8-K
Phillips 66 (PSX)
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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
July 31, 2020
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)
(281) 293-6600
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 (see General Instruction A.2. below):
☐ 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 July 31, 2020, Phillips 66 issued a press release announcing the company's financial and operating results for the quarter ended June 30, 2020. 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 hereto shall not be treated as filed for purposes of the Securities Exchange Act of 1934, as amended.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
| 99.1 | — | Press release issued by Phillips 66 onJulypsx-2020630ex9911.htm31, 2020. |
|---|---|---|
| 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/ Chukwuemeka A. Oyolu |
| Chukwuemeka A. Oyolu<br><br>Vice President and Controller |
Date: July 31, 2020
2
Document
| Exhibit 99.1 |
|---|
Phillips 66 Reports Second-Quarter 2020 Financial Results
•Reported a second-quarter loss of $141 million or $0.33 per share; adjusted loss of $324 million or $0.74 per share
•Generated $764 million of operating cash flow
•Issued $2 billion of senior notes during the quarter; increased term loan capacity by $1 billion
•Started full operations on the Gray Oak Pipeline
•Reached milestone at South Texas Gateway Terminal with first export cargo loaded in July
•Operated at 103% O&P utilization in Chemicals; record polyethylene sales volumes
•Recently acquired 95 sites in U.S. West Coast retail marketing joint venture
HOUSTON, July 31, 2020 – Phillips 66 (NYSE: PSX), a diversified energy manufacturing and logistics company, announces a second-quarter 2020 loss of $141 million, compared with a loss of $2.5 billion in the first quarter of 2020. Excluding special items of $183 million in the second quarter, primarily a tax adjustment related to first-quarter impairments, the company had an adjusted loss of $324 million, compared with first-quarter adjusted earnings of $450 million.
“The global pandemic has presented challenges unlike any we have seen before,” said Greg Garland, chairman and CEO of Phillips 66. “We are proud of how Phillips 66 employees are demonstrating steadfast commitment to our values as we deliver essential energy products to our customers. Our top priority remains the health and safety of our employees, their families and communities.
“Our second-quarter results reflect the disruption in refined product demand from COVID-19 and weak margins across our businesses. Despite the challenging market environment, we operated safely and reliably, and reached key strategic milestones. In Midstream, the Gray Oak Pipeline started full operations during the quarter, and the South Texas Gateway Terminal began commercial operations in July. CPChem operated at 103% utilization, meeting strong polymer demand for food packaging and medical supplies. In Marketing, the U.S. West Coast retail joint venture recently completed the previously announced acquisition of 95 sites.
“We took steps to enhance the company’s financial flexibility and liquidity with the issuance of senior notes and an increase of our term loan capacity. With our dedicated employees, diversified portfolio and financial strength, Phillips 66 is well positioned to successfully manage through the current environment. We remain committed to operating excellence, a strong balance sheet, disciplined capital allocation and delivering returns to shareholders.”
Page 1
Phillips 66 Reports Second-Quarter 2020 Financial Results
Midstream
| Millions of Dollars | |||||
|---|---|---|---|---|---|
| Pre-Tax Income (Loss) | Adjusted Pre-Tax Income | ||||
| Q2 2020 | Q1 2020 | Q2 2020 | Q1 2020 | ||
| Transportation | $ | 214 | 200 | 130 | 200 |
| NGL and Other | 78 | 179 | 83 | 179 | |
| DCP Midstream | 32 | (1,081) | 32 | 81 | |
| Midstream | $ | 324 | (702) | 245 | 460 |
Midstream second-quarter pre-tax income was $324 million, compared with a pre-tax loss of $702 million in the first quarter. Midstream results in the second quarter included an $84 million gain related to recognition of Phillips 66 Partners’ prior-year sale of an interest in the Gray Oak Pipeline, as well as $5 million of pension settlement expense. First-quarter results included a $1.2 billion impairment of Phillips 66’s equity investment in DCP Midstream, LLC (DCP Midstream).
Transportation second-quarter adjusted pre-tax income of $130 million was $70 million lower than the first quarter. The decrease was due to lower pipeline and terminal volumes, driven by decreased refinery utilization, and lower equity affiliate earnings from reduced pipeline throughput volumes.
NGL and Other adjusted pre-tax income was $83 million in the second quarter, compared with $179 million in the first quarter. The decrease was primarily due to lower margins and volumes at the Sweeny Hub, as well as inventory impacts.
The company’s equity investment in DCP Midstream generated second-quarter adjusted pre-tax income of $32 million, a $49 million decrease from the prior quarter, mainly reflecting lower hedging impacts.
Chemicals
| Millions of Dollars | |||||
|---|---|---|---|---|---|
| Pre-Tax Income | Adjusted Pre-Tax Income | ||||
| Q2 2020 | Q1 2020 | Q2 2020 | Q1 2020 | ||
| Olefins and Polyolefins | $ | 70 | 177 | 106 | 193 |
| Specialties, Aromatics and Styrenics | — | 4 | 11 | 12 | |
| Other | (28) | (12) | (28) | (12) | |
| Chemicals | $ | 42 | 169 | 89 | 193 |
The Chemicals segment reflects Phillips 66’s equity investment in Chevron Phillips Chemical Company LLC (CPChem). Chemicals’ second-quarter 2020 pre-tax income was $42 million, compared with $169 million in the first quarter of 2020. Chemicals results in the second quarter included reductions to equity earnings of $32 million in lower-of-cost-or-market inventory adjustments, as well as a $15 million asset write-off related to an international joint venture. First-quarter results included a reduction to equity earnings related to lower-of-cost-or-market inventory adjustments.
CPChem’s Olefins and Polyolefins (O&P) business contributed $106 million of adjusted pre-tax income in the second quarter of 2020, compared with $193 million in the first quarter. The $87 million decrease was primarily due to lower polyethylene and normal alpha olefins margins, driven by lower sales prices and higher feedstock costs, partially offset by higher volumes. Global O&P utilization was 103% for the quarter.
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Phillips 66 Reports Second-Quarter 2020 Financial Results
CPChem’s Specialties, Aromatics and Styrenics (SA&S) business contributed second-quarter 2020 adjusted pre-tax income of $11 million, in line with the prior quarter.
The $16 million increase in Other adjusted net costs in the second quarter mainly reflects higher employee-related and interest expenses.
Refining
| Millions of Dollars | |||||
|---|---|---|---|---|---|
| Pre-Tax Loss | Adjusted Pre-Tax Loss | ||||
| Q2 2020 | Q1 2020 | Q2 2020 | Q1 2020 | ||
| Refining | $ | (878) | (2,261) | (867) | (401) |
Refining had a second-quarter pre-tax loss of $878 million, compared with a pre-tax loss of $2.3 billion in the first quarter of 2020. Refining results in the second quarter included $26 million of pension settlement expense, and first-quarter results included a $1.8 billion goodwill impairment. Results in both periods also included impacts to equity earnings from lower-of-cost-or-market inventory adjustments.
Refining had an adjusted pre-tax loss of $867 million in the second quarter of 2020, compared with an adjusted pre-tax loss of $401 million in the first quarter of 2020. The decreased results were largely driven by lower realized margins and reduced volumes, partially offset by lower controllable costs. Second-quarter realized margins were $2.60 per barrel, down 63% from the prior quarter due to a decline in 3:2:1 market crack spreads and lower clean product realizations, partially offset by higher secondary product margins. Phillips 66’s worldwide crude utilization rate was 75% in the second quarter, down from 83% in the first quarter, reflecting reduced refining runs due to lower clean product demand.
Pre-tax turnaround costs for the second quarter were $38 million, a decrease of $291 million from the first quarter. Clean product yield was 83% in the second quarter.
Page 3
Phillips 66 Reports Second-Quarter 2020 Financial Results
Marketing and Specialties
| Millions of Dollars | |||||
|---|---|---|---|---|---|
| Pre-Tax Income | Adjusted Pre-Tax Income | ||||
| Q2 2020 | Q1 2020 | Q2 2020 | Q1 2020 | ||
| Marketing and Other | $ | 255 | 471 | 259 | 434 |
| Specialties | 31 | 42 | 34 | 54 | |
| Marketing and Specialties | $ | 286 | 513 | 293 | 488 |
Marketing and Specialties (M&S) second-quarter pre-tax income was $286 million, compared with $513 million in the first quarter of 2020. M&S results in the second quarter included $4 million of pension settlement expense, and first-quarter results included a $37 million favorable legal settlement. Results in both periods also included reductions to equity earnings from lower-of-cost-or-market inventory adjustments.
Adjusted pre-tax income for Marketing and Other was $259 million in the second quarter of 2020, a decrease of $175 million from the first quarter of 2020. The decrease primarily reflects lower volumes, driven by COVID-19-related demand impacts, as well as lower realized margins due to rising refined product spot prices in the quarter compared with falling first-quarter prices. Refined product exports in the second quarter were 160,000 barrels per day (BPD).
Specialties generated second-quarter adjusted pre-tax income of $34 million, down from $54 million in the first quarter. The decrease was due to lower finished lubricant volumes.
Corporate and Other
| Millions of Dollars | |||||
|---|---|---|---|---|---|
| Pre-Tax Loss | Adjusted Pre-Tax Loss | ||||
| Q2 2020 | Q1 2020 | Q2 2020 | Q1 2020 | ||
| Corporate and Other | $ | (219) | (197) | (224) | (197) |
Corporate and Other second-quarter pre-tax costs were $219 million, compared with pre-tax costs of $197 million in the first quarter of 2020. Second-quarter pre-tax costs included $8 million of net interest benefits related to tax audit adjustments, as well as $3 million of pension settlement expense.
The $27 million increase in Corporate and Other adjusted pre-tax costs in the second quarter was mainly driven by higher net interest and employee-related expenses, partially offset by lower environmental expense.
Page 4
Phillips 66 Reports Second-Quarter 2020 Financial Results
Financial Position, Liquidity and Return of Capital
Phillips 66 generated $764 million in cash from operations during the second quarter, including $459 million of cash distributions from equity affiliates. Excluding working capital impacts, operating cash flow was $670 million.
In April, Phillips 66 increased the size of its 364-day term loan facility to $2 billion, with $1 billion of capacity remaining undrawn at June 30, 2020. The company also issued $1 billion of senior unsecured notes in April and an additional $1 billion of senior unsecured notes in June. During the second quarter, Phillips 66 repaid $500 million of maturing debt, including $300 million of senior unsecured notes and a $200 million term loan.
Capital expenditures and investments in the second quarter were $939 million. Excluding $38 million of capital funded by Gray Oak joint venture partners, adjusted capital spending was $901 million. Phillips 66 funded $393 million of dividends in the quarter.
As of June 30, 2020, cash and cash equivalents were $1.9 billion, and consolidated debt was $14.4 billion, including $3.7 billion at Phillips 66 Partners (PSXP). The company’s consolidated debt-to-capital ratio was 38% and its net debt-to-capital ratio was 35%. Excluding PSXP, the debt-to-capital ratio was 34% and the net debt-to-capital ratio was 30%.
Strategic Update
During the quarter, the Gray Oak Pipeline commenced full operations from West Texas and Eagle Ford to Texas Gulf Coast destinations, marking the completion of the project. Phillips 66 Partners has a 42.25% effective ownership interest in the 900,000 BPD pipeline.
The Gray Oak Pipeline connects to multiple terminals in Corpus Christi, Texas, including the South Texas Gateway Terminal being constructed by Buckeye Partners, L.P. The first dock and 3.4 million barrels of storage capacity have been commissioned, and the terminal began crude oil export operations in July after receiving its first crude oil supply from the Gray Oak Pipeline. Marine operations are expected to ramp up through the end of this year as additional phases of construction are completed. Upon expected project completion in the first quarter of 2021, the marine export terminal will have two deepwater docks with up to 800,000 BPD of throughput capacity, along with storage capacity of 8.6 million barrels. Phillips 66 Partners owns a 25% interest in the terminal.
Phillips 66 is expanding the Sweeny Hub with the addition of two 150,000 BPD fractionators that are supported by long-term customer commitments. During the quarter, the company completed tie-in work to integrate the fractionators with the Freeport LPG export facility. Upon final completion of the fractionators in the fourth quarter of 2020, the Sweeny Hub will have 400,000 BPD of fractionation capacity.
Also at the Sweeny Hub, Phillips 66 Partners recently completed its expansion of storage capacity at Clemens Caverns from 9 million barrels to 16.5 million barrels. Phillips 66 Partners continues construction of the C2G Pipeline, a 16 inch ethane pipeline that will connect Clemens Caverns to petrochemical facilities in Gregory, Texas, near Corpus Christi. The project is backed by long-term commitments and is expected to be completed in mid-2021.
The company is adding a 200,000 BPD dock at its Beaumont Terminal, bringing the terminal’s total dock capacity to 800,000 BPD. The new dock is expected to be completed in the fourth quarter of 2020. The terminal also has total crude and product storage capacity of 16.8 million barrels.
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Phillips 66 Reports Second-Quarter 2020 Financial Results
In Chemicals, CPChem and Qatar Petroleum are jointly pursuing development of petrochemical facilities on the U.S. Gulf Coast and in Ras Laffan, Qatar. CPChem is closely monitoring economic developments and has deferred final investment decision for its U.S. Gulf Coast project.
Phillips 66 is developing renewable fuel projects that leverage existing infrastructure. Waste fats, recycled cooking oils and other renewable feedstocks will be used for diesel production that complies with low-carbon fuel standards. The company is producing renewable diesel at its Humber Refinery with a capacity increase expected in mid-2021. In addition, Phillips 66 is progressing its renewable diesel project at the San Francisco Refinery and has supply and offtake agreements for two third-party renewable diesel manufacturing facilities under construction in Nevada.
In Marketing, the U.S. West Coast retail joint venture recently completed the previously announced acquisition of 95 sites. This joint venture, with a network of approximately 680 sites, enables increased long-term placement of Phillips 66 refinery production and increases the company’s exposure to retail margins.
In the U.S., the company continues its program to roll out updated signature image designs for Phillips 66, 76 and Conoco branded sites. During the quarter, 284 sites were reimaged. Since the program’s inception in 2015, approximately 4,720 sites have been reimaged.
In Europe, the company continues its program to update signature image designs for JET branded sites. During the quarter, 29 sites were reimaged. Since the program’s inception in 2019, approximately 120 sites have been reimaged.
