8-K
Phillips 66 (PSX)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934
July 29, 2022
Date of Report (date of earliest event reported)
Phillips 66
(Exact name of registrant as specified in its charter)
| Delaware | 001-35349 | 45-3779385 |
|---|---|---|
| (State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) |
2331 CityWest Boulevard
Houston, Texas 77042
(Address of Principal Executive Offices and Zip Code)
(832) 765-3010
Registrant's telephone number, including area code
Not Applicable
(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
|---|---|---|
| Common stock, $0.01 par value | PSX | New York Stock Exchange |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition.
On July 29, 2022, Phillips 66 issued a press release announcing the company's financial and operating results for the quarter ended June 30, 2022. A copy of the press release is furnished as Exhibit 99.1 hereto and incorporated herein by reference. Additional financial and operating information about the quarter is furnished as Exhibit 99.2 hereto and incorporated herein by reference.
The information in this report and the exhibits 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 onJuly29, 2022 |
|---|---|---|
| 99.2 | — | Supplemental financial and operating information. |
| 104 | — | Cover Page Interactive Data File (embedded within the Inline XBRL document). |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| PHILLIPS 66 | |
|---|---|
| By: | /s/ J. Scott Pruitt |
| J. Scott Pruitt<br><br>Vice President and Controller |
Date: July 29, 2022
2
Document
| Exhibit 99.1 |
|---|
Phillips 66 Reports Second-Quarter 2022 Financial Results
•Reported second-quarter earnings of $3.2 billion or $6.53 per share; adjusted earnings of $3.3 billion or $6.77 per share
•Generated $1.8 billion of operating cash flow; $3.6 billion excluding working capital
•Repaid $1.5 billion of debt
•Returned $533 million to shareholders through dividends and share repurchases
•Continued record-setting NGL fractionated volumes
•Strong refining operations including execution of planned turnarounds
•Received API pipeline safety award for second consecutive year
•Announced final investment decision on Rodeo Renewed project
HOUSTON, July 29, 2022 – Phillips 66 (NYSE: PSX), a diversified energy company, announces second-quarter 2022 earnings of $3.2 billion, compared with earnings of $582 million in the first quarter of 2022. Excluding special items of $118 million, the company had adjusted earnings of $3.3 billion in the second quarter, compared with first-quarter adjusted earnings of $595 million.
“Our earnings reflect the strong market environment during the second quarter driven by a tight global product supply and demand balance,” said Mark Lashier, President and CEO of Phillips 66. “We are focused on reliably providing critical energy products, including transportation fuels, to meet peak summer demand. We also advanced strategic capital projects to help meet the growing demand for renewable fuels and NGLs.
“During the second quarter, we paid down $1.5 billion of debt, increased our dividend and resumed share repurchases. Additionally, we are transforming our business to achieve sustained annual cost savings of at least $700 million to ensure we remain competitive in any market environment. We will continue to prioritize operating excellence and disciplined capital allocation.”
Page 1
Phillips 66 Reports Second-Quarter 2022 Financial Results
Midstream
| Millions of Dollars | |||||
|---|---|---|---|---|---|
| Pre-Tax Income (Loss) | Adjusted Pre-Tax Income (Loss) | ||||
| Q2 2022 | Q1 2022 | Q2 2022 | Q1 2022 | ||
| Transportation | $ | 250 | 278 | 250 | 278 |
| NGL and Other | 152 | 91 | 152 | 91 | |
| DCP Midstream | 130 | 31 | 130 | 31 | |
| NOVONIX | (240) | (158) | (240) | (158) | |
| Midstream | $ | 292 | 242 | 292 | 242 |
Midstream second-quarter 2022 pre-tax income was $292 million, compared with $242 million in the first quarter of 2022.
Transportation second-quarter adjusted pre-tax income was $250 million, compared with adjusted pre-tax income of $278 million in the first quarter. The decrease was mainly due to lower equity earnings driven by reduced Bakken Pipeline crude volumes associated with winter storm impacts.
NGL and Other adjusted pre-tax income was $152 million in the second quarter, compared with adjusted pre-tax income of $91 million in the first quarter. The increase was attributable to improved margins and volumes at the Sweeny Hub and higher equity earnings from the Sand Hills Pipeline.
The company’s equity investment in DCP Midstream, LLC generated second-quarter adjusted pre-tax income of $130 million, a $99 million increase from the prior quarter. The increase was mainly driven by improved gathering and processing results and hedging impacts.
In the second quarter, the fair value of the company’s investment in NOVONIX, Ltd., decreased by $240 million compared with a $158 million decrease in the first quarter.
Chemicals
| Millions of Dollars | |||||
|---|---|---|---|---|---|
| Pre-Tax Income (Loss) | Adjusted Pre-Tax Income (Loss) | ||||
| Q2 2022 | Q1 2022 | Q2 2022 | Q1 2022 | ||
| Olefins and Polyolefins | $ | 216 | 377 | 216 | 377 |
| Specialties, Aromatics and Styrenics | 59 | 32 | 59 | 32 | |
| Other | (2) | (13) | (2) | (13) | |
| Chemicals | $ | 273 | 396 | 273 | 396 |
The Chemicals segment reflects Phillips 66’s equity investment in Chevron Phillips Chemical Company LLC (CPChem). Chemicals second-quarter 2022 pre-tax income was $273 million, compared with $396 million in the first quarter of 2022.
CPChem’s Olefins and Polyolefins (O&P) business contributed $216 million of adjusted pre-tax income in the second quarter, compared with $377 million in the first quarter. The $161 million decrease was primarily due to lower margins resulting from higher feedstock costs, as well as increased utility and turnaround costs. Global O&P utilization was 94% for the quarter.
Page 2
Phillips 66 Reports Second-Quarter 2022 Financial Results
CPChem’s Specialties, Aromatics and Styrenics (SA&S) business contributed second-quarter adjusted pre-tax income of $59 million, compared with $32 million in the first quarter. The $27 million increase was primarily due to higher margins and equity earnings.
The $11 million decrease in Other adjusted costs in the second quarter mainly reflects lower employee-related expenses and higher capitalized interest related to growth projects.
Refining
| Millions of Dollars | |||||
|---|---|---|---|---|---|
| Pre-Tax Income | Adjusted Pre-Tax Income | ||||
| Q2 2022 | Q1 2022 | Q2 2022 | Q1 2022 | ||
| Refining | $ | 3,036 | 123 | 3,132 | 140 |
Refining second-quarter 2022 pre-tax income was $3.0 billion, compared with pre-tax income of $123 million in the first quarter of 2022. Refining results in the first quarter included $17 million of hurricane-related maintenance and repair costs. Refining results in the second quarter included $70 million of costs related to the finalization of RIN obligations for prior year compliance periods and $26 million of costs related to the conversion of the Alliance Refinery to a terminal.
Adjusted pre-tax income for Refining was $3.1 billion in the second quarter, compared with adjusted pre-tax income of $140 million in the first quarter. The improvement was primarily due to higher realized margins driven by market crack spreads. The composite global market crack increased to $46.72 per barrel, up from $21.93 per barrel in the first quarter. Realized margins were $28.31 per barrel in the second quarter, up from $10.55 per barrel in the first quarter.
Pre-tax turnaround costs for the second quarter were $223 million, compared with first-quarter costs of $102 million. Crude utilization rate was 90% and clean product yield was 83% in the second quarter.
Marketing and Specialties
| Millions of Dollars | |||||
|---|---|---|---|---|---|
| Pre-Tax Income | Adjusted Pre-Tax Income | ||||
| Q2 2022 | Q1 2022 | Q2 2022 | Q1 2022 | ||
| Marketing and Other | $ | 656 | 203 | 656 | 203 |
| Specialties | 109 | 113 | 109 | 113 | |
| Marketing and Specialties | $ | 765 | 316 | 765 | 316 |
Marketing and Specialties (M&S) second-quarter 2022 pre-tax income was $765 million, compared with $316 million in the first quarter of 2022.
Adjusted pre-tax income for Marketing and Other was $656 million in the second quarter, an increase of $453 million from the first quarter. The increase was mainly due to higher realized fuel margins including inventory impacts. Refined product exports in the second quarter were 153,000 barrels per day (BPD).
Specialties generated second-quarter adjusted pre-tax income of $109 million, in line with the prior quarter.
Page 3
Phillips 66 Reports Second-Quarter 2022 Financial Results
Corporate and Other
| Millions of Dollars | |||||
|---|---|---|---|---|---|
| Pre-Tax Loss | Adjusted Pre-Tax Loss | ||||
| Q2 2022 | Q1 2022 | Q2 2022 | Q1 2022 | ||
| Corporate and Other | $ | (260) | (249) | (235) | (249) |
Corporate and Other second-quarter 2022 pre-tax costs were $260 million, compared with pre-tax costs of $249 million in the first quarter of 2022. Pre-tax costs in the second quarter included business transformation restructuring costs of $25 million.
Adjusted pre-tax loss was $235 million in second-quarter 2022. The decrease in the second quarter was mainly driven by lower administrative and net interest expenses.
Financial Position, Liquidity and Return of Capital
Phillips 66 generated $1.8 billion in cash from operations in the second quarter of 2022, including cash distributions from equity affiliates of $527 million. Excluding working capital impacts, operating cash flow was $3.6 billion. The working capital impact was primarily due to higher accounts receivable.
During the quarter, the company repaid $1.5 billion of debt and funded $467 million of dividends, $66 million of share repurchases and $376 million of capital expenditures and investments.
As of June 30, 2022, Phillips 66 had $7.8 billion of liquidity, reflecting $2.8 billion of cash and cash equivalents and approximately $5.0 billion of total committed capacity under the company’s revolving credit facility. Consolidated debt was $13.0 billion at June 30, 2022. The company’s consolidated debt-to-capital ratio was 35% and its net debt-to-capital ratio was 29%.
Strategic Update
Phillips 66 is continuing its business transformation that will enable sustainable cost reductions of at least $700 million annually across the enterprise. Phillips 66 will provide a business transformation and strategy update at its investor day in New York City on November 9.
In Midstream, Phillips 66 was awarded the American Petroleum Institute’s (API) large operator Distinguished Pipeline Safety Award for the second consecutive year. In addition, the company received the Platinum Safety Award in the large-company division from the International Liquid Terminals Association.
At the Sweeny Hub, Frac 4 startup is expected late in the third quarter of 2022, adding 150,000 BPD of capacity. The total project cost is expected to be approximately $525 million. Upon completion, total Sweeny Hub fractionation capacity will be 550,000 BPD. The fractionators are supported by long-term commitments.
In Chemicals, CPChem is pursuing a portfolio of high-return growth projects:
•Growing its normal alpha olefins business with a second world-scale unit to produce 1-hexene, a critical component in high-performance polyethylene. Construction is underway on
Page 4
Phillips 66 Reports Second-Quarter 2022 Financial Results
the 586 million pounds per year unit located in Old Ocean, Texas. The project utilizes CPChem’s proprietary technology. Startup is expected in the second half of 2023.
•Expanding propylene splitting capacity by 1 billion pounds per year with a new unit located at its Cedar Bayou facility. Startup is expected in the second half of 2023.
•Increasing polyalphaolefins capacity production in Belgium by over 130 million pounds per year. Startup is expected in 2024.
•Continuing development of world-scale petrochemical facilities on the U.S. Gulf Coast and in Ras Laffan, Qatar, jointly with Qatar Energy. CPChem expects to make a final investment decision for its U.S. Gulf Coast project this year.
In Refining, Phillips 66 made a final investment decision to convert its San Francisco Refinery in Rodeo, California, into one of the world’s largest renewable fuels facilities. The Rodeo Renewed refinery conversion project is expected to begin commercial operations in the first quarter of 2024. Upon completion, the facility will have over 50,000 BPD (800 million gallons per year) of renewable fuel production capacity. The conversion will reduce emissions from the facility and produce lower carbon-intensity transportation fuels. The total project is anticipated to cost approximately $850 million.
In Marketing, subsidiaries of Phillips 66 and H2 Energy Europe recently formed JET H2 Energy Austria GmbH (JET H2 Energy), a 50-50 joint venture to develop approximately 250 retail hydrogen refueling stations across Germany, Austria and Denmark by 2026. JET H2 Energy’s network of hydrogen refueling stations will include existing Phillips 66’s JET® branded retail stations as well as new locations on major transport routes.
The company published its 2022 Sustainability Report in June. The report includes a detailed analysis of the company’s climate-related risks and opportunities as well as performance data on various environmental, social and governance matters. To view Phillips 66’s 2022 Sustainability Report, go to phillips66.com/sustainability.
