONIX | (11) | (33) | (11) | (33) | |
| Midstream | $ | 656 | 3,608 | 674 | 608 |
Midstream fourth-quarter 2022 pre-tax income was $656 million, compared with $3.6 billion in the third quarter of 2022. Midstream results in the fourth quarter included restructuring costs of $18 million related to the integration of DCP Midstream, LP and its general partner entities (collectively referred to as “DCP Midstream”), while third-quarter included a net gain of $3 billion related to the consolidation of DCP Midstream, DCP Sand Hills Pipeline, LLC, and DCP Southern Hills Pipeline, LLC, and the transfer of interest in Gray Oak Pipeline LLC, as a result of the merger of DCP Midstream, LLC, and Gray Oak Holdings, LLC, effective August 17, 2022.
Transportation fourth-quarter adjusted pre-tax income was $237 million, compared with adjusted pre-tax income of $229 million in the third quarter.
NGL and Other adjusted pre-tax income was $448 million in the fourth quarter, compared with adjusted pre-tax income of $412 million in the third quarter. The increase was mainly driven by higher fractionation volumes, as well as a full quarter of consolidated results of DCP Midstream, DCP Sand Hills Pipeline, LLC, and DCP Southern Hills Pipeline, LLC.
In the fourth quarter, the fair value of the company’s investment in NOVONIX, Ltd., decreased by $11 million compared with a $33 million decrease in the third quarter.
Chemicals
| Millions of Dollars | |||||
|---|---|---|---|---|---|
| Pre-Tax Income | Adjusted Pre-Tax Income | ||||
| Q4 2022 | Q3 2022 | Q4 2022 | Q3 2022 | ||
| Chemicals | $ | 52 | 135 | 52 | 135 |
The Chemicals segment reflects Phillips 66’s equity investment in Chevron Phillips Chemical Company LLC (CPChem). Chemicals fourth-quarter 2022 reported and adjusted pre-tax income was $52 million, compared with $135 million in the third quarter of 2022. This decrease was mainly due to lower margins and volumes, partially offset by decreased utilities costs and the impact of third-quarter legal accruals. Global olefins and polyolefins utilization was 83% for the quarter.
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Phillips 66 Reports Fourth-Quarter 2022 Financial Results
Refining
| Millions of Dollars | |||||
|---|---|---|---|---|---|
| Pre-Tax Income | Adjusted Pre-Tax Income | ||||
| Q4 2022 | Q3 2022 | Q4 2022 | Q3 2022 | ||
| Refining | $ | 1,640 | 2,907 | 1,626 | 2,883 |
Refining fourth-quarter 2022 pre-tax income was $1.6 billion, compared with pre-tax income of $2.9 billion in the third quarter of 2022. Refining results included hurricane-related insurance recovery benefits of $14 million and $24 million in the fourth quarter and third quarter, respectively.
Adjusted pre-tax income for Refining was $1.6 billion in the fourth quarter, compared with adjusted pre-tax income of $2.9 billion in the third quarter. The decrease was due primarily to lower realized margins. Realized margins declined from $26.87 per barrel in the third quarter to $19.73 per barrel in the fourth quarter mainly due to lower market crack spreads and clean product differentials. The global market crack spread, excluding RIN costs, decreased from $28.18 per barrel in the third quarter to $23.58 per barrel in the fourth quarter.
Pre-tax turnaround costs for the fourth quarter were $236 million. Crude utilization rate was 91% and clean product yield was 86%.
Marketing and Specialties
| Millions of Dollars | |||||
|---|---|---|---|---|---|
| Pre-Tax Income | Adjusted Pre-Tax Income | ||||
| Q4 2022 | Q3 2022 | Q4 2022 | Q3 2022 | ||
| Marketing and Specialties | $ | 539 | 828 | 539 | 828 |
Marketing and Specialties fourth-quarter 2022 reported and adjusted pre-tax income was $539 million, compared with $828 million in the third quarter of 2022, mainly due to lower domestic and international marketing margins.
Corporate and Other
| Millions of Dollars | |||||
|---|---|---|---|---|---|
| Pre-Tax Loss | Adjusted Pre-Tax Loss | ||||
| Q4 2022 | Q3 2022 | Q4 2022 | Q3 2022 | ||
| Corporate and Other | $ | (340) | (320) | (280) | (246) |
Corporate and Other fourth-quarter 2022 pre-tax costs were $340 million, compared with pre-tax costs of $320 million in the third quarter of 2022. Pre-tax costs included $60 million and $74 million of net restructuring costs related to business transformation in the fourth quarter and third quarter, respectively.
Adjusted pre-tax costs were $280 million in fourth-quarter 2022. The increase in the fourth quarter was mainly due to a transfer tax on a foreign entity reorganization, as well as higher employee-related expenses and net interest expense.
Page 3
Phillips 66 Reports Fourth-Quarter 2022 Financial Results
Financial Position, Liquidity and Return of Capital
Phillips 66 generated $4.8 billion in cash from operations in the fourth quarter of 2022. Excluding working capital impacts, operating cash flow was $2.7 billion.
During the quarter, Phillips 66 repaid $500 million of senior notes due April 2023 and DCP Midstream, LP redeemed its $500 million Series A preferred units. The company funded $753 million of share repurchases, $456 million in dividends and $713 million of capital expenditures and investments. The company ended the quarter with 466 million shares outstanding.
As of Dec. 31, 2022, the company had $12.8 billion of liquidity, reflecting $6.1 billion of cash and cash equivalents and committed capacity available of approximately $5.0 billion under Phillips 66’s revolving credit facility and approximately $1.7 billion under DCP Midstream, LP’s revolving credit and accounts receivable facilities. The company’s consolidated debt-to-capital ratio was 34% and its net debt-to-capital ratio was 24%.
Strategic Update
Phillips 66 continues to progress the priorities outlined at its recent investor day to increase shareholder value.
During the second half of 2022, the company returned $2.4 billion to shareholders through share repurchases and dividends, progressing toward its target of $10 billion to $12 billion in shareholder distributions between July 2022 and year-end 2024.
The recently announced $2 billion capital program includes a $200 million reduction of sustaining capital as part of our business transformation. In addition, Phillips 66 achieved over $300 million of run rate cost savings at the end of 2022 and is on track to deliver $800 million of run rate cost savings by the end of 2023.
In Midstream, Phillips 66 is executing its NGL growth strategy to enhance its wellhead-to-market value chain. In January 2023, Phillips 66 reached an agreement to acquire all publicly held common units of DCP Midstream, LP in exchange for cash. The transaction is expected to close in the second quarter of 2023 and will increase the company’s economic interest in DCP Midstream, LP to 86.8%. The total increase in the company’s economic interest in DCP Midstream, LP, including the company’s increased economic interest from the previously announced merger transaction, is expected to generate an incremental $1.0 billion of annual adjusted EBITDA. In addition, Phillips 66 expects to capture over $300 million of commercial and operating synergies.
Additionally, the company completed Frac 4 at the end of the third quarter, achieving full rates in early October. Frac 4 added 150,000 BPD, bringing the Sweeny Hub fractionation nameplate capacity to 550,000 BPD. Sweeny is the second largest fractionation hub in the U.S.
In Chemicals, CPChem and QatarEnergy reached a final investment decision in the fourth quarter of 2022 to construct an $8.5 billion integrated polymers facility on the U.S. Gulf Coast. CPChem owns a 51% equity share in the joint venture and QatarEnergy owns 49%. The Golden Triangle Polymers facility will include a 4.6 billion pounds per year ethane cracker and two high-density polyethylene units with a combined capacity of 4.4 billion pounds per year. Operations are expected to begin in 2026.
Page 4
Phillips 66 Reports Fourth-Quarter 2022 Financial Results
In January 2023, CPChem and QatarEnergy announced a final investment decision to construct a $6.0 billion integrated polymers complex in Ras Laffan, Qatar. The joint venture is owned 70% by QatarEnergy and 30% by CPChem. The Ras Laffan Petrochemical facility is expected to start up in late 2026 and will include a 4.6 billion pounds per year ethane cracker and two high-density polyethylene units with a total capacity of 3.7 billion pounds per year.
CPChem continues to pursue a portfolio of additional high-return growth projects including construction of a second world-scale unit to produce 1-hexene in Old Ocean, Texas, and the expansion of propylene splitter capacity at its Cedar Bayou facility. Both projects are expected to start up in the second half of 2023.
Phillips 66 is focused on improving refining operations to increase crude capacity availability, enhance market capture and reduce costs. In addition, the company is converting its San Francisco Refinery in Rodeo, California, into one of the world’s largest renewable fuels facilities. The Rodeo Renewed refinery conversion project is expected to begin commercial operations in the first quarter of 2024. Upon completion, the facility will have over 50,000 BPD (800 million gallons per year) of renewable fuel production capacity. The conversion will reduce emissions from the facility and produce lower carbon-intensity transportation fuels.
Page 5
Phillips 66 Reports Fourth-Quarter 2022 Financial Results
Investor Webcast
Later today, members of Phillips 66 executive management will host a webcast at noon EST to discuss the company’s fourth-quarter performance and provide an update on strategic initiatives. To access the webcast and view related presentation materials, go to phillips66.com/investors and click on “Events & Presentations.” For detailed supplemental information, go to phillips66.com/supplemental.
| Earnings | ||||||
|---|---|---|---|---|---|---|
| Millions of Dollars | ||||||
| 2022 | 2021 | |||||
| Q4 | Q3 | Year | Q4 | Year | ||
| Midstream | $ | 656 | 3,608 | 4,734 | 559 | 1,500 |
| Chemicals | 52 | 135 | 856 | 436 | 1,844 | |
| Refining | 1,640 | 2,907 | 7,816 | 408 | (2,353) | |
| Marketing and Specialties | 539 | 828 | 2,402 | 470 | 1,723 | |
| Corporate and Other | (340) | (320) | (1,169) | (246) | (974) | |
| Pre-Tax Income | 2,547 | 7,158 | 14,639 | 1,627 | 1,740 | |
| Less: Income tax expense | 535 | 1,618 | 3,248 | 256 | 146 | |
| Less: Noncontrolling interests | 128 | 149 | 367 | 98 | 277 | |
| Phillips 66 | $ | 1,884 | 5,391 | 11,024 | 1,273 | 1,317 |
| Adjusted Earnings | ||||||
| Millions of Dollars | ||||||
| 2022 | 2021 | |||||
| Q4 | Q3 | Year | Q4 | Year | ||
| Midstream | $ | 674 | 608 | 1,752 | 634 | 1,792 |
| Chemicals | 52 | 135 | 856 | 424 | 1,899 | |
| Refining | 1,626 | 2,883 | 7,891 | 466 | (948) | |
| Marketing and Specialties | 539 | 828 | 2,402 | 471 | 1,729 | |
| Corporate and Other | (280) | (246) | (1,010) | (245) | (970) | |
| Pre-Tax Income | 2,611 | 4,208 | 11,891 | 1,750 | 3,502 | |
| Less: Income tax expense | 574 | 937 | 2,613 | 354 | 651 | |
| Less: Noncontrolling interests | 138 | 149 | 377 | 98 | 330 | |
| Phillips 66 | $ | 1,899 | 3,122 | 8,901 | 1,298 | 2,521 |
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Phillips 66 Reports Fourth-Quarter 2022 Financial Results
About Phillips 66
Phillips 66 (NYSE: PSX) manufactures, transports and markets products that drive the global economy. The diversified energy company’s portfolio includes Midstream, Chemicals, Refining, and Marketing and Specialties businesses. Headquartered in Houston, Phillips 66 has employees around the globe who are committed to safely and reliably providing energy and improving lives while pursuing a lower-carbon future. For more information, visit phillips66.com or follow @Phillips66Co on LinkedIn or Twitter.