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Phillips 66 Reports Second-Quarter 2020 Financial Results
Investor Webcast
Later today, members of Phillips 66 executive management will host a webcast at noon EDT to discuss the company’s second-quarter performance and provide an update on strategic initiatives. To access the webcast and view related presentation materials, go to www.phillips66.com/investors and click on “Events & Presentations.” For detailed supplemental information, go to www.phillips66.com/supplemental.
| Earnings (Loss) | |||||||
|---|---|---|---|---|---|---|---|
| Millions of Dollars | |||||||
| 2020 | 2019 | ||||||
| Q2 | Q1 | Jun YTD | Q2 | Jun YTD | |||
| Midstream | $ | 324 | (702) | (378) | 423 | 739 | |
| Chemicals | 42 | 169 | 211 | 275 | 502 | ||
| Refining | (878) | (2,261) | (3,139) | 983 | 785 | ||
| Marketing and Specialties | 286 | 513 | 799 | 353 | 558 | ||
| Corporate and Other | (219) | (197) | (416) | (205) | (415) | ||
| Pre-Tax Income (Loss) | (445) | (2,478) | (2,923) | 1,829 | 2,169 | ||
| Less: Income tax expense (benefit) | (378) | (51) | (429) | 325 | 395 | ||
| Less: Noncontrolling interests | 74 | 69 | 143 | 80 | 146 | ||
| Phillips 66 | $ | (141) | (2,496) | (2,637) | 1,424 | 1,628 | |
| Adjusted Earnings (Loss) | |||||||
| Millions of Dollars | |||||||
| 2020 | 2019 | ||||||
| Q2 | Q1 | Jun YTD | Q2 | Jun YTD | |||
| Midstream | $ | 245 | 460 | 705 | 423 | 739 | |
| Chemicals | 89 | 193 | 282 | 275 | 502 | ||
| Refining | (867) | (401) | (1,268) | 983 | 764 | ||
| Marketing and Specialties | 293 | 488 | 781 | 353 | 558 | ||
| Corporate and Other | (224) | (197) | (421) | (205) | (415) | ||
| Pre-Tax Income (Loss) | (464) | 543 | 79 | 1,829 | 2,148 | ||
| Less: Income tax expense (benefit) | (190) | 24 | (166) | 370 | 436 | ||
| Less: Noncontrolling interests | 50 | 69 | 119 | 80 | 146 | ||
| Phillips 66 | $ | (324) | 450 | 126 | 1,379 | 1,566 |
Page 7
Phillips 66 Reports Second-Quarter 2020 Financial Results
About Phillips 66
Phillips 66 is a diversified energy manufacturing and logistics company. With a portfolio of Midstream, Chemicals, Refining, and Marketing and Specialties businesses, the company processes, transports, stores and markets fuels and products globally. Phillips 66 Partners, the company’s master limited partnership, is integral to the portfolio. Headquartered in Houston, the company has 14,500 employees committed to safety and operating excellence. Phillips 66 had $55 billion of assets as of June 30, 2020. For more information, visit www.phillips66.com or follow us on Twitter @Phillips66Co.
# # -
| CONTACTS | ||
|---|---|---|
| Jeff Dietert (investors) | Brent Shaw (investors) | Dennis Nuss (media) |
| 832-765-2297 | 832-765-2297 | 855-841-2368 |
| jeff.dietert@p66.com | brent.d.shaw@p66.com | dennis.h.nuss@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 certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are intended to be covered by the safe harbors created thereby. Words and phrases such as “is anticipated,” “is estimated,” “is expected,” “is planned,” “is scheduled,” “is targeted,” “believes,” “continues,” “intends,” “will,” “would,” “objectives,” “goals,” “projects,” “efforts,” “strategies” and similar expressions are used to identify such 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 fluctuations in NGL, crude oil, and natural gas prices, and petrochemical and refining margins; unexpected changes in costs for constructing, modifying or operating our facilities; unexpected difficulties in manufacturing, refining or transporting our 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; limited access to capital or significantly higher cost of capital related to illiquidity or uncertainty in the domestic or international financial markets; potential disruption of our operations due to accidents, weather events, including as a result of climate change, terrorism or cyberattacks; general economic and political developments including: armed hostilities; expropriation of assets; changes in governmental policies relating to NGL, crude oil, natural gas or refined petroleum products pricing, regulation or taxation; and other political, economic and diplomatic developments, including those caused by public health issues and outbreaks; the impact of adverse market conditions or other similar risks to those identified herein affecting PSXP, as well as the ability of PSXP to successfully execute its growth plans; 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.
Use of Non-GAAP Financial Information—This news release includes the terms “adjusted earnings (loss),” “adjusted earnings (loss) per share” and “adjusted pre-tax income (loss).” 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. This release also includes a “debt-to-capital ratio excluding PSXP.” This non-GAAP measure is provided to differentiate the capital structure of Phillips 66 compared with that of Phillips 66 Partners. This release includes “adjusted capital spending,” a non-GAAP financial measure that demonstrates the portion of total consolidated capital expenditures and investments funded by Phillips 66. This release also includes “realized refining margin,” a non-GAAP financial measure that demonstrates how well we performed relative to benchmark industry margins.
References in the release to total consolidated earnings (loss) refer to net income (loss) attributable to Phillips 66.
Page 8
Phillips 66 Reports Second-Quarter 2020 Financial Results
| Millions of Dollars | |||||||
|---|---|---|---|---|---|---|---|
| Except as Indicated | |||||||
| 2020 | 2019 | ||||||
| Q2 | Q1 | Jun YTD | Q2 | Jun YTD | |||
| Reconciliation of Consolidated Earnings (Loss) to Adjusted Earnings (Loss) | |||||||
| Consolidated Earnings (Loss) | $ | (141) | (2,496) | (2,637) | 1,424 | 1,628 | |
| Pre-tax adjustments: | |||||||
| Pending claims and settlements | — | (37) | (37) | — | (21) | ||
| Pension settlement expense | 38 | — | 38 | — | — | ||
| Impairments | — | 3,006 | 3,006 | — | — | ||
| Impairments by equity affiliates | 15 | — | 15 | — | — | ||
| Lower-of-cost-or-market inventory adjustments | 20 | 52 | 72 | — | — | ||
| Certain tax impacts | (8) | — | (8) | — | — | ||
| Asset dispositions | (84) | — | (84) | — | — | ||
| Tax impact of adjustments* | (208) | (75) | (283) | — | 4 | ||
| Other tax impacts | 20 | — | 20 | (45) | (45) | ||
| Noncontrolling interests | 24 | — | 24 | — | — | ||
| Adjusted earnings (loss) | $ | (324) | 450 | 126 | 1,379 | 1,566 | |
| Earnings (loss) per share of common stock (dollars) | $ | (0.33) | (5.66) | (6.00) | 3.12 | 3.55 | |
| Adjusted earnings (loss) per share of common stock (dollars)^†^ | $ | (0.74) | 1.02 | 0.28 | 3.02 | 3.42 | |
| Reconciliation of Segment Pre-Tax Income (Loss) to Adjusted Pre-Tax Income (Loss) | |||||||
| Midstream Pre-Tax Income (Loss) | $ | 324 | (702) | (378) | 423 | 739 | |
| Pre-tax adjustments: | |||||||
| Impairments | — | 1,161 | 1,161 | — | — | ||
| Pension settlement expense | 5 | — | 5 | — | — | ||
| Lower-of-cost-or-market inventory adjustments | — | 1 | 1 | — | — | ||
| Asset dispositions | (84) | — | (84) | — | — | ||
| Adjusted pre-tax income | $ | 245 | 460 | 705 | 423 | 739 | |
| Chemicals Pre-Tax Income | $ | 42 | 169 | 211 | 275 | 502 | |
| Pre-tax adjustments: | |||||||
| Lower-of-cost-or-market inventory adjustments | 32 | 24 | 56 | — | — | ||
| Impairments by equity affiliates | 15 | — | 15 | — | — | ||
| Adjusted pre-tax income | $ | 89 | 193 | 282 | 275 | 502 | |
| Refining Pre-Tax Income (Loss) | $ | (878) | (2,261) | (3,139) | 983 | 785 | |
| Pre-tax adjustments: | |||||||
| Pending claims and settlements | — | — | — | — | (21) | ||
| Pension settlement expense | 26 | — | 26 | — | — | ||
| Impairments | — | 1,845 | 1,845 | — | — | ||
| Lower-of-cost-or-market inventory adjustments | (15) | 15 | — | — | — | ||
| Adjusted pre-tax income (loss) | $ | (867) | (401) | (1,268) | 983 | 764 |
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Phillips 66 Reports Second-Quarter 2020 Financial Results
| Millions of Dollars | |||||||
|---|---|---|---|---|---|---|---|
| Except as Indicated | |||||||
| 2020 | 2019 | ||||||
| Q2 | Q1 | Jun YTD | Q2 | Jun YTD | |||
| Reconciliation of Segment Pre-Tax Income (Loss) to Adjusted Pre-Tax Income (Loss) | |||||||
| Marketing and Specialties Pre-Tax Income | $ | 286 | 513 | 799 | 353 | 558 | |
| Pre-tax adjustments: | |||||||
| Lower-of-cost-or-market inventory adjustments | 3 | 12 | 15 | — | — | ||
| Pending claims and settlements | — | (37) | (37) | — | — | ||
| Pension settlement expense | 4 | — | 4 | — | — | ||
| Adjusted pre-tax income | $ | 293 | 488 | 781 | 353 | 558 | |
| Corporate and Other Pre-Tax Loss | $ | (219) | (197) | (416) | (205) | (415) | |
| Pre-tax adjustments: | |||||||
| Pension settlement expense | 3 | — | 3 | — | — | ||
| Certain tax impacts | (8) | — | (8) | — | — | ||
| Adjusted pre-tax loss | $ | (224) | (197) | (421) | (205) | (415) | |
| *We generally tax effect taxable U.S.-based special items using a combined federal and state annual statutory income tax rate of approximately 25%. 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. | |||||||
| †Q1 2020 and YTD 2020 are based on adjusted weighted-average diluted shares outstanding of 442,302 thousand and 440,653 thousand, respectively, and other periods are based on the same weighted-average diluted shares outstanding as that used in the GAAP diluted earnings per share calculation. Income allocated to participating securities, if applicable, in the adjusted earnings per share calculation is the same as that used in the GAAP diluted earnings per share calculation. | |||||||
| Millions of Dollars | |||||||
| --- | --- | --- | --- | --- | --- | --- | |
| Except as Indicated | |||||||
| June 30, 2020 | |||||||
| Debt-to-Capital Ratio | |||||||
| Phillips 66 <br>Consolidated | PSXP* | Phillips 66 <br>Excluding PSXP | |||||
| Total Debt | $ | 14,446 | 3,707 | 10,739 | |||
| Total Equity | 23,295 | 2,550 | 20,745 | ||||
| Debt-to-Capital Ratio | 38 | % | 34 | % | |||
| Total Cash | $ | 1,890 | 7 | 1,883 | |||
| Net Debt-to-Capital Ratio | 35 | % | 30 | % | |||
| *PSXP’s third-party debt and Phillips 66’s noncontrolling interests attributable to PSXP. |
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Phillips 66 Reports Second-Quarter 2020 Financial Results
| Millions of Dollars | |||
|---|---|---|---|
| Except as Indicated | |||
| Q2 2020 | Q1 2020 | ||
| Realized Refining Margins | |||
| Loss before income taxes | $ | (878) | (2,261) |
| Plus: | |||
| Taxes other than income taxes | 76 | 104 | |
| Depreciation, amortization and impairments | 220 | 2,066 | |
| Selling, general and administrative expenses | 38 | 36 | |
| Operating expenses | 803 | 1,105 | |
| Equity in losses of affiliates | 81 | 52 | |
| Other segment (income) expense, net | 7 | (3) | |
| Proportional share of refining gross margins contributed by equity affiliates | 108 | 129 | |
| Special items: | |||
| Lower-of-cost-or-market inventory adjustments | (35) | 35 | |
| Realized refining margins | $ | 420 | 1,263 |
| Total processed inputs (thousands of barrels) | 146,668 | 156,623 | |