Page 5
Phillips 66 Reports Second-Quarter 2022 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 phillips66.com/investors and click on “Events & Presentations.” For detailed supplemental information, go to phillips66.com/supplemental.
| Earnings (Loss) | ||||||
|---|---|---|---|---|---|---|
| Millions of Dollars | ||||||
| 2022 | 2021 | |||||
| Q2 | Q1 | Jun YTD | Q2 | Jun YTD | ||
| Midstream | $ | 292 | 242 | 534 | 312 | 388 |
| Chemicals | 273 | 396 | 669 | 623 | 777 | |
| Refining | 3,036 | 123 | 3,159 | (729) | (1,769) | |
| Marketing and Specialties | 765 | 316 | 1,081 | 476 | 766 | |
| Corporate and Other | (260) | (249) | (509) | (246) | (497) | |
| Pre-Tax Income (Loss) | 4,106 | 828 | 4,934 | 436 | (335) | |
| Less: Income tax expense (benefit) | 924 | 171 | 1,095 | 62 | (70) | |
| Less: Noncontrolling interests | 15 | 75 | 90 | 78 | 93 | |
| Phillips 66 | $ | 3,167 | 582 | 3,749 | 296 | (358) |
| Adjusted Earnings (Loss) | ||||||
| Millions of Dollars | ||||||
| 2022 | 2021 | |||||
| Q2 | Q1 | Jun YTD | Q2 | Jun YTD | ||
| Midstream | $ | 292 | 242 | 534 | 316 | 592 |
| Chemicals | 273 | 396 | 669 | 657 | 841 | |
| Refining | 3,132 | 140 | 3,272 | (706) | (1,732) | |
| Marketing and Specialties | 765 | 316 | 1,081 | 479 | 769 | |
| Corporate and Other | (235) | (249) | (484) | (244) | (495) | |
| Pre-Tax Income (Loss) | 4,227 | 845 | 5,072 | 502 | (25) | |
| Less: Income tax expense | 927 | 175 | 1,102 | 95 | 11 | |
| Less: Noncontrolling interests | 15 | 75 | 90 | 78 | 144 | |
| Phillips 66 | $ | 3,285 | 595 | 3,880 | 329 | (180) |
Page 6
Phillips 66 Reports Second-Quarter 2022 Financial Results
About Phillips 66
Phillips 66 (NYSE: PSX) manufactures, transports and markets products that drive the global economy. The diversified energy company’s portfolio includes Midstream, Chemicals, Refining, and Marketing and Specialties businesses. Headquartered in Houston, Phillips 66 has employees around the globe who are committed to safely and reliably providing energy and improving lives while pursuing a lower-carbon future. For more information, visit phillips66.com or follow @Phillips66Co on LinkedIn or Twitter.
# # -
| CONTACTS | ||
|---|---|---|
| Jeff Dietert (investors) | Shannon Holy (investors) | Thaddeus Herrick (media) |
| 832-765-2297 | 832-765-2297 | 855-841-2368 |
| jeff.dietert@p66.com | shannon.m.holy@p66.com | thaddeus.f.herrick@p66.com |
CAUTIONARY STATEMENT FOR THE PURPOSES OF THE “SAFE HARBOR” PROVISIONS
OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995
This news release contains 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 “anticipated,” “estimated,” “expected,” “planned,” “scheduled,” “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: the effects of any widespread public health crisis and its negative impact on commercial activity and demand for refined petroleum products; the inability to timely obtain or maintain permits necessary for capital projects; changes to worldwide government policies relating to renewable fuels and greenhouse gas emissions that adversely affect programs like the renewable fuel standards program, low carbon fuel standards and tax credits for biofuels; fluctuations in NGL, crude oil, and natural gas prices, and petrochemical and refining margins; unexpected changes in costs for constructing, modifying or operating our facilities; unexpected difficulties in manufacturing, refining or transporting our products; the level and success of drilling and production volumes around our Midstream assets; risks and uncertainties with respect to the actions of actual or potential competitive suppliers and transporters of refined petroleum products, renewable fuels or specialty products; lack of, or disruptions in, adequate and reliable transportation for our NGL, crude oil, natural gas, and refined products; potential liability from litigation or for remedial actions, including removal and reclamation obligations under environmental regulations; failure to complete construction of capital projects on time and within budget; the inability to comply with governmental regulations or make capital expenditures to maintain compliance; limited access to capital or significantly higher cost of capital related to illiquidity or uncertainty in the domestic or international financial markets; potential disruption of our operations due to accidents, weather events, including as a result of climate change, terrorism or cyberattacks; general domestic and international economic and political developments including armed hostilities, expropriation of assets, and other political, economic or diplomatic developments, including those caused by public health issues and international monetary conditions and exchange controls; changes in governmental policies relating to NGL, crude oil, natural gas, refined petroleum products, or renewable fuels pricing, regulation or taxation, including exports; changes in estimates or projections used to assess fair value of intangible assets, goodwill and property and equipment and/or strategic decisions with respect to our asset portfolio that cause impairment charges; investments required, or reduced demand for products, as a result of environmental rules and regulations; changes in tax, environmental and other laws and regulations (including alternative energy mandates); political and societal concerns about climate change that could result in changes to our business or increase expenditures, including litigation-related expenses; the operation, financing and distribution decisions of equity affiliates we do not control; and other economic, business, competitive and/or regulatory factors affecting Phillips 66’s businesses generally as set forth in our filings with the Securities and Exchange Commission. Phillips 66 is under no obligation (and expressly disclaims any such obligation) to update or alter its forward-looking statements, whether as a result of new information, future events or otherwise.
Page 7
Phillips 66 Reports Second-Quarter 2022 Financial Results
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.
References in the release to earnings (loss) or consolidated earnings (loss) refer to net income (loss) attributable to Phillips 66.
Page 8
Phillips 66 Reports Second-Quarter 2022 Financial Results
| Millions of Dollars | ||||||
|---|---|---|---|---|---|---|
| Except as Indicated | ||||||
| 2022 | 2021 | |||||
| Q2 | Q1 | Jun YTD | Q2 | Jun YTD | ||
| Reconciliation of Consolidated Earnings (Loss) to Adjusted Earnings (Loss) | ||||||
| Consolidated Earnings (Loss) | $ | 3,167 | 582 | 3,749 | 296 | (358) |
| Pre-tax adjustments: | ||||||
| Impairments | — | — | — | — | 198 | |
| Pension settlement expense | — | — | — | 47 | 47 | |
| Hurricane-related costs | — | 17 | 17 | — | — | |
| Winter-storm-related costs | — | — | — | 19 | 65 | |
| Alliance shutdown-related costs†† | 26 | — | 26 | — | — | |
| Regulatory compliance costs | 70 | — | 70 | — | — | |
| Restructuring costs | 25 | — | 25 | — | — | |
| Tax impact of adjustments* | (28) | (4) | (32) | (16) | (64) | |
| Other tax impacts | 25 | — | 25 | (17) | (17) | |
| Noncontrolling interests | — | — | — | — | (51) | |
| Adjusted earnings (loss) | $ | 3,285 | 595 | 3,880 | 329 | (180) |
| Earnings (loss) per share of common stock (dollars) | $ | 6.53 | 1.29 | 8.00 | 0.66 | (0.83) |
| Adjusted earnings (loss) per share of common stock (dollars)† | $ | 6.77 | 1.32 | 8.28 | 0.74 | (0.43) |
| Reconciliation of Segment Pre-Tax Income (Loss) to Adjusted Pre-Tax Income (Loss) | ||||||
| Midstream Pre-Tax Income | $ | 292 | 242 | 534 | 312 | 388 |
| Pre-tax adjustments: | ||||||
| Impairments | — | — | — | — | 198 | |
| Pension settlement expense | — | — | — | 4 | 4 | |
| Winter-storm-related costs | — | — | — | — | 2 | |
| Adjusted pre-tax income | $ | 292 | 242 | 534 | 316 | 592 |
| Chemicals Pre-Tax Income | $ | 273 | 396 | 669 | 623 | 777 |
| Pre-tax adjustments: | ||||||
| Pension settlement expense | — | — | — | 18 | 18 | |
| Winter-storm-related costs | — | — | — | 16 | 46 | |
| Adjusted pre-tax income | $ | 273 | 396 | 669 | 657 | 841 |
| Refining Pre-Tax Income (Loss) | $ | 3,036 | 123 | 3,159 | (729) | (1,769) |
| Pre-tax adjustments: | ||||||
| Pension settlement expense | — | — | — | 20 | 20 | |
| Hurricane-related costs | — | 17 | 17 | — | — | |
| Winter-storm-related costs | — | — | — | 3 | 17 | |
| Alliance shutdown-related costs†† | 26 | — | 26 | — | — | |
| Regulatory compliance costs | 70 | — | 70 | — | — | |
| Adjusted pre-tax income (loss) | $ | 3,132 | 140 | 3,272 | (706) | (1,732) |
Page 9
Phillips 66 Reports Second-Quarter 2022 Financial Results
| Marketing and Specialties Pre-Tax Income | 765 | 316 | 1,081 | 476 | 766 |
|---|---|---|---|---|---|
| Pre-tax adjustments: | |||||
| Pension settlement expense | — | — | 3 | 3 | |
| Adjusted pre-tax income | 765 | 316 | 1,081 | 479 | 769 |
| Corporate and Other Pre-Tax Loss | (260) | (249) | (509) | (246) | (497) |
| Pre-tax adjustments: | |||||
| Pension settlement expense | — | — | 2 | 2 | |
| Restructuring costs | — | 25 | — | — | |
| Adjusted pre-tax loss | (235) | (249) | (484) | (244) | (495) |
| *We generally tax effect taxable U.S.-based special items using a combined federal and state 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 2022 is based on adjusted weighted-average diluted shares of 450,129 thousand. 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. | |||||
| †† Costs related to the shutdown of the Alliance Refinery totaled 26 million pre-tax in the second quarter of 2022. Shutdown-related costs recorded in the Refining segment include pre-tax charges for the disposal of materials and supplies of 20 million and asset retirements of 6 million recorded in depreciation and amortization expense. |
All values are in US Dollars.
Page 10
Phillips 66 Reports Second-Quarter 2022 Financial Results
| Millions of Dollars | |||
|---|---|---|---|
| Except as Indicated | |||
| June 30, 2022 | |||
| Debt-to-Capital Ratio | |||
| Total Debt | $ | 12,969 | |
| Total Equity | 24,573 | ||
| Debt-to-Capital Ratio | 35 | % | |
| Total Cash | $ | 2,809 | |
| Net Debt-to-Capital Ratio | 29 | % | |
| Millions of Dollars | |||
| --- | --- | --- | --- |
| Except as Indicated | |||
| 2022 | |||
| Q2 | Q1 | ||
| Realized Refining Margins | |||
| Income before income taxes | $ | 3,036 | 123 |
| Plus: | |||
| Taxes other than income taxes | 72 | 88 | |
| Depreciation, amortization and impairments | 214 | 198 | |
| Selling, general and administrative expenses | 52 | 48 | |
| Operating expenses | 1,177 | 1,092 | |
| Equity in (earnings) losses of affiliates | (223) | 21 | |
| Other segment expense, net | 11 | 9 | |
| Proportional share of refining gross margins contributed by equity affiliates | 495 | 228 | |
| Special items: | |||
| Regulatory compliance costs | 70 | — | |
| Realized refining margins | $ | 4,904 | 1,807 |
| Total processed inputs (thousands of barrels) | 155,211 | 152,734 | |
| Adjusted total processed inputs (thousands of barrels)* | 173,205 | 171,310 | |
| Income before income taxes (dollars per barrel)** | $ | 19.56 | 0.81 |
| Realized refining margins (dollars per barrel)*** | $ | 28.31 | 10.55 |
| *Adjusted total processed inputs include our proportional share of processed inputs of an equity affiliate. | |||
| **Income before income taxes divided by total processed inputs. | |||
| ***Realized refining margins per barrel, as presented, are calculated using the underlying realized refining margin amounts, in dollars, divided by adjusted total processed inputs, in barrels. As such, recalculated per barrel amounts using the rounded margins and barrels presented may differ from the presented per barrel amounts. |
Page 11
Document