# # -
| CONTACTS | ||
|---|---|---|
| Jeff Dietert (investors) | Owen Simpson (investors) | Thaddeus Herrick (media) |
| 832-765-2297 | 832-765-2297 | 855-841-2368 |
| jeff.dietert@p66.com | owen.simpson@p66.com | thaddeus.f.herrick@p66.com |
CAUTIONARY STATEMENT FOR THE PURPOSES OF THE “SAFE HARBOR” PROVISIONS
OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995
This news release contains forward-looking statements within the meaning of the federal securities laws. Words such as “anticipated,” “estimated,” “expected,” “planned,” “scheduled,” “targeted,” “believe,” “continue,” “intend,” “will,” “would,” “objective,” “goal,” “project,” “efforts,” “strategies” and similar expressions that convey the prospective nature of events or outcomes generally indicate forward-looking statements. However, the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements included in this news release are based on management’s expectations, estimates and projections as of the date they are made. These statements are not guarantees of future performance and you should not unduly rely on them as they involve certain risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecast in such forward-looking statements. Factors that could cause actual results or events to differ materially from those described in the forward-looking statements include: the effects of any widespread public health crisis and its negative impact on commercial activity and demand for refined petroleum products; the inability to timely obtain or maintain permits necessary for capital projects; changes to worldwide government policies relating to renewable fuels and greenhouse gas emissions that adversely affect programs like the renewable fuel standards program, low carbon fuel standards and tax credits for biofuels; fluctuations in NGL, crude oil, and natural gas prices, and petrochemical and refining margins; our ability to consummate the pending acquisition of the outstanding public common units of DCP Midstream, LP and the timing and cost associated therewith; our ability to achieve the expected benefits of the integration of DCP Midstream, LP and from the pending acquisition, if consummated; the diversion of management’s time on transaction and integration-related matters; the success of the company’s business transformation initiatives and the realization of savings from actions taken in connection therewith; unexpected changes in costs for constructing, modifying or operating our facilities; unexpected difficulties in manufacturing, refining or transporting our products; the level and success of drilling and production volumes around our midstream assets; risks and uncertainties with respect to the actions of actual or potential competitive suppliers and transporters of refined petroleum products, renewable fuels or specialty products; lack of, or disruptions in, adequate and reliable transportation for our NGL, crude oil, natural gas, and refined products; potential liability from litigation or for remedial actions, including removal and reclamation obligations under environmental regulations; failure to complete construction of capital projects on time and within budget; the inability to comply with governmental regulations or make capital expenditures to maintain compliance; limited access to capital or significantly higher cost of capital related to illiquidity or uncertainty in the domestic or international financial markets, which may also impact our ability to repurchase shares and declare and pay dividends; potential disruption of our operations due to accidents, weather events, including as a result of climate change, acts of terrorism or cyberattacks; general domestic and international economic and political developments including armed hostilities (including the Russia-Ukraine war), expropriation of assets, and other political, economic or diplomatic developments; international monetary conditions and exchange controls; changes in governmental policies relating to NGL, crude oil, natural gas, refined petroleum products, or renewable fuels pricing, regulation or taxation, including exports; changes in estimates or projections used to assess fair value of intangible assets, goodwill and property and equipment and/or strategic decisions with respect to our asset portfolio that cause impairment charges; investments required, or reduced demand for products, as a result of environmental rules and regulations; changes in tax, environmental and other laws and regulations (including alternative energy mandates); political and societal concerns about climate change that could result in changes to our business or increase expenditures, including litigation-related expenses; the operation, financing and distribution decisions of equity affiliates we do not control; and other economic, business, competitive and/or regulatory factors affecting Phillips 66’s businesses generally as set forth in our filings with the Securities and Exchange Commission. Phillips 66 is under no obligation (and expressly disclaims any such obligation) to update or alter its forward-looking statements, whether as a result of new information, future events or otherwise.
Page 7
Phillips 66 Reports Fourth-Quarter 2022 Financial Results
Use of Non-GAAP Financial Information—This news release includes the terms “adjusted earnings,” “adjusted earnings per share” and “adjusted pre-tax income.” These are non-GAAP financial measures that are included to help facilitate comparisons of operating performance across periods and to help facilitate comparisons with other companies in our industry, by excluding items that do not reflect the core operating results of our businesses in the current period. References in the release to earnings refer to net income attributable to Phillips 66.
This news release also includes the terms “sustaining capital” and “adjusted EBITDA,” which are non-GAAP financial measures. Sustaining capital is a component of total capital expenditures, which is the most directly comparably GAAP financial measure. Adjusted EBITDA, as used in this release, is a forward-looking non-GAAP financial measure. EBITDA is defined as estimated net income plus estimated net interest expense, income taxes, depreciation and amortization. Adjusted EBITDA is defined as estimated EBITDA plus the proportional share of selected equity affiliates’ estimated net interest expense, income taxes, depreciation and amortization less the portion of estimated adjusted EBITDA attributable to noncontrolling interests. Net income is the most directly comparable GAAP financial measure for the consolidated company and income before income taxes is the most directly comparable GAAP financial measure for operating segments. Adjusted EBITDA estimates depend on future levels of revenues and expenses, including amounts that will be attributable to noncontrolling interests, which are not reasonably estimable at this time. Accordingly, we cannot provide a reconciliation between projected adjusted EBITDA to consolidated net income or segment income before income taxes without unreasonable effort.
Basis of Presentation— During the fourth quarter of 2022, we changed the internal financial information reviewed by our chief executive officer to evaluate results and allocate resources to reflect the realignment of certain businesses between segments and business lines. We determined this realignment resulted in a change in the composition of our operating segments. Accordingly, prior period results have been recast for comparability. The primary effects of this realignment included moving the results of certain processing assets at our Sweeny and Lake Charles refineries from the Midstream segment (NGL and Other) to the Refining segment. Additionally, commissions charged to the Refining segment by the Marketing and Specialties segment related to sales of specialty products were eliminated and the costs of the sales organization were reclassified from the Marketing and Specialties segment to the Refining segment. Additionally, we no longer present disaggregated business line results for our Chemicals and Marketing and Specialties segments.
Page 8
Phillips 66 Reports Fourth-Quarter 2022 Financial Results
| Millions of Dollars | ||||||
|---|---|---|---|---|---|---|
| Except as Indicated | ||||||
| 2022 | 2021 | |||||
| Q4 | Q3 | Year | Q4 | Year | ||
| Reconciliation of Consolidated Earnings to Adjusted Earnings | ||||||
| Consolidated Earnings | $ | 1,884 | 5,391 | 11,024 | 1,273 | 1,317 |
| Pre-tax adjustments: | ||||||
| Impairments | — | — | — | — | 1,496 | |
| Certain tax impacts | — | — | — | (11) | (11) | |
| Pension settlement expense | — | — | — | 10 | 77 | |
| Hurricane-related costs | (14) | (24) | (21) | 34 | 45 | |
| Winter-storm-related costs | — | — | — | (14) | 51 | |
| Alliance shutdown-related costs1 | — | — | 26 | 192 | 192 | |
| Regulatory compliance costs | — | — | 70 | (88) | (88) | |
| Restructuring costs2 | 78 | 74 | 177 | — | — | |
| Merger transaction costs | — | 13 | 13 | — | — | |
| Gain on consolidation | — | (3,013) | (3,013) | — | — | |
| Tax impact of adjustments3 | (14) | 681 | 635 | (33) | (420) | |
| Other tax impacts | (25) | — | — | (65) | (85) | |
| Noncontrolling interests | (10) | — | (10) | — | (53) | |
| Adjusted earnings | $ | 1,899 | 3,122 | 8,901 | 1,298 | 2,521 |
| Earnings per share of common stock (dollars) | $ | 3.97 | 11.16 | 23.27 | 2.88 | 2.97 |
| Adjusted earnings per share of common stock (dollars)4 | $ | 4.00 | 6.46 | 18.79 | 2.94 | 5.70 |
| Reconciliation of Segment Pre-Tax Income (Loss) to Adjusted Pre-Tax Income (Loss) | ||||||
| Midstream Pre-Tax Income | $ | 656 | 3,608 | 4,734 | 559 | 1,500 |
| Pre-tax adjustments: | ||||||
| Impairments | — | — | — | — | 208 | |
| Pension settlement expense | — | — | — | 1 | 8 | |
| Hurricane-related costs | — | — | — | 4 | 4 | |
| Winter-storm-related costs | — | — | — | — | 2 | |
| Alliance shutdown-related costs1 | — | — | — | 70 | 70 | |
| Merger transaction costs | — | 13 | 13 | — | — | |
| Gain on consolidation | — | (3,013) | (3,013) | — | — | |
| Restructuring costs2 | 18 | — | 18 | — | — | |
| Adjusted pre-tax income | $ | 674 | 608 | 1,752 | 634 | 1,792 |
| Chemicals Pre-Tax Income | $ | 52 | 135 | 856 | 436 | 1,844 |
| Pre-tax adjustments: | ||||||
| Pension settlement expense | — | — | — | 2 | 22 | |
| Hurricane-related costs | — | — | — | — | 1 |
Page 9
Phillips 66 Reports Fourth-Quarter 2022 Financial Results
| Winter-storm-related costs | — | — | (14) | 32 | |
|---|---|---|---|---|---|
| Adjusted pre-tax income | 52 | 135 | 856 | 424 | 1,899 |
| Refining Pre-Tax Income (Loss) | 1,640 | 2,907 | 7,816 | 408 | (2,353) |
| Pre-tax adjustments: | |||||
| Impairments | — | — | — | 1,288 | |
| Certain tax impacts | — | — | (11) | (11) | |
| Pension settlement expense | — | — | 5 | 37 | |
| Hurricane-related costs | (24) | (21) | 30 | 40 | |
| Winter-storm-related costs | — | — | — | 17 | |
| Alliance shutdown-related costs1 | — | 26 | 122 | 122 | |
| Regulatory compliance costs | — | 70 | (88) | (88) | |
| Adjusted pre-tax income (loss) | 1,626 | 2,883 | 7,891 | 466 | (948) |
| Marketing and Specialties Pre-Tax Income | 539 | 828 | 2,402 | 470 | 1,723 |
| Pre-tax adjustments: | |||||
| Pension settlement expense | — | — | 1 | 6 | |
| Adjusted pre-tax income | 539 | 828 | 2,402 | 471 | 1,729 |
| Corporate and Other Pre-Tax Loss | (340) | (320) | (1,169) | (246) | (974) |
| Pre-tax adjustments: | |||||
| Pension settlement expense | — | — | 1 | 4 | |
| Restructuring costs2 | 74 | 159 | — | — | |
| Adjusted pre-tax loss | (280) | (246) | (1,010) | (245) | (970) |
| 1 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. | |||||
| 2 Midstream results in the fourth quarter of 2022 included pre-tax restructuring costs of 18 million related to the integration of DCP Midstream, of which 10 million was attributed to noncontrolling interests. Corporate results for the fourth quarter of 2022 included net pre-tax restructuring costs of 60 million related to Phillips 66’s multi-year business transformation efforts, which includes a held-for-sale asset impairment of 45 million. | |||||
| 3 We generally tax effect taxable U.S.-based special items using a combined federal and state statutory income tax rate of approximately 24%. Taxable special items attributable to foreign locations likewise use a local statutory income tax rate. Nontaxable events reflect zero income tax. These events include, but are not limited to, most goodwill impairments, transactions legislatively exempt from income tax, transactions related to entities for which we have made an assertion that the undistributed earnings are permanently reinvested, or transactions occurring in jurisdictions with a valuation allowance. | |||||
| 4 2022 and Q3 2022 are based on adjusted weighted-average diluted shares of 473,728 thousand and 483,035 thousand, respectively. Other periods are based on the same weighted-average diluted shares outstanding as that used in the GAAP diluted earnings per share calculation. Income allocated to participating securities, if applicable, in the adjusted earnings per share calculation is the same as that used in the GAAP diluted earnings per share calculation. |
All values are in US Dollars.