| Adjusted total processed inputs (thousands of barrels)* | 161,957 | 177,569 | |
| Loss before income taxes (dollars per barrel)** | $ | (5.99) | (14.44) |
| Realized refining margins (dollars per barrel)*** | $ | 2.60 | 7.11 |
| *Adjusted total processed inputs include our proportional share of processed inputs of an equity affiliate. | |||
| **Loss before income taxes divided by total processed inputs. | |||
| ***Realized refining margins per barrel, as presented, are calculated using the underlying realized refining margin amounts, in dollars, divided by adjusted total processed inputs, in barrels. As such, recalculated per barrel amounts using the rounded margins and barrels presented may differ from the presented per barrel amounts. |
Page 11
Document
| Exhibit 99.2 | ||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Phillips 66 Earnings Release Supplemental Data | CONSOLIDATED STATEMENT OF OPERATIONS | |||||||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |||
| Millions of Dollars, Except as Indicated | ||||||||||||||||||||||||
| 2020 | 2019 | |||||||||||||||||||||||
| 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 | 20,878 | 10,913 | 31,791 | 23,103 | 27,847 | 27,218 | 29,125 | 107,293 | ||||||||||||||||
| Equity in earnings of affiliates | 365 | 157 | 522 | 516 | 648 | 499 | 464 | 2,127 | ||||||||||||||||
| Net gain on dispositions | 1 | 85 | 86 | 1 | — | 18 | 1 | 20 | ||||||||||||||||
| Other income | — | 28 | 28 | 38 | 23 | 36 | 22 | 119 | ||||||||||||||||
| Total Revenues and Other Income | 21,244 | 11,183 | 32,427 | 23,658 | 28,518 | 27,771 | 29,612 | 109,559 | ||||||||||||||||
| Costs and Expenses | ||||||||||||||||||||||||
| Purchased crude oil and products | 18,440 | 9,608 | 28,048 | 21,055 | 24,554 | 23,806 | 26,114 | 95,529 | ||||||||||||||||
| Operating expenses | 1,341 | 1,026 | 2,367 | 1,307 | 1,165 | 1,206 | 1,396 | 5,074 | ||||||||||||||||
| Selling, general and administrative expenses | 319 | 409 | 728 | 366 | 408 | 416 | 491 | 1,681 | ||||||||||||||||
| Depreciation and amortization | 342 | 343 | 685 | 331 | 334 | 336 | 340 | 1,341 | ||||||||||||||||
| Impairments | 3,006 | — | 3,006 | 1 | 2 | 853 | 5 | 861 | ||||||||||||||||
| Taxes other than income taxes | 157 | 114 | 271 | 128 | 97 | 105 | 79 | 409 | ||||||||||||||||
| Accretion on discounted liabilities | 6 | 5 | 11 | 6 | 5 | 6 | 6 | 23 | ||||||||||||||||
| Interest and debt expense | 111 | 117 | 228 | 119 | 115 | 109 | 115 | 458 | ||||||||||||||||
| Foreign currency transaction (gains) losses | — | 6 | 6 | 5 | 9 | (9) | — | 5 | ||||||||||||||||
| Total Costs and Expenses | 23,722 | 11,628 | 35,350 | 23,318 | 26,689 | 26,828 | 28,546 | 105,381 | ||||||||||||||||
| Income (loss) before income taxes | (2,478) | (445) | (2,923) | 340 | 1,829 | 943 | 1,066 | 4,178 | ||||||||||||||||
| Income tax expense (benefit) | (51) | (378) | (429) | 70 | 325 | 150 | 256 | 801 | ||||||||||||||||
| Net Income (Loss) | (2,427) | (67) | (2,494) | 270 | 1,504 | 793 | 810 | 3,377 | ||||||||||||||||
| Less: net income attributable to noncontrolling interests | 69 | 74 | 143 | 66 | 80 | 81 | 74 | 301 | ||||||||||||||||
| Net Income (Loss) Attributable to Phillips 66 | (2,496) | (141) | (2,637) | 204 | 1,424 | 712 | 736 | 3,076 | ||||||||||||||||
| Net Income (Loss) Attributable to Phillips 66 Per Share of Common Stock (dollars) | ||||||||||||||||||||||||
| Basic | (5.66) | (0.33) | (6.00) | 0.44 | 3.13 | 1.58 | 1.65 | 6.80 | ||||||||||||||||
| Diluted | (5.66) | (0.33) | (6.00) | 0.44 | 3.12 | 1.58 | 1.64 | 6.77 | ||||||||||||||||
| Weighted-Average Common Shares Outstanding (thousands) | ||||||||||||||||||||||||
| Basic | 441,345 | 438,756 | 440,050 | 457,599 | 453,681 | 449,005 | 445,332 | 451,364 | ||||||||||||||||
| Diluted | 441,345 | 438,756 | 440,050 | 459,289 | 455,585 | 451,001 | 447,835 | 453,888 | ||||||||||||||||
| Effective tax rate (%) | 2.1 | % | 84.9 | % | 14.7 | % | 20.6 | % | 17.8 | % | 15.9 | % | 24.0 | % | 19.2 | % | ||||||||
| Adjusted effective tax rate (%) | 4.4 | % | 40.9 | % | (210.1) | % | 20.7 | % | 20.2 | % | 20.6 | % | 23.6 | % | 21.1 | % |
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 | | | | | | | | | | | | | | | 2020 | | | | | | | | | 2019 | | | | | | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | | Midstream | | | | (702) | 324 | | (378) | | 316 | 423 | (460) | 405 | 684 | | Chemicals | | | | 169 | 42 | | 211 | | 227 | 275 | 227 | 150 | 879 | | Refining | | | | (2,261) | (878) | | (3,139) | | (198) | 983 | 856 | 345 | 1,986 | | Marketing and Specialties | | | | 513 | 286 | | 799 | | 205 | 353 | 498 | 377 | 1,433 | | Corporate and Other | | | | (197) | (219) | | (416) | | (210) | (205) | (178) | (211) | (804) | | Income (loss) before income taxes | | | | (2,478) | (445) | | (2,923) | | 340 | 1,829 | 943 | 1,066 | 4,178 | | Less: income tax expense (benefit) | | | | (51) | (378) | | (429) | | 70 | 325 | 150 | 256 | 801 | | Net Income (Loss) | | | | (2,427) | (67) | | (2,494) | | 270 | 1,504 | 793 | 810 | 3,377 | | Less: net income attributable to noncontrolling interests | | | | 69 | 74 | | 143 | | 66 | 80 | 81 | 74 | 301 | | Net Income (Loss) Attributable to Phillips 66 | | | | (2,496) | (141) | | (2,637) | | 204 | 1,424 | 712 | 736 | 3,076 | | RECONCILIATION OF ADJUSTED INCOME (LOSS) BEFORE INCOME TAXES BY SEGMENT TO | | | | | | | | | | | | | | | ADJUSTED NET INCOME (LOSS) ATTRIBUTABLE TO PHILLIPS 66 | | | | | | | | | | | | | | | | Millions of Dollars | | | | | | | | | | | | | | | 2020 | | | | | | | | | 2019 | | | | | | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | | Midstream | | | | | | | | | | | | Transportation | | | | 200 | 130 | | 330 | | 203 | 245 | 248 | 250 | 946 | | NGL and Other | | | | 179 | 83 | | 262 | | 90 | 143 | 169 | 120 | 522 | | DCP Midstream | | | | 81 | 32 | | 113 | | 23 | 35 | 23 | 35 | 116 | | Total Midstream | | | | 460 | 245 | | 705 | | 316 | 423 | 440 | 405 | 1,584 | | Chemicals | | | | 193 | 89 | | 282 | | 227 | 275 | 269 | 173 | 944 | | Refining | | | | | | | | | | | | | | | Atlantic Basin/Europe | | | | (196) | (220) | | (416) | | (7) | 258 | 279 | 61 | 591 | | Gulf Coast | | | | (173) | (356) | | (529) | | (118) | 222 | 184 | 76 | 364 | | Central Corridor | | | | 223 | (113) | | 110 | | 56 | 520 | 408 | 333 | 1,317 | | West Coast | | | | (255) | (178) | | (433) | | (150) | (17) | (32) | (125) | (324) | | Total Refining | | | | (401) | (867) | | (1,268) | | (219) | 983 | 839 | 345 | 1,948 | | Marketing and Specialties | | | | | | | | | | | | | | | Marketing and Other | | | | 434 | 259 | | 693 | | 138 | 294 | 440 | 237 | 1,109 | | Specialties | | | | 54 | 34 | | 88 | | 67 | 59 | 58 | 50 | 234 | | Total Marketing and Specialties | | | | 488 | 293 | | 781 | | 205 | 353 | 498 | 287 | 1,343 | | Corporate and Other | | | | (197) | (224) | | (421) | | (210) | (205) | (178) | (211) | (804) | | Adjusted income (loss) before income taxes | | | | 543 | (464) | | 79 | | 319 | 1,829 | 1,868 | 999 | 5,015 | | Less: adjusted income tax expense (benefit) | | | | 24 | (190) | | (166) | | 66 | 370 | 385 | 236 | 1,057 | | Adjusted Net Income (Loss) | | | | 519 | (274) | | 245 | | 253 | 1,459 | 1,483 | 763 | 3,958 | | Less: adjusted net income attributable to noncontrolling interests | | | | 69 | 50 | | 119 | | 66 | 80 | 81 | 74 | 301 | | Adjusted Net Income (Loss) Attributable to Phillips 66 | | | | 450 | (324) | | 126 | | 187 | 1,379 | 1,402 | 689 | 3,657 |
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 | | | | | | | | | | | | | | | | | Millions of Dollars | | | | | | | | | | | | | | | | 2020 | | | | | | | | | | 2019 | | | | | | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | | Midstream | | | | | | | | | | | | | | | | Impairments | | | | (1,161) | — | | | (1,161) | | — | — | (853) | — | (853) | | Impairments by equity affiliates | | | | — | — | | | — | | — | — | (47) | — | (47) | | Pension settlement expense | | | | — | (5) | | | (5) | | — | — | — | — | — | | Lower-of-cost-or-market inventory adjustments | | | | (1) | — | | | (1) | | — | — | — | — | — | | Asset dispositions | | | | — | 84 | | | 84 | | — | — | — | — | — | | Total Midstream | | | | (1,162) | 79 | | | (1,083) | | — | — | (900) | — | (900) | | Chemicals | | | | | | | | | | | | | | | | Impairments by equity affiliates | | | | — | (15) | | | (15) | | — | — | — | — | — | | Lower-of-cost-or-market inventory adjustments | | | | (24) | (32) | | | (56) | | — | — | (42) | (23) | (65) | | Total Chemicals | | | | (24) | (47) | | | (71) | | — | — | (42) | (23) | (65) | | Refining | | | | | | | | | | | | | | | | Impairments | | | | (1,845) | — | | | (1,845) | | — | — | — | — | — | | Pending claims and settlements | | | | — | — | | | — | | 21 | — | — | — | 21 | | Pension settlement expense | | | | — | (26) | | | (26) | | — | — | — | — | — | | Lower-of-cost-or-market inventory adjustments | | | | (15) | 15 | | | — | | — | — | — | — | — | | Asset dispositions | | | | — | — | | | — | | — | — | 17 | — | 17 | | Total Refining | | | | (1,860) | (11) | | | (1,871) | | 21 | — | 17 | — | 38 | | Marketing and Specialties | | | | | | | | | | | | | | | | Pending claims and settlements | | | | 37 | — | | | 37 | | — | — | — | — | — | | Certain tax impacts | | | | — | — | | | — | | — | — | — | 90 | 90 | | Pension settlement expense | | | | — | (4) | | | (4) | | — | — | — | — | — | | Lower-of-cost-or-market inventory adjustments | | | | (12) | (3) | | | (15) | | — | — | — | — | — | | Total Marketing and Specialties | | | | 25 | (7) | | | 18 | | — | — | — | 90 | 90 | | Corporate and Other | | | | | | | | | | | | | | | | Certain tax impacts | | | | — | 8 | | | 8 | | — | — | — | — | — | | Pension settlement expense | | | | — | (3) | | | (3) | | — | — | — | — | — | | Total Corporate and Other | | | | — | 5 | | | 5 | | — | — | — | — | — | | Total Special Items (Pre-tax) | | | | (3,021) | 19 | | | (3,002) | | 21 | — | (925) | 67 | (837) | | Less: Income Tax Expense (Benefit) | | | | | | | | | | | | | | | | Tax impact of pre-tax special items* | | | | (75) | (208) | | | (283) | | 4 | — | (235) | 17 | (214) | | Other tax impacts | | | | — | 20 | | | 20 | | — | (45) | — | 3 | (42) | | Total Income Tax Expense (Benefit) | | | | (75) | (188) | | | (263) | | 4 | (45) | (235) | 20 | (256) | | Less: Income Attributable to Noncontrolling Interests | | | | | | | | | | | | | | | | Asset dispositions | | | | — | 24 | | | 24 | | — | — | — | — | — | | Total: Income Attributable to Noncontrolling Interests | | | | — | 24 | | | 24 | | — | — | — | — | — | | Total Phillips 66 Special Items (After-tax) | | | | (2,946) | 183 | | | (2,763) | | 17 | 45 | (690) | 47 | (581) | | * We generally tax effect taxable U.S.-based special items using a combined federal and state annual statutory income tax rate of approximately 25%. 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 | | | | | | | | | | | | | | | | | | | | Millions of Dollars | | | | | | | | | | | | | | | | 2020 | | | | | | | | | | 2019 | | | | | | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | | Midstream | | | | | | | | | | | | | | | | Transportation | | | | — | 84 | | | 84 | | — | — | — | — | — | | NGL and Other | | | | — | (5) | | | (5) | | — | — | — | — | — | | DCP Midstream | | | | (1,162) | — | | | (1,162) | | — | — | (900) | — | (900) | | Total Midstream | | | | (1,162) | 79 | | | (1,083) | | — | — | (900) | — | (900) | | Refining | | | | | | | | | | | | | | | | Atlantic Basin/Europe | | | | (441) | (7) | | | (448) | | — | — | 17 | — | 17 | | Gulf Coast | | | | (670) | (9) | | | (679) | | — | — | — | — | — | | Central Corridor | | | | (450) | 9 | | | (441) | | 21 | — | — | — | 21 | | West Coast | | | | (299) | (4) | | | (303) | | — | — | — | — | — | | Total Refining | | | | (1,860) | (11) | | | (1,871) | | 21 | — | 17 | — | 38 | | Marketing and Specialties | | | | | | | | | | | | | | | | Marketing and Other | | | | 37 | (4) | | | 33 | | — | — | — | 90 | 90 | | Specialties | | | | (12) | (3) | | | (15) | | — | — | — | — | — | | Total Marketing and Specialties | | | | 25 | (7) | | | 18 | | — | — | — | 90 | 90 |