| Exhibit 99.2 | |||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Phillips 66 Earnings Release Supplemental Data | CONSOLIDATED STATEMENT OF OPERATIONS | ||||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |||
| Millions of Dollars, Except as Indicated | |||||||||||||||||||||
| 2022 | 2021 | ||||||||||||||||||||
| 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | ||||||||||||
| Revenues and Other Income | |||||||||||||||||||||
| Sales and other operating revenues | 36,179 | 48,577 | 84,756 | 21,627 | 27,002 | 30,243 | 32,604 | 111,476 | |||||||||||||
| Equity in earnings of affiliates | 685 | 917 | 1,602 | 285 | 830 | 982 | 807 | 2,904 | |||||||||||||
| Net gain on dispositions | 1 | — | 1 | — | 2 | 9 | 7 | 18 | |||||||||||||
| Other income (loss)* | (143) | (185) | (328) | 15 | 51 | 238 | 150 | 454 | |||||||||||||
| Total Revenues and Other Income | 36,722 | 49,309 | 86,031 | 21,927 | 27,885 | 31,472 | 33,568 | 114,852 | |||||||||||||
| Costs and Expenses | |||||||||||||||||||||
| Purchased crude oil and products | 33,495 | 42,645 | 76,140 | 20,065 | 25,218 | 27,529 | 29,290 | 102,102 | |||||||||||||
| Operating expenses | 1,340 | 1,431 | 2,771 | 1,380 | 1,175 | 1,166 | 1,426 | 5,147 | |||||||||||||
| Selling, general and administrative expenses | 433 | 488 | 921 | 408 | 433 | 424 | 479 | 1,744 | |||||||||||||
| Depreciation and amortization | 338 | 359 | 697 | 356 | 364 | 361 | 524 | 1,605 | |||||||||||||
| Impairments | — | 2 | 2 | 198 | — | 1,298 | 2 | 1,498 | |||||||||||||
| Taxes other than income taxes | 149 | 118 | 267 | 139 | 119 | 85 | 67 | 410 | |||||||||||||
| Accretion on discounted liabilities | 6 | 6 | 12 | 6 | 6 | 6 | 6 | 24 | |||||||||||||
| Interest and debt expense | 135 | 133 | 268 | 146 | 143 | 151 | 141 | 581 | |||||||||||||
| Foreign currency transaction (gains) losses | (2) | 21 | 19 | — | (9) | 4 | 6 | 1 | |||||||||||||
| Total Costs and Expenses | 35,894 | 45,203 | 81,097 | 22,698 | 27,449 | 31,024 | 31,941 | 113,112 | |||||||||||||
| Income (loss) before income taxes | 828 | 4,106 | 4,934 | (771) | 436 | 448 | 1,627 | 1,740 | |||||||||||||
| Income tax expense (benefit) | 171 | 924 | 1,095 | (132) | 62 | (40) | 256 | 146 | |||||||||||||
| Net Income (Loss) | 657 | 3,182 | 3,839 | (639) | 374 | 488 | 1,371 | 1,594 | |||||||||||||
| Less: net income attributable to noncontrolling interests | 75 | 15 | 90 | 15 | 78 | 86 | 98 | 277 | |||||||||||||
| Net Income (Loss) Attributable to Phillips 66 | 582 | 3,167 | 3,749 | (654) | 296 | 402 | 1,273 | 1,317 | |||||||||||||
| Net Income (Loss) Attributable to Phillips 66 Per Share of Common Stock (dollars) | |||||||||||||||||||||
| Basic | 1.29 | 6.55 | 8.03 | (1.49) | 0.66 | 0.91 | 2.89 | 2.97 | |||||||||||||
| Diluted | 1.29 | 6.53 | 8.00 | (1.49) | 0.66 | 0.91 | 2.88 | 2.97 | |||||||||||||
| Weighted-Average Common Shares Outstanding (thousands) | |||||||||||||||||||||
| Basic | 449,298 | 483,088 | 466,286 | 439,504 | 439,940 | 440,193 | 440,469 | 440,028 | |||||||||||||
| Diluted | 450,011 | 485,035 | 468,338 | 439,504 | 440,396 | 440,368 | 441,584 | 440,364 | |||||||||||||
| Effective tax rate (%) | 20.7 | % | 22.5 | % | 22.2 | % | 17.1 | % | 14.2 | % | (8.9) | % | 15.7 | % | 8.4 | % | |||||
| Adjusted effective tax rate (%) | 20.7 | % | 21.9 | % | 21.7 | % | 15.9 | % | 18.9 | % | 16.1 | % | 20.2 | % | 18.6 | % | |||||
| * Includes the unrealized investment gain (loss) on our investment in NOVONIX Limited (NOVONIX). See NOVONIX Investment table on page 5 for more details. |
Page 1
| Phillips 66 Earnings Release Supplemental Data | | --- || RECONCILIATION OF INCOME (LOSS) BEFORE INCOME TAXES BY SEGMENT TO | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | NET INCOME (LOSS) ATTRIBUTABLE TO PHILLIPS 66 | | | | | | | | | | | | | Millions of Dollars | | | | | | | | | | | | 2022 | | | | | 2021 | | | | | | | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | | Midstream | 242 | 292 | | | 534 | 76 | 312 | 629 | 593 | 1,610 | | Chemicals | 396 | 273 | | | 669 | 154 | 623 | 631 | 436 | 1,844 | | Refining | 123 | 3,036 | | | 3,159 | (1,040) | (729) | (1,126) | 346 | (2,549) | | Marketing and Specialties | 316 | 765 | | | 1,081 | 290 | 476 | 545 | 498 | 1,809 | | Corporate and Other | (249) | (260) | | | (509) | (251) | (246) | (231) | (246) | (974) | | Income (loss) before income taxes | 828 | 4,106 | | | 4,934 | (771) | 436 | 448 | 1,627 | 1,740 | | Less: income tax expense (benefit) | 171 | 924 | | | 1,095 | (132) | 62 | (40) | 256 | 146 | | Net Income (Loss) | 657 | 3,182 | | | 3,839 | (639) | 374 | 488 | 1,371 | 1,594 | | Less: net income attributable to noncontrolling interests | 75 | 15 | | | 90 | 15 | 78 | 86 | 98 | 277 | | Net Income (Loss) Attributable to Phillips 66 | 582 | 3,167 | | | 3,749 | (654) | 296 | 402 | 1,273 | 1,317 | | RECONCILIATION OF ADJUSTED INCOME (LOSS) BEFORE INCOME TAXES BY SEGMENT TO | | | | | | | | | | | | ADJUSTED NET INCOME (LOSS) ATTRIBUTABLE TO PHILLIPS 66 | | | | | | | | | | | | | Millions of Dollars | | | | | | | | | | | | 2022 | | | | | 2021 | | | | | | | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | | Midstream | | | | | | | | | | | | Transportation | 278 | 250 | | | 528 | 206 | 224 | 254 | 273 | 957 | | NGL and Other | 91 | 152 | | | 243 | 36 | 83 | 133 | 138 | 390 | | DCP Midstream | 31 | 130 | | | 161 | 34 | 9 | 31 | 111 | 185 | | NOVONIX* | (158) | (240) | | | (398) | — | — | 224 | 146 | 370 | | Total Midstream | 242 | 292 | | | 534 | 276 | 316 | 642 | 668 | 1,902 | | Chemicals | 396 | 273 | | | 669 | 184 | 657 | 634 | 424 | 1,899 | | Refining | | | | | | | | | | | | Atlantic Basin/Europe | 143 | 1,102 | | | 1,245 | (152) | (108) | 93 | 114 | (53) | | Gulf Coast | 21 | 915 | | | 936 | (247) | (253) | (31) | 80 | (451) | | Central Corridor | (135) | 512 | | | 377 | (241) | (76) | 232 | 145 | 60 | | West Coast | 111 | 603 | | | 714 | (386) | (269) | (110) | 65 | (700) | | Total Refining | 140 | 3,132 | | | 3,272 | (1,026) | (706) | 184 | 404 | (1,144) | | Marketing and Specialties | | | | | | | | | | | | Marketing and Other | 203 | 656 | | | 859 | 211 | 392 | 454 | 402 | 1,459 | | Specialties | 113 | 109 | | | 222 | 79 | 87 | 93 | 97 | 356 | | Total Marketing and Specialties | 316 | 765 | | | 1,081 | 290 | 479 | 547 | 499 | 1,815 | | Corporate and Other | (249) | (235) | | | (484) | (251) | (244) | (230) | (245) | (970) | | Adjusted income (loss) before income taxes | 845 | 4,227 | | | 5,072 | (527) | 502 | 1,777 | 1,750 | 3,502 | | Less: adjusted income tax expense (benefit) | 175 | 927 | | | 1,102 | (84) | 95 | 286 | 354 | 651 | | Adjusted Net Income (Loss) | 670 | 3,300 | | | 3,970 | (443) | 407 | 1,491 | 1,396 | 2,851 | | Less: adjusted net income attributable to noncontrolling interests | 75 | 15 | | | 90 | 66 | 78 | 88 | 98 | 330 | | Adjusted Net Income (Loss) Attributable to Phillips 66 | 595 | 3,285 | | | 3,880 | (509) | 329 | 1,403 | 1,298 | 2,521 | | * Represents the change in fair value of our investment in NOVONIX. See NOVONIX Investments table on page 5 for more details. | | | | | | | | | | |
Page 2
| Phillips 66 Earnings Release Supplemental Data | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| SPECIAL ITEMS INCLUDED IN INCOME (LOSS) BEFORE INCOME TAXES BY SEGMENT | |||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| AND NET INCOME (LOSS) ATTRIBUTABLE TO PHILLIPS 66 | |||||||||
| 2021 | |||||||||
| 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | |
| Midstream | |||||||||
| Impairments | — | — | (198) | — | (10) | — | (208) | ||
| Pension settlement expense | — | — | — | (4) | (3) | (1) | (8) | ||
| Hurricane-related costs | — | — | — | — | — | (4) | (4) | ||
| Winter-storm-related costs | — | — | (2) | — | — | — | (2) | ||
| Alliance shutdown-related costs* | — | — | — | — | — | (70) | (70) | ||
| Total Midstream | — | — | (200) | (4) | (13) | (75) | (292) | ||
| Chemicals | |||||||||
| Pension settlement expense | — | — | — | (18) | (2) | (2) | (22) | ||
| Hurricane-related costs | — | — | — | — | (1) | — | (1) | ||
| Winter-storm-related costs | — | — | (30) | (16) | — | 14 | (32) | ||
| Total Chemicals | — | — | (30) | (34) | (3) | 12 | (55) | ||
| Refining | |||||||||
| Impairments | — | — | — | — | (1,288) | — | (1,288) | ||
| Certain tax impacts | — | — | — | — | — | 11 | 11 | ||
| Pension settlement expense | — | — | — | (20) | (12) | (5) | (37) | ||
| Hurricane-related costs | — | (17) | — | — | (10) | (30) | (40) | ||
| Winter-storm-related costs | — | — | (14) | (3) | — | — | (17) | ||
| Alliance shutdown-related costs* | (26) | (26) | — | — | — | (122) | (122) | ||
| Regulatory compliance costs | (70) | (70) | — | — | — | 88 | 88 | ||
| Total Refining | (96) | (113) | (14) | (23) | (1,310) | (58) | (1,405) | ||
| Marketing and Specialties | |||||||||
| Pension settlement expense | — | — | — | (3) | (2) | (1) | (6) | ||
| Total Marketing and Specialties | — | — | — | (3) | (2) | (1) | (6) | ||
| Corporate and Other | |||||||||
| Pension settlement expense | — | — | — | (2) | (1) | (1) | (4) | ||
| Restructuring costs | (25) | (25) | — | — | — | — | — | ||
| Total Corporate and Other | (25) | (25) | — | (2) | (1) | (1) | (4) | ||
| Total Special Items (Pre-tax) | (121) | (138) | (244) | (66) | (1,329) | (123) | (1,762) | ||
| Less: Income Tax Benefit | |||||||||
| Tax impact of pre-tax special items** | (28) | (32) | (48) | (16) | (323) | (33) | (420) | ||
| Other tax impacts | 25 | 25 | — | (17) | (3) | (65) | (85) | ||
| Total Income Tax Benefit | (3) | (7) | (48) | (33) | (326) | (98) | (505) | ||
| Less: Income (Loss) Attributable to Noncontrolling Interests | |||||||||
| Impairments | — | — | (51) | — | (2) | — | (53) | ||
| Total Income (Loss) Attributable to Noncontrolling Interests | — | — | (51) | — | (2) | — | (53) | ||
| Total Phillips 66 Special Items (After-tax) | (118) | (131) | (145) | (33) | (1,001) | (25) | (1,204) | ||
| * Costs related to the shutdown of the Alliance Refinery totaled 192 million pre-tax in the fourth quarter of 2021. Shutdown-related costs recorded in the Refining segment include pre-tax charges for asset retirements of 91 million recorded in depreciation and amortization expense, and severance and other exit costs of 31 million. Shutdown-related costs in the Midstream segment include asset retirements of 70 million pre-tax recorded in depreciation and amortization expense. Costs related to the shutdown of the Alliance Refinery totaled 26 million pre-tax in the second quarter of 2022. Shutdown-related costs recorded in the Refining segment include pre-tax charges for the disposal of materials and supplies of 20 million, and asset retirements of 6 million recorded in depreciation and amortization expense. | |||||||||
| ** We generally tax effect taxable U.S.-based special items using a combined federal and state annual statutory income tax rate of approximately 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 | |||||||||
| 2021 | |||||||||
| 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | |
| Midstream | |||||||||
| Transportation | — | — | (199) | — | (10) | (70) | (279) | ||
| NGL and Other | — | — | (1) | (4) | (3) | (5) | (13) | ||
| DCP Midstream | — | — | — | — | — | — | — | ||
| NOVONIX | — | — | — | — | — | — | — | ||
| Total Midstream | — | — | (200) | (4) | (13) | (75) | (292) | ||
| Refining | |||||||||
| Atlantic Basin/Europe | (9) | (9) | (1) | (2) | (3) | 23 | 17 | ||
| Gulf Coast | (52) | (69) | (6) | (11) | (1,302) | (119) | (1,438) | ||
| Central Corridor | (22) | (22) | (7) | (6) | (3) | 26 | 10 | ||
| West Coast | (13) | (13) | — | (4) | (2) | 12 | 6 | ||
| Total Refining | (96) | (113) | (14) | (23) | (1,310) | (58) | (1,405) | ||
| Marketing and Specialties | |||||||||
| Marketing and Other | — | — | — | (3) | (2) | (1) | (6) | ||
| Specialties | — | — | — | — | — | — | — | ||
| Total Marketing and Specialties | — | — | — | (3) | (2) | (1) | (6) |
All values are in US Dollars.