Page 10
Phillips 66 Reports Fourth-Quarter 2022 Financial Results
| Millions of Dollars | |||
|---|---|---|---|
| Except as Indicated | |||
| December 31, 2022 | |||
| Debt-to-Capital Ratio | |||
| Total Debt | $ | 17,190 | |
| Total Equity | 34,106 | ||
| Debt-to-Capital Ratio | 34 | % | |
| Total Cash | 6,133 | ||
| Net Debt-to-Capital Ratio | 24 | % | |
| Millions of Dollars | |||
| --- | --- | --- | --- |
| Except as Indicated | |||
| 2022 | |||
| Q4 | Q3 | ||
| Realized Refining Margins | |||
| Income before income taxes | $ | 1,640 | 2,907 |
| Plus: | |||
| Taxes other than income taxes | 47 | 80 | |
| Depreciation, amortization and impairments | 238 | 221 | |
| Selling, general and administrative expenses | 47 | 43 | |
| Operating expenses | 1,264 | 1,214 | |
| Equity in earnings of affiliates | (254) | (291) | |
| Other segment (income) expense, net | (29) | 5 | |
| Proportional share of refining gross margins contributed by equity affiliates | 499 | 539 | |
| Special items: | |||
| None | — | — | |
| Realized refining margins | $ | 3,452 | 4,718 |
| Total processed inputs (thousands of barrels) | 154,178 | 153,919 | |
| Adjusted total processed inputs (thousands of barrels)* | 175,033 | 175,609 | |
| Income before income taxes (dollars per barrel)** | $ | 10.64 | 18.89 |
| Realized refining margins (dollars per barrel)*** | $ | 19.73 | 26.87 |
| *Adjusted total processed inputs include our proportional share of processed inputs of an equity affiliate. | |||
| **Income before income taxes divided by total processed inputs. |
Page 11
Document
| Exhibit 99.2 | |||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 | 40,279 | 169,990 | 21,627 | 27,002 | 30,243 | 32,604 | 111,476 | |||||||||||||
| Equity in earnings of affiliates | 685 | 917 | 782 | 584 | 2,968 | 285 | 830 | 982 | 807 | 2,904 | |||||||||||||
| Net gain on dispositions | 1 | — | 1 | 5 | 7 | — | 2 | 9 | 7 | 18 | |||||||||||||
| Other income (loss)** | (143) | (185) | 3,026 | 39 | 2,737 | 15 | 51 | 238 | 150 | 454 | |||||||||||||
| Total Revenues and Other Income | 36,722 | 49,309 | 48,764 | 40,907 | 175,702 | 21,927 | 27,885 | 31,472 | 33,568 | 114,852 | |||||||||||||
| Costs and Expenses | |||||||||||||||||||||||
| Purchased crude oil and products | 33,495 | 42,645 | 38,646 | 35,146 | 149,932 | 20,065 | 25,218 | 27,529 | 29,290 | 102,102 | |||||||||||||
| Operating expenses | 1,340 | 1,431 | 1,612 | 1,728 | 6,111 | 1,380 | 1,175 | 1,166 | 1,426 | 5,147 | |||||||||||||
| Selling, general and administrative expenses | 433 | 488 | 617 | 630 | 2,168 | 408 | 433 | 424 | 479 | 1,744 | |||||||||||||
| Depreciation and amortization | 338 | 359 | 430 | 502 | 1,629 | 356 | 364 | 361 | 524 | 1,605 | |||||||||||||
| Impairments | — | 2 | — | 58 | 60 | 198 | — | 1,298 | 2 | 1,498 | |||||||||||||
| Taxes other than income taxes | 149 | 118 | 133 | 130 | 530 | 139 | 119 | 85 | 67 | 410 | |||||||||||||
| Accretion on discounted liabilities | 6 | 6 | 5 | 6 | 23 | 6 | 6 | 6 | 6 | 24 | |||||||||||||
| Interest and debt expense | 135 | 133 | 158 | 193 | 619 | 146 | 143 | 151 | 141 | 581 | |||||||||||||
| Foreign currency transaction (gains) losses | (2) | 21 | 5 | (33) | (9) | — | (9) | 4 | 6 | 1 | |||||||||||||
| Total Costs and Expenses | 35,894 | 45,203 | 41,606 | 38,360 | 161,063 | 22,698 | 27,449 | 31,024 | 31,941 | 113,112 | |||||||||||||
| Income (loss) before income taxes | 828 | 4,106 | 7,158 | 2,547 | 14,639 | (771) | 436 | 448 | 1,627 | 1,740 | |||||||||||||
| Income tax expense (benefit) | 171 | 924 | 1,618 | 535 | 3,248 | (132) | 62 | (40) | 256 | 146 | |||||||||||||
| Net Income (Loss) | 657 | 3,182 | 5,540 | 2,012 | 11,391 | (639) | 374 | 488 | 1,371 | 1,594 | |||||||||||||
| Less: net income attributable to noncontrolling interests | 75 | 15 | 149 | 128 | 367 | 15 | 78 | 86 | 98 | 277 | |||||||||||||
| Net Income (Loss) Attributable to Phillips 66 | 582 | 3,167 | 5,391 | 1,884 | 11,024 | (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 | 3.99 | 23.36 | (1.49) | 0.66 | 0.91 | 2.89 | 2.97 | |||||||||||||
| Diluted | 1.29 | 6.53 | 11.16 | 3.97 | 23.27 | (1.49) | 0.66 | 0.91 | 2.88 | 2.97 | |||||||||||||
| Weighted-Average Common Shares Outstanding (thousands) | |||||||||||||||||||||||
| Basic | 449,298 | 483,088 | 481,388 | 471,859 | 471,497 | 439,504 | 439,940 | 440,193 | 440,469 | 440,028 | |||||||||||||
| Diluted | 450,011 | 485,035 | 483,036 | 474,327 | 473,731 | 439,504 | 440,396 | 440,368 | 441,584 | 440,364 | |||||||||||||
| Effective tax rate (%) | 20.7 | % | 22.5 | % | 22.6 | % | 21.0 | % | 22.2 | % | 17.1 | % | 14.2 | % | (8.9) | % | 15.7 | % | 8.4 | % | |||
| Adjusted effective tax rate (%) | 20.7 | % | 21.9 | % | 22.3 | % | 22.0 | % | 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* | 212 | 258 | 3,608 | 656 | 4,734 | 57 | 285 | 599 | 559 | 1,500 | | Chemicals | 396 | 273 | 135 | 52 | 856 | 154 | 623 | 631 | 436 | 1,844 | | Refining* | 173 | 3,096 | 2,907 | 1,640 | 7,816 | (1,008) | (679) | (1,074) | 408 | (2,353) | | Marketing and Specialties* | 296 | 739 | 828 | 539 | 2,402 | 277 | 453 | 523 | 470 | 1,723 | | Corporate and Other | (249) | (260) | (320) | (340) | (1,169) | (251) | (246) | (231) | (246) | (974) | | Income (loss) before income taxes | 828 | 4,106 | 7,158 | 2,547 | 14,639 | (771) | 436 | 448 | 1,627 | 1,740 | | Less: income tax expense (benefit) | 171 | 924 | 1,618 | 535 | 3,248 | (132) | 62 | (40) | 256 | 146 | | Net Income (Loss) | 657 | 3,182 | 5,540 | 2,012 | 11,391 | (639) | 374 | 488 | 1,371 | 1,594 | | Less: net income attributable to noncontrolling interests | 75 | 15 | 149 | 128 | 367 | 15 | 78 | 86 | 98 | 277 | | Net Income (Loss) Attributable to Phillips 66 | 582 | 3,167 | 5,391 | 1,884 | 11,024 | (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 | 237 | 994 | 206 | 224 | 254 | 273 | 957 | | NGL and Other* | 92 | 248 | 412 | 448 | 1,200 | 51 | 65 | 134 | 215 | 465 | | NOVONIX** | (158) | (240) | (33) | (11) | (442) | — | — | 224 | 146 | 370 | | Total Midstream | 212 | 258 | 608 | 674 | 1,752 | 257 | 289 | 612 | 634 | 1,792 | | Chemicals | 396 | 273 | 135 | 52 | 856 | 184 | 657 | 634 | 424 | 1,899 | | Refining | | | | | | | | | | | | Atlantic Basin/Europe* | 152 | 1,111 | 530 | 618 | 2,411 | (143) | (100) | 103 | 124 | (16) | | Gulf Coast* | 58 | 958 | 746 | 360 | 2,122 | (225) | (221) | 5 | 120 | (321) | | Central Corridor* | (135) | 513 | 1,343 | 716 | 2,437 | (241) | (75) | 233 | 145 | 62 | | West Coast* | 115 | 610 | 264 | (68) | 921 | (385) | (260) | (105) | 77 | (673) | | Total Refining | 190 | 3,192 | 2,883 | 1,626 | 7,891 | (994) | (656) | 236 | 466 | (948) | | Total Marketing and Specialties* | 296 | 739 | 828 | 539 | 2,402 | 277 | 456 | 525 | 471 | 1,729 | | Corporate and Other | (249) | (235) | (246) | (280) | (1,010) | (251) | (244) | (230) | (245) | (970) | | Adjusted income (loss) before income taxes | 845 | 4,227 | 4,208 | 2,611 | 11,891 | (527) | 502 | 1,777 | 1,750 | 3,502 | | Less: adjusted income tax expense (benefit) | 175 | 927 | 937 | 574 | 2,613 | (84) | 95 | 286 | 354 | 651 | | Adjusted Net Income (Loss) | 670 | 3,300 | 3,271 | 2,037 | 9,278 | (443) | 407 | 1,491 | 1,396 | 2,851 | | Less: adjusted net income attributable to noncontrolling interests | 75 | 15 | 149 | 138 | 377 | 66 | 78 | 88 | 98 | 330 | | Adjusted Net Income (Loss) Attributable to Phillips 66 | 595 | 3,285 | 3,122 | 1,899 | 8,901 | (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 | — | — | — | — | — |
| Restructuring costs** | — | — | (18) | (18) | — | — | — | — | — |
| Total Midstream | — | 3,000 | (18) | 2,982 | (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 | 14 | 21 | — | — | (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 | 14 | (75) | (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) | (60) | (159) | — | — | — | — | — |
| Total Corporate and Other | (25) | (74) | (60) | (159) | — | (2) | (1) | (1) | (4) |
| Total Special Items (Pre-tax) | (121) | 2,950 | (64) | 2,748 | (244) | (66) | (1,329) | (123) | (1,762) |
| Less: Income Tax Expense (Benefit) | |||||||||
| Tax impact of pre-tax special items*** | (28) | 681 | (14) | 635 | (48) | (16) | (323) | (33) | (420) |
| Other tax impacts | 25 | — | (25) | — | — | (17) | (3) | (65) | (85) |
| Total Income Tax Expense (Benefit) | (3) | 681 | (39) | 635 | (48) | (33) | (326) | (98) | (505) |
| Less: Income (Loss) Attributable to Noncontrolling Interests | |||||||||
| Impairments | — | — | — | — | (51) | — | (2) | — | (53) |
| Restructuring costs** | — | — | (10) | (10) | — | — | — | — | — |
| Total Income (Loss) Attributable to Noncontrolling Interests | — | — | (10) | (10) | (51) | — | (2) | — | (53) |
| Total Phillips 66 Special Items (After-tax) | (118) | 2,269 | (15) | 2,123 | (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. | |||||||||
| ** Midstream results in the fourth quarter of 2022 included pre-tax restructuring costs of 18 million related to the integration of DCP Midstream, of which 10 million was attributed to noncontrolling interests. Corporate results for the fourth quarter of 2022 included net pre-tax restructuring costs of 60 million related to Phillips 66’s multi-year business transformation efforts, which includes a held-for-sale asset impairment of 45 million. | |||||||||
| *** 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 | (18) | 2,800 | (1) | (4) | (3) | (5) | (13) |
| NOVONIX | — | — | — | — | — | — | — | — | — |
| Total Midstream | — | 3,000 | (18) | 2,982 | (200) | (4) | (13) | (75) | (292) |
| Refining | |||||||||
| Atlantic Basin/Europe | (9) | — | — | (9) | (1) | (2) | (3) | 23 | 17 |