Page 3
| Phillips 66 Earnings Release Supplemental Data | | --- || CASH FLOW INFORMATION | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | Millions of Dollars | | | | | | | | | | | | | | | 2020 | | | | | | | | | 2019 | | | | | | 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) | | | | (2,427) | (67) | | (2,494) | | 270 | 1,504 | 793 | 810 | 3,377 | | Depreciation and amortization | | | | 342 | 343 | | 685 | | 331 | 334 | 336 | 340 | 1,341 | | Impairments | | | | 3,006 | — | | 3,006 | | 1 | 2 | 853 | 5 | 861 | | Accretion on discounted liabilities | | | | 6 | 5 | | 11 | | 6 | 5 | 6 | 6 | 23 | | Deferred income taxes | | | | (47) | 26 | | (21) | | 179 | 74 | (138) | 68 | 183 | | Undistributed equity earnings | | | | (4) | 302 | | 298 | | 95 | (139) | 19 | (118) | (143) | | Net gain on dispositions | | | | (1) | (85) | | (86) | | (1) | — | (18) | (1) | (20) | | Other | | | | (139) | 146 | | 7 | | 42 | (101) | (38) | 113 | 16 | | Net working capital changes | | | | (519) | 94 | | (425) | | (1,401) | 251 | (151) | 471 | (830) | | Net Cash Provided by (Used in) Operating Activities | | | | 217 | 764 | | 981 | | (478) | 1,930 | 1,662 | 1,694 | 4,808 | | Cash Flows From Investing Activities | | | | | | | | | | | | | | | Capital expenditures and investments | | | | (923) | (939) | | (1,862) | | (1,097) | (631) | (867) | (1,278) | (3,873) | | Return of investments in equity affiliates | | | | 38 | 50 | | 88 | | 21 | 14 | 20 | 16 | 71 | | Proceeds from asset dispositions | | | | 1 | — | | 1 | | 82 | 1 | 1 | 2 | 86 | | Advances/loans—related parties | | | | (8) | (223) | | (231) | | — | (95) | — | (3) | (98) | | Collection of advances/loans—related parties | | | | — | 44 | | 44 | | — | 95 | — | — | 95 | | Other | | | | 15 | (79) | | (64) | | (18) | 42 | — | 7 | 31 | | Net Cash Used in Investing Activities | | | | (877) | (1,147) | | (2,024) | | (1,012) | (574) | (846) | (1,256) | (3,688) | | Cash Flows From Financing Activities | | | | | | | | | | | | | | | Issuance of debt | | | | 1,199 | 2,031 | | 3,230 | | 725 | 135 | 898 | 25 | 1,783 | | Repayment of debt | | | | (7) | (534) | | (541) | | (592) | (5) | (407) | (303) | (1,307) | | Issuance of common stock | | | | 6 | — | | 6 | | 8 | 1 | 6 | 17 | 32 | | Repurchase of common stock | | | | (443) | — | | (443) | | (344) | (455) | (439) | (412) | (1,650) | | Dividends paid on common stock | | | | (396) | (393) | | (789) | | (364) | (406) | (402) | (398) | (1,570) | | Distributions to noncontrolling interests | | | | (61) | (66) | | (127) | | (56) | (61) | (59) | (65) | (241) | | Net proceeds from issuance of Phillips 66 Partners LP common units | | | | 2 | — | | 2 | | 32 | 10 | 91 | 40 | 173 | | Other | | | | (24) | 9 | | (15) | | 307 | (6) | (19) | (13) | 269 | | Net Cash Provided by (Used in) Financing Activities | | | | 276 | 1,047 | | 1,323 | | (284) | (787) | (331) | (1,109) | (2,511) | | Effect of Exchange Rate Changes on Cash and Cash Equivalents | | | | (9) | 5 | | (4) | | 8 | (3) | (36) | 17 | (14) | | Net Change in Cash and Cash Equivalents | | | | (393) | 669 | | 276 | | (1,766) | 566 | 449 | (654) | (1,405) | | Cash and cash equivalents at beginning of period | | | | 1,614 | 1,221 | | 1,614 | | 3,019 | 1,253 | 1,819 | 2,268 | 3,019 | | Cash and Cash Equivalents at End of Period | | | | 1,221 | 1,890 | | 1,890 | | 1,253 | 1,819 | 2,268 | 1,614 | 1,614 | | CAPITAL PROGRAM | | | | | | | | | | | | | | | | Millions of Dollars | | | | | | | | | | | | | | | 2020 | | | | | | | | | 2019 | | | | | | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | | Consolidated Capital Expenditures and Investments | | | | | | | | | | | | | | | Midstream | | | | 580 | 597 | | 1,177 | | 419 | 359 | 524 | 567 | 1,869 | | Chemicals | | | | — | — | | — | | — | — | — | — | — | | Refining | | | | 245 | 164 | | 409 | | 194 | 197 | 254 | 356 | 1,001 | | Marketing and Specialties | | | | 25 | 86 | | 111 | | 19 | 23 | 34 | 298 | 374 | | Corporate and Other | | | | 50 | 54 | | 104 | | 43 | 52 | 55 | 56 | 206 | | Adjusted Capital Spending | | | | 900 | 901 | | 1,801 | | 675 | 631 | 867 | 1,277 | 3,450 | | Capital expenditures and investments funded by certain joint venture partners (Midstream) | | | | 23 | 38 | | 61 | | 422 | — | — | 1 | 423 | | Consolidated Capital Expenditures and Investments | | | | 923 | 939 | | 1,862 | | 1,097 | 631 | 867 | 1,278 | 3,873 | | Proportional Share of Selected Equity Affiliates Capital Expenditures and Investments* | | | | | | | | | | | | | | | DCP Midstream (Midstream) | | | | 46 | 44 | | 90 | | 150 | 128 | 77 | 117 | 472 | | CPChem (Chemicals) | | | | 126 | 13 | | 139 | | 103 | 72 | 77 | 130 | 382 | | WRB (Refining) | | | | 37 | 34 | | 71 | | 37 | 44 | 54 | 40 | 175 | | Selected Equity Affiliates | | | | 209 | 91 | | 300 | | 290 | 244 | 208 | 287 | 1,029 | | * Represents Phillips 66’s portion of self-funded capital spending by DCP Midstream, LLC (DCP Midstream), Chevron Phillips Chemical Company LLC (CPChem) and WRB Refining LP (WRB). | | | | | | | | | | | | | |
Page 4
| Phillips 66 Earnings Release Supplemental Data | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| MIDSTREAM | ||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| 2019 | ||||||||||||
| 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | ||||
| Income (Loss) before Income Taxes | ||||||||||||
| Transportation | 200 | 214 | 414 | 203 | 245 | 248 | 250 | 946 | ||||
| NGL and Other | 179 | 78 | 257 | 90 | 143 | 169 | 120 | 522 | ||||
| DCP Midstream | (1,081) | 32 | (1,049) | 23 | 35 | (877) | 35 | (784) | ||||
| Income (Loss) before Income Taxes | (702) | 324 | (378) | 316 | 423 | (460) | 405 | 684 | ||||
| Adjusted EBITDA* | ||||||||||||
| PSXP** | 312 | 261 | 573 | 274 | 307 | 313 | 336 | 1,230 | ||||
| Other Midstream | 193 | 80 | 273 | 133 | 197 | 223 | 155 | 708 | ||||
| Transportation and NGL and Other | 505 | 341 | 846 | 407 | 504 | 536 | 491 | 1,938 | ||||
| DCP Midstream | 139 | 87 | 226 | 67 | 81 | 79 | 96 | 323 | ||||
| Adjusted EBITDA | 644 | 428 | 1,072 | 474 | 585 | 615 | 587 | 2,261 | ||||
| * See reconciliation of income (loss) before income taxes to adjusted EBITDA. | ||||||||||||
| ** Does not include certain PSXP adjustments made for PSXP stand-alone reporting purposes. | ||||||||||||
| Equity in Earnings (Losses) of Affiliates | ||||||||||||
| Transportation | 98 | 70 | 168 | 103 | 124 | 128 | 128 | 483 | ||||
| NGL and Other | 51 | 49 | 100 | 51 | 53 | 51 | 48 | 203 | ||||
| DCP Midstream | 80 | 32 | 112 | 23 | 34 | (23) | 34 | 68 | ||||
| Total | 229 | 151 | 380 | 177 | 211 | 156 | 210 | 754 | ||||
| Depreciation and Amortization* | ||||||||||||
| Transportation | 38 | 38 | 76 | 36 | 37 | 40 | 39 | 152 | ||||
| NGL and Other | 39 | 39 | 78 | 37 | 38 | 38 | 39 | 152 | ||||
| DCP Midstream | — | — | — | — | — | — | — | — | ||||
| Total | 77 | 77 | 154 | 73 | 75 | 78 | 78 | 304 | ||||
| * Excludes D&A of all equity affiliates. | ||||||||||||
| Operating and SG&A Expenses* | ||||||||||||
| Transportation | 188 | 186 | 374 | 172 | 173 | 183 | 196 | 724 | ||||
| NGL and Other | 68 | 71 | 139 | 128 | 76 | 76 | 83 | 363 | ||||
| DCP Midstream | — | — | — | — | — | — | — | — | ||||
| Total | 256 | 257 | 513 | 300 | 249 | 259 | 279 | 1,087 | ||||
| * Excludes operating and SG&A expenses of all equity affiliates. | ||||||||||||
| Transportation Volumes (MB/D) | ||||||||||||
| Pipelines* | 3,178 | 2,840 | 3,009 | 3,176 | 3,417 | 3,443 | 3,544 | 3,396 | ||||
| Terminals** | 3,148 | 2,883 | 3,016 | 3,063 | 3,261 | 3,381 | 3,548 | 3,315 | ||||
| * Pipelines represent the sum of volumes transported through each separately tariffed consolidated pipeline segment. | ||||||||||||
| ** Terminals include Bayway and Ferndale crude oil rail rack volumes. | ||||||||||||
| PSX Other Volumes | ||||||||||||
| NGL Fractionated (MB/D)* | 198 | 170 | 184 | 234 | 232 | 203 | 227 | 224 | ||||
| * Excludes DCP Midstream. | ||||||||||||
| 100% DCP Midstream, LLC Results | ||||||||||||
| Net Income (Loss) Attributable to Owners* | 50 | (348) | (298) | 45 | 68 | (47) | 12 | 78 | ||||
| * Includes impairment charges of 159 million and 650 million in the first and second quarters of 2020, respectively. | ||||||||||||
| Depreciation and Amortization | 99 | 93 | 192 | 103 | 101 | 100 | 100 | 404 | ||||
| Operating and SG&A Expenses | 202 | 212 | 414 | 246 | 257 | 257 | 267 | 1,027 | ||||
| Net Interest Expense* | 78 | 71 | 149 | 70 | 75 | 79 | 84 | 308 | ||||
| * Net of interest income. | ||||||||||||
| Capital Expenditures and Investments | 92 | 87 | 179 | 300 | 256 | 154 | 233 | 943 | ||||
| Selected DCP Operating Statistics | ||||||||||||
| Wellhead Volume (Bcf/D) | 5.0 | 4.5 | 4.8 | 5.0 | 4.9 | 5.0 | 5.0 | 5.0 | ||||
| NGL Production (MB/D) | 396 | 374 | 385 | 428 | 423 | 409 | 409 | 417 | ||||
| Weighted-Average NGL Price* | ||||||||||||
| DCP Midstream (/gal) | 0.39 | 0.32 | 0.36 | 0.60 | 0.51 | 0.44 | 0.50 | 0.51 | ||||
| * Based on index prices from the Mont Belvieu market hub, which are weighted by NGL component mix. | ||||||||||||
| MLP Distributions* | ||||||||||||
| GP Distribution from PSXP to Phillips 66** | — | — | — | 69 | 70 | — | — | 139 | ||||
| LP Distribution from PSXP to Phillips 66 | 148 | 149 | 297 | 58 | 58 | 147 | 149 | 412 | ||||
| GP Distribution from DCP Midstream, LP to DCP Midstream*** | — | — | — | 43 | 43 | 43 | — | 129 | ||||
| LP Distribution from DCP Midstream, LP to DCP Midstream*** | 46 | 46 | 92 | 41 | 41 | 41 | 92 | 215 | ||||
| * Cash distributions declared attributable to general partner interest, common unit ownership and incentive distribution rights (IDRs). These distributions are eliminated in the respective sponsors consolidated financial statements. | ||||||||||||
| ** On August 1, 2019, PSXP eliminated its IDRs and 2% economic general partner interest, therefore, no distributions were made to the general partner interest after August 1, 2019. | ||||||||||||
| *** Represents 100% of DCP Midstream's distributions from DCP Midstream, LP (DCP Partners). On November 6, 2019, DCP Partners completed a transaction to eliminate all general partner economic interests in DCP Partners and IDRs, therefore, no distributions were made to the general partner interest after November 6, 2019. |
All values are in US Dollars.