Page 3
| Phillips 66 Earnings Release Supplemental Data | | --- || CASH FLOW INFORMATION | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | Millions of Dollars | | | | | | | | | | | | 2022 | | | | | 2021 | | | | | | | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | | Cash Flows From Operating Activities | | | | | | | | | | | | Net income (loss) | 657 | 3,182 | | | 3,839 | (639) | 374 | 488 | 1,371 | 1,594 | | Depreciation and amortization | 338 | 359 | | | 697 | 356 | 364 | 361 | 524 | 1,605 | | Impairments | — | 2 | | | 2 | 198 | — | 1,298 | 2 | 1,498 | | Accretion on discounted liabilities | 6 | 6 | | | 12 | 6 | 6 | 6 | 6 | 24 | | Deferred income taxes | 142 | 148 | | | 290 | (103) | 266 | (453) | 18 | (272) | | Undistributed equity earnings | (100) | (390) | | | (490) | 217 | (218) | (77) | (50) | (128) | | Net gain on dispositions | (1) | — | | | (1) | — | (2) | (3) | (2) | (7) | | Unrealized investment (gain) loss* | 169 | 221 | | | 390 | — | — | (224) | (141) | (365) | | Other | 40 | 80 | | | 120 | 138 | 120 | 31 | (340) | (51) | | Net working capital changes | (115) | (1,825) | | | (1,940) | 98 | 833 | 776 | 412 | 2,119 | | Net Cash Provided by Operating Activities | 1,136 | 1,783 | | | 2,919 | 271 | 1,743 | 2,203 | 1,800 | 6,017 | | Cash Flows From Investing Activities | | | | | | | | | | | | Capital expenditures and investments | (370) | (376) | | | (746) | (331) | (380) | (552) | (597) | (1,860) | | Return of investments in equity affiliates | 15 | 33 | | | 48 | 58 | 100 | 78 | 31 | 267 | | Proceeds from asset dispositions | 1 | 1 | | | 2 | — | 24 | 2 | 1 | 27 | | Advances/loans—related parties | — | (75) | | | (75) | (155) | (90) | (65) | — | (310) | | Collection of advances/loans—related parties | — | 101 | | | 101 | — | — | 1 | 1 | 2 | | Other | (74) | 25 | | | (49) | (39) | (6) | 40 | 7 | 2 | | Net Cash Used in Investing Activities | (428) | (291) | | | (719) | (467) | (352) | (496) | (557) | (1,872) | | Cash Flows From Financing Activities | | | | | | | | | | | | Issuance of debt | — | — | | | — | 450 | 15 | (15) | 993 | 1,443 | | Repayment of debt | (24) | (1,457) | | | (1,481) | (925) | (54) | (506) | (1,469) | (2,954) | | Issuance of common stock | 23 | 44 | | | 67 | 20 | 4 | — | 2 | 26 | | Repurchase of common stock | — | (66) | | | (66) | — | — | — | — | — | | Dividends paid on common stock | (404) | (467) | | | (871) | (394) | (394) | (394) | (403) | (1,585) | | Distributions to noncontrolling interests | (77) | (24) | | | (101) | (76) | (82) | (81) | (85) | (324) | | Repurchase of noncontrolling interests | — | — | | | — | — | (24) | — | — | (24) | | Other | (30) | (7) | | | (37) | (20) | (7) | (9) | (16) | (52) | | Net Cash Used in Financing Activities | (512) | (1,977) | | | (2,489) | (945) | (542) | (1,005) | (978) | (3,470) | | Effect of Exchange Rate Changes on Cash and Cash Equivalents | (8) | (41) | | | (49) | (22) | 7 | (12) | (15) | (42) | | Net Change in Cash and Cash Equivalents | 188 | (526) | | | (338) | (1,163) | 856 | 690 | 250 | 633 | | Cash and cash equivalents at beginning of period | 3,147 | 3,335 | | | 3,147 | 2,514 | 1,351 | 2,207 | 2,897 | 2,514 | | Cash and Cash Equivalents at End of Period | 3,335 | 2,809 | | | 2,809 | 1,351 | 2,207 | 2,897 | 3,147 | 3,147 | | * Represents the unrealized gain (loss) on our investment in NOVONIX. See NOVONIX Investment table on page 5 for more details. | | | | | | | | | | | | CAPITAL PROGRAM | | | | | | | | | | | | | Millions of Dollars | | | | | | | | | | | | 2022 | | | | | 2021 | | | | | | | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | | Consolidated Capital Expenditures and Investments | | | | | | | | | | | | Midstream | 164 | 106 | | | 270 | 100 | 141 | 328 | 169 | 738 | | Chemicals | — | — | | | — | — | — | — | — | — | | Refining | 171 | 220 | | | 391 | 184 | 186 | 158 | 251 | 779 | | Marketing and Specialties | 11 | 19 | | | 30 | 22 | 22 | 28 | 130 | 202 | | Corporate and Other | 24 | 31 | | | 55 | 25 | 31 | 38 | 47 | 141 | | Consolidated Capital Expenditures and Investments | 370 | 376 | | | 746 | 331 | 380 | 552 | 597 | 1,860 | | Proportional Share of Selected Equity Affiliates Capital Expenditures and Investments* | | | | | | | | | | | | DCP Midstream (Midstream) | 11 | 20 | | | 31 | 7 | 14 | 15 | 19 | 55 | | CPChem (Chemicals) | 113 | 161 | | | 274 | 79 | 72 | 88 | 128 | 367 | | WRB (Refining) | 42 | 47 | | | 89 | 59 | 47 | 61 | 62 | 229 | | Selected Equity Affiliates | 166 | 228 | | | 394 | 145 | 133 | 164 | 209 | 651 | | * 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 | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | Millions of Dollars, Except as Indicated | | | | | | | | | | | | 2022 | | | | | 2021 | | | | | | | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | | Income (Loss) before Income Taxes | | | | | | | | | | | | Transportation | 278 | 250 | | | 528 | 7 | 224 | 244 | 203 | 678 | | NGL and Other | 91 | 152 | | | 243 | 35 | 79 | 130 | 133 | 377 | | DCP Midstream | 31 | 130 | | | 161 | 34 | 9 | 31 | 111 | 185 | | NOVONIX | (158) | (240) | | | (398) | — | — | 224 | 146 | 370 | | Income (Loss) before Income Taxes | 242 | 292 | | | 534 | 76 | 312 | 629 | 593 | 1,610 | | Equity in Earnings of Affiliates | | | | | | | | | | | | Transportation | 154 | 133 | | | 287 | 126 | 120 | 140 | 142 | 528 | | NGL and Other | 42 | 58 | | | 100 | 37 | 44 | 40 | 42 | 163 | | DCP Midstream | 31 | 128 | | | 159 | 34 | 8 | 32 | 112 | 186 | | NOVONIX | — | — | | | — | — | — | — | — | — | | Total | 227 | 319 | | | 546 | 197 | 172 | 212 | 296 | 877 | | NOVONIX Investment | | | | | | | | | | | | Unrealized Investment Gain (Loss) | (169) | (221) | | | (390) | — | — | 224 | 141 | 365 | | Unrealized Foreign Currency Transaction Gain (Loss) | 11 | (19) | | | (8) | — | — | — | 5 | 5 | | Change in Fair Value of NOVONIX Investment | (158) | (240) | | | (398) | — | — | 224 | 146 | 370 | | Depreciation and Amortization* | | | | | | | | | | | | Transportation | 39 | 43 | | | 82 | 40 | 40 | 45 | 109 | 234 | | NGL and Other | 55 | 55 | | | 110 | 52 | 52 | 52 | 53 | 209 | | DCP Midstream | — | — | | | — | — | — | — | — | — | | NOVONIX | — | — | | | — | — | — | — | — | — | | Total | 94 | 98 | | | 192 | 92 | 92 | 97 | 162 | 443 | | * Excludes D&A of all non-consolidated affiliates. | | | | | | | | | | | | Operating and SG&A Expenses* | | | | | | | | | | | | Transportation | 186 | 187 | | | 373 | 173 | 189 | 188 | 209 | 759 | | NGL and Other | 107 | 117 | | | 224 | 122 | 88 | 85 | 113 | 408 | | DCP Midstream | — | (1) | | | (1) | — | — | 1 | 1 | 2 | | NOVONIX | — | — | | | — | — | — | — | — | — | | Total | 293 | 303 | | | 596 | 295 | 277 | 274 | 323 | 1,169 | | * Excludes operating and SG&A expenses of all non-consolidated affiliates. | | | | | | | | | | | | Transportation Volumes (MB/D) | | | | | | | | | | | | Pipelines* | 3,099 | 3,066 | | | 3,082 | 2,801 | 3,424 | 3,483 | 3,370 | 3,271 | | Terminals | 2,900 | 2,917 | | | 2,908 | 2,675 | 2,786 | 2,771 | 2,927 | 2,790 | | * Pipelines represent the sum of volumes transported through each separately tariffed consolidated pipeline segment. | | | | | | | | | | | | PSX Other Volumes | | | | | | | | | | | | NGL Fractionated (MB/D)* | 452 | 469 | | | 461 | 363 | 401 | 420 | 454 | 410 | | * Excludes DCP Midstream. | | | | | | | | | | | | Market Indicator | | | | | | | | | | | | Weighted-Average NGL Price ($/gal)* | 1.10 | 1.15 | | | 1.13 | 0.69 | 0.71 | 0.91 | 1.00 | 0.83 | | * Based on index prices from the Mont Belvieu market hub, which are weighted by NGL component mix. | | | | | | | | | | | | 100% DCP Midstream, LLC Results | | | | | | | | | | | | Net Income (Loss) Attributable to Owners | 1 | 215 | | | 216 | 27 | (35) | 23 | 199 | 214 | | Depreciation and Amortization | 89 | 91 | | | 180 | 91 | 92 | 90 | 91 | 364 | | Operating and SG&A Expenses | 205 | 251 | | | 456 | 189 | 222 | 230 | 250 | 891 | | Net Interest Expense* | 70 | 71 | | | 141 | 77 | 77 | 73 | 72 | 299 | | * Net of interest income. | | | | | | | | | | | | Capital Expenditures and Investments | 22 | 40 | | | 62 | 14 | 28 | 30 | 38 | 110 | | Selected DCP Operating Statistics | | | | | | | | | | | | Wellhead Volume (Bcf/D) | 4.1 | 4.4 | | | 4.3 | 4.1 | 4.4 | 4.2 | 4.2 | 4.2 | | NGL Production (MB/D) | 400 | 438 | | | 419 | 356 | 406 | 398 | 416 | 394 | | MLP Distributions* | | | | | | | | | | | | LP Distribution from DCP Midstream, LP to DCP Midstream** | 46 | *** | | | *** | 46 | 46 | 46 | 46 | 184 | | * Cash distributions declared attributable to common unit ownership. These distributions are eliminated in the respective sponsors consolidated financial statements. | | | | | | | | | | | | ** Represents 100% of DCP Midstream's distributions from DCP Midstream, LP (DCP Partners). | | | | | | | | | | | | *** Pending DCP Midstream release. | | | | | | | | | | |
Page 5
| Phillips 66 Earnings Release Supplemental Data | | --- || MIDSTREAM (continued) | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | Millions of Dollars | | | | | | | | | | | | 2022 | | | | | 2021 | | | | | | | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | | Reconciliation of Midstream Income before Income Taxes to Adjusted EBITDA | | | | | | | | | | | | Income before income taxes | 242 | 292 | | | 534 | 76 | 312 | 629 | 593 | 1,610 | | Plus: | | | | | | | | | | | | Depreciation and amortization | 94 | 98 | | | 192 | 92 | 92 | 97 | 162 | 443 | | EBITDA | 336 | 390 | | | 726 | 168 | 404 | 726 | 755 | 2,053 | | Special Item Adjustments (pre-tax): | | | | | | | | | | | | Impairments | — | — | | | — | 198 | — | 10 | — | 208 | | Pension settlement expense | — | — | | | — | — | 4 | 3 | 1 | 8 | | Hurricane-related costs | — | — | | | — | — | — | — | 4 | 4 | | Winter-storm-related costs | — | — | | | — | 2 | — | — | — | 2 | | Total Special Item Adjustments (pre-tax) | — | — | | | — | 200 | 4 | 13 | 5 | 222 | | Change in Fair Value of NOVONIX Investment* | 158 | 240 | | | 398 | — | — | (224) | (146) | (370) | | EBITDA, Adjusted for Special Items and Change in Fair Value of NOVONIX Investment** | 494 | 630 | | | 1,124 | 368 | 408 | 515 | 614 | 1,905 | | Other Adjustments (pre-tax): | | | | | | | | | | | | Proportional share of selected equity affiliates income taxes | 2 | 4 | | | 6 | 2 | 4 | 4 | 4 | 14 | | Proportional share of selected equity affiliates net interest | 41 | 39 | | | 80 | 43 | 43 | 42 | 41 | 169 | | Proportional share of selected equity affiliates depreciation and amortization | 56 | 57 | | | 113 | 57 | 57 | 58 | 57 | 229 | | Adjusted EBITDA attributable to joint venture partners' noncontrolling interests | (24) | (21) | | | (45) | (18) | (20) | (22) | (21) | (81) | | Adjusted EBITDA** | 569 | 709 | | | 1,278 | 452 | 492 | 597 | 695 | 2,236 | | * See NOVONIX Investment table on page 5 for more details. | | | | | | | | | | | | ** Prior period information has been recasted to exclude the change in fair value of our investment in NOVONIX. | | | | | | | | | | |
Page 6