| Gulf Coast | (52) | 24 | 14 | (31) | (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 | 14 | (75) | (14) | (23) | (1,310) | (58) | (1,405) |
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 | 2,012 | 11,391 | (639) | 374 | 488 | 1,371 | 1,594 | | Depreciation and amortization | 338 | 359 | 430 | 502 | 1,629 | 356 | 364 | 361 | 524 | 1,605 | | Impairments | — | 2 | — | 58 | 60 | 198 | — | 1,298 | 2 | 1,498 | | Accretion on discounted liabilities | 6 | 6 | 5 | 6 | 23 | 6 | 6 | 6 | 6 | 24 | | Deferred income taxes | 142 | 148 | 856 | 174 | 1,320 | (103) | 266 | (453) | 18 | (272) | | Undistributed equity earnings | (100) | (390) | (495) | (323) | (1,308) | 217 | (218) | (77) | (50) | (128) | | Net gain on dispositions | (1) | — | (1) | (5) | (7) | — | (2) | (3) | (2) | (7) | | Gain related to merger of businesses | — | — | (3,013) | — | (3,013) | — | — | — | — | — | | Unrealized investment (gain) loss** | 169 | 221 | 28 | 15 | 433 | — | — | (224) | (141) | (365) | | Other | 40 | 80 | (105) | 202 | 217 | 138 | 120 | 31 | (340) | (51) | | Net working capital changes | (115) | (1,825) | (101) | 2,109 | 68 | 98 | 833 | 776 | 412 | 2,119 | | Net Cash Provided by Operating Activities | 1,136 | 1,783 | 3,144 | 4,750 | 10,813 | 271 | 1,743 | 2,203 | 1,800 | 6,017 | | Cash Flows From Investing Activities | | | | | | | | | | | | Capital expenditures and investments | (370) | (376) | (735) | (713) | (2,194) | (331) | (380) | (552) | (597) | (1,860) | | Return of investments in equity affiliates | 15 | 33 | 30 | 47 | 125 | 58 | 100 | 78 | 31 | 267 | | Proceeds from asset dispositions | 1 | 1 | 1 | 1 | 4 | — | 24 | 2 | 1 | 27 | | Advances/loans—related parties | — | (75) | — | — | (75) | (155) | (90) | (65) | — | (310) | | Collection of advances/loans—related parties | — | 101 | 135 | 426 | 662 | — | — | 1 | 1 | 2 | | Other | (74) | 25 | 32 | 7 | (10) | (39) | (6) | 40 | 7 | 2 | | Net Cash Used in Investing Activities | (428) | (291) | (537) | (232) | (1,488) | (467) | (352) | (496) | (557) | (1,872) | | Cash Flows From Financing Activities | | | | | | | | | | | | Issuance of debt | — | — | — | 453 | 453 | 450 | 15 | (15) | 993 | 1,443 | | Repayment of debt | (24) | (1,457) | (476) | (926) | (2,883) | (925) | (54) | (506) | (1,469) | (2,954) | | Issuance of common stock | 23 | 44 | — | 36 | 103 | 20 | 4 | — | 2 | 26 | | Repurchase of common stock | — | (66) | (694) | (753) | (1,513) | — | — | — | — | — | | Dividends paid on common stock | (404) | (467) | (466) | (456) | (1,793) | (394) | (394) | (394) | (403) | (1,585) | | Distributions to noncontrolling interests | (77) | (24) | (3) | (81) | (185) | (76) | (82) | (81) | (85) | (324) | | Repurchase of noncontrolling interests | — | — | — | (500) | (500) | — | (24) | — | — | (24) | | Other | (30) | (7) | (18) | (15) | (70) | (20) | (7) | (9) | (16) | (52) | | Net Cash Used in Financing Activities | (512) | (1,977) | (1,657) | (2,242) | (6,388) | (945) | (542) | (1,005) | (978) | (3,470) | | Effect of Exchange Rate Changes on Cash and Cash Equivalents | (8) | (41) | (15) | 113 | 49 | (22) | 7 | (12) | (15) | (42) | | Net Change in Cash and Cash Equivalents | 188 | (526) | 935 | 2,389 | 2,986 | (1,163) | 856 | 690 | 250 | 633 | | Cash and cash equivalents at beginning of period | 3,147 | 3,335 | 2,809 | 3,744 | 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 | 6,133 | 6,133 | 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*† | 163 | 105 | 461 | 314 | 1,043 | 100 | 139 | 328 | 166 | 733 | | Chemicals | — | — | — | — | — | — | — | — | — | — | | Refining† | 172 | 221 | 211 | 324 | 928 | 184 | 188 | 158 | 254 | 784 | | Marketing and Specialties | 11 | 19 | 30 | 29 | 89 | 22 | 22 | 28 | 130 | 202 | | Corporate and Other | 24 | 31 | 33 | 46 | 134 | 25 | 31 | 38 | 47 | 141 | | Consolidated Capital Expenditures and Investments | 370 | 376 | 735 | 713 | 2,194 | 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 <br> and investments from August 18, 2022, forward, net of acquired cash. | | | | | | | | | | | | † Refer to Change in Basis of Presentation discussion on page 14. | | | | | | | | | | | | Proportional Share of Selected Equity Affiliates Capital Expenditures and Investments* | | | | | | | | | | | | CPChem (Chemicals) | 113 | 161 | 158 | 269 | 701 | 79 | 72 | 88 | 128 | 367 | | WRB (Refining) | 42 | 47 | 36 | 52 | 177 | 59 | 47 | 61 | 62 | 229 | | Selected Equity Affiliates | 155 | 208 | 194 | 321 | 878 | 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. | | | | | | | | | | |
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| 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 before Income Taxes | | | | | | | | | | | | Transportation* | 278 | 250 | 411 | 237 | 1,176 | 7 | 224 | 244 | 203 | 678 | | NGL and Other* | 92 | 248 | 3,230 | 430 | 4,000 | 50 | 61 | 131 | 210 | 452 | | NOVONIX | (158) | (240) | (33) | (11) | (442) | — | — | 224 | 146 | 370 | | Income before Income Taxes | 212 | 258 | 3,608 | 656 | 4,734 | 57 | 285 | 599 | 559 | 1,500 | | * Refer to Change in Basis of Presentation discussion on page 14. | | | | | | | | | | | | Equity in Earnings of Affiliates | | | | | | | | | | | | Transportation | 154 | 133 | 133 | 125 | 545 | 126 | 120 | 140 | 142 | 528 | | NGL and Other | 73 | 186 | 81 | 31 | 371 | 71 | 52 | 72 | 154 | 349 | | NOVONIX | — | — | — | — | — | — | — | — | — | — | | Total | 227 | 319 | 214 | 156 | 916 | 197 | 172 | 212 | 296 | 877 | | NOVONIX Investment | | | | | | | | | | | | Unrealized Investment Gain (Loss) | (169) | (221) | (28) | (15) | (433) | — | — | 224 | 141 | 365 | | Unrealized Foreign Currency Transaction Gain (Loss) | 11 | (19) | (5) | 4 | (9) | — | — | — | 5 | 5 | | Change in Fair Value of NOVONIX Investment | (158) | (240) | (33) | (11) | (442) | — | — | 224 | 146 | 370 | | Depreciation and Amortization* | | | | | | | | | | | | Transportation | 39 | 43 | 46 | 46 | 174 | 40 | 40 | 45 | 109 | 234 | | NGL and Other** | 50 | 50 | 115 | 179 | 394 | 47 | 47 | 48 | 49 | 191 | | NOVONIX | — | — | — | — | — | — | — | — | — | — | | Total | 89 | 93 | 161 | 225 | 568 | 87 | 87 | 93 | 158 | 425 | | * Excludes D&A of all non-consolidated affiliates. | | | | | | | | | | | | ** Refer to Change in Basis of Presentation discussion on page 14. | | | | | | | | | | | | Operating and SG&A Expenses* | | | | | | | | | | | | Transportation | 186 | 187 | 224 | 217 | 814 | 173 | 189 | 188 | 209 | 759 | | NGL and Other** | 81 | 89 | 281 | 393 | 844 | 96 | 69 | 63 | 88 | 316 | | NOVONIX | — | — | — | — | — | — | — | — | — | — | | Total | 267 | 276 | 505 | 610 | 1,658 | 269 | 258 | 251 | 297 | 1,075 | | * Excludes operating and SG&A expenses of all non-consolidated affiliates. | | | | | | | | | | | | ** Refer to Change in Basis of Presentation discussion on page 14. | | | | | | | | | | | | Transportation Volumes (MB/D) | | | | | | | | | | | | Pipelines* | 3,099 | 3,066 | 3,084 | 3,109 | 3,089 | 2,801 | 3,424 | 3,483 | 3,370 | 3,271 | | Terminals | 2,900 | 2,917 | 3,066 | 3,039 | 2,981 | 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 | 686 | 529 | 363 | 401 | 420 | 454 | 410 | | NGL Production (MB/D)** | 400 | 438 | 434 | 420 | 423 | 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 | 0.76 | 1.00 | 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. | | | | | | | | | | |
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| 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* | 212 | 258 | 3,608 | 656 | 4,734 | 57 | 285 | 599 | 559 | 1,500 | | Plus: | | | | | | | | | | | | Depreciation and amortization | 89 | 93 | 161 | 225 | 568 | 87 | 87 | 93 | 158 | 425 | | EBITDA* | 301 | 351 | 3,769 | 881 | 5,302 | 144 | 372 | 692 | 717 | 1,925 | | 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) | — | — | — | — | — | | Restructuring costs | — | — | — | 18 | 18 | — | — | — | — | — | | Total Special Item Adjustments (pre-tax) | — | — | (3,000) | 18 | (2,982) | 200 | 4 | 13 | 5 | 222 | | Change in Fair Value of NOVONIX Investment** | 158 | 240 | 33 | 11 | 442 | — | — | (224) | (146) | (370) | | EBITDA, Adjusted for Special Items and Change in Fair Value of NOVONIX Investment* | 459 | 591 | 802 | 910 | 2,762 | 344 | 376 | 481 | 576 | 1,777 | | Other Adjustments (pre-tax): | | | | | | | | | | | | Proportional share of selected equity affiliates income taxes | 2 | 4 | 4 | 3 | 13 | 2 | 4 | 4 | 4 | 14 | | Proportional share of selected equity affiliates net interest | 41 | 39 | 26 | 13 | 119 | 43 | 43 | 42 | 41 | 169 | | Proportional share of selected equity affiliates depreciation and amortization | 56 | 57 | 51 | 45 | 209 | 57 | 57 | 58 | 57 | 229 | | Adjusted EBITDA attributable to noncontrolling interests, excluding PSXP | (24) | (21) | (206) | (176) | (427) | (18) | (20) | (22) | (21) | (81) | | Adjusted EBITDA* | 534 | 670 | 677 | 795 | 2,676 | 428 | 460 | 563 | 657 | 2,108 | | * Refer to Change in Basis of Presentation discussion on page 14. | | | | | | | | | | | | ** See NOVONIX Investment table on page 5 for more details. | | | | | | | | | | |