Page 5
| Phillips 66 Earnings Release Supplemental Data | | --- || MIDSTREAM (continued) | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | Millions of Dollars | | | | | | | | | | | | | | | 2020 | | | | | | | | | 2019 | | | | | | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | | Reconciliation of Midstream Income (Loss) before Income Taxes to Adjusted EBITDA | | | | | | | | | | | | | | | Income (loss) before income taxes | | | | (702) | 324 | | (378) | | 316 | 423 | (460) | 405 | 684 | | Plus: | | | | | | | | | | | | | | | Depreciation and amortization | | | | 77 | 77 | | 154 | | 73 | 75 | 78 | 78 | 304 | | EBITDA | | | | (625) | 401 | | (224) | | 389 | 498 | (382) | 483 | 988 | | Special Item Adjustments (pre-tax): | | | | | | | | | | | | | | | Impairments | | | | 1,161 | — | | 1,161 | | — | — | 853 | — | 853 | | Impairments by equity affiliates | | | | — | — | | — | | — | — | 47 | — | 47 | | Pension settlement expense | | | | — | 5 | | 5 | | — | — | — | — | — | | Lower-of-cost-or-market inventory adjustments | | | | 1 | — | | 1 | | — | — | — | — | — | | Asset dispositions | | | | — | (84) | | (84) | | — | — | — | — | — | | EBITDA, Adjusted for Special Items | | | | 537 | 322 | | 859 | | 389 | 498 | 518 | 483 | 1,888 | | Other Adjustments (pre-tax): | | | | | | | | | | | | | | | Proportional share of selected equity affiliates income taxes | | | | — | — | | — | | — | — | — | — | — | | Proportional share of selected equity affiliates net interest | | | | 39 | 36 | | 75 | | 30 | 30 | 36 | 39 | 135 | | Proportional share of selected equity affiliates depreciation and amortization | | | | 68 | 70 | | 138 | | 55 | 57 | 61 | 65 | 238 | | Adjusted EBITDA | | | | 644 | 428 | | 1,072 | | 474 | 585 | 615 | 587 | 2,261 | | Adjusted EBITDA by Business Line | | | | | | | | | | | | | | | 100% PSXP Results | | | | | | | | | | | | | | | Income before income taxes | | | | 227 | 255 | | 482 | | 199 | 234 | 238 | 255 | 926 | | Plus: | | | | | | | | | | | | | | | Net interest expense | | | | 28 | 29 | | 57 | | 27 | 26 | 25 | 27 | 105 | | Depreciation and amortization | | | | 30 | 31 | | 61 | | 29 | 29 | 30 | 32 | 120 | | EBITDA | | | | 285 | 315 | | 600 | | 255 | 289 | 293 | 314 | 1,151 | | Special Item Adjustments (pre-tax): | | | | | | | | | | | | | | | Asset dispositions | | | | — | (84) | | (84) | | — | — | — | — | — | | EBITDA, Adjusted for Special Items* | | | | 285 | 231 | | 516 | | 255 | 289 | 293 | 314 | 1,151 | | Other Adjustments (pre-tax): | | | | | | | | | | | | | | | Proportional share of selected equity affiliates income taxes | | | | — | — | | — | | — | — | — | — | — | | Proportional share of selected equity affiliates net interest | | | | 9 | 9 | | 18 | | 7 | 6 | 7 | 7 | 27 | | Proportional share of selected equity affiliates depreciation and amortization | | | | 18 | 21 | | 39 | | 12 | 12 | 13 | 15 | 52 | | Adjusted EBITDA* | | | | 312 | 261 | | 573 | | 274 | 307 | 313 | 336 | 1,230 | | * Does not include certain PSXP adjustments made for PSXP stand-alone reporting purposes. | | | | | | | | | | | | | |
Page 6
| Phillips 66 Earnings Release Supplemental Data | | --- || MIDSTREAM (continued) | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | Millions of Dollars | | | | | | | | | | | | | | | 2020 | | | | | | | | | 2019 | | | | | | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | | Total Transportation and NGL and Other | | | | | | | | | | | | | | | Income before income taxes | | | | 379 | 292 | | 671 | | 293 | 388 | 417 | 370 | 1,468 | | Plus: | | | | | | | | | | | | Depreciation and amortization | | | | 77 | 77 | | 154 | | 73 | 75 | 78 | 78 | 304 | | EBITDA* | | | | 456 | 369 | | 825 | | 366 | 463 | 495 | 448 | 1,772 | | Special Item Adjustments (pre-tax): | | | | | | | | | | | | | | | Pension settlement expense | | | | — | 5 | | 5 | | — | — | — | — | — | | Asset dispositions | | | | — | (84) | | (84) | | — | — | — | — | — | | EBITDA, Adjusted for Special Items* | | | | 456 | 290 | | 746 | | 366 | 463 | 495 | 448 | 1,772 | | Other Adjustments (pre-tax): | | | | | | | | | | | | | | | Proportional share of selected equity affiliates income taxes | | | | — | — | | — | | — | — | — | — | — | | Proportional share of selected equity affiliates net interest | | | | 17 | 16 | | 33 | | 15 | 14 | 14 | 15 | 58 | | Proportional share of selected equity affiliates depreciation and amortization | | | | 32 | 35 | | 67 | | 26 | 27 | 27 | 28 | 108 | | Adjusted EBITDA* | | | | 505 | 341 | | 846 | | 407 | 504 | 536 | 491 | 1,938 | | * Includes PSXP results. Does not include certain PSXP adjustments made for PSXP stand-alone reporting purposes. | | | | | | | | | | | | | | | DCP Midstream | | | | | | | | | | | | | | | Income (loss) before income taxes | | | | (1,081) | 32 | | (1,049) | | 23 | 35 | (877) | 35 | (784) | | Plus: | | | | | | | | | | | | None | | | | — | — | | — | | — | — | — | — | — | | EBITDA | | | | (1,081) | 32 | | (1,049) | | 23 | 35 | (877) | 35 | (784) | | Special Item Adjustments (pre-tax): | | | | | | | | | | | | | | | Impairments | | | | 1,161 | — | | 1,161 | | — | — | 853 | — | 853 | | Impairments by equity affiliates | | | | — | — | | — | | — | — | 47 | — | 47 | | Lower-of-cost-or-market inventory adjustments | | | | 1 | — | | 1 | | — | — | — | — | — | | EBITDA, Adjusted for Special Items | | | | 81 | 32 | | 113 | | 23 | 35 | 23 | 35 | 116 | | Other Adjustments (pre-tax): | | | | | | | | | | | | | | | Proportional share of selected equity affiliates income taxes | | | | — | — | | — | | — | — | — | — | — | | Proportional share of selected equity affiliates net interest | | | | 22 | 20 | | 42 | | 15 | 16 | 22 | 24 | 77 | | Proportional share of selected equity affiliates depreciation and amortization | | | | 36 | 35 | | 71 | | 29 | 30 | 34 | 37 | 130 | | Adjusted EBITDA* | | | | 139 | 87 | | 226 | | 67 | 81 | 79 | 96 | 323 | | * Proportional share of selected equity affiliates is net of noncontrolling interests. | | | | | | | | | | | | | |
Page 7
| Phillips 66 Earnings Release Supplemental Data | | --- || CHEMICALS | | | | | | | | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | Millions of Dollars, Except as Indicated | | | | | | | | | | | | | | | | | | | | | | | 2020 | | | | | | | | | | | | | 2019 | | | | | | | | | | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | | YTD | | 1st Qtr | 2nd Qtr | | 3rd Qtr | 4th Qtr | | YTD | | | Income before Income Taxes | | | | 169 | | 42 | | | 211 | | | 227 | | 275 | | 227 | | 150 | | 879 | | | Equity in Earnings of Affiliate | | | | 166 | | 39 | | | 205 | | | 225 | | 274 | | 224 | | 147 | | 870 | | | 100% CPChem Results | | | | | | | | | | | | | | | | | | | | | | | Net Income (Loss), excludes parent company income tax related to CPChem's earnings | | | | | | | | | | | | | | | | | | | | | | | Olefins and Polyolefins | | | | 354 | | 142 | | | 496 | | | 434 | | 525 | | 417 | | 262 | | 1,638 | | | Specialties, Aromatics and Styrenics | | | | 9 | | — | | | 9 | | | 49 | | 70 | | 73 | | 70 | | 262 | | | Corporate and Other | | | | (26) | | (59) | | | (85) | | | (34) | | (36) | | (34) | | (36) | | (140) | | | Total | 337 | 83 | | | | 420 | | 449 | 559 | | 456 | 296 | | 1,760 | | | Income (Loss) before Income Taxes | | | | | | | | | | | | | | | | | | | | | | | Olefins and Polyolefins | | | | 360 | | 142 | | | 502 | | | 446 | | 536 | | 430 | | 266 | | 1,678 | | | Specialties, Aromatics and Styrenics | | | | 10 | | 3 | | | 13 | | | 57 | | 78 | | 78 | | 74 | | 287 | | | Corporate and Other | | | | (26) | | (59) | | | (85) | | | (34) | | (36) | | (33) | | (36) | | (139) | | | Total | 344 | 86 | | | | 430 | | 469 | 578 | | 475 | 304 | | 1,826 | | | Depreciation and Amortization | | | | 148 | | 144 | | | 292 | | | 146 | | 139 | | 140 | | 150 | | 575 | | | Net Interest Expense* | | | | 16 | | 24 | | | 40 | | | 20 | | 17 | | 19 | | 16 | | 72 | | | * Net of interest income. | | | | | | | | | | | | | | | | | | | | | | | Investing Cash Flows—Outflows/(Inflows) | | | | | | | | | | | | | | | | | | | | | | | Capital Expenditures and Investments | | | | 252 | | 25 | | | 277 | | | 206 | | 144 | | 153 | | 260 | | 763 | | | Advance Repayments from Equity Companies | | | | (21) | | — | | | (21) | | | (26) | | (28) | | (9) | | — | | (63) | | | Return of Investments from Equity Companies | | | | (25) | | — | | | (25) | | | — | | — | | — | | — | | — | | | Olefins and Polyolefins Capacity Utilization (%) | | | | 98 | % | 103 | % | | 100 | % | | 98 | % | 95 | % | 97 | % | 97 | % | 97 | % | | Market Indicators* | | | | | | | | | | | | | | | | | | | | | | | U.S. Industry Prices | | | | | | | | | | | | | | | | | | | | | | | Ethylene, Average Acquisition Contract (cents/lb) | | | | 19.65 | | 17.12 | | | 18.39 | | | 22.44 | | 19.14 | | 23.86 | | 25.24 | | 22.67 | | | HDPE Blow Molding, Domestic Spot (cents/lb) | | | | 40.00 | | 35.50 | | | 37.75 | | | 52.67 | | 51.08 | | 45.42 | | 41.17 | | 47.58 | | | U.S. Industry Costs | | | | | | | | | | | | | | | | | | | | | | | Ethylene, Cash Cost Weighted Average Feed (cents/lb) | | | | 8.99 | | 12.03 | | | 10.51 | | | 16.43 | | 11.89 | | 9.46 | | 11.81 | | 12.30 | | | HDPE Blow Molding, Total Cash Cost (cents/lb) | | | | 32.89 | | 30.28 | | | 31.59 | | | 35.46 | | 31.97 | | 36.68 | | 38.15 | | 35.56 | | | Ethylene to High-Density Polyethylene Chain Cash Margin (cents/lb) | | | | 17.77 | | 10.31 | | | 14.04 | | | 23.23 | | 26.36 | | 23.14 | | 16.45 | | 22.39 | | | * Source: IHS, Inc. | | | | | | | | | | | | | | | | | | | | | | | Reconciliation of Chemicals Income before Income Taxes to Adjusted EBITDA | | | | | | | | | | | | | | | | | | | | | | | Income before income taxes | | | | 169 | | 42 | | | 211 | | | 227 | | 275 | | 227 | | 150 | | 879 | | | Plus: | | | | | | | | | | | | | | | | | None | | | | — | | — | | | — | | | — | | — | | — | | — | | — | | | EBITDA | | | | 169 | | 42 | | | 211 | | | 227 | | 275 | | 227 | | 150 | | 879 | | | Special Item Adjustments (pre-tax): | | | | | | | | | | | | | | | | | | | | | | | Impairments by equity affiliates | | | | — | | 15 | | | 15 | | | — | | — | | — | | — | | — | | | Lower-of-cost-or-market inventory adjustments | | | | 24 | | 32 | | | 56 | | | — | | — | | 42 | | 23 | | 65 | | | EBITDA, Adjusted for Special Items | | | | 193 | | 89 | | | 282 | | | 227 | | 275 | | 269 | | 173 | | 944 | | | Other Adjustments (pre-tax): | | | | | | | | | | | | | | | | | | | | | | | Proportional share of selected equity affiliates income taxes | | | | 13 | | 5 | | | 18 | | | 22 | | 24 | | 23 | | 10 | | 79 | | | Proportional share of selected equity affiliates net interest | | | | 9 | | 11 | | | 20 | | | 13 | | 8 | | 10 | | 9 | | 40 | | | Proportional share of selected equity affiliates depreciation and amortization | | | | 103 | | 103 | | | 206 | | | 105 | | 106 | | 104 | | 100 | | 415 | | | Adjusted EBITDA | | | | 318 | | 208 | | | 526 | | | 367 | | 413 | | 406 | | 292 | | 1,478 | |
Page 8
| Phillips 66 Earnings Release Supplemental Data | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| REFINING | ||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| 2019 | ||||||||||||
| 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | ||||
| Income (Loss) before Income Taxes | ||||||||||||
| Atlantic Basin/Europe | (637) | (227) | (864) | (7) | 258 | 296 | 61 | 608 | ||||
| Gulf Coast | (843) | (365) | (1,208) | (118) | 222 | 184 | 76 | 364 | ||||
| Central Corridor | (227) | (104) | (331) | 77 | 520 | 408 | 333 | 1,338 | ||||
| West Coast | (554) | (182) | (736) | (150) | (17) | (32) | (125) | (324) | ||||
| Income (Loss) before Income Taxes | (2,261) | (878) | (3,139) | (198) | 983 | 856 | 345 | 1,986 | ||||
| Income (Loss) before Income Taxes (/BBL) | ||||||||||||
| Atlantic Basin/Europe | (15.41) | (5.80) | (10.74) | (0.17) | 5.04 | 5.93 | 1.16 | 3.11 | ||||
| Gulf Coast | (13.16) | (5.98) | (9.66) | (1.80) | 2.88 | 2.46 | 1.00 | 1.24 | ||||
| Central Corridor | (9.72) | (5.01) | (7.50) | 3.22 | 19.81 | 15.26 | 12.61 | 12.95 | ||||
| West Coast | (19.87) | (7.07) | (13.73) | (4.89) | (0.52) | (0.93) | (3.89) | (2.49) | ||||
| Worldwide | (14.44) | (5.99) | (10.35) | (1.22) | 5.25 | 4.60 | 1.84 | 2.75 | ||||
| Realized Refining Margins (/BBL)* | ||||||||||||
| Atlantic Basin/Europe | 2.38 | 1.53 | 1.97 | 7.76 | 10.85 | 11.48 | 7.06 | 9.33 | ||||
| Gulf Coast | 6.76 | 0.36 | 3.64 | 5.44 | 8.20 | 8.34 | 7.45 | 7.42 | ||||
| Central Corridor | 13.50 | 5.78 | 10.03 | 10.23 | 17.84 | 15.99 | 14.92 | 14.91 | ||||
| West Coast | 4.80 | 5.05 | 4.92 | 6.25 | 9.94 | 10.11 | 10.22 | 9.18 | ||||
| Worldwide | 7.11 | 2.60 | 4.96 | 7.23 | 11.37 | 11.18 | 9.50 | 9.91 | ||||
| * 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) | (3) | (5) | (3) | (3) | (3) | (2) | (11) | ||||
| Gulf Coast | 1 | 1 | 2 | — | (2) | 1 | (1) | (2) | ||||
| Central Corridor | (51) | (79) | (130) | 84 | 133 | 69 | 45 | 331 | ||||
| West Coast | — | — | — | — | — | — | — | — | ||||
| Total | (52) | (81) | (133) | 81 | 128 | 67 | 42 | 318 | ||||
| Depreciation and Amortization* | ||||||||||||
| Atlantic Basin/Europe | 51 | 49 | 100 | 50 | 49 | 49 | 50 | 198 | ||||
| Gulf Coast | 71 | 75 | 146 | 67 | 68 | 66 | 67 | 268 | ||||
| Central Corridor | 34 | 33 | 67 | 33 | 34 | 34 | 34 | 135 | ||||
| West Coast | 65 | 63 | 128 | 62 | 63 | 66 | 62 | 253 | ||||
| Total | 221 | 220 | 441 | 212 | 214 | 215 | 213 | 854 | ||||
| * Excludes D&A of all equity affiliates. | ||||||||||||
| Operating and SG&A Expenses* | ||||||||||||
| Atlantic Basin/Europe | 207 | 202 | 409 | 240 | 211 | 218 | 233 | 902 | ||||
| Gulf Coast | 499 | 287 | 786 | 382 | 330 | 352 | 408 | 1,472 | ||||
| Central Corridor | 142 | 127 | 269 | 146 | 141 | 131 | 154 | 572 | ||||
| West Coast | 293 | 225 | 518 | 254 | 257 | 290 | 373 | 1,174 | ||||
| Total | 1,141 | 841 | 1,982 | 1,022 | 939 | 991 | 1,168 | 4,120 | ||||
| * Excludes operating and SG&A expenses of all equity affiliates. | ||||||||||||
| Turnaround Expense, included in Operating and SG&A Expenses* | ||||||||||||
| Atlantic Basin/Europe | 16 | 9 | 25 | 20 | 13 | 17 | 15 | 65 | ||||
| Gulf Coast | 240 | 13 | 253 | 90 | 29 | 44 | 94 | 257 | ||||
| Central Corridor | 15 | 3 | 18 | 25 | 8 | 9 | 10 | 52 | ||||
| West Coast | 58 | 13 | 71 | 13 | 17 | 50 | 113 | 193 | ||||
| Total | 329 | 38 | 367 | 148 | 67 | 120 | 232 | 567 | ||||
| * Excludes turnaround expense of all equity affiliates. | ||||||||||||
| Taxes Other than Income Taxes, excluding Excise Taxes | ||||||||||||
| Atlantic Basin/Europe | 19 | 15 | 34 | 15 | 11 | 12 | 14 | 52 | ||||
| Gulf Coast | 37 | 25 | 62 | 23 | 16 | 23 | 11 | 73 | ||||
| Central Corridor | 17 | 14 | 31 | 13 | 10 | 10 | 7 | 40 | ||||
| West Coast | 31 | 22 | 53 | 24 | 21 | 23 | 17 | 85 | ||||
| Total | 104 | 76 | 180 | 75 | 58 | 68 | 49 | 250 | ||||
| Foreign Currency Gains (Losses) Pre-Tax | 1 | (5) | (4) | (5) | (7) | 10 | 2 | — | ||||
| Refining—Equity Affiliate Information | ||||||||||||
| Equity in earnings (losses) of affiliates | (52) | (81) | (133) | 81 | 128 | 67 | 42 | 318 | ||||
| Less: Share of equity affiliate gross margin included in Realized Refining Margin and other equity affiliate-related costs* | (156) | (72) | (228) | (277) | (309) | (273) | (237) | (1,096) | ||||
| Equity affiliate-related expenses not included in Realized Refining Margins | (208) | (153) | (361) | (196) | (181) | (206) | (195) | (778) | ||||
| Regional Totals | ||||||||||||
| Atlantic Basin/Europe | (11) | (16) | (27) | (13) | (14) | (7) | — | (34) | ||||
| Gulf Coast | 2 | — | 2 | — | (2) | 1 | (1) | (2) | ||||
| Central Corridor | (199) | (137) | (336) | (183) | (165) | (200) | (194) | (742) | ||||
| Total | (208) | (153) | (361) | (196) | (181) | (206) | (195) | (778) | ||||
| * Other costs associated with equity affiliates which do not flow through equity earnings. |
All values are in US Dollars.