| Phillips 66 Earnings Release Supplemental Data | | --- || MIDSTREAM (continued) | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | Millions of Dollars | | | | | | | | | | | | 2022 | | | | | 2021 | | | | | | | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | | Transportation | | | | | | | | | | | | Income before income taxes | 278 | 250 | | | 528 | 7 | 224 | 244 | 203 | 678 | | Plus: | | | | | | | | | | | | Depreciation and amortization | 39 | 43 | | | 82 | 40 | 40 | 45 | 109 | 234 | | EBITDA | 317 | 293 | | | 610 | 47 | 264 | 289 | 312 | 912 | | Special Item Adjustments (pre-tax): | | | | | | | | | | | | Impairments | — | — | | | — | 198 | — | 10 | — | 208 | | Winter-storm-related costs | — | — | | | — | 1 | — | — | — | 1 | | EBITDA, Adjusted for Special Items | 317 | 293 | | | 610 | 246 | 264 | 299 | 312 | 1,121 | | Other Adjustments (pre-tax): | | | | | | | | | | | | Proportional share of selected equity affiliates income taxes | 2 | 3 | | | 5 | 2 | 4 | 4 | 4 | 14 | | Proportional share of selected equity affiliates net interest | 21 | 19 | | | 40 | 21 | 21 | 21 | 21 | 84 | | Proportional share of selected equity affiliates depreciation and amortization | 37 | 38 | | | 75 | 37 | 37 | 38 | 38 | 150 | | Adjusted EBITDA attributable to joint venture partners' noncontrolling interests | (24) | (21) | | | (45) | (18) | (20) | (22) | (21) | (81) | | Adjusted EBITDA | 353 | 332 | | | 685 | 288 | 306 | 340 | 354 | 1,288 | | NGL and Other | | | | | | | | | | | | Income before income taxes | 91 | 152 | | | 243 | 35 | 79 | 130 | 133 | 377 | | Plus: | | | | | | | | | | | | Depreciation and amortization | 55 | 55 | | | 110 | 52 | 52 | 52 | 53 | 209 | | EBITDA | 146 | 207 | | | 353 | 87 | 131 | 182 | 186 | 586 | | Special Item Adjustments (pre-tax): | | | | | | | | | | | | Pension settlement expense | — | — | | | — | — | 4 | 3 | 1 | 8 | | Hurricane-related costs | — | — | | | — | — | — | — | 4 | 4 | | Winter-storm-related costs | — | — | | | — | 1 | — | — | — | 1 | | EBITDA, Adjusted for Special Items | 146 | 207 | | | 353 | 88 | 135 | 185 | 191 | 599 | | Other Adjustments (pre-tax): | | | | | | | | | | | | Proportional share of selected equity affiliates income taxes | — | 1 | | | 1 | — | — | — | — | — | | Proportional share of selected equity affiliates net interest | — | — | | | — | — | — | — | — | — | | Proportional share of selected equity affiliates depreciation and amortization | 5 | 5 | | | 10 | 5 | 5 | 5 | 5 | 20 | | Adjusted EBITDA | 151 | 213 | | | 364 | 93 | 140 | 190 | 196 | 619 | | DCP Midstream | | | | | | | | | | | | Income before income taxes | 31 | 130 | | | 161 | 34 | 9 | 31 | 111 | 185 | | Plus: | | | | | | | | | | | | None | — | — | | | — | — | — | — | — | — | | EBITDA | 31 | 130 | | | 161 | 34 | 9 | 31 | 111 | 185 | | Special Item Adjustments (pre-tax): | | | | | | | | | | | | None | — | — | | | — | — | — | — | — | — | | EBITDA, Adjusted for Special Items | 31 | 130 | | | 161 | 34 | 9 | 31 | 111 | 185 | | Other Adjustments (pre-tax): | | | | | | | | | | | | Proportional share of selected equity affiliates income taxes | — | — | | | — | — | — | — | — | — | | Proportional share of selected equity affiliates net interest | 20 | 20 | | | 40 | 22 | 22 | 21 | 20 | 85 | | Proportional share of selected equity affiliates depreciation and amortization | 14 | 14 | | | 28 | 15 | 15 | 15 | 14 | 59 | | Adjusted EBITDA* | 65 | 164 | | | 229 | 71 | 46 | 67 | 145 | 329 | | * 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 | | | | | | | | | | | | | | | | | | | | 2022 | | | | | | | | 2021 | | | | | | | | | | | | 1st Qtr | | 2nd Qtr | | 3rd Qtr | 4th Qtr | YTD | | 1st Qtr | | 2nd Qtr | | 3rd Qtr | | 4th Qtr | | YTD | | | Income before Income Taxes | 396 | | 273 | | | | 669 | | 154 | | 623 | | 631 | | 436 | | 1,844 | | | Equity in Earnings of Affiliate | 393 | | 271 | | | | 664 | | 152 | | 620 | | 627 | | 433 | | 1,832 | | | 100% CPChem Results | | | | | | | | | | | | | | | | | | | | Net Income (Loss), excludes parent company income tax related to CPChem's earnings | | | | | | | | | | | | | | | | | | | | Olefins and Polyolefins | 736 | | 433 | | | | 1,169 | | 288 | | 1,124 | | 1,224 | | 851 | | 3,487 | | | Specialties, Aromatics and Styrenics | 60 | | 118 | | | | 178 | | 53 | | 157 | | 73 | | 76 | | 359 | | | Corporate and Other | (32) | | (7) | | | | (39) | | (37) | | (41) | | (44) | | (40) | | (162) | | | Total | 764 | | 544 | | | | 1,308 | | 304 | | 1,240 | | 1,253 | | 887 | | 3,684 | | | Income (Loss) before Income Taxes | | | | | | | | | | | | | | | | | | | | Olefins and Polyolefins | 750 | | 443 | | | | 1,193 | | 299 | | 1,143 | | 1,237 | | 872 | | 3,551 | | | Specialties, Aromatics and Styrenics | 69 | | 130 | | | | 199 | | 58 | | 164 | | 80 | | 82 | | 384 | | | Corporate and Other | (32) | | (7) | | | | (39) | | (37) | | (41) | | (41) | | (40) | | (159) | | | Total | 787 | | 566 | | | | 1,353 | | 320 | | 1,266 | | 1,276 | | 914 | | 3,776 | | | Depreciation and Amortization | 141 | | 144 | | | | 285 | | 146 | | 144 | | 151 | | 151 | | 592 | | | Net Interest Expense* | 23 | | 11 | | | | 34 | | 22 | | 24 | | 24 | | 24 | | 94 | | | * Net of interest income. | | | | | | | | | | | | | | | | | | | | Investing Cash Flows—Outflows/(Inflows) | | | | | | | | | | | | | | | | | | | | Capital Expenditures and Investments | 225 | | 322 | | | | 547 | | 157 | | 144 | | 177 | | 255 | | 733 | | | Return of Investments from Equity Companies | (26) | | (34) | | | | (60) | | (30) | | (107) | | (82) | | (46) | | (265) | | | Olefins and Polyolefins Capacity Utilization (%) | 99 | % | 94 | % | | | 96 | % | 79 | % | 102 | % | 102 | % | 97 | % | 95 | % | | Market Indicators* | | | | | | | | | | | | | | | | | | | | U.S. Industry Prices | | | | | | | | | | | | | | | | | | | | Ethylene, Average Acquisition Contract (cents/lb) | 39.5 | | 35.0 | | | | 37.2 | | 41.9 | | 41.1 | | 45.6 | | 38.4 | | 41.8 | | | HDPE Blow Molding, Domestic Spot (cents/lb) | 69.8 | | 69.8 | | | | 69.8 | | 71.9 | | 88.3 | | 98.8 | | 84.8 | | 86.0 | | | U.S. Industry Costs | | | | | | | | | | | | | | | | | | | | Ethylene, Cash Cost Weighted Average Feed (cents/lb) | 22.1 | | 28.0 | | | | 25.1 | | 13.2 | | 12.5 | | 16.1 | | 20.8 | | 15.7 | | | HDPE Blow Molding, Total Cash Cost (cents/lb) | 53.9 | | 49.7 | | | | 51.8 | | 55.7 | | 54.9 | | 59.7 | | 52.8 | | 55.8 | | | Ethylene to High-Density Polyethylene Chain Cash Margin (cents/lb) | 33.4 | | 27.0 | | | | 30.2 | | 44.9 | | 62.0 | | 68.6 | | 49.6 | | 56.3 | | | * Source: IHS, Inc. | | | | | | | | | | | | | | | | | | | | Reconciliation of Chemicals Income before Income Taxes to Adjusted EBITDA | | | | | | | | | | | | | | | | | | | | Income before income taxes | 396 | | 273 | | | | 669 | | 154 | | 623 | | 631 | | 436 | | 1,844 | | | Plus: | | | | | | | | | | | | | | | | | | | | None | — | | — | | | | — | | — | | — | | — | | — | | — | | | EBITDA | 396 | | 273 | | | | 669 | | 154 | | 623 | | 631 | | 436 | | 1,844 | | | Special Item Adjustments (pre-tax): | | | | | | | | | | | | | | | | | | | | Pension settlement expense | — | | — | | | | — | | — | | 18 | | 2 | | 2 | | 22 | | | Hurricane-related costs | — | | — | | | | — | | — | | — | | 1 | | — | | 1 | | | Winter-storm-related costs | — | | — | | | | — | | 30 | | 16 | | — | | (14) | | 32 | | | EBITDA, Adjusted for Special Items | 396 | | 273 | | | | 669 | | 184 | | 657 | | 634 | | 424 | | 1,899 | | | Other Adjustments (pre-tax): | | | | | | | | | | | | | | | | | | | | Proportional share of selected equity affiliates income taxes | 29 | | 38 | | | | 67 | | 28 | | 48 | | 33 | | 35 | | 144 | | | Proportional share of selected equity affiliates net interest | 11 | | 6 | | | | 17 | | 11 | | 12 | | 12 | | 13 | | 48 | | | Proportional share of selected equity affiliates depreciation and amortization | 101 | | 103 | | | | 204 | | 103 | | 102 | | 102 | | 104 | | 411 | | | Adjusted EBITDA | 537 | | 420 | | | | 957 | | 326 | | 819 | | 781 | | 576 | | 2,502 | |
Page 8
| Phillips 66 Earnings Release Supplemental Data | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| REFINING | |||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| 2021 | |||||||||
| 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | |
| Income (Loss) before Income Taxes | |||||||||
| Atlantic Basin/Europe | 1,093 | 1,236 | (153) | (110) | 90 | 137 | (36) | ||
| Gulf Coast | 863 | 867 | (253) | (264) | (1,333) | (39) | (1,889) | ||
| Central Corridor | 490 | 355 | (248) | (82) | 229 | 171 | 70 | ||
| West Coast | 590 | 701 | (386) | (273) | (112) | 77 | (694) | ||
| Income (Loss) before Income Taxes | 3,036 | 3,159 | (1,040) | (729) | (1,126) | 346 | (2,549) | ||
| Income (Loss) before Income Taxes (/BBL) | |||||||||
| Atlantic Basin/Europe | 21.92 | 12.63 | (3.57) | (2.20) | 1.88 | 2.85 | (0.19) | ||
| Gulf Coast | 16.43 | 8.28 | (4.64) | (3.81) | (20.82) | (0.74) | (7.84) | ||
| Central Corridor | 21.65 | 7.66 | (12.55) | (3.49) | 8.68 | 6.58 | 0.73 | ||
| West Coast | 19.54 | 11.87 | (14.89) | (9.70) | (3.67) | 2.71 | (6.14) | ||
| Worldwide | 19.56 | 10.26 | (7.27) | (4.26) | (6.67) | 2.23 | (3.99) | ||
| Realized Refining Margins (/BBL)* | |||||||||
| Atlantic Basin/Europe | 30.39 | 21.22 | 4.86 | 4.63 | 9.27 | 11.00 | 7.48 | ||
| Gulf Coast | 24.80 | 16.29 | 3.39 | 2.10 | 5.75 | 9.19 | 4.92 | ||
| Central Corridor | 26.72 | 17.12 | 5.97 | 6.40 | 12.47 | 12.60 | 9.65 | ||
| West Coast | 33.13 | 25.58 | 3.33 | 3.37 | 7.46 | 15.41 | 7.49 | ||
| Worldwide | 28.31 | 19.48 | 4.36 | 3.92 | 8.57 | 11.60 | 7.15 | ||
| * See note on the use of non-GAAP measures. Also, reconciliations of income (loss) before income taxes to realized refining margin for each period and by region are included in the "Realized Margin Non-GAAP Reconciliations" section. | |||||||||
| Equity in Earnings (Losses) of Affiliates | |||||||||
| Atlantic Basin/Europe | (2) | (5) | (2) | (2) | (3) | (2) | (9) | ||
| Gulf Coast | (3) | (5) | (3) | — | (1) | (7) | (11) | ||
| Central Corridor | 228 | 212 | (117) | (65) | 31 | (13) | (164) | ||
| West Coast | — | — | — | — | — | — | — | ||
| Total | 223 | 202 | (122) | (67) | 27 | (22) | (184) | ||
| Depreciation and Amortization* | |||||||||
| Atlantic Basin/Europe | 51 | 103 | 52 | 52 | 52 | 54 | 210 | ||
| Gulf Coast | 62 | 113 | 77 | 77 | 73 | 150 | 377 | ||
| Central Corridor | 36 | 71 | 34 | 34 | 34 | 37 | 139 | ||
| West Coast | 63 | 123 | 54 | 57 | 57 | 72 | 240 | ||
| Total | 212 | 410 | 217 | 220 | 216 | 313 | 966 | ||
| * Excludes D&A of all equity affiliates. | |||||||||
| Operating and SG&A Expenses* | |||||||||
| Atlantic Basin/Europe | 312 | 622 | 244 | 235 | 258 | 314 | 1,051 | ||
| Gulf Coast | 325 | 643 | 331 | 313 | 327 | 388 | 1,359 | ||
| Central Corridor | 278 | 476 | 212 | 132 | 136 | 199 | 679 | ||
| West Coast | 315 | 629 | 393 | 291 | 277 | 300 | 1,261 | ||
| Total | 1,230 | 2,370 | 1,180 | 971 | 998 | 1,201 | 4,350 | ||
| * Excludes operating and SG&A expenses of all equity affiliates. | |||||||||
| Turnaround Expense, included in Operating and SG&A Expenses* | |||||||||
| Atlantic Basin/Europe | 22 | 35 | 17 | 13 | 32 | 34 | 96 | ||
| Gulf Coast | 40 | 71 | 33 | 9 | 24 | 27 | 93 | ||
| Central Corridor | 117 | 143 | 17 | 36 | 13 | 28 | 94 | ||
| West Coast | 44 | 76 | 125 | 60 | 12 | 17 | 214 | ||
| Total | 223 | 325 | 192 | 118 | 81 | 106 | 497 | ||
| * Excludes turnaround expense of all equity affiliates. | |||||||||
| Taxes Other than Income Taxes | |||||||||
| Atlantic Basin/Europe | 14 | 33 | 20 | 18 | 15 | 16 | 69 | ||
| Gulf Coast | 21 | 48 | 27 | 25 | 13 | 8 | 73 | ||
| Central Corridor | 18 | 36 | 15 | 11 | 12 | 13 | 51 | ||
| West Coast | 19 | 43 | 23 | 22 | 4 | — | 49 | ||
| Total | 72 | 160 | 85 | 76 | 44 | 37 | 242 | ||
| Foreign Currency Gains (Losses) Pre-Tax | (10) | (18) | 1 | 9 | (4) | (10) | (4) | ||
| Refining—Equity Affiliate Information | |||||||||
| Equity in earnings (losses) of affiliates | 223 | 202 | (122) | (67) | 27 | (22) | (184) | ||
| Less: Share of equity affiliate gross margin included in Realized Refining Margin and other equity affiliate-related costs* | (495) | (723) | (129) | (167) | (220) | (216) | (732) | ||
| Equity affiliate-related expenses not included in Realized Refining Margins | (272) | (521) | (251) | (234) | (193) | (238) | (916) | ||
| Regional Totals | |||||||||
| Atlantic Basin/Europe | (28) | (54) | (45) | (44) | (22) | (21) | (132) | ||
| Gulf Coast | (3) | (5) | (3) | — | (1) | (7) | (11) | ||
| Central Corridor | (241) | (462) | (203) | (190) | (170) | (210) | (773) | ||
| Total | (272) | (521) | (251) | (234) | (193) | (238) | (916) | ||
| * Other costs associated with equity affiliates which do not flow through equity earnings (losses). |
All values are in US Dollars.