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| 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 | 237 | 1,176 | 7 | 224 | 244 | 203 | 678 | | Plus: | | | | | | | | | | | | Depreciation and amortization | 39 | 43 | 46 | 46 | 174 | 40 | 40 | 45 | 109 | 234 | | EBITDA* | 317 | 293 | 457 | 283 | 1,350 | 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 | 283 | 1,168 | 246 | 264 | 299 | 312 | 1,121 | | Other Adjustments (pre-tax): | | | | | | | | | | | | Proportional share of selected equity affiliates income taxes | 2 | 3 | 4 | 3 | 12 | 2 | 4 | 4 | 4 | 14 | | Proportional share of selected equity affiliates net interest | 21 | 19 | 16 | 13 | 69 | 21 | 21 | 21 | 21 | 84 | | Proportional share of selected equity affiliates depreciation and amortization | 37 | 38 | 34 | 27 | 136 | 37 | 37 | 38 | 38 | 150 | | Adjusted EBITDA attributable to noncontrolling interests, excluding PSXP | (24) | (21) | (11) | (3) | (59) | (18) | (20) | (22) | (21) | (81) | | Adjusted EBITDA* | 353 | 332 | 318 | 323 | 1,326 | 288 | 306 | 340 | 354 | 1,288 | | * Refer to Change in Basis of Presentation discussion on page 14. | | | | | | | | | | | | NGL and Other | | | | | | | | | | | | Income before income taxes* | 92 | 248 | 3,230 | 430 | 4,000 | 50 | 61 | 131 | 210 | 452 | | Plus: | | | | | | | | | | | | Depreciation and amortization | 50 | 50 | 115 | 179 | 394 | 47 | 47 | 48 | 49 | 191 | | EBITDA* | 142 | 298 | 3,345 | 609 | 4,394 | 97 | 108 | 179 | 259 | 643 | | 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) | — | — | — | — | — | | Restructuring costs | — | — | — | 18 | 18 | — | — | — | — | — | | EBITDA, Adjusted for Special Items* | 142 | 298 | 527 | 627 | 1,594 | 98 | 112 | 182 | 264 | 656 | | 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 | 18 | 73 | 20 | 20 | 20 | 19 | 79 | | Adjusted EBITDA attributable to noncontrolling interests, excluding PSXP | — | — | (195) | (173) | (368) | — | — | — | — | — | | Adjusted EBITDA* | 181 | 338 | 359 | 472 | 1,350 | 140 | 154 | 223 | 303 | 820 | | * Refer to Change in Basis of Presentation discussion on page 14. | | | | | | | | | | |
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| 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 | | 52 | | 856 | | 154 | | 623 | | 631 | | 436 | | 1,844 | | | Equity in Earnings of Affiliate | 393 | | 271 | | 129 | | 49 | | 842 | | 152 | | 620 | | 627 | | 433 | | 1,832 | | | 100% CPChem Results | | | | | | | | | | | | | | | | | | | | | | Net Income, excludes parent company income tax related to CPChem's earnings | 764 | | 544 | | 257 | | 97 | | 1,662 | | 304 | | 1,240 | | 1,253 | | 887 | | 3,684 | | | Income before Income Taxes | 787 | | 566 | | 275 | | 106 | | 1,734 | | 320 | | 1,266 | | 1,276 | | 914 | | 3,776 | | | Depreciation and Amortization | 141 | | 144 | | 145 | | 155 | | 585 | | 146 | | 144 | | 151 | | 151 | | 592 | | | Net Interest Expense* | 23 | | 11 | | 12 | | 9 | | 55 | | 22 | | 24 | | 24 | | 24 | | 94 | | | * Net of interest income. | | | | | | | | | | | | | | | | | | | | | | Investing Cash Flows—Outflows/(Inflows) | | | | | | | | | | | | | | | | | | | | | | Capital Expenditures and Investments | 225 | | 322 | | 317 | | 538 | | 1,402 | | 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 | % | 83 | % | 91 | % | 79 | % | 102 | % | 102 | % | 97 | % | 95 | % | | Market Indicators* | | | | | | | | | | | | | | | | | | | | | | U.S. Industry Prices | | | | | | | | | | | | | | | | | | | | | | Ethylene, Average Acquisition Contract (cents/lb) | 39.5 | | 35.0 | | 31.6 | | 26.7 | | 33.2 | | 41.9 | | 41.1 | | 45.6 | | 38.4 | | 41.8 | | | HDPE Blow Molding, Domestic Spot (cents/lb) | 69.8 | | 69.8 | | 52.9 | | 43.3 | | 58.9 | | 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 | | 26.6 | | 21.0 | | 24.4 | | 13.2 | | 12.5 | | 16.1 | | 20.8 | | 15.7 | | | HDPE Blow Molding, Total Cash Cost (cents/lb) | 53.9 | | 49.8 | | 46.6 | | 41.2 | | 47.9 | | 55.7 | | 54.9 | | 59.7 | | 52.8 | | 55.8 | | | Ethylene to High-Density Polyethylene Chain Cash Margin (cents/lb) | 33.4 | | 26.9 | | 11.3 | | 7.9 | | 19.9 | | 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 | | 52 | | 856 | | 154 | | 623 | | 631 | | 436 | | 1,844 | | | Plus: | | | | | | | | | | | | | | | | | | | | | | None | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | | EBITDA | 396 | | 273 | | 135 | | 52 | | 856 | | 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 | | 52 | | 856 | | 184 | | 657 | | 634 | | 424 | | 1,899 | | | Other Adjustments (pre-tax): | | | | | | | | | | | | | | | | | | | | | | Proportional share of selected equity affiliates income taxes | 29 | | 38 | | 25 | | 12 | | 104 | | 28 | | 48 | | 33 | | 35 | | 144 | | | Proportional share of selected equity affiliates net interest | 11 | | 6 | | 5 | | 4 | | 26 | | 11 | | 12 | | 12 | | 13 | | 48 | | | Proportional share of selected equity affiliates depreciation and amortization | 101 | | 103 | | 103 | | 104 | | 411 | | 103 | | 102 | | 102 | | 104 | | 411 | | | Adjusted EBITDA | 537 | | 420 | | 268 | | 172 | | 1,397 | | 326 | | 819 | | 781 | | 576 | | 2,502 | |
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| 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* | 1,102 | 530 | 618 | 2,402 | (144) | (102) | 100 | 147 | 1 |
| Gulf Coast* | 906 | 770 | 374 | 2,091 | (231) | (232) | (1,297) | 1 | (1,759) |
| Central Corridor* | 491 | 1,343 | 716 | 2,415 | (248) | (81) | 230 | 171 | 72 |
| West Coast* | 597 | 264 | (68) | 908 | (385) | (264) | (107) | 89 | (667) |
| Income (Loss) before Income Taxes | 3,096 | 2,907 | 1,640 | 7,816 | (1,008) | (679) | (1,074) | 408 | (2,353) |
| * Refer to Change in Basis of Presentation discussion on page 14. | |||||||||
| Income (Loss) before Income Taxes (/BBL) | |||||||||
| Atlantic Basin/Europe | 22.10 | 10.72 | 11.88 | 12.05 | (3.36) | (2.04) | 2.09 | 3.06 | 0.01 |
| Gulf Coast | 17.25 | 15.27 | 7.77 | 10.29 | (4.23) | (3.34) | (20.26) | 0.02 | (7.30) |
| Central Corridor | 21.69 | 53.36 | 27.01 | 24.64 | (12.55) | (3.45) | 8.72 | 6.58 | 0.75 |
| West Coast | 19.77 | 9.14 | (2.47) | 7.86 | (14.86) | (9.38) | (3.50) | 3.14 | (5.90) |
| Worldwide | 19.95 | 18.89 | 10.64 | 12.69 | (7.05) | (3.97) | (6.36) | 2.63 | (3.69) |
| Realized Refining Margins (/BBL)* | |||||||||
| Atlantic Basin/Europe | 30.39 | 19.22 | 19.58 | 20.30 | 4.86 | 4.63 | 9.27 | 11.00 | 7.48 |
| Gulf Coast | 25.71 | 22.30 | 16.35 | 18.25 | 4.04 | 2.73 | 6.46 | 10.16 | 5.65 |
| Central Corridor | 26.72 | 38.76 | 25.03 | 24.96 | 5.97 | 6.40 | 12.47 | 12.60 | 9.65 |
| West Coast | 33.31 | 28.64 | 16.77 | 24.31 | 3.33 | 3.66 | 7.60 | 15.80 | 7.70 |
| Worldwide | 28.62 | 26.87 | 19.73 | 21.55 | 4.58 | 4.20 | 8.84 | 11.95 | 7.42 |
| * 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) | (2) | (9) | (2) | (2) | (3) | (2) | (9) |
| Gulf Coast | (3) | (1) | (1) | (7) | (3) | — | (1) | (7) | (11) |
| Central Corridor | 228 | 294 | 257 | 763 | (117) | (65) | 31 | (13) | (164) |
| West Coast | — | — | — | — | — | — | — | — | — |
| Total | 223 | 291 | 254 | 747 | (122) | (67) | 27 | (22) | (184) |
| Depreciation and Amortization* | |||||||||
| Atlantic Basin/Europe | 51 | 50 | 49 | 202 | 52 | 52 | 52 | 54 | 210 |
| Gulf Coast** | 67 | 58 | 61 | 242 | 82 | 82 | 77 | 154 | 395 |
| Central Corridor | 36 | 36 | 40 | 147 | 34 | 34 | 34 | 37 | 139 |
| West Coast | 63 | 76 | 76 | 275 | 54 | 57 | 57 | 72 | 240 |
| Total | 217 | 220 | 226 | 866 | 222 | 225 | 220 | 317 | 984 |
| * Excludes D&A of all equity affiliates. | |||||||||
| ** Refer to Change in Basis of Presentation discussion on page 14. | |||||||||
| Operating and SG&A Expenses* | |||||||||
| Atlantic Basin/Europe** | 303 | 329 | 349 | 1,283 | 235 | 227 | 248 | 303 | 1,013 |
| Gulf Coast** | 325 | 277 | 326 | 1,249 | 340 | 318 | 333 | 395 | 1,386 |
| Central Corridor** | 277 | 193 | 204 | 871 | 212 | 132 | 135 | 199 | 678 |
| West Coast** | 314 | 458 | 432 | 1,517 | 392 | 290 | 276 | 299 | 1,257 |
| Total | 1,219 | 1,257 | 1,311 | 4,920 | 1,179 | 967 | 992 | 1,196 | 4,334 |
| * Excludes operating and SG&A expenses of all equity affiliates. | |||||||||
| ** Refer to Change in Basis of Presentation discussion on page 14. | |||||||||
| Turnaround Expense, included in Operating and SG&A Expenses* | |||||||||
| Atlantic Basin/Europe | 22 | 44 | 52 | 131 | 17 | 13 | 32 | 34 | 96 |
| Gulf Coast | 40 | 53 | 101 | 225 | 33 | 9 | 24 | 27 | 93 |
| Central Corridor | 117 | 17 | 17 | 177 | 17 | 36 | 13 | 28 | 94 |
| West Coast | 44 | 111 | 66 | 253 | 125 | 60 | 12 | 17 | 214 |
| Total | 223 | 225 | 236 | 786 | 192 | 118 | 81 | 106 | 497 |
| * Excludes turnaround expense of all equity affiliates. | |||||||||
| Taxes Other than Income Taxes | |||||||||
| Atlantic Basin/Europe | 14 | 14 | 6 | 53 | 20 | 18 | 15 | 16 | 69 |
| Gulf Coast* | 22 | 19 | 19 | 87 | 27 | 26 | 13 | 8 | 74 |
| Central Corridor | 18 | 16 | 5 | 57 | 15 | 11 | 12 | 13 | 51 |
| West Coast | 19 | 31 | 17 | 91 | 23 | 22 | 4 | — | 49 |
| Total | 73 | 80 | 47 | 288 | 85 | 77 | 44 | 37 | 243 |
| * Refer to Change in Basis of Presentation discussion on page 14. | |||||||||
| Foreign Currency Gains (Losses) Pre-Tax | (10) | (5) | 30 | 7 | 1 | 9 | (4) | (10) | (4) |
| Refining—Equity Affiliate Information | |||||||||
| Equity in earnings (losses) of affiliates | 223 | 291 | 254 | 747 | (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) | (499) | (1,761) | (129) | (167) | (220) | (216) | (732) |
| Equity affiliate-related expenses not included in Realized Refining Margins | (272) | (248) | (245) | (1,014) | (251) | (234) | (193) | (238) | (916) |
| Regional Totals | |||||||||
| Atlantic Basin/Europe | (28) | (24) | (24) | (102) | (45) | (44) | (22) | (21) | (132) |
| Gulf Coast | (3) | (1) | (1) | (7) | (3) | — | (1) | (7) | (11) |
| Central Corridor | (241) | (223) | (220) | (905) | (203) | (190) | (170) | (210) | (773) |
| Total | (272) | (248) | (245) | (1,014) | (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* | 3,096 | 2,907 | 1,640 | 7,816 | (1,008) | (679) | (1,074) | 408 | (2,353) | ||||||||||
| Plus: | |||||||||||||||||||
| Depreciation and amortization* | 217 | 220 | 226 | 866 | 222 | 225 | 220 | 317 | 984 | ||||||||||
| EBITDA* | 3,313 | 3,127 | 1,866 | 8,682 | (786) | (454) | (854) | 725 | (1,369) | ||||||||||
| 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) | (14) | (21) | — | — | 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* | 3,403 | 3,103 | 1,852 | 8,751 | (772) | (431) | 456 | 692 | (55) | ||||||||||