Page 9
| Phillips 66 Earnings Release Supplemental Data | ||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| REFINING (continued) | ||||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| 2019 | ||||||||||||||||||||
| 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 | (2,261) | (878) | (3,139) | (198) | 983 | 856 | 345 | 1,986 | ||||||||||||
| Plus: | ||||||||||||||||||||
| Depreciation and amortization | 221 | 220 | 441 | 212 | 214 | 215 | 213 | 854 | ||||||||||||
| EBITDA | (2,040) | (658) | (2,698) | 14 | 1,197 | 1,071 | 558 | 2,840 | ||||||||||||
| Special Item Adjustments (pre-tax): | ||||||||||||||||||||
| Impairments | 1,845 | — | 1,845 | — | — | — | — | — | ||||||||||||
| Pending claims and settlements | — | — | — | (21) | — | — | — | (21) | ||||||||||||
| Pension settlement expense | — | 26 | 26 | — | — | — | — | — | ||||||||||||
| Lower-of-cost-or-market inventory adjustments | 15 | (15) | — | — | — | — | — | — | ||||||||||||
| Asset dispositions | — | — | — | — | — | (17) | — | (17) | ||||||||||||
| EBITDA, Adjusted for Special Items | (180) | (647) | (827) | (7) | 1,197 | 1,054 | 558 | 2,802 | ||||||||||||
| Other Adjustments (pre-tax): | ||||||||||||||||||||
| Proportional share of selected equity affiliates income taxes | — | (1) | (1) | — | — | 1 | (1) | — | ||||||||||||
| Proportional share of selected equity affiliates net interest | — | 1 | 1 | (1) | (1) | (1) | — | (3) | ||||||||||||
| Proportional share of selected equity affiliates depreciation and amortization | 78 | 72 | 150 | 71 | 69 | 70 | 71 | 281 | ||||||||||||
| Adjusted EBITDA | (102) | (575) | (677) | 63 | 1,265 | 1,124 | 628 | 3,080 | ||||||||||||
| Operating Statistics | ||||||||||||||||||||
| Atlantic Basin/Europe* | ||||||||||||||||||||
| Crude Oil Charge Input (MB/D) | 437 | 402 | 420 | 427 | 519 | 509 | 531 | 497 | ||||||||||||
| Total Processed Inputs (MB/D) | 454 | 430 | 442 | 463 | 562 | 542 | 574 | 536 | ||||||||||||
| Crude Oil Capacity Utilization (%) | 81 | % | 75 | % | 78 | % | 80 | % | 97 | % | 95 | % | 99 | % | 92 | % | ||||
| Clean Product Yield (%) | 83 | % | 82 | % | 83 | % | 86 | % | 88 | % | 87 | % | 90 | % | 88 | % | ||||
| * Includes our proportionate share of a refinery complex in Karlsruhe, Germany. | ||||||||||||||||||||
| Gulf Coast | ||||||||||||||||||||
| Crude Oil Charge Input (MB/D) | 645 | 609 | 627 | 654 | 757 | 729 | 759 | 725 | ||||||||||||
| Total Processed Inputs (MB/D) | 704 | 671 | 687 | 727 | 849 | 815 | 827 | 805 | ||||||||||||
| Crude Oil Capacity Utilization (%) | 84 | % | 79 | % | 81 | % | 85 | % | 99 | % | 95 | % | 99 | % | 95 | % | ||||
| Clean Product Yield (%) | 71 | % | 79 | % | 75 | % | 80 | % | 81 | % | 78 | % | 80 | % | 80 | % | ||||
| Central Corridor* | ||||||||||||||||||||
| Crude Oil Charge Input (MB/D) | 471 | 386 | 428 | 445 | 521 | 517 | 509 | 498 | ||||||||||||
| Total Processed Inputs (MB/D) | 487 | 396 | 442 | 466 | 538 | 531 | 526 | 515 | ||||||||||||
| Crude Oil Capacity Utilization (%) | 89 | % | 73 | % | 81 | % | 86 | % | 101 | % | 100 | % | 99 | % | 97 | % | ||||
| Clean Product Yield (%) | 88 | % | 87 | % | 88 | % | 90 | % | 88 | % | 88 | % | 91 | % | 89 | % | ||||
| * Includes our proportionate share of the Borger Refinery and Wood River Refinery. | ||||||||||||||||||||
| West Coast | ||||||||||||||||||||
| Crude Oil Charge Input (MB/D) | 279 | 263 | 271 | 307 | 317 | 351 | 318 | 323 | ||||||||||||
| Total Processed Inputs (MB/D) | 306 | 283 | 295 | 341 | 359 | 375 | 349 | 356 | ||||||||||||
| Crude Oil Capacity Utilization (%) | 77 | % | 72 | % | 75 | % | 84 | % | 87 | % | 97 | % | 87 | % | 89 | % | ||||
| Clean Product Yield (%) | 93 | % | 87 | % | 90 | % | 88 | % | 81 | % | 85 | % | 76 | % | 83 | % | ||||
| Worldwide—Including Proportionate Share of Equity Affiliates | ||||||||||||||||||||
| Crude Oil Charge Input (MB/D) | 1,832 | 1,660 | 1,746 | 1,833 | 2,114 | 2,106 | 2,117 | 2,043 | ||||||||||||
| Total Processed Inputs (MB/D) | 1,951 | 1,780 | 1,866 | 1,997 | 2,308 | 2,263 | 2,276 | 2,212 | ||||||||||||
| Crude Oil Capacity Utilization (%) | 83 | % | 75 | % | 79 | % | 84 | % | 97 | % | 97 | % | 97 | % | 94 | % | ||||
| Clean Product Yield (%) | 82 | % | 83 | % | 82 | % | 85 | % | 84 | % | 84 | % | 84 | % | 84 | % |
All values are in US Dollars.
Page 10
| Phillips 66 Earnings Release Supplemental Data | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| REFINING (continued) | ||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| 2019 | ||||||||||||
| 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 | 191 | 178 | 185 | 202 | 240 | 230 | 266 | 234 | ||||
| Distillates | 174 | 160 | 167 | 185 | 241 | 227 | 234 | 222 | ||||
| Other | 91 | 95 | 93 | 80 | 89 | 88 | 82 | 85 | ||||
| Total | 456 | 433 | 445 | 467 | 570 | 545 | 582 | 541 | ||||
| * Includes our proportionate share of a refinery complex in Karlsruhe, Germany. | ||||||||||||
| Gulf Coast | ||||||||||||
| Gasoline | 234 | 277 | 255 | 296 | 348 | 312 | 332 | 322 | ||||
| Distillates | 248 | 231 | 240 | 261 | 310 | 297 | 301 | 292 | ||||
| Other | 221 | 167 | 194 | 165 | 192 | 208 | 192 | 190 | ||||
| Total | 703 | 675 | 689 | 722 | 850 | 817 | 825 | 804 | ||||
| Central Corridor* | ||||||||||||
| Gasoline | 245 | 183 | 214 | 244 | 260 | 256 | 267 | 257 | ||||
| Distillates | 183 | 161 | 172 | 175 | 214 | 208 | 210 | 202 | ||||
| Other | 60 | 52 | 56 | 49 | 67 | 71 | 51 | 59 | ||||
| Total | 488 | 396 | 442 | 468 | 541 | 535 | 528 | 518 | ||||
| * Includes our proportionate share of the Borger Refinery and Wood River Refinery. | ||||||||||||
| West Coast | ||||||||||||
| Gasoline | 151 | 126 | 139 | 165 | 167 | 170 | 148 | 163 | ||||
| Distillates | 134 | 121 | 127 | 136 | 124 | 148 | 116 | 131 | ||||
| Other | 21 | 33 | 27 | 41 | 66 | 53 | 81 | 60 | ||||
| Total | 306 | 280 | 293 | 342 | 357 | 371 | 345 | 354 | ||||
| Worldwide—Including Proportionate Share of Equity Affiliates | ||||||||||||
| Gasoline | 764 | 793 | 907 | 1,015 | 968 | 1,013 | 976 | |||||
| Distillates | 673 | 706 | 757 | 889 | 880 | 861 | 847 | |||||
| Other | 347 | 370 | 335 | 414 | 420 | 406 | 394 | |||||
| Total | 1,784 | 1,869 | 1,999 | 2,318 | 2,268 | 2,280 | 2,217 | |||||
| Market Indicators* | ||||||||||||
| Crude and Crude Differentials (/BBL) | ||||||||||||
| WTI | 45.97 | 27.80 | 36.89 | 54.87 | 59.80 | 56.44 | 56.98 | 57.02 | ||||
| Brent | 50.26 | 29.20 | 39.73 | 63.20 | 68.82 | 61.94 | 63.25 | 64.30 | ||||
| LLS | 48.30 | 30.07 | 39.18 | 62.40 | 66.92 | 60.64 | 60.79 | 62.69 | ||||
| ANS | 51.40 | 30.37 | 40.88 | 64.50 | 68.18 | 63.07 | 64.41 | 65.04 | ||||
| WTI less Maya | 4.81 | 3.40 | 4.11 | (3.91) | (2.26) | (0.20) | 4.06 | (0.58) | ||||
| WTI less WCS (settlement differential) | 20.53 | 11.47 | 16.00 | 12.29 | 10.67 | 12.24 | 15.83 | 12.76 | ||||
| Natural Gas (/MMBtu) | ||||||||||||
| Henry Hub | 1.88 | 1.65 | 1.76 | 2.89 | 2.51 | 2.33 | 2.35 | 2.52 | ||||
| Product Margins (/BBL) | ||||||||||||
| Atlantic Basin/Europe | ||||||||||||
| East Coast Gasoline less Brent | 4.84 | 7.87 | 6.36 | 1.79 | 12.06 | 11.84 | 6.44 | 8.03 | ||||
| East Coast Distillate less Brent | 14.93 | 10.95 | 12.94 | 18.05 | 14.27 | 17.43 | 18.66 | 17.10 | ||||
| Gulf Coast | ||||||||||||
| Gulf Coast Gasoline less LLS | 4.97 | 3.66 | 4.31 | 1.58 | 8.18 | 8.24 | 5.48 | 5.87 | ||||
| Gulf Coast Distillate less LLS | 13.86 | 8.04 | 10.95 | 16.41 | 14.28 | 17.22 | 17.62 | 16.38 | ||||
| Central Corridor | ||||||||||||
| Central Gasoline less WTI | 7.70 | 6.18 | 6.94 | 9.72 | 18.71 | 15.28 | 10.75 | 13.61 | ||||
| Central Distillate less WTI | 17.34 | 11.41 | 14.37 | 24.92 | 22.49 | 21.39 | 22.29 | 22.77 | ||||
| West Coast | ||||||||||||
| West Coast Gasoline less ANS | 13.32 | 9.36 | 11.34 | 11.83 | 23.50 | 19.48 | 16.85 | 17.92 | ||||
| West Coast Distillate less ANS | 17.22 | 10.36 | 13.79 | 16.20 | 21.10 | 18.38 | 21.49 | 19.29 | ||||
| Worldwide Market Crack Spread (/BBL)** | 9.82 | 7.47 | 8.65 | 9.77 | 15.24 | 14.60 | 12.45 | 13.01 | ||||
| * 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 | ||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| 2019 | ||||||||||||
| 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | ||||
| Income before Income Taxes | ||||||||||||
| Marketing and Other | 471 | 255 | 726 | 138 | 294 | 440 | 327 | 1,199 | ||||
| Specialties | 42 | 31 | 73 | 67 | 59 | 58 | 50 | 234 | ||||
| Income before Income Taxes | 513 | 286 | 799 | 205 | 353 | 498 | 377 | 1,433 | ||||
| Income before Income Taxes (/BBL) | ||||||||||||
| U.S. | 1.79 | 1.24 | 1.53 | 0.60 | 1.09 | 1.66 | 1.42 | 1.22 | ||||
| International | 6.58 | 3.48 | 5.25 | 2.25 | 4.81 | 5.19 | 2.01 | 3.58 | ||||
| Realized Marketing Fuel Margins (/BBL)* | ||||||||||||
| U.S. | 2.08 | 1.75 | 1.92 | 1.06 | 1.53 | 2.11 | 1.51 | 1.57 | ||||
| International | 8.53 | 5.07 | 7.04 | 3.80 | 6.03 | 6.37 | 3.35 | 4.90 | ||||
| * See note on the use of non-GAAP measures. Also, reconciliations of income before income taxes to realized marketing fuel margin for each period and by region are included in the "Realized Margin Non-GAAP Reconciliations" section. | ||||||||||||
| Other Realized Margins and Revenues not included in Marketing Fuel Margins* | ||||||||||||
| Marketing and Other | 117 | 123 | 240 | 131 | 143 | 168 | 233 | 675 | ||||
| Specialties | 81 | 56 | 137 | 100 | 93 | 83 | 74 | 350 | ||||
| Total | 198 | 179 | 377 | 231 | 236 | 251 | 307 | 1,025 | ||||
| * Excludes gain on dispositions and excise taxes on sales of refined petroleum products. | ||||||||||||
| Equity in Earnings of Affiliates | ||||||||||||
| Marketing and Other | 22 | 38 | 60 | 22 | 28 | 31 | 45 | 126 | ||||
| Specialties | — | 10 | 10 | 11 | 7 | 21 | 20 | 59 | ||||
| Total | 22 | 48 | 70 | 33 | 35 | 52 | 65 | 185 | ||||
| Depreciation and Amortization* | ||||||||||||
| Marketing and Other | 20 | 21 | 41 | 21 | 21 | 21 | 22 | 85 | ||||
| Specialties | 5 | 4 | 9 | 5 | 4 | 4 | 5 | 18 | ||||
| Total | 25 | 25 | 50 | 26 | 25 | 25 | 27 | 103 | ||||
| * Excludes D&A of all equity affiliates. | ||||||||||||
| Operating and SG&A Expenses* | ||||||||||||
| Marketing and Other | 211 | 232 | 443 | 261 | 297 | 300 | 340 | 1,198 | ||||
| Specialties | 31 | 30 | 61 | 36 | 36 | 39 | 38 | 149 | ||||
| Total | 242 | 262 | 504 | 297 | 333 | 339 | 378 | 1,347 | ||||
| * Excludes operating and SG&A expenses of all equity affiliates. | ||||||||||||
| Refined Petroleum Products Sales (MB/D) | ||||||||||||
| U.S. Marketing | ||||||||||||
| Gasoline | 984 | 881 | 933 | 1,063 | 1,151 | 1,132 | 1,213 | 1,141 | ||||
| Distillates | 707 | 780 | 759 | 898 | 914 | 1,106 | 920 | |||||