Page 9
| Phillips 66 Earnings Release Supplemental Data | |||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| REFINING (continued) | |||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| 2021 | |||||||||||||||||
| 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | |||||||||
| Reconciliation of Refining Income (Loss) before Income Taxes to Adjusted EBITDA ( Millions) | |||||||||||||||||
| Income (loss) before income taxes | 3,036 | 3,159 | (1,040) | (729) | (1,126) | 346 | (2,549) | ||||||||||
| Plus: | |||||||||||||||||
| Depreciation and amortization | 212 | 410 | 217 | 220 | 216 | 313 | 966 | ||||||||||
| EBITDA | 3,248 | 3,569 | (823) | (509) | (910) | 659 | (1,583) | ||||||||||
| Special Item Adjustments (pre-tax): | |||||||||||||||||
| Impairments | — | — | — | — | 1,288 | — | 1,288 | ||||||||||
| Certain tax impacts | — | — | — | — | — | (11) | (11) | ||||||||||
| Pension settlement expense | — | — | — | 20 | 12 | 5 | 37 | ||||||||||
| Hurricane-related costs | — | 17 | — | — | 10 | 30 | 40 | ||||||||||
| Winter-storm-related costs | — | — | 14 | 3 | — | — | 17 | ||||||||||
| Alliance shutdown-related costs | 20 | 20 | — | — | — | 31 | 31 | ||||||||||
| Regulatory compliance costs | 70 | 70 | — | — | — | (88) | (88) | ||||||||||
| EBITDA, Adjusted for Special Items | 3,338 | 3,676 | (809) | (486) | 400 | 626 | (269) | ||||||||||
| Other Adjustments (pre-tax): | |||||||||||||||||
| Proportional share of selected equity affiliates income taxes | — | — | (2) | (1) | — | 3 | — | ||||||||||
| Proportional share of selected equity affiliates net interest | 3 | 5 | 2 | 2 | 1 | 4 | 9 | ||||||||||
| Proportional share of selected equity affiliates depreciation and amortization | 23 | 46 | 25 | 26 | 27 | 25 | 103 | ||||||||||
| Adjusted EBITDA | 3,364 | 3,727 | (784) | (459) | 428 | 658 | (157) | ||||||||||
| Operating Statistics | |||||||||||||||||
| Atlantic Basin/Europe* | |||||||||||||||||
| Crude Oil Charge Input (MB/D) | 526 | 515 | 438 | 513 | 487 | 478 | 479 | ||||||||||
| Total Processed Inputs (MB/D) | 548 | 541 | 476 | 549 | 519 | 523 | 517 | ||||||||||
| Crude Oil Capacity Utilization (%) | % | 98 | % | 96 | % | 82 | % | 96 | % | 91 | % | 89 | % | 89 | % | ||
| Clean Product Yield (%) | % | 83 | % | 84 | % | 86 | % | 83 | % | 84 | % | 84 | % | 84 | % | ||
| * Includes our proportionate share of a refinery complex in Karlsruhe, Germany. | |||||||||||||||||
| Gulf Coast | |||||||||||||||||
| Crude Oil Charge Input (MB/D) | 500 | 498 | 553 | 687 | 623 | 505 | 592 | ||||||||||
| Total Processed Inputs (MB/D) | 577 | 578 | 606 | 762 | 697 | 575 | 660 | ||||||||||
| Crude Oil Capacity Utilization (%) | % | 94 | % | 94 | % | 71 | % | 88 | % | 80 | % | 95 | % | 82 | % | ||
| Clean Product Yield (%) | % | 79 | % | 78 | % | 73 | % | 78 | % | 78 | % | 80 | % | 77 | % | ||
| Central Corridor* | |||||||||||||||||
| Crude Oil Charge Input (MB/D) | 435 | 444 | 384 | 462 | 493 | 503 | 461 | ||||||||||
| Total Processed Inputs (MB/D) | 446 | 458 | 397 | 475 | 506 | 519 | 474 | ||||||||||
| Crude Oil Capacity Utilization (%) | % | 82 | % | 84 | % | 72 | % | 87 | % | 93 | % | 95 | % | 87 | % | ||
| Clean Product Yield (%) | % | 87 | % | 87 | % | 86 | % | 87 | % | 88 | % | 90 | % | 88 | % | ||
| * Includes our proportionate share of the Borger Refinery and Wood River Refinery. | |||||||||||||||||
| West Coast | |||||||||||||||||
| Crude Oil Charge Input (MB/D) | 306 | 300 | 268 | 286 | 302 | 278 | 284 | ||||||||||
| Total Processed Inputs (MB/D) | 332 | 326 | 288 | 309 | 332 | 308 | 310 | ||||||||||
| Crude Oil Capacity Utilization (%) | % | 84 | % | 82 | % | 74 | % | 79 | % | 83 | % | 76 | % | 78 | % | ||
| Clean Product Yield (%) | % | 85 | % | 88 | % | 86 | % | 83 | % | 90 | % | 92 | % | 88 | % | ||
| Worldwide—Including Proportionate Share of Equity Affiliates | |||||||||||||||||
| Crude Oil Charge Input (MB/D) | 1,767 | 1,757 | 1,643 | 1,948 | 1,905 | 1,764 | 1,816 | ||||||||||
| Total Processed Inputs (MB/D) | 1,903 | 1,903 | 1,767 | 2,095 | 2,054 | 1,925 | 1,961 | ||||||||||
| Crude Oil Capacity Utilization (%) | % | 90 | % | 90 | % | 74 | % | 88 | % | 86 | % | 90 | % | 84 | % | ||
| Clean Product Yield (%) | % | 83 | % | 84 | % | 82 | % | 82 | % | 84 | % | 86 | % | 83 | % |
All values are in US Dollars.
Page 10
| Phillips 66 Earnings Release Supplemental Data | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| REFINING (continued) | |||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| 2021 | |||||||||
| 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | |
| Refined Petroleum Products Production (MB/D) | |||||||||
| Atlantic Basin/Europe* | |||||||||
| Gasoline | 221 | 224 | 220 | 242 | 232 | 237 | 233 | ||
| Distillates | 216 | 213 | 175 | 197 | 188 | 190 | 188 | ||
| Other | 113 | 107 | 87 | 113 | 103 | 101 | 101 | ||
| Total | 550 | 544 | 482 | 552 | 523 | 528 | 522 | ||
| * Includes our proportionate share of a refinery complex in Karlsruhe, Germany. | |||||||||
| Gulf Coast | |||||||||
| Gasoline | 231 | 232 | 219 | 310 | 281 | 243 | 263 | ||
| Distillates | 206 | 200 | 201 | 257 | 235 | 195 | 222 | ||
| Other | 149 | 156 | 183 | 196 | 184 | 146 | 177 | ||
| Total | 586 | 588 | 603 | 763 | 700 | 584 | 662 | ||
| Central Corridor* | |||||||||
| Gasoline | 211 | 223 | 191 | 227 | 255 | 266 | 235 | ||
| Distillates | 176 | 176 | 149 | 183 | 187 | 201 | 180 | ||
| Other | 59 | 61 | 58 | 65 | 68 | 55 | 61 | ||
| Total | 446 | 460 | 398 | 475 | 510 | 522 | 476 | ||
| * Includes our proportionate share of the Borger Refinery and Wood River Refinery. | |||||||||
| West Coast | |||||||||
| Gasoline | 156 | 161 | 138 | 138 | 166 | 170 | 153 | ||
| Distillates | 126 | 124 | 110 | 118 | 131 | 113 | 118 | ||
| Other | 48 | 41 | 40 | 51 | 32 | 26 | 37 | ||
| Total | 330 | 326 | 288 | 307 | 329 | 309 | 308 | ||
| Worldwide—Including Proportionate Share of Equity Affiliates | |||||||||
| Gasoline | 819 | 840 | 768 | 917 | 934 | 916 | 884 | ||
| Distillates | 724 | 713 | 635 | 755 | 741 | 699 | 708 | ||
| Other | 369 | 365 | 368 | 425 | 387 | 328 | 376 | ||
| Total | 1,912 | 1,918 | 1,771 | 2,097 | 2,062 | 1,943 | 1,968 | ||
| Market Indicators* | |||||||||
| Crude and Crude Differentials (/BBL) | |||||||||
| WTI | 108.66 | 101.57 | 57.84 | 66.09 | 70.58 | 77.35 | 67.96 | ||
| Brent | 113.78 | 107.59 | 60.90 | 68.83 | 73.47 | 79.73 | 70.73 | ||
| LLS | 110.15 | 103.46 | 59.98 | 67.95 | 71.51 | 78.40 | 69.46 | ||
| ANS | 112.48 | 104.04 | 60.76 | 68.44 | 72.73 | 79.81 | 70.44 | ||
| WTI less Maya | 4.87 | 5.25 | 1.44 | 3.21 | 4.37 | 5.59 | 3.65 | ||
| WTI less WCS (settlement differential) | 12.80 | 13.67 | 12.47 | 11.49 | 13.58 | 14.64 | 13.04 | ||
| Natural Gas (/MMBtu) | |||||||||
| Henry Hub | 7.39 | 6.00 | 3.51 | 2.88 | 4.28 | 4.74 | 3.85 | ||
| Product Margins (/BBL) | |||||||||
| Atlantic Basin/Europe | |||||||||
| East Coast Gasoline less Brent | 41.02 | 27.29 | 11.73 | 18.61 | 21.15 | 17.90 | 17.35 | ||
| East Coast Distillate less Brent | 68.16 | 48.28 | 12.09 | 15.24 | 16.07 | 20.47 | 15.97 | ||
| Gulf Coast | |||||||||
| Gulf Coast Gasoline less LLS | 32.87 | 24.56 | 11.22 | 15.47 | 18.61 | 14.64 | 14.99 | ||
| Gulf Coast Distillate less LLS | 57.49 | 43.00 | 11.30 | 14.03 | 15.87 | 19.12 | 15.08 | ||
| Central Corridor | |||||||||
| Central Gasoline less WTI | 36.31 | 26.24 | 14.90 | 19.96 | 20.83 | 13.87 | 17.39 | ||
| Central Distillate less WTI | 60.45 | 43.88 | 17.24 | 18.40 | 19.38 | 19.73 | 18.69 | ||
| West Coast | |||||||||
| West Coast Gasoline less ANS | 51.66 | 41.79 | 16.88 | 24.76 | 23.54 | 22.75 | 21.98 | ||
| West Coast Distillate less ANS | 58.37 | 45.32 | 14.14 | 15.28 | 18.55 | 22.44 | 17.60 | ||
| Worldwide Market Crack Spread (/BBL)** | 46.72 | 34.33 | 13.23 | 17.76 | 19.44 | 17.93 | 17.09 | ||
| * Based on daily spot prices, unless otherwise noted. | |||||||||
| ** Weighted average based on Phillips 66 crude capacity. |
All values are in US Dollars.