| Other Adjustments (pre-tax): | |||||||||||||||||||
| Proportional share of selected equity affiliates income taxes | — | 1 | 1 | 2 | (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 | 24 | 92 | 25 | 26 | 27 | 25 | 103 | ||||||||||
| Adjusted EBITDA* | 3,429 | 3,127 | 1,877 | 8,851 | (747) | (404) | 484 | 724 | 57 | ||||||||||
| * Refer to Change in Basis of Presentation discussion on page 14. | |||||||||||||||||||
| Operating Statistics | |||||||||||||||||||
| Atlantic Basin/Europe* | |||||||||||||||||||
| Crude Oil Charge Input (MB/D) | 526 | 525 | 542 | 524 | 438 | 513 | 487 | 478 | 479 | ||||||||||
| Total Processed Inputs (MB/D) | 548 | 538 | 566 | 546 | 476 | 549 | 519 | 523 | 517 | ||||||||||
| Crude Oil Capacity Utilization (%) | % | 98 | % | 98 | % | 101 | % | 98 | % | 82 | % | 96 | % | 91 | % | 89 | % | 89 | % |
| Clean Product Yield (%) | % | 83 | % | 82 | % | 83 | % | 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 | 473 | 488 | 553 | 687 | 623 | 505 | 592 | ||||||||||
| Total Processed Inputs (MB/D) | 577 | 548 | 523 | 557 | 606 | 762 | 697 | 575 | 660 | ||||||||||
| Crude Oil Capacity Utilization (%) | % | 94 | % | 91 | % | 89 | % | 92 | % | 71 | % | 88 | % | 80 | % | 95 | % | 82 | % |
| Clean Product Yield (%) | % | 79 | % | 81 | % | 81 | % | 79 | % | 73 | % | 78 | % | 78 | % | 80 | % | 77 | % |
| Central Corridor* | |||||||||||||||||||
| Crude Oil Charge Input (MB/D) | 435 | 492 | 497 | 469 | 384 | 462 | 493 | 503 | 461 | ||||||||||
| Total Processed Inputs (MB/D) | 446 | 509 | 515 | 485 | 397 | 475 | 506 | 519 | 474 | ||||||||||
| Crude Oil Capacity Utilization (%) | % | 82 | % | 93 | % | 94 | % | 88 | % | 72 | % | 87 | % | 93 | % | 95 | % | 87 | % |
| Clean Product Yield (%) | % | 87 | % | 88 | % | 91 | % | 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 | 269 | 290 | 268 | 286 | 302 | 278 | 284 | ||||||||||
| Total Processed Inputs (MB/D) | 332 | 314 | 299 | 316 | 288 | 309 | 332 | 308 | 310 | ||||||||||
| Crude Oil Capacity Utilization (%) | % | 84 | % | 80 | % | 74 | % | 80 | % | 74 | % | 79 | % | 83 | % | 76 | % | 78 | % |
| Clean Product Yield (%) | % | 85 | % | 90 | % | 89 | % | 89 | % | 86 | % | 83 | % | 90 | % | 92 | % | 88 | % |
| Worldwide—Including Proportionate Share of Equity Affiliates | |||||||||||||||||||
| Crude Oil Charge Input (MB/D) | 1,767 | 1,788 | 1,781 | 1,771 | 1,643 | 1,948 | 1,905 | 1,764 | 1,816 | ||||||||||
| Total Processed Inputs (MB/D) | 1,903 | 1,909 | 1,903 | 1,904 | 1,767 | 2,095 | 2,054 | 1,925 | 1,961 | ||||||||||
| Crude Oil Capacity Utilization (%) | % | 90 | % | 91 | % | 91 | % | 90 | % | 74 | % | 88 | % | 86 | % | 90 | % | 84 | % |
| Clean Product Yield (%) | % | 83 | % | 85 | % | 86 | % | 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 | 230 | 222 | 220 | 242 | 232 | 237 | 233 |
| Distillates | 216 | 215 | 226 | 217 | 175 | 197 | 188 | 190 | 188 |
| Other | 113 | 114 | 113 | 110 | 87 | 113 | 103 | 101 | 101 |
| Total | 550 | 539 | 569 | 549 | 482 | 552 | 523 | 528 | 522 |
| * Includes our proportionate share of a refinery complex in Karlsruhe, Germany. | |||||||||
| Gulf Coast | |||||||||
| Gasoline | 231 | 223 | 226 | 228 | 219 | 310 | 281 | 243 | 263 |
| Distillates | 206 | 200 | 185 | 196 | 201 | 257 | 235 | 195 | 222 |
| Other | 149 | 134 | 118 | 141 | 183 | 196 | 184 | 146 | 177 |
| Total | 586 | 557 | 529 | 565 | 603 | 763 | 700 | 584 | 662 |
| Central Corridor* | |||||||||
| Gasoline | 211 | 246 | 260 | 238 | 191 | 227 | 255 | 266 | 235 |
| Distillates | 176 | 200 | 206 | 190 | 149 | 183 | 187 | 201 | 180 |
| Other | 59 | 66 | 52 | 59 | 58 | 65 | 68 | 55 | 61 |
| Total | 446 | 512 | 518 | 487 | 398 | 475 | 510 | 522 | 476 |
| * Includes our proportionate share of the Borger Refinery and Wood River Refinery. | |||||||||
| West Coast | |||||||||
| Gasoline | 156 | 158 | 156 | 159 | 138 | 138 | 166 | 170 | 153 |
| Distillates | 126 | 124 | 110 | 121 | 110 | 118 | 131 | 113 | 118 |
| Other | 48 | 30 | 29 | 35 | 40 | 51 | 32 | 26 | 37 |
| Total | 330 | 312 | 295 | 315 | 288 | 307 | 329 | 309 | 308 |
| Worldwide—Including Proportionate Share of Equity Affiliates | |||||||||
| Gasoline | 819 | 837 | 872 | 847 | 768 | 917 | 934 | 916 | 884 |
| Distillates | 724 | 739 | 727 | 724 | 635 | 755 | 741 | 699 | 708 |
| Other | 369 | 344 | 312 | 345 | 368 | 425 | 387 | 328 | 376 |
| Total | 1,912 | 1,920 | 1,911 | 1,916 | 1,771 | 2,097 | 2,062 | 1,943 | 1,968 |
| Market Indicators* | |||||||||
| Crude and Crude Differentials (/BBL) | |||||||||
| WTI | 108.66 | 91.76 | 82.85 | 94.44 | 57.84 | 66.09 | 70.58 | 77.35 | 67.96 |
| Brent | 113.78 | 100.85 | 88.71 | 101.19 | 60.90 | 68.83 | 73.47 | 79.73 | 70.73 |
| LLS | 110.15 | 94.19 | 85.50 | 96.65 | 59.98 | 67.95 | 71.51 | 78.40 | 69.46 |
| ANS | 112.48 | 99.12 | 87.99 | 98.80 | 60.76 | 68.44 | 72.73 | 79.81 | 70.44 |
| WTI less Maya | 4.87 | 7.30 | 11.26 | 7.26 | 1.44 | 3.21 | 4.37 | 5.59 | 3.65 |
| WTI less WCS (settlement differential) | 12.80 | 19.86 | 25.66 | 18.22 | 12.47 | 11.49 | 13.58 | 14.64 | 13.04 |
| Natural Gas (/MMBtu) | |||||||||
| Henry Hub | 7.39 | 7.96 | 5.55 | 6.38 | 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 | 20.39 | 25.17 | 11.73 | 18.61 | 21.15 | 17.90 | 17.35 |
| East Coast Distillate less Brent | 68.16 | 49.04 | 73.13 | 54.68 | 12.09 | 15.24 | 16.07 | 20.47 | 15.97 |
| Gulf Coast | |||||||||
| Gulf Coast Gasoline less LLS | 32.87 | 17.21 | 11.51 | 19.46 | 11.22 | 15.47 | 18.61 | 14.64 | 14.99 |
| Gulf Coast Distillate less LLS | 57.49 | 52.51 | 56.08 | 48.65 | 11.30 | 14.03 | 15.87 | 19.12 | 15.08 |
| Central Corridor | |||||||||
| Central Gasoline less WTI | 36.31 | 27.38 | 14.73 | 23.65 | 14.90 | 19.96 | 20.83 | 13.87 | 17.39 |
| Central Distillate less WTI | 60.45 | 60.24 | 59.20 | 51.80 | 17.24 | 18.40 | 19.38 | 19.73 | 18.69 |
| West Coast | |||||||||
| West Coast Gasoline less ANS | 51.66 | 46.29 | 27.03 | 39.23 | 16.88 | 24.76 | 23.54 | 22.75 | 21.98 |
| West Coast Distillate less ANS | 58.37 | 50.26 | 54.10 | 48.75 | 14.14 | 15.28 | 18.55 | 22.44 | 17.60 |
| Worldwide Market Crack Spread (/BBL)** | 46.72 | 36.29 | 32.12 | 34.26 | 13.23 | 17.76 | 19.44 | 17.93 | 17.09 |
| Renewable Volume Obligation (RVO) Cost in Crack (/BBL) | 7.80 | 8.11 | 8.54 | 7.72 | 5.50 | 8.16 | 7.31 | 6.11 | 6.77 |
| * 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* | 739 | 828 | 539 | 2,402 | 277 | 453 | 523 | 470 | 1,723 |
| * Refer to Change in Basis of Presentation discussion on page 14. | |||||||||
| Income before Income Taxes (/BBL) | |||||||||
| U.S. | 2.86 | 2.16 | 1.65 | 1.95 | 1.36 | 2.15 | 1.93 | 1.44 | 1.74 |
| International | 7.30 | 12.60 | 8.54 | 7.44 | 2.24 | 1.96 | 4.84 | 7.13 | 4.13 |
| Realized Marketing Fuel Margins (/BBL)* | |||||||||
| U.S. | 3.24 | 2.49 | 2.05 | 2.34 | 1.94 | 2.62 | 2.29 | 1.87 | 2.19 |
| International | 8.20 | 12.40 | 9.94 | 8.29 | 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* | 263 | 298 | 180 | 987 | 173 | 176 | 148 | 169 | 666 |
| * Excludes gain on dispositions and excise taxes on sales of refined petroleum products. | |||||||||
| Equity in Earnings of Affiliates | 104 | 148 | 126 | 463 | 58 | 105 | 116 | 100 | 379 |
| Depreciation and Amortization* | 29 | 27 | 27 | 110 | 27 | 30 | 27 | 29 | 113 |
| * Excludes D&A of all equity affiliates. | |||||||||
| Operating and SG&A Expenses*† | 359 | 344 | 336 | 1,357 | 286 | 312 | 307 | 349 | 1,254 |
| * Excludes operating and SG&A expenses of all equity affiliates. | |||||||||
| † Refer to Change in Basis of Presentation discussion on page 14. | |||||||||
| Refined Petroleum Products Sales (MB/D) | |||||||||
| U.S. Marketing | |||||||||
| Gasoline | 1,089 | 1,096 | 1,078 | 1,077 | 960 | 1,095 | 1,098 | 1,142 | 1,074 |
| Distillates | 789 | 757 | 774 | 788 | 660 | 776 | 895 | 822 | 789 |
| Other | — | — | — | — | — | — | — | — | — |
| Total | 1,878 | 1,853 | 1,852 | 1,865 | 1,620 | 1,871 | 1,993 | 1,964 | 1,863 |
| International Marketing | |||||||||
| Gasoline | 87 | 94 | 94 | 90 | 63 | 81 | 91 | 82 | 80 |
| Distillates | 171 | 178 | 170 | 174 | 158 | 171 | 179 | 174 | 170 |
| Other | 19 | 16 | 20 | 18 | 18 | 18 | 17 | 17 | 17 |
| Total | 277 | 288 | 284 | 282 | 239 | 270 | 287 | 273 | 267 |
| Worldwide Marketing | |||||||||
| Gasoline | 1,176 | 1,190 | 1,172 | 1,167 | 1,023 | 1,176 | 1,189 | 1,224 | 1,154 |
| Distillates | 960 | 935 | 944 | 962 | 818 | 947 | 1,074 | 996 | 959 |
| Other | 19 | 16 | 20 | 18 | 18 | 18 | 17 | 17 | 17 |
| Total | 2,155 | 2,141 | 2,136 | 2,147 | 1,859 | 2,141 | 2,280 | 2,237 | 2,130 |
| Foreign Currency Gains (Losses) Pre-Tax | 7 | 6 | (4) | 10 | — | 1 | — | (1) | — |
| Reconciliation of Marketing and Specialties Income before Income Taxes to Adjusted EBITDA | |||||||||
| Income before income taxes* | 739 | 828 | 539 | 2,402 | 277 | 453 | 523 | 470 | 1,723 |
| Plus: | |||||||||
| Depreciation and amortization | 29 | 27 | 27 | 110 | 27 | 30 | 27 | 29 | 113 |
| EBITDA* | 768 | 855 | 566 | 2,512 | 304 | 483 | 550 | 499 | 1,836 |
| Special Item Adjustments (pre-tax): | |||||||||
| Pension settlement expense | — | — | — | — | — | 3 | 2 | 1 | 6 |
| EBITDA, Adjusted for Special Items* | 768 | 855 | 566 | 2,512 | 304 | 486 | 552 | 500 | 1,842 |
| Other Adjustments (pre-tax): | |||||||||
| Proportional share of selected equity affiliates income taxes | 6 | 7 | 5 | 24 | 5 | 6 | 7 | 6 | 24 |
| Proportional share of selected equity affiliates net interest | 5 | 6 | 8 | 24 | 4 | 4 | 4 | 4 | 16 |
| Proportional share of selected equity affiliates depreciation and amortization | 18 | 18 | 19 | 76 | 17 | 17 | 17 | 18 | 69 |
| Adjusted EBITDA* | 797 | 886 | 598 | 2,636 | 330 | 513 | 580 | 528 | 1,951 |