| Other | — | — | — | — | — | — | — | |||||
| Total | 1,588 | 1,713 | 1,822 | 2,049 | 2,046 | 2,319 | 2,061 | |||||
| International Marketing | ||||||||||||
| Gasoline | 60 | 70 | 88 | 89 | 90 | 89 | 89 | |||||
| Distillates | 140 | 162 | 181 | 187 | 185 | 183 | 184 | |||||
| Other | 15 | 18 | 18 | 19 | 16 | 20 | 18 | |||||
| Total | 215 | 250 | 287 | 295 | 291 | 292 | 291 | |||||
| Worldwide Marketing | ||||||||||||
| Gasoline | 941 | 1,003 | 1,151 | 1,240 | 1,222 | 1,302 | 1,230 | |||||
| Distillates | 847 | 942 | 940 | 1,085 | 1,099 | 1,289 | 1,104 | |||||
| Other | 15 | 18 | 18 | 19 | 16 | 20 | 18 | |||||
| Total | 1,803 | 1,963 | 2,109 | 2,344 | 2,337 | 2,611 | 2,352 | |||||
| Foreign Currency Gains (Losses) Pre-Tax | 1 | — | 1 | 2 | (1) | — | (1) | — | ||||
| Reconciliation of Marketing and Specialties Income before Income Taxes to Adjusted EBITDA | ||||||||||||
| Income before income taxes | 513 | 286 | 799 | 205 | 353 | 498 | 377 | 1,433 | ||||
| Plus: | ||||||||||||
| Depreciation and amortization | 25 | 25 | 50 | 26 | 25 | 25 | 27 | 103 | ||||
| EBITDA | 538 | 311 | 849 | 231 | 378 | 523 | 404 | 1,536 | ||||
| Special Item Adjustments (pre-tax): | ||||||||||||
| Pending claims and settlements | (37) | — | (37) | — | — | — | — | — | ||||
| Certain tax impacts | — | — | — | — | — | — | (90) | (90) | ||||
| Pension settlement expense | — | 4 | 4 | — | — | — | — | — | ||||
| Lower-of-cost-or-market inventory adjustments | 12 | 3 | 15 | — | — | — | — | — | ||||
| EBITDA, Adjusted for Special Items | 513 | 318 | 831 | 231 | 378 | 523 | 314 | 1,446 | ||||
| Other Adjustments (pre-tax): | ||||||||||||
| Proportional share of selected equity affiliates income taxes | — | — | — | — | — | — | — | — | ||||
| Proportional share of selected equity affiliates net interest | 6 | 4 | 10 | 1 | 2 | 1 | 2 | 6 | ||||
| Proportional share of selected equity affiliates depreciation and amortization | 7 | 9 | 16 | 3 | 2 | 3 | 3 | 11 | ||||
| Adjusted EBITDA | 526 | 331 | 857 | 235 | 382 | 527 | 319 | 1,463 |
All values are in US Dollars.
Page 12
| Phillips 66 Earnings Release Supplemental Data | | --- || CORPORATE AND OTHER | | | | | | | | | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | Millions of Dollars, Except as Indicated | | | | | | | | | | | | | | | | | | | | | | | | 2020 | | | | | | | | | | | | | | 2019 | | | | | | | | | | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | | YTD | | | 1st Qtr | 2nd Qtr | | 3rd Qtr | 4th Qtr | | YTD | | | Loss before Income Taxes | | | | (197) | | (219) | | | | (416) | | | (210) | | (205) | | (178) | | (211) | | (804) | | | Detail of Loss before Income Taxes | | | | | | | | | | | | | | | | | | | | | | | | Net interest expense | | | | (103) | | (114) | | | | (217) | | | (108) | | (105) | | (98) | | (104) | | (415) | | | Corporate overhead and other | | | | (94) | | (105) | | | | (199) | | | (102) | | (100) | | (80) | | (107) | | (389) | | | Total | | | | (197) | | (219) | | | | (416) | | | (210) | | (205) | | (178) | | (211) | | (804) | | | Net Interest Expense | | | | | | | | | | | | | | | | | | | | | | | | Interest expense | | | | (137) | | (139) | | | | (276) | | | (132) | | (133) | | (131) | | (139) | | (535) | | | Capitalized interest | | | | 26 | | 22 | | | | 48 | | | 13 | | 18 | | 22 | | 24 | | 77 | | | Interest income | | | | 8 | | 3 | | | | 11 | | | 11 | | 10 | | 11 | | 11 | | 43 | | | Total | | | | (103) | | (114) | | | | (217) | | | (108) | | (105) | | (98) | | (104) | | (415) | | | Reconciliation of Corporate and Other Loss before Income Taxes to Adjusted EBITDA | | | | | | | | | | | | | | | | | | | | | | | | Loss before income taxes | | | | (197) | | (219) | | | | (416) | | | (210) | | (205) | | (178) | | (211) | | (804) | | | Plus: | | | | | | | | | | | | | | | | | | Net interest expense | | | | 103 | | 114 | | | | 217 | | | 108 | | 105 | | 98 | | 104 | | 415 | | | Depreciation and amortization | | | | 19 | | 21 | | | | 40 | | | 20 | | 20 | | 18 | | 22 | | 80 | | | EBITDA | | | | (75) | | (84) | | | | (159) | | | (82) | | (80) | | (62) | | (85) | | (309) | | | Special Item Adjustments (pre-tax): | | | | | | | | | | | | | | | | | | | | | | | | Pension settlement expense | | | | — | | 3 | | | | 3 | | | — | | — | | — | | — | | — | | | EBITDA, Adjusted for Special Items | | | | (75) | | (81) | | | | (156) | | | (82) | | (80) | | (62) | | (85) | | (309) | | | Other Adjustments (pre-tax): | | | | | | | | | | | | | | | | | | | | | | | | None | | | | — | | — | | | | — | | | — | | — | | — | | — | | — | | | Adjusted EBITDA | | | | (75) | | (81) | | | | (156) | | | (82) | | (80) | | (62) | | (85) | | (309) | | | Foreign Currency Losses Pre-Tax | | | | (2) | | (1) | | | | (3) | | | (1) | | (2) | | (1) | | (1) | | (5) | | | Phillips 66 Total Company Debt | | | | | | | | | | | | | | | | | | | | | | | | Total Debt | | | | 12,963 | | 14,446 | | | | 14,446 | | | 11,298 | | 11,439 | | 11,925 | | 11,763 | | 11,763 | | | Debt-to-Capital Ratio (%) | | | | 35 | % | 38 | % | | | 38 | % | | 30 | % | 30 | % | 31 | % | 30 | % | 30 | % | | Total Equity | | | | 23,639 | | 23,295 | | | | 23,295 | | | 26,745 | | 27,306 | | 27,092 | | 27,169 | | 27,169 | | | RECONCILIATION OF CONSOLIDATED NET INCOME (LOSS) TO ADJUSTED EBITDA ATTRIBUTABLE TO PHILLIPS 66 | | | | | | | | | | | | | | | | | | | | | | | | | | | | Millions of Dollars | | | | | | | | | | | | | | | | | | | | | | | | 2020 | | | | | | | | | | | | | | | | | 2019 | | | | | | | 1st Qtr | | 2nd Qtr | | 3rd Qtr | 4th Qtr | YTD | | | 1st Qtr | | 2nd Qtr | | 3rd Qtr | | 4th Qtr | | YTD | | | Net income (loss) | | | | (2,427) | | (67) | | | | (2,494) | | | 270 | | 1,504 | | 793 | | 810 | | 3,377 | | | Plus: | | | | | | | | | | | | | | | | | | Income tax expense (benefit) | | | | (51) | | (378) | | | | (429) | | | 70 | | 325 | | 150 | | 256 | | 801 | | | Net interest expense | | | | 103 | | 114 | | | | 217 | | | 108 | | 105 | | 98 | | 104 | | 415 | | | Depreciation and amortization | | | | 342 | | 343 | | | | 685 | | | 331 | | 334 | | 336 | | 340 | | 1,341 | | | Phillips 66 EBITDA | | | | (2,033) | | 12 | | | | (2,021) | | | 779 | | 2,268 | | 1,377 | | 1,510 | | 5,934 | | | Special Item Adjustments (pre-tax): | | | | | | | | | | | | | | | | | | | | | | | | Impairments | | | | 3,006 | | — | | | | 3,006 | | | — | | — | | 853 | | — | | 853 | | | Impairments by equity affiliates | | | | — | | 15 | | | | 15 | | | — | | — | | 47 | | — | | 47 | | | Pending claims and settlements | | | | (37) | | — | | | | (37) | | | (21) | | — | | — | | — | | (21) | | | Certain tax impacts | | | | — | | — | | | | — | | | — | | — | | — | | (90) | | (90) | | | Pension settlement expense | | | | — | | 38 | | | | 38 | | | — | | — | | — | | — | | — | | | Lower-of-cost-or-market inventory adjustments | | | | 52 | | 20 | | | | 72 | | | — | | — | | 42 | | 23 | | 65 | | | Asset dispositions | | | | — | | (84) | | | | (84) | | | — | | — | | (17) | | — | | (17) | | | Phillips 66 EBITDA, Adjusted for Special Items | | | | 988 | | 1 | | | | 989 | | | 758 | | 2,268 | | 2,302 | | 1,443 | | 6,771 | | | Other Adjustments (pre-tax): | | | | | | | | | | | | | | | | | | | | | | | | Proportional share of selected equity affiliates income taxes | | | | 13 | | 4 | | | | 17 | | | 22 | | 24 | | 24 | | 9 | | 79 | | | Proportional share of selected equity affiliates net interest | | | | 54 | | 52 | | | | 106 | | | 43 | | 39 | | 46 | | 50 | | 178 | | | Proportional share of selected equity affiliates depreciation and amortization | | | | 256 | | 254 | | | | 510 | | | 234 | | 234 | | 238 | | 239 | | 945 | | | EBITDA attributable to Phillips 66 noncontrolling interests | | | | (94) | | (101) | | | | (195) | | | (89) | | (102) | | (105) | | (95) | | (391) | | | Phillips 66 Adjusted EBITDA | | | | 1,217 | | 210 | | | | 1,427 | | | 968 | | 2,463 | | 2,505 | | 1,646 | | 7,582 | | | Use of Non-GAAP Financial Information—This earnings release supplemental data includes the terms "EBITDA," "adjusted EBITDA," "realized refining margin per barrel," "realized marketing fuel margin per barrel," and "adjusted capital spending." 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 capital spending is a non-GAAP financial measure that demonstrates the portion of total consolidated capital expenditures and investments funded by Phillips 66. The GAAP financial measure most comparable to adjusted capital spending is capital expenditures and investments. A reconciliation of capital expenditures and investments to adjusted capital spending is included in this earnings release supplemental data. Adjusted effective tax rate demonstrates the effective tax rate with the consideration of the tax effect on special items. The GAAP financial measure most comparable to adjusted effective tax rate is effective tax rate. A reconciliation of effective tax rate to adjusted effective tax rate is included in this earnings release supplemental data. | | | | | | | | | | | | | | | | | | | | | | |
Page 13
| Phillips 66 Earnings Release Supplemental Data | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| REALIZED MARGIN NON-GAAP RECONCILIATIONS | ||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| RECONCILIATION OF INCOME (LOSS) BEFORE INCOME TAXES TO REALIZED REFINING MARGINS | ||||||||||||
| 2019 | ||||||||||||
| 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | ||||
| ATLANTIC BASIN/OPE | ||||||||||||
| Income (loss) before income taxes | (637) | (227) | (864) | (7) | 258 | 296 | 61 | 608 | ||||
| Plus: | ||||||||||||
| Taxes other than income taxes | 19 | 15 | 34 | 15 | 11 | 12 | 14 | 52 | ||||
| Depreciation, amortization and impairments | 492 | 49 | 541 | 50 | 49 | 49 | 50 | 198 | ||||
| Selling, general and administrative expenses | 13 | 12 | 25 | 7 | 10 | 10 | 12 | 39 | ||||
| Operating expenses | 194 | 190 | 384 | 233 | 201 | 208 | 221 | 863 | ||||
| Equity in losses of affiliates | 2 | 3 | 5 | 3 | 3 | 3 | 2 | 11 | ||||
| Other segment (income) expense, net | (2) | 3 | 1 | 6 | 4 | (24) | (2) | (16) | ||||
| Proportional share of refining gross margins contributed by equity affiliates | 16 | 16 | 32 | 17 | 19 | 19 | 14 | 69 | ||||
| Realized refining margins | 97 | 61 | 158 | 324 | 555 | 573 | 372 | 1,824 | ||||
| Total processed inputs (MB) | 41,335 | 39,121 | 80,456 | 41,682 | 51,172 | 49,895 | 52,757 | 195,506 | ||||
| Adjusted total processed inputs (MB) | 41,335 | 39,121 | 80,456 | 41,682 | 51,172 | 49,895 | 52,757 | 195,506 | ||||
| Income (loss) before income taxes (/BBL)** | (15.41) | (5.80) | (10.74) | (0.17) | 5.04 | 5.93 | 1.16 | 3.11 | ||||
| Realized refining margins (/BBL)*** | 2.38 | 1.53 | 1.97 | 7.76 | 10.85 | 11.48 | 7.06 | 9.33 | ||||