Page 11
| Phillips 66 Earnings Release Supplemental Data | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| MARKETING AND SPECIALTIES | |||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| 2021 | |||||||||
| 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | |
| Income before Income Taxes | |||||||||
| Marketing and Other | 656 | 859 | 211 | 389 | 452 | 401 | 1,453 | ||
| Specialties | 109 | 222 | 79 | 87 | 93 | 97 | 356 | ||
| Income before Income Taxes | 765 | 1,081 | 290 | 476 | 545 | 498 | 1,809 | ||
| Income before Income Taxes (/BBL) | |||||||||
| U.S. | 2.86 | 2.00 | 1.36 | 2.15 | 1.93 | 1.44 | 1.74 | ||
| International | 7.30 | 4.14 | 2.24 | 1.96 | 4.84 | 7.13 | 4.13 | ||
| Realized Marketing Fuel Margins (/BBL)* | |||||||||
| U.S. | 3.24 | 2.42 | 1.94 | 2.62 | 2.29 | 1.87 | 2.19 | ||
| International | 8.20 | 5.27 | 4.01 | 2.89 | 6.75 | 9.81 | 5.96 | ||
| * See note on the use of non-GAAP measures. Also, reconciliations of income before income taxes to realized marketing fuel margin for each period and by region are included in the "Realized Margin Non-GAAP Reconciliations" section. | |||||||||
| Other Realized Margins and Revenues not included in Marketing Fuel Margins* | |||||||||
| Marketing and Other | 202 | 369 | 104 | 138 | 111 | 122 | 475 | ||
| Specialties | 90 | 191 | 84 | 64 | 61 | 77 | 286 | ||
| Total | 292 | 560 | 188 | 202 | 172 | 199 | 761 | ||
| * Excludes gain on dispositions and excise taxes on sales of refined petroleum products. | |||||||||
| Equity in Earnings of Affiliates | |||||||||
| Marketing and Other | 48 | 81 | 26 | 46 | 48 | 41 | 161 | ||
| Specialties | 56 | 108 | 32 | 59 | 68 | 59 | 218 | ||
| Total | 104 | 189 | 58 | 105 | 116 | 100 | 379 | ||
| Depreciation and Amortization* | |||||||||
| Marketing and Other | 25 | 48 | 23 | 24 | 23 | 25 | 95 | ||
| Specialties | 4 | 8 | 4 | 6 | 4 | 4 | 18 | ||
| Total | 29 | 56 | 27 | 30 | 27 | 29 | 113 | ||
| * Excludes D&A of all equity affiliates. | |||||||||
| Operating and SG&A Expenses* | |||||||||
| Marketing and Other | 329 | 617 | 258 | 284 | 280 | 318 | 1,140 | ||
| Specialties | 32 | 64 | 29 | 30 | 30 | 33 | 122 | ||
| Total | 361 | 681 | 287 | 314 | 310 | 351 | 1,262 | ||
| * Excludes operating and SG&A expenses of all equity affiliates. | |||||||||
| Refined Petroleum Products Sales (MB/D) | |||||||||
| U.S. Marketing | |||||||||
| Gasoline | 1,089 | 1,067 | 960 | 1,095 | 1,098 | 1,142 | 1,074 | ||
| Distillates | 789 | 812 | 660 | 776 | 895 | 822 | 789 | ||
| Other | — | — | — | — | — | — | — | ||
| Total | 1,878 | 1,879 | 1,620 | 1,871 | 1,993 | 1,964 | 1,863 | ||
| International Marketing | |||||||||
| Gasoline | 87 | 85 | 63 | 81 | 91 | 82 | 80 | ||
| Distillates | 171 | 174 | 158 | 171 | 179 | 174 | 170 | ||
| Other | 19 | 18 | 18 | 18 | 17 | 17 | 17 | ||
| Total | 277 | 277 | 239 | 270 | 287 | 273 | 267 | ||
| Worldwide Marketing | |||||||||
| Gasoline | 1,176 | 1,152 | 1,023 | 1,176 | 1,189 | 1,224 | 1,154 | ||
| Distillates | 960 | 986 | 818 | 947 | 1,074 | 996 | 959 | ||
| Other | 19 | 18 | 18 | 18 | 17 | 17 | 17 | ||
| Total | 2,155 | 2,156 | 1,859 | 2,141 | 2,280 | 2,237 | 2,130 | ||
| Foreign Currency Gains (Losses) Pre-Tax | 7 | 8 | — | 1 | — | (1) | — | ||
| Reconciliation of Marketing and Specialties Income before Income Taxes to Adjusted EBITDA | |||||||||
| Income before income taxes | 765 | 1,081 | 290 | 476 | 545 | 498 | 1,809 | ||
| Plus: | |||||||||
| Depreciation and amortization | 29 | 56 | 27 | 30 | 27 | 29 | 113 | ||
| EBITDA | 794 | 1,137 | 317 | 506 | 572 | 527 | 1,922 | ||
| Special Item Adjustments (pre-tax): | |||||||||
| Pension settlement expense | — | — | — | 3 | 2 | 1 | 6 | ||
| EBITDA, Adjusted for Special Items | 794 | 1,137 | 317 | 509 | 574 | 528 | 1,928 | ||
| Other Adjustments (pre-tax): | |||||||||
| Proportional share of selected equity affiliates income taxes | 6 | 12 | 5 | 6 | 7 | 6 | 24 | ||
| Proportional share of selected equity affiliates net interest | 5 | 10 | 4 | 4 | 4 | 4 | 16 | ||
| Proportional share of selected equity affiliates depreciation and amortization | 18 | 39 | 17 | 17 | 17 | 18 | 69 | ||
| Adjusted EBITDA | 823 | 1,198 | 343 | 536 | 602 | 556 | 2,037 |
All values are in US Dollars.
Page 12
| Phillips 66 Earnings Release Supplemental Data | | --- || CORPORATE AND OTHER | | | | | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | Millions of Dollars, Except as Indicated | | | | | | | | | | | | | | | | | | | | 2022 | | | | | | | | 2021 | | | | | | | | | | | | 1st Qtr | | 2nd Qtr | | 3rd Qtr | 4th Qtr | YTD | | 1st Qtr | | 2nd Qtr | | 3rd Qtr | | 4th Qtr | | YTD | | | Loss before Income Taxes | (249) | | (260) | | | | (509) | | (251) | | (246) | | (231) | | (246) | | (974) | | | Detail of Loss before Income Taxes | | | | | | | | | | | | | | | | | | | | Net interest expense | (132) | | (127) | | | | (259) | | (143) | | (141) | | (148) | | (151) | | (583) | | | Corporate overhead and other | (117) | | (133) | | | | (250) | | (108) | | (105) | | (83) | | (95) | | (391) | | | Total | (249) | | (260) | | | | (509) | | (251) | | (246) | | (231) | | (246) | | (974) | | | Net Interest Expense | | | | | | | | | | | | | | | | | | | | Interest expense | (144) | | (141) | | | | (285) | | (150) | | (148) | | (159) | | (151) | | (608) | | | Capitalized interest | 9 | | 8 | | | | 17 | | 4 | | 5 | | 8 | | 10 | | 27 | | | Loss on early debt retirement | — | | — | | | | — | | — | | — | | — | | (13) | | (13) | | | Interest income | 3 | | 6 | | | | 9 | | 3 | | 2 | | 3 | | 3 | | 11 | | | Total | (132) | | (127) | | | | (259) | | (143) | | (141) | | (148) | | (151) | | (583) | | | Reconciliation of Corporate and Other Loss before Income Taxes to Adjusted EBITDA | | | | | | | | | | | | | | | | | | | | Loss before income taxes | (249) | | (260) | | | | (509) | | (251) | | (246) | | (231) | | (246) | | (974) | | | Plus: | | | | | | | | | | | | | | | | | | | | Net interest expense | 132 | | 127 | | | | 259 | | 143 | | 141 | | 148 | | 151 | | 583 | | | Depreciation and amortization | 19 | | 20 | | | | 39 | | 20 | | 22 | | 21 | | 20 | | 83 | | | EBITDA | (98) | | (113) | | | | (211) | | (88) | | (83) | | (62) | | (75) | | (308) | | | Special Item Adjustments (pre-tax): | | | | | | | | | | | | | | | | | | | | Pension settlement expense | — | | — | | | | — | | — | | 2 | | 1 | | 1 | | 4 | | | Restructuring costs | — | | 25 | | | | 25 | | — | | — | | — | | — | | — | | | EBITDA, Adjusted for Special Items | (98) | | (88) | | | | (186) | | (88) | | (81) | | (61) | | (74) | | (304) | | | Other Adjustments (pre-tax): | | | | | | | | | | | | | | | | | | | | None | — | | — | | | | — | | — | | — | | — | | — | | — | | | Adjusted EBITDA | (98) | | (88) | | | | (186) | | (88) | | (81) | | (61) | | (74) | | (304) | | | Foreign Currency Losses Pre-Tax | (1) | | — | | | | (1) | | (1) | | (1) | | — | | — | | (2) | | | Phillips 66 Total Company Debt | | | | | | | | | | | | | | | | | | | | Total Debt | 14,434 | | 12,969 | | | | 12,969 | | 15,422 | | 15,413 | | 14,910 | | 14,448 | | 14,448 | | | Debt-to-Capital Ratio (%) | 39 | % | 35 | % | | | 35 | % | 43 | % | 43 | % | 42 | % | 40 | % | 40 | % | | Total Equity | 22,121 | | 24,573 | | | | 24,573 | | 20,457 | | 20,602 | | 20,597 | | 21,637 | | 21,637 | | | RECONCILIATION OF CONSOLIDATED NET INCOME (LOSS) TO ADJUSTED EBITDA ATTRIBUTABLE TO PHILLIPS 66 | | | | | | | | | | | | | | | | | | | | | Millions of Dollars | | | | | | | | | | | | | | | | | | | | 2022 | | | | | | | | 2021 | | | | | | | | | | | | 1st Qtr | | 2nd Qtr | | 3rd Qtr | 4th Qtr | YTD | | 1st Qtr | | 2nd Qtr | | 3rd Qtr | | 4th Qtr | | YTD | | | Net income (loss) | 657 | | 3,182 | | | | 3,839 | | (639) | | 374 | | 488 | | 1,371 | | 1,594 | | | Plus: | | | | | | | | | | | | | | | | | | | | Income tax expense (benefit) | 171 | | 924 | | | | 1,095 | | (132) | | 62 | | (40) | | 256 | | 146 | | | Net interest expense | 132 | | 127 | | | | 259 | | 143 | | 141 | | 148 | | 151 | | 583 | | | Depreciation and amortization | 338 | | 359 | | | | 697 | | 356 | | 364 | | 361 | | 524 | | 1,605 | | | Phillips 66 EBITDA | 1,298 | | 4,592 | | | | 5,890 | | (272) | | 941 | | 957 | | 2,302 | | 3,928 | | | Special Item Adjustments (pre-tax): | | | | | | | | | | | | | | | | | | | | Impairments | — | | — | | | | — | | 198 | | — | | 1,298 | | — | | 1,496 | | | Certain tax impacts | — | | — | | | | — | | — | | — | | — | | (11) | | (11) | | | Pension settlement expense | — | | — | | | | — | | — | | 47 | | 20 | | 10 | | 77 | | | Hurricane-related costs | 17 | | — | | | | 17 | | — | | — | | 11 | | 34 | | 45 | | | Winter-storm-related costs | — | | — | | | | — | | 46 | | 19 | | — | | (14) | | 51 | | | Alliance shutdown-related costs | — | | 20 | | | | 20 | | — | | — | | — | | 31 | | 31 | | | Regulatory compliance costs | — | | 70 | | | | 70 | | — | | — | | — | | (88) | | (88) | | | Restructuring costs | — | | 25 | | | | 25 | | — | | — | | — | | — | | — | | | Total Special Item Adjustments (pre-tax) | 17 | | 115 | | | | 132 | | 244 | | 66 | | 1,329 | | (38) | | 1,601 | | | Change in Fair Value of NOVONIX Investment* | 158 | | 240 | | | | 398 | | — | | — | | (224) | | (146) | | (370) | | | Phillips 66 EBITDA, Adjusted for Special Items and Change in Fair Value of NOVONIX Investment** | 1,473 | | 4,947 | | | | 6,420 | | (28) | | 1,007 | | 2,062 | | 2,118 | | 5,159 | | | Other Adjustments (pre-tax): | | | | | | | | | | | | | | | | | | | | Proportional share of selected equity affiliates income taxes | 37 | | 48 | | | | 85 | | 33 | | 57 | | 44 | | 48 | | 182 | | | Proportional share of selected equity affiliates net interest | 59 | | 53 | | | | 112 | | 60 | | 61 | | 59 | | 62 | | 242 | | | Proportional share of selected equity affiliates depreciation and amortization | 201 | | 201 | | | | 402 | | 202 | | 202 | | 204 | | 204 | | 812 | | | Adjusted EBITDA attributable to joint venture partners' noncontrolling interests | (24) | | (21) | | | | (45) | | (18) | | (20) | | (22) | | (21) | | (81) | | | Adjusted EBITDA attributable to public ownership interest in PSXP† | (82) | | — | | | | (82) | | (83) | | (95) | | (103) | | (112) | | (393) | | | Phillips 66 Adjusted EBITDA** | 1,664 | | 5,228 | | | | 6,892 | | 166 | | 1,212 | | 2,244 | | 2,299 | | 5,921 | | | * See NOVONIX Investment table on page 5 for more details. | | | | | | | | | | | | | | | | | | | | ** Prior period information has been recasted to exclude the change in fair value of our investment in NOVONIX. | | | | | | | | | | | | | | | | | | | | † On March 9, 2022, Phillips 66 Partners LP became a wholly owned subsidiary of Phillips 66. | | | | | | | | | | | | | | | | | | | | Use of Non-GAAP Financial Information—This earnings release supplemental data includes the terms "EBITDA," "adjusted EBITDA," "realized refining margin per barrel," and "realized marketing fuel margin per barrel." These are non-GAAP financial measures. EBITDA and adjusted EBITDA are included to help facilitate comparisons of operating performance across periods, to help facilitate comparisons with other companies in our industry and to help facilitate determination of enterprise value. The GAAP measures most directly comparable to EBITDA and adjusted EBITDA are net income for consolidated company information and income before income taxes for segment information. Reconciliations of net income (loss) and income (loss) before income taxes to EBITDA and adjusted EBITDA are included in this earnings release supplemental data. Realized refining margin per barrel is calculated on a similar basis as industry crack spreads and we believe it provides a useful measure of how well we performed relative to benchmark industry margins. Realized marketing fuel margin per barrel demonstrates the value uplift our marketing operations provide by optimizing the placement and ultimate sale of our refineries' fuel production. The GAAP measure most directly comparable to both realized margin per barrel measures is income before income taxes per barrel. Reconciliations of income (loss) before income taxes per barrel to realized refining margin and realized marketing fuel margin are included in this earnings release supplemental data. Adjusted effective tax rate demonstrates the effective tax rate with the consideration of the tax effect on special items. The GAAP financial measure most comparable to adjusted effective tax rate is effective tax rate. A reconciliation of effective tax rate to adjusted effective tax rate is included in this earnings release supplemental data. | | | | | | | | | | | | | | | | | | | | Changes in Presentation – In the first quarter of 2022, we started presenting our investment in NOVONIX Limited as a separate business line of our Midstream segment. This investment was previously included in the NGL and Other business line since we acquired it in September 2021. We also started presenting certain Transportation and NGL and Other business line information separately that was previously combined (e.g., EBITDA and Adjusted EBITDA). In addition, as noted above, we revised the calculation of Adjusted EBITDA for the company and our Midstream segment. We have recasted prior period information to reflect these changes. | | | | | | | | | | | | | | | | | | |