| * Refer to Change in Basis of Presentation discussion on page 14. |
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) | | (340) | | (1,169) | | (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) | | (142) | | (537) | | (143) | | (141) | | (148) | | (151) | | (583) | | | Corporate overhead and other | (117) | | (133) | | (184) | | (198) | | (632) | | (108) | | (105) | | (83) | | (95) | | (391) | | | Total | (249) | | (260) | | (320) | | (340) | | (1,169) | | (251) | | (246) | | (231) | | (246) | | (974) | | | Net Interest Expense | | | | | | | | | | | | | | | | | | | | | | Interest expense | (144) | | (141) | | (167) | | (200) | | (652) | | (150) | | (148) | | (159) | | (151) | | (608) | | | Capitalized interest | 9 | | 8 | | 9 | | 7 | | 33 | | 4 | | 5 | | 8 | | 10 | | 27 | | | Loss on early debt retirement | — | | — | | — | | — | | — | | — | | — | | — | | (13) | | (13) | | | Interest income | 3 | | 6 | | 22 | | 51 | | 82 | | 3 | | 2 | | 3 | | 3 | | 11 | | | Total | (132) | | (127) | | (136) | | (142) | | (537) | | (143) | | (141) | | (148) | | (151) | | (583) | | | Reconciliation of Corporate and Other Loss before Income Taxes to Adjusted EBITDA | | | | | | | | | | | | | | | | | | | | | | Loss before income taxes | (249) | | (260) | | (320) | | (340) | | (1,169) | | (251) | | (246) | | (231) | | (246) | | (974) | | | Plus: | | | | | | | | | | | | | | | | | | | | | | Net interest expense | 132 | | 127 | | 136 | | 142 | | 537 | | 143 | | 141 | | 148 | | 151 | | 583 | | | Depreciation and amortization | 19 | | 20 | | 22 | | 24 | | 85 | | 20 | | 22 | | 21 | | 20 | | 83 | | | EBITDA | (98) | | (113) | | (162) | | (174) | | (547) | | (88) | | (83) | | (62) | | (75) | | (308) | | | Special Item Adjustments (pre-tax): | | | | | | | | | | | | | | | | | | | | | | Pension settlement expense | — | | — | | — | | — | | — | | — | | 2 | | 1 | | 1 | | 4 | | | Restructuring costs | — | | 25 | | 74 | | 60 | | 159 | | — | | — | | — | | — | | — | | | EBITDA, Adjusted for Special Items | (98) | | (88) | | (88) | | (114) | | (388) | | (88) | | (81) | | (61) | | (74) | | (304) | | | Other Adjustments (pre-tax): | | | | | | | | | | | | | | | | | | | | | | None | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | | Adjusted EBITDA | (98) | | (88) | | (88) | | (114) | | (388) | | (88) | | (81) | | (61) | | (74) | | (304) | | | Foreign Currency Gains (Losses) Pre-Tax | (1) | | — | | (1) | | 3 | | 1 | | (1) | | (1) | | — | | — | | (2) | | | Phillips 66 Total Company Debt | | | | | | | | | | | | | | | | | | | | | | Total Debt | 14,434 | | 12,969 | | 17,657 | | 17,190 | | 17,190 | | 15,422 | | 15,413 | | 14,910 | | 14,448 | | 14,448 | | | Debt-to-Capital Ratio (%) | 39 | % | 35 | % | 35 | % | 34 | % | 34 | % | 43 | % | 43 | % | 42 | % | 40 | % | 40 | % | | Total Equity | 22,121 | | 24,573 | | 33,309 | | 34,106 | | 34,106 | | 20,457 | | 20,602 | | 20,597 | | 21,637 | | 21,637 | |
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| 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 | 2,012 | 11,391 | (639) | 374 | 488 | 1,371 | 1,594 | | Plus: | | | | | | | | | | | | Income tax expense (benefit) | 171 | 924 | 1,618 | 535 | 3,248 | (132) | 62 | (40) | 256 | 146 | | Net interest expense | 132 | 127 | 136 | 142 | 537 | 143 | 141 | 148 | 151 | 583 | | Depreciation and amortization | 338 | 359 | 430 | 502 | 1,629 | 356 | 364 | 361 | 524 | 1,605 | | Phillips 66 EBITDA* | 1,298 | 4,592 | 7,724 | 3,191 | 16,805 | (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) | (14) | (21) | — | — | 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 | 78 | 177 | — | — | — | — | — | | 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) | 64 | (2,754) | 244 | 66 | 1,329 | (38) | 1,601 | | Change in Fair Value of NOVONIX Investment** | 158 | 240 | 33 | 11 | 442 | — | — | (224) | (146) | (370) | | Phillips 66 EBITDA, Adjusted for Special Items and Change in Fair Value of NOVONIX Investment* | 1,473 | 4,947 | 4,807 | 3,266 | 14,493 | (28) | 1,007 | 2,062 | 2,118 | 5,159 | | Other Adjustments (pre-tax): | | | | | | | | | | | | Proportional share of selected equity affiliates income taxes | 37 | 48 | 37 | 21 | 143 | 33 | 57 | 44 | 48 | 182 | | Proportional share of selected equity affiliates net interest | 59 | 53 | 38 | 25 | 175 | 60 | 61 | 59 | 62 | 242 | | Proportional share of selected equity affiliates depreciation and amortization | 201 | 201 | 194 | 192 | 788 | 202 | 202 | 204 | 204 | 812 | | Adjusted EBITDA attributable to noncontrolling interests, excluding PSXP | (24) | (21) | (206) | (176) | (427) | (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 | 3,328 | 15,090 | 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. During the fourth quarter of 2022, we changed the internal financial information reviewed by our chief executive officer to evaluate results and allocate resources to reflect the realignment of certain businesses between segments and business lines. We determined this realignment resulted in a change in the composition of our operating segments. Accordingly, prior period results have been recast for comparability. The primary effects of this realignment included moving the results of certain processing assets at our Sweeny and Lake Charles refineries, in the Gulf Coast Region, from the Midstream segment (NGL and Other) to the Refining segment. Additionally, commissions charged to the Refining segment by the Marketing and Specialties segment related to sales of specialty products were eliminated and the costs of the sales organization were reclassified from the Marketing and Specialties segment to the Refining segment. Additionally, we no longer present disaggregated business line results for our Chemicals and Marketing and Specialties segments. | | | | | | | | | | |
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| 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 | 1,102 | 530 | 618 | 2,402 | (144) | (102) | 100 | 147 | 1 |
| Plus: | |||||||||
| Taxes other than income taxes | 14 | 14 | 6 | 53 | 20 | 18 | 15 | 16 | 69 |
| Depreciation, amortization and impairments | 51 | 50 | 50 | 203 | 52 | 52 | 52 | 54 | 210 |
| Selling, general and administrative expenses | 7 | 18 | 10 | 41 | 5 | 9 | 9 | 9 | 32 |
| Operating expenses | 296 | 311 | 339 | 1,242 | 230 | 218 | 239 | 294 | 981 |
| Equity in losses of affiliates | 2 | 2 | 2 | 9 | 2 | 2 | 3 | 2 | 9 |
| Other segment (income) expense, net | 8 | 2 | (28) | (6) | — | (8) | 6 | 11 | 9 |
| Proportional share of refining gross margins contributed by equity affiliates | 26 | 22 | 22 | 93 | 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 | 1,019 | 4,046 | 208 | 231 | 443 | 528 | 1,410 |
| Total processed inputs (MB) | 49,854 | 49,420 | 52,030 | 199,319 | 42,826 | 49,979 | 47,792 | 48,100 | 188,697 |
| Adjusted total processed inputs (MB) | 49,854 | 49,420 | 52,030 | 199,319 | 42,826 | 49,979 | 47,792 | 48,100 | 188,697 |
| Income (loss) before income taxes (/BBL)** | 22.10 | 10.72 | 11.88 | 12.05 | (3.36) | (2.04) | 2.09 | 3.06 | 0.01 |
| Realized refining margins (/BBL)*** | 30.39 | 19.22 | 19.58 | 20.30 | 4.86 | 4.63 | 9.27 | 11.00 | 7.48 |
| GULF COAST | |||||||||
| Income (loss) before income taxes | 906 | 770 | 374 | 2,091 | (231) | (232) | (1,297) | 1 | (1,759) |
| Plus: | |||||||||
| Taxes other than income taxes | 22 | 19 | 19 | 87 | 27 | 26 | 13 | 8 | 74 |
| Depreciation, amortization and impairments | 67 | 59 | 68 | 250 | 82 | 82 | 1,365 | 154 | 1,683 |
| Selling, general and administrative expenses | 5 | 4 | 6 | 19 | 8 | 9 | 10 | 7 | 34 |
| Operating expenses | 320 | 273 | 320 | 1,230 | 332 | 309 | 323 | 388 | 1,352 |
| Equity in losses of affiliates | 3 | 1 | 1 | 7 | 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 | 1,350 | 1,126 | 788 | 3,711 | 221 | 188 | 414 | 537 | 1,360 |
| Total processed inputs (MB) | 52,523 | 50,435 | 48,160 | 203,269 | 54,560 | 69,364 | 64,016 | 52,919 | 240,859 |
| Adjusted total processed inputs (MB) | 52,523 | 50,435 | 48,160 | 203,269 | 54,560 | 69,364 | 64,016 | 52,919 | 240,859 |
| Income (loss) before income taxes (/BBL)** | 17.25 | 15.27 | 7.77 | 10.29 | (4.23) | (3.34) | (20.26) | 0.02 | (7.30) |
| Realized refining margins (/BBL)*** | 25.71 | 22.30 | 16.35 | 18.25 | 4.04 | 2.73 | 6.46 | 10.16 | 5.65 |
| CENTRAL CORRIDOR | |||||||||
| Income (loss) before income taxes | 491 | 1,343 | 716 | 2,415 | (248) | (81) | 230 | 171 | 72 |
| Plus: | |||||||||
| Taxes other than income taxes | 18 | 16 | 5 | 57 | 15 | 11 | 12 | 13 | 51 |
| Depreciation, amortization and impairments | 36 | 36 | 40 | 147 | 34 | 34 | 34 | 37 | 139 |
| Selling, general and administrative expenses | 13 | 14 | 22 | 62 | 7 | 7 | 9 | 7 | 30 |
| Operating expenses | 264 | 179 | 182 | 809 | 205 | 125 | 126 | 192 | 648 |
| Equity in (earnings) losses of affiliates | (228) | (294) | (257) | (763) | 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 | 477 | 1,668 | 86 | 125 | 201 | 197 | 609 |
| Special items: | |||||||||
| Regulatory compliance costs | 22 | — | — | 22 | — | — | — | (27) | (27) |
| Realized refining margins | 1,087 | 1,815 | 1,185 | 4,419 | 214 | 278 | 581 | 602 | 1,675 |
| Total processed inputs (MB) | 22,635 | 25,167 | 26,504 | 97,997 | 19,754 | 23,466 | 26,373 | 26,002 | 95,595 |
| Adjusted total processed inputs (MB)* | 40,629 | 46,857 | 47,359 | 177,112 | 35,711 | 43,189 | 46,592 | 47,738 | 173,230 |
| Income (loss) before income taxes (/BBL)** | 21.69 | 53.36 | 27.01 | 24.64 | (12.55) | (3.45) | 8.72 | 6.58 | 0.75 |
| Realized refining margins (/BBL)*** | 26.72 | 38.76 | 25.03 | 24.96 | 5.97 | 6.40 | 12.47 | 12.60 | 9.65 |
All values are in Euros.