| GULF COAST | ||||||||||||
| Income (loss) before income taxes | (843) | (365) | (1,208) | (118) | 222 | 184 | 76 | 364 | ||||
| Plus: | ||||||||||||
| Taxes other than income taxes | 37 | 25 | 62 | 23 | 16 | 23 | 11 | 73 | ||||
| Depreciation, amortization and impairments | 741 | 75 | 816 | 67 | 68 | 66 | 70 | 271 | ||||
| Selling, general and administrative expenses | 7 | 10 | 17 | (2) | 8 | 7 | 10 | 23 | ||||
| Operating expenses | 492 | 277 | 769 | 384 | 322 | 345 | 398 | 1,449 | ||||
| Equity in (earnings) losses of affiliates | (1) | (1) | (2) | — | 2 | (1) | 1 | 2 | ||||
| Other segment (income) expense, net | 1 | — | 1 | 1 | (5) | 1 | — | (3) | ||||
| Proportional share of refining gross margins contributed by equity affiliates | — | — | — | — | — | — | — | — | ||||
| Realized refining margins | 434 | 21 | 455 | 355 | 633 | 625 | 566 | 2,179 | ||||
| Total processed inputs (MB) | 64,066 | 61,032 | 125,098 | 65,434 | 77,186 | 74,936 | 76,110 | 293,666 | ||||
| Adjusted total processed inputs (MB) | 64,066 | 61,032 | 125,098 | 65,434 | 77,186 | 74,936 | 76,110 | 293,666 | ||||
| Income (loss) before income taxes (/BBL)** | (13.16) | (5.98) | (9.66) | (1.80) | 2.88 | 2.46 | 1.00 | 1.24 | ||||
| Realized refining margins (/BBL)*** | 6.76 | 0.36 | 3.64 | 5.44 | 8.20 | 8.34 | 7.45 | 7.42 | ||||
| CENTRAL CORRIDOR | ||||||||||||
| Income (loss) before income taxes | (227) | (104) | (331) | 77 | 520 | 408 | 333 | 1,338 | ||||
| Plus: | ||||||||||||
| Taxes other than income taxes | 17 | 14 | 31 | 13 | 10 | 10 | 7 | 40 | ||||
| Depreciation, amortization and impairments | 469 | 33 | 502 | 33 | 34 | 34 | 34 | 135 | ||||
| Selling, general and administrative expenses | 6 | 7 | 13 | 1 | 7 | 6 | 8 | 22 | ||||
| Operating expenses | 136 | 120 | 256 | 145 | 134 | 125 | 146 | 550 | ||||
| Equity in (earnings) losses of affiliates | 51 | 79 | 130 | (84) | (133) | (69) | (45) | (331) | ||||
| Other segment (income) expense, net | (3) | 3 | — | (2) | 4 | (3) | 1 | — | ||||
| Proportional share of refining gross margins contributed by equity affiliates | 113 | 92 | 205 | 267 | 298 | 269 | 239 | 1,073 | ||||
| Special items: | ||||||||||||
| Pending claims and settlements | — | — | — | (21) | — | — | — | (21) | ||||
| Lower-of-cost-or-market inventory adjustments | 35 | (35) | — | — | — | — | — | — | ||||
| Realized refining margins | 597 | 209 | 806 | 429 | 874 | 780 | 723 | 2,806 | ||||
| Total processed inputs (MB) | 23,345 | 20,778 | 44,123 | 23,893 | 26,244 | 26,740 | 26,417 | 103,294 | ||||
| Adjusted total processed inputs (MB)* | 44,291 | 36,067 | 80,358 | 41,896 | 48,932 | 48,853 | 48,364 | 188,045 | ||||
| Income (loss) before income taxes (/BBL)** | (9.72) | (5.01) | (7.50) | 3.22 | 19.81 | 15.26 | 12.61 | 12.95 | ||||
| Realized refining margins (/BBL)*** | 13.50 | 5.78 | 10.03 | 10.23 | 17.84 | 15.99 | 14.92 | 14.91 |
All values are in Euros.
Page 14
| Phillips 66 Earnings Release Supplemental Data | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| RECONCILIATION OF INCOME (LOSS) BEFORE INCOME TAXES TO REALIZED REFINING MARGINS (continued) | ||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| 2019 | ||||||||||||
| 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | ||||
| WEST COAST | ||||||||||||
| Loss before income taxes | (554) | (182) | (736) | (150) | (17) | (32) | (125) | (324) | ||||
| Plus: | ||||||||||||
| Taxes other than income taxes | 31 | 22 | 53 | 24 | 21 | 23 | 17 | 85 | ||||
| Depreciation, amortization and impairments | 364 | 63 | 427 | 62 | 63 | 66 | 62 | 253 | ||||
| Selling, general and administrative expenses | 10 | 9 | 19 | 5 | 8 | 8 | 10 | 31 | ||||
| Operating expenses | 283 | 216 | 499 | 249 | 249 | 282 | 363 | 1,143 | ||||
| Other segment expense, net | 1 | 1 | 2 | 2 | 1 | 1 | 1 | 5 | ||||
| Realized refining margins | 135 | 129 | 264 | 192 | 325 | 348 | 328 | 1,193 | ||||
| Total processed inputs (MB) | 27,877 | 25,737 | 53,614 | 30,703 | 32,697 | 34,498 | 32,116 | 130,014 | ||||
| Adjusted total processed inputs (MB) | 27,877 | 25,737 | 53,614 | 30,703 | 32,697 | 34,498 | 32,116 | 130,014 | ||||
| Loss before income taxes (/BBL)** | (19.87) | (7.07) | (13.73) | (4.89) | (0.52) | (0.93) | (3.89) | (2.49) | ||||
| Realized refining margins (/BBL)*** | 4.80 | 5.05 | 4.92 | 6.25 | 9.94 | 10.11 | 10.22 | 9.18 | ||||
| WORLDWIDE | ||||||||||||
| Income (loss) before income taxes | (2,261) | (878) | (3,139) | (198) | 983 | 856 | 345 | 1,986 | ||||
| Plus: | ||||||||||||
| Taxes other than income taxes | 104 | 76 | 180 | 75 | 58 | 68 | 49 | 250 | ||||
| Depreciation, amortization and impairments | 2,066 | 220 | 2,286 | 212 | 214 | 215 | 216 | 857 | ||||
| Selling, general and administrative expenses | 36 | 38 | 74 | 11 | 33 | 31 | 40 | 115 | ||||
| Operating expenses | 1,105 | 803 | 1,908 | 1,011 | 906 | 960 | 1,128 | 4,005 | ||||
| Equity in (earnings) losses of affiliates | 52 | 81 | 133 | (81) | (128) | (67) | (42) | (318) | ||||
| Other segment (income) expense, net | (3) | 7 | 4 | 7 | 4 | (25) | — | (14) | ||||
| Proportional share of refining gross margins contributed by equity affiliates | 129 | 108 | 237 | 284 | 317 | 288 | 253 | 1,142 | ||||
| Special items: | ||||||||||||
| Pending claims and settlements | — | — | — | (21) | — | — | — | (21) | ||||
| Lower-of-cost-or-market inventory adjustments | 35 | (35) | — | — | — | — | — | — | ||||
| Realized refining margins | 1,263 | 420 | 1,683 | 1,300 | 2,387 | 2,326 | 1,989 | 8,002 | ||||
| Total processed inputs (MB) | 156,623 | 146,668 | 303,291 | 161,712 | 187,299 | 186,069 | 187,400 | 722,480 | ||||
| Adjusted total processed inputs (MB)* | 177,569 | 161,957 | 339,526 | 179,715 | 209,987 | 208,182 | 209,347 | 807,231 | ||||
| Income (loss) before income taxes (/BBL)** | (14.44) | (5.99) | (10.35) | (1.22) | 5.25 | 4.60 | 1.84 | 2.75 | ||||
| Realized refining margins (/BBL)*** | 7.11 | 2.60 | 4.96 | 7.23 | 11.37 | 11.18 | 9.50 | 9.91 | ||||
| * 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. |
All values are in US Dollars.
Page 15
| Phillips 66 Earnings Release Supplemental Data | ||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| RECONCILIATION OF INCOME BEFORE INCOME TAXES TO REALIZED MARKETING FUEL MARGINS | ||||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| 2019 | ||||||||||||||||||||
| 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | ||||||||||||
| UNITED STATES | ||||||||||||||||||||
| Income before income taxes | 299 | 179 | 478 | 98 | 203 | 312 | 303 | 916 | ||||||||||||
| Plus: | ||||||||||||||||||||
| Taxes other than income taxes | 2 | 2 | 4 | 2 | 3 | 3 | (3) | 5 | ||||||||||||
| Depreciation and amortization | 3 | 3 | 6 | 2 | 3 | 2 | 3 | 10 | ||||||||||||
| Selling, general and administrative expenses | 127 | 151 | 278 | 155 | 183 | 184 | 221 | 743 | ||||||||||||
| Equity in earnings of affiliates | — | (11) | (11) | (1) | (3) | (3) | (20) | (27) | ||||||||||||
| Other operating revenues* | (84) | (71) | (155) | (82) | (103) | (101) | (93) | (379) | ||||||||||||
| Other segment income | — | — | — | — | — | — | — | — | ||||||||||||
| Special items: | ||||||||||||||||||||
| Certain tax impacts | — | — | — | — | — | — | (90) | (90) | ||||||||||||
| Realized marketing fuel margins | 347 | 253 | 600 | 174 | 286 | 397 | 321 | 1,178 | ||||||||||||
| Total fuel sales volumes (MB) | 167,178 | 144,517 | 311,695 | 164,058 | 186,488 | 188,172 | 213,346 | 752,064 | ||||||||||||
| Income before income taxes (/BBL) | 1.79 | 1.24 | 1.53 | 0.60 | 1.09 | 1.66 | 1.42 | 1.22 | ||||||||||||
| Realized marketing fuel margins (/BBL)** | 2.08 | 1.75 | 1.92 | 1.06 | 1.53 | 2.11 | 1.51 | 1.57 | ||||||||||||
| INTERNATIONAL | ||||||||||||||||||||
| Income before income taxes | 171 | 68 | 239 | 58 | 129 | 139 | 54 | 380 | ||||||||||||
| Plus: | ||||||||||||||||||||
| Taxes other than income taxes | 1 | 2 | 3 | 2 | 1 | 2 | 1 | 6 | ||||||||||||
| Depreciation and amortization | 17 | 16 | 33 | 16 | 16 | 16 | 17 | 65 | ||||||||||||
| Selling, general and administrative expenses | 63 | 57 | 120 | 62 | 61 | 61 | 65 | 249 | ||||||||||||
| Equity in earnings of affiliates | (22) | (28) | (50) | (22) | (25) | (27) | (25) | (99) | ||||||||||||
| Other operating revenues* | 2 | (4) | (2) | (6) | (9) | (10) | (12) | (37) | ||||||||||||
| Other segment (income) expense, net | — | 1 | 1 | (2) | 1 | 1 | 1 | 1 | ||||||||||||
| Marketing margins | 232 | 112 | 344 | 108 | 174 | 182 | 101 | 565 | ||||||||||||
| Less: margin for nonfuel related sales | 10 | 13 | 23 | 10 | 12 | 11 | 11 | 44 | ||||||||||||
| Realized marketing fuel margins | 222 | 99 | 321 | 98 | 162 | 171 | 90 | 521 | ||||||||||||
| Total fuel sales volumes (MB) | 25,979 | 19,583 | 45,562 | 25,796 | 26,837 | 26,796 | 26,834 | 106,263 | ||||||||||||
| Income before income taxes (/BBL) | 6.58 | 3.48 | 5.25 | 2.25 | 4.81 | 5.19 | 2.01 | 3.58 | ||||||||||||
| Realized marketing fuel margins (/BBL)** | 8.53 | 5.07 | 7.04 | 3.80 | 6.03 | 6.37 | 3.35 | 4.90 | ||||||||||||
| * Includes other nonfuel revenues. | ||||||||||||||||||||
| ** Realized marketing fuel margins per barrel, as presented, are calculated using the underlying realized marketing fuel margin amounts, in dollars, divided by sales volumes, in barrels. As such, recalculated per barrel amounts using the rounded margins and barrels presented may differ from the presented per barrel amounts. | ||||||||||||||||||||
| ADJUSTED EFFECTIVE TAX RATE NON-GAAP RECONCILIATION | ||||||||||||||||||||
| RECONCILIATION OF EFFECTIVE TAX RATE TO ADJUSTED EFFECTIVE TAX RATE | ||||||||||||||||||||
| 2019 | ||||||||||||||||||||
| 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | ||||||||||||
| EFFECTIVE TAX RATES | ||||||||||||||||||||
| Income (loss) before income taxes | (2,478) | (445) | (2,923) | 340 | 1,829 | 943 | 1,066 | 4,178 | ||||||||||||
| Special items | 3,021 | (19) | 3,002 | (21) | — | 925 | (67) | 837 | ||||||||||||
| Adjusted income (loss) before income taxes | 543 | (464) | 79 | 319 | 1,829 | 1,868 | 999 | 5,015 | ||||||||||||
| Income tax expense (benefit) | (51) | (378) | (429) | 70 | 325 | 150 | 256 | 801 | ||||||||||||
| Special items | 75 | 188 | 263 | (4) | 45 | 235 | (20) | 256 | ||||||||||||
| Adjusted income tax expense (benefit) | 24 | (190) | (166) | 66 | 370 | 385 | 236 | 1,057 | ||||||||||||
| Effective tax rate (%) | 2.1 | % | 84.9 | % | 14.7 | % | 20.6 | % | 17.8 | % | 15.9 | % | 24.0 | % | 19.2 | % | ||||
| Adjusted effective tax rate (%) | 4.4 | % | 40.9 | % | (210.1) | % | 20.7 | % | 20.2 | % | 20.6 | % | 23.6 | % | 21.1 | % |
All values are in US Dollars.
Page 16