Page 13
| Phillips 66 Earnings Release Supplemental Data | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| REALIZED MARGIN NON-GAAP RECONCILIATIONS | |||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| RECONCILIATION OF INCOME (LOSS) BEFORE INCOME TAXES TO REALIZED REFINING MARGINS | |||||||||
| 2021 | |||||||||
| 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | |
| ATLANTIC BASIN/OPE | |||||||||
| Income (loss) before income taxes | 1,093 | 1,236 | (153) | (110) | 90 | 137 | (36) | ||
| Plus: | |||||||||
| Taxes other than income taxes | 14 | 33 | 20 | 18 | 15 | 16 | 69 | ||
| Depreciation, amortization and impairments | 51 | 103 | 52 | 52 | 52 | 54 | 210 | ||
| Selling, general and administrative expenses | 16 | 30 | 14 | 18 | 19 | 19 | 70 | ||
| Operating expenses | 296 | 592 | 230 | 217 | 239 | 295 | 981 | ||
| Equity in losses of affiliates | 2 | 5 | 2 | 2 | 3 | 2 | 9 | ||
| Other segment (income) expense, net | 8 | 20 | — | (8) | 6 | 11 | 9 | ||
| Proportional share of refining gross margins contributed by equity affiliates | 26 | 49 | 43 | 42 | 19 | 19 | 123 | ||
| Special items: | |||||||||
| Certain tax impacts | — | — | — | — | — | (4) | (4) | ||
| Regulatory compliance costs | 9 | 9 | — | — | — | (20) | (20) | ||
| Realized refining margins | 1,515 | 2,077 | 208 | 231 | 443 | 529 | 1,411 | ||
| Total processed inputs (MB) | 49,854 | 97,869 | 42,826 | 49,979 | 47,792 | 48,100 | 188,697 | ||
| Adjusted total processed inputs (MB) | 49,854 | 97,869 | 42,826 | 49,979 | 47,792 | 48,100 | 188,697 | ||
| Income (loss) before income taxes (/BBL)** | 21.92 | 12.63 | (3.57) | (2.20) | 1.88 | 2.85 | (0.19) | ||
| Realized refining margins (/BBL)*** | 30.39 | 21.22 | 4.86 | 4.63 | 9.27 | 11.00 | 7.48 | ||
| GULF COAST | |||||||||
| Income (loss) before income taxes | 863 | 867 | (253) | (264) | (1,333) | (39) | (1,889) | ||
| Plus: | |||||||||
| Taxes other than income taxes | 21 | 48 | 27 | 25 | 13 | 8 | 73 | ||
| Depreciation, amortization and impairments | 64 | 115 | 77 | 77 | 1,361 | 150 | 1,665 | ||
| Selling, general and administrative expenses | 14 | 25 | 10 | 14 | 15 | 11 | 50 | ||
| Operating expenses | 311 | 618 | 321 | 299 | 312 | 377 | 1,309 | ||
| Equity in losses of affiliates | 3 | 5 | 3 | — | 1 | 7 | 11 | ||
| Other segment (income) expense, net | 1 | 1 | — | (6) | (1) | — | (7) | ||
| Proportional share of refining gross margins contributed by equity affiliates | — | — | — | — | — | — | — | ||
| Special items: | |||||||||
| Regulatory compliance costs | 26 | 26 | — | — | — | (28) | (28) | ||
| Realized refining margins | 1,303 | 1,705 | 185 | 145 | 368 | 486 | 1,184 | ||
| Total processed inputs (MB) | 52,523 | 104,674 | 54,560 | 69,364 | 64,016 | 52,919 | 240,859 | ||
| Adjusted total processed inputs (MB) | 52,523 | 104,674 | 54,560 | 69,364 | 64,016 | 52,919 | 240,859 | ||
| Income (loss) before income taxes (/BBL)** | 16.43 | 8.28 | (4.64) | (3.81) | (20.82) | (0.74) | (7.84) | ||
| Realized refining margins (/BBL)*** | 24.80 | 16.29 | 3.39 | 2.10 | 5.75 | 9.19 | 4.92 | ||
| CENTRAL CORRIDOR | |||||||||
| Income (loss) before income taxes | 490 | 355 | (248) | (82) | 229 | 171 | 70 | ||
| Plus: | |||||||||
| Taxes other than income taxes | 18 | 36 | 15 | 11 | 12 | 13 | 51 | ||
| Depreciation, amortization and impairments | 36 | 71 | 34 | 34 | 34 | 37 | 139 | ||
| Selling, general and administrative expenses | 13 | 27 | 7 | 7 | 10 | 8 | 32 | ||
| Operating expenses | 264 | 448 | 205 | 125 | 126 | 191 | 647 | ||
| Equity in (earnings) losses of affiliates | (228) | (212) | 117 | 65 | (31) | 13 | 164 | ||
| Other segment (income) expense, net | 2 | (2) | (2) | (8) | — | (1) | (11) | ||
| Proportional share of refining gross margins contributed by equity affiliates | 469 | 674 | 86 | 125 | 201 | 197 | 609 | ||
| Special items: | |||||||||
| Regulatory compliance costs | 22 | 22 | — | — | — | (27) | (27) | ||
| Realized refining margins | 1,086 | 1,419 | 214 | 277 | 581 | 602 | 1,674 | ||
| Total processed inputs (MB) | 22,635 | 46,326 | 19,754 | 23,466 | 26,373 | 26,002 | 95,595 | ||
| Adjusted total processed inputs (MB)* | 40,629 | 82,896 | 35,711 | 43,189 | 46,592 | 47,738 | 173,230 | ||
| Income (loss) before income taxes (/BBL)** | 21.65 | 7.66 | (12.55) | (3.49) | 8.68 | 6.58 | 0.73 | ||
| Realized refining margins (/BBL)*** | 26.72 | 17.12 | 5.97 | 6.40 | 12.47 | 12.60 | 9.65 |
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) | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | Millions of Dollars, Except as Indicated | | | | | | | | | | | | 2022 | | | | | 2021 | | | | | | | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | | WEST COAST | | | | | | | | | | | | Income (loss) before income taxes | 111 | 590 | | | 701 | (386) | (273) | (112) | 77 | (694) | | Plus: | | | | | | | | | | | | Taxes other than income taxes | 24 | 19 | | | 43 | 23 | 22 | 4 | — | 49 | | Depreciation, amortization and impairments | 60 | 63 | | | 123 | 54 | 57 | 57 | 72 | 240 | | Selling, general and administrative expenses | 9 | 9 | | | 18 | 11 | 10 | 11 | 9 | 41 | | Operating expenses | 305 | 306 | | | 611 | 382 | 281 | 266 | 291 | 1,220 | | Other segment (income) expense, net | 1 | — | | | 1 | 2 | (2) | 2 | 2 | 4 | | Special items: | | | | | | | | | | | | Regulatory compliance costs | — | 13 | | | 13 | — | — | — | (13) | (13) | | Realized refining margins | 510 | 1,000 | | | 1,510 | 86 | 95 | 228 | 438 | 847 | | Total processed inputs (MB) | 28,877 | 30,199 | | | 59,076 | 25,917 | 28,158 | 30,558 | 28,361 | 112,994 | | Adjusted total processed inputs (MB) | 28,877 | 30,199 | | | 59,076 | 25,917 | 28,158 | 30,558 | 28,361 | 112,994 | | Income (loss) before income taxes ($/BBL)** | 3.84 | 19.54 | | | 11.87 | (14.89) | (9.70) | (3.67) | 2.71 | (6.14) | | Realized refining margins ($/BBL)*** | 17.68 | 33.13 | | | 25.58 | 3.33 | 3.37 | 7.46 | 15.41 | 7.49 | | WORLDWIDE | | | | | | | | | | | | Income (loss) before income taxes | 123 | 3,036 | | | 3,159 | (1,040) | (729) | (1,126) | 346 | (2,549) | | Plus: | | | | | | | | | | | | Taxes other than income taxes | 88 | 72 | | | 160 | 85 | 76 | 44 | 37 | 242 | | Depreciation, amortization and impairments | 198 | 214 | | | 412 | 217 | 220 | 1,504 | 313 | 2,254 | | Selling, general and administrative expenses | 48 | 52 | | | 100 | 42 | 49 | 55 | 47 | 193 | | Operating expenses | 1,092 | 1,177 | | | 2,269 | 1,138 | 922 | 943 | 1,154 | 4,157 | | Equity in (earnings) losses of affiliates | 21 | (223) | | | (202) | 122 | 67 | (27) | 22 | 184 | | Other segment (income) expense, net | 9 | 11 | | | 20 | — | (24) | 7 | 12 | (5) | | Proportional share of refining gross margins contributed by equity affiliates | 228 | 495 | | | 723 | 129 | 167 | 220 | 216 | 732 | | Special items: | | | | | | | | | | | | Certain tax impacts | — | — | | | — | — | — | — | (4) | (4) | | Regulatory compliance costs | — | 70 | | | 70 | — | — | — | (88) | (88) | | Realized refining margins | 1,807 | 4,904 | | | 6,711 | 693 | 748 | 1,620 | 2,055 | 5,116 | | Total processed inputs (MB) | 152,734 | 155,211 | | | 307,945 | 143,057 | 170,967 | 168,739 | 155,382 | 638,145 | | Adjusted total processed inputs (MB)* | 171,310 | 173,205 | | | 344,515 | 159,014 | 190,690 | 188,958 | 177,118 | 715,780 | | Income (loss) before income taxes ($/BBL)** | 0.81 | 19.56 | | | 10.26 | (7.27) | (4.26) | (6.67) | 2.23 | (3.99) | | Realized refining margins ($/BBL)*** | 10.55 | 28.31 | | | 19.48 | 4.36 | 3.92 | 8.57 | 11.60 | 7.15 | | * Adjusted total processed inputs include our proportional share of processed inputs of an equity affiliate. | | | | | | | | | | | | ** Income (loss) before income taxes divided by total processed inputs. | | | | | | | | | | | | *** Realized refining margins per barrel, as presented, are calculated using the underlying realized refining margin amounts, in dollars, divided by adjusted total processed inputs, in barrels. As such, recalculated per barrel amounts using the rounded margins and barrels presented may differ from the presented per barrel amounts. | | | | | | | | | | |
Page 15
| Phillips 66 Earnings Release Supplemental Data | | --- || RECONCILIATION OF INCOME BEFORE INCOME TAXES TO REALIZED MARKETING FUEL MARGINS | | | | | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | Millions of Dollars, Except as Indicated | | | | | | | | | | | | | | | | | | | | 2022 | | | | | | | | 2021 | | | | | | | | | | | | 1st Qtr | | 2nd Qtr | | 3rd Qtr | 4th Qtr | YTD | | 1st Qtr | | 2nd Qtr | | 3rd Qtr | | 4th Qtr | | YTD | | | UNITED STATES | | | | | | | | | | | | | | | | | | | | Income before income taxes | 191 | | 489 | | | | 680 | | 199 | | 366 | | 354 | | 261 | | 1,180 | | | Plus: | | | | | | | | | | | | | | | | | | | | Depreciation and amortization | 3 | | 3 | | | | 6 | | 3 | | 5 | | 3 | | 3 | | 14 | | | Selling, general and administrative expenses | 182 | | 210 | | | | 392 | | 165 | | 198 | | 201 | | 194 | | 758 | | | Equity in earnings of affiliates | (7) | | (16) | | | | (23) | | (2) | | (15) | | (18) | | (13) | | (48) | | | Other operating revenues* | (107) | | (139) | | | | (246) | | (86) | | (110) | | (120) | | (108) | | (424) | | | Other expense, net | 6 | | 6 | | | | 12 | | 4 | | 2 | | 2 | | 1 | | 9 | | | Realized marketing fuel margins | 268 | | 553 | | | | 821 | | 283 | | 446 | | 422 | | 338 | | 1,489 | | | Total fuel sales volumes (MB) | 169,196 | | 170,899 | | | | 340,095 | | 145,794 | | 170,228 | | 183,332 | | 180,748 | | 680,102 | | | Income before income taxes ($/BBL) | 1.13 | | 2.86 | | | | 2.00 | | 1.36 | | 2.15 | | 1.93 | | 1.44 | | 1.74 | | | Realized marketing fuel margins ($/BBL)** | 1.59 | | 3.24 | | | | 2.42 | | 1.94 | | 2.62 | | 2.29 | | 1.87 | | 2.19 | | | INTERNATIONAL | | | | | | | | | | | | | | | | | | | | Income before income taxes | 23 | | 185 | | | | 208 | | 48 | | 48 | | 128 | | 179 | | 403 | | | Plus: | | | | | | | | | | | | | | | | | | | | Depreciation and amortization | 18 | | 19 | | | | 37 | | 19 | | 19 | | 18 | | 20 | | 76 | | | Selling, general and administrative expenses | 63 | | 62 | | | | 125 | | 60 | | 60 | | 64 | | 69 | | 253 | | | Equity in earnings of affiliates | (26) | | (32) | | | | (58) | | (24) | | (31) | | (30) | | (28) | | (113) | | | Other operating (revenues) expenses* | (12) | | (9) | | | | (21) | | (5) | | (10) | | 9 | | 14 | | 8 | | | Other (income) expense, net | 4 | | (3) | | | | 1 | | 1 | | — | | 2 | | 4 | | 7 | | | Marketing margins | 70 | | 222 | | | | 292 | | 99 | | 86 | | 191 | | 258 | | 634 | | | Less: margin for nonfuel related sales | 13 | | 14 | | | | 27