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| 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 | 115 | 597 | 264 | (68) | 908 | (385) | (264) | (107) | 89 | (667) | | Plus: | | | | | | | | | | | | Taxes other than income taxes | 24 | 19 | 31 | 17 | 91 | 23 | 22 | 4 | — | 49 | | Depreciation, amortization and impairments | 60 | 63 | 76 | 80 | 279 | 54 | 57 | 57 | 72 | 240 | | Selling, general and administrative expenses | 7 | 8 | 7 | 9 | 31 | 10 | 9 | 10 | 8 | 37 | | Operating expenses | 306 | 306 | 451 | 423 | 1,486 | 382 | 281 | 266 | 291 | 1,220 | | Other segment (income) expense, net | 1 | — | (1) | (1) | (1) | 2 | (2) | 2 | 2 | 4 | | Special items: | | | | | | | | | | | | Regulatory compliance costs | — | 13 | — | — | 13 | — | — | — | (13) | (13) | | Realized refining margins | 513 | 1,006 | 828 | 460 | 2,807 | 86 | 103 | 232 | 449 | 870 | | Total processed inputs (MB) | 28,877 | 30,199 | 28,897 | 27,484 | 115,457 | 25,917 | 28,158 | 30,558 | 28,361 | 112,994 | | Adjusted total processed inputs (MB) | 28,877 | 30,199 | 28,897 | 27,484 | 115,457 | 25,917 | 28,158 | 30,558 | 28,361 | 112,994 | | Income (loss) before income taxes ($/BBL)** | 3.98 | 19.77 | 9.14 | (2.47) | 7.86 | (14.86) | (9.38) | (3.50) | 3.14 | (5.90) | | Realized refining margins ($/BBL)*** | 17.74 | 33.31 | 28.64 | 16.77 | 24.31 | 3.33 | 3.66 | 7.60 | 15.80 | 7.70 | | WORLDWIDE | | | | | | | | | | | | Income (loss) before income taxes | 173 | 3,096 | 2,907 | 1,640 | 7,816 | (1,008) | (679) | (1,074) | 408 | (2,353) | | Plus: | | | | | | | | | | | | Taxes other than income taxes | 88 | 73 | 80 | 47 | 288 | 85 | 77 | 44 | 37 | 243 | | Depreciation, amortization and impairments | 203 | 217 | 221 | 238 | 879 | 222 | 225 | 1,508 | 317 | 2,272 | | Selling, general and administrative expenses | 30 | 33 | 43 | 47 | 153 | 30 | 34 | 38 | 31 | 133 | | Operating expenses | 1,103 | 1,186 | 1,214 | 1,264 | 4,767 | 1,149 | 933 | 954 | 1,165 | 4,201 | | Equity in (earnings) losses of affiliates | 21 | (223) | (291) | (254) | (747) | 122 | 67 | (27) | 22 | 184 | | Other segment (income) expense, net | 9 | 11 | 5 | (29) | (4) | — | (24) | 7 | 12 | (5) | | Proportional share of refining gross margins contributed by equity affiliates | 228 | 495 | 539 | 499 | 1,761 | 129 | 167 | 220 | 216 | 732 | | Special items: | | | | | | | | | | | | Certain tax impacts | — | — | — | — | — | — | — | — | (4) | (4) | | Regulatory compliance costs | — | 70 | — | — | 70 | — | — | — | (88) | (88) | | Realized refining margins | 1,855 | 4,958 | 4,718 | 3,452 | 14,983 | 729 | 800 | 1,670 | 2,116 | 5,315 | | Total processed inputs (MB) | 152,734 | 155,211 | 153,919 | 154,178 | 616,042 | 143,057 | 170,967 | 168,739 | 155,382 | 638,145 | | Adjusted total processed inputs (MB)* | 171,310 | 173,205 | 175,609 | 175,033 | 695,157 | 159,014 | 190,690 | 188,958 | 177,118 | 715,780 | | Income (loss) before income taxes ($/BBL)** | 1.13 | 19.95 | 18.89 | 10.64 | 12.69 | (7.05) | (3.97) | (6.36) | 2.63 | (3.69) | | Realized refining margins ($/BBL)*** | 10.83 | 28.62 | 26.87 | 19.73 | 21.55 | 4.58 | 4.20 | 8.84 | 11.95 | 7.42 | | * 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. | | | | | | | | | | |
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| 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 | | 281 | | 1,329 | | 199 | | 366 | | 354 | | 261 | | 1,180 | | | Plus: | | | | | | | | | | | | | | | | | | | | | | Depreciation and amortization | 3 | | 3 | | 4 | | 4 | | 14 | | 3 | | 5 | | 3 | | 3 | | 14 | | | Selling, general and administrative expenses | 182 | | 210 | | 218 | | 198 | | 808 | | 165 | | 198 | | 201 | | 194 | | 758 | | | Equity in earnings of affiliates | (7) | | (16) | | (30) | | (18) | | (71) | | (2) | | (15) | | (18) | | (13) | | (48) | | | Other operating revenues* | (107) | | (139) | | (141) | | (121) | | (508) | | (86) | | (110) | | (120) | | (108) | | (424) | | | Other expense, net | 6 | | 6 | | 6 | | 6 | | 24 | | 4 | | 2 | | 2 | | 1 | | 9 | | | Realized marketing fuel margins | 268 | | 553 | | 425 | | 350 | | 1,596 | | 283 | | 446 | | 422 | | 338 | | 1,489 | | | Total fuel sales volumes (MB) | 169,196 | | 170,899 | | 170,473 | | 170,362 | | 680,930 | | 145,794 | | 170,228 | | 183,332 | | 180,748 | | 680,102 | | | Income before income taxes ($/BBL) | 1.13 | | 2.86 | | 2.16 | | 1.65 | | 1.95 | | 1.36 | | 2.15 | | 1.93 | | 1.44 | | 1.74 | | | Realized marketing fuel margins ($/BBL)** | 1.59 | | 3.24 | | 2.49 | | 2.05 | | 2.34 | | 1.94 | | 2.62 | | 2.29 | | 1.87 | | 2.19 | | | INTERNATIONAL | | | | | | | | | | | | | | | | | | | | | | Income before income taxes | 23 | | 185 | | 334 | | 223 | | 765 | | 48 | | 48 | | 128 | | 179 | | 403 | | | Plus: | | | | | | | | | | | | | | | | | | | | | | Depreciation and amortization | 18 | | 19 | | 17 | | 18 | | 72 | | 19 | | 19 | | 18 | | 20 | | 76 | | | Selling, general and administrative expenses | 63 | | 62 | | 59 | | 67 | | 251 | | 60 | | 60 | | 64 | | 69 | | 253 | | | Equity in earnings of affiliates | (26) | | (32) | | (31) | | (26) | | (115) | | (24) | | (31) | | (30) | | (28) | | (113) | | | Other operating (revenues) expenses* | (12) | | (9) | | (35) | | (6) | | (62) | | (5) | | (10) | | 9 | | 14 | | 8 | | | Other (income) expense, net | 4 | | (3) | | (3) | | (5) | | (7) | | 1 | | — | | 2 | | 4 | | 7 | | | Marketing margins | 70 | | 222 | | 341 | | 271 | | 904 | | 99 | | 86 | | 191 | | 258 | | 634 | | | Less: margin for nonfuel related sales | 13 | | 14 | | 12 | | 12 | | 51 | | 13 | | 15 | | 13 | | 12 | | 53 | | | Realized marketing fuel margins | 57 | | 208 | | 329 | | 259 | | 853 | | 86 | | 71 | | 178 | | 246 | | 581 | | | Total fuel sales volumes (MB) | 24,926 | | 25,329 | | 26,501 | | 26,106 | | 102,862 | | 21,474 | | 24,539 | | 26,427 | | 25,089 | | 97,529 | | | Income before income taxes ($/BBL) | 0.92 | | 7.30 | | 12.60 | | 8.54 | | 7.44 | | 2.24 | | 1.96 | | 4.84 | | 7.13 | | 4.13 | | | Realized marketing fuel margins ($/BBL)** | 2.30 | | 8.20 | | 12.40 | | 9.94 | | 8.29 | | 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 | | 2,547 | | 14,639 | | (771) | | 436 | | 448 | | 1,627 | | 1,740 | | | Special items | 17 | | 121 | | (2,950) | | 64 | | (2,748) | | 244 | | 66 | | 1,329 | | 123 | | 1,762 | | | Adjusted income (loss) before income taxes | 845 | | 4,227 | | 4,208 | | 2,611 | | 11,891 | | (527) | | 502 | | 1,777 | | 1,750 | | 3,502 | | | Income tax expense (benefit) | 171 | | 924 | | 1,618 | | 535 | | 3,248 | | (132) | | 62 | | (40) | | 256 | | 146 | | | Special items | 4 | | 3 | | (681) | | 39 | | (635) | | 48 | | 33 | | 326 | | 98 | | 505 | | | Adjusted income tax expense (benefit) | 175 | | 927 | | 937 | | 574 | | 2,613 | | (84) | | 95 | | 286 | | 354 | | 651 | | | Effective tax rate (%) | 20.7 | % | 22.5 | % | 22.6 | % | 21.0 | % | 22.2 | % | 17.1 | % | 14.2 | % | (8.9) | % | 15.7 | % | 8.4 | % | | Adjusted effective tax rate (%) | 20.7 | % | 21.9 | % | 22.3 | % | 22.0 | % | 22.0 | % | 15.9 | % | 18.9 | % | 16.1 | % | 20.2 | % | 18.6 | % |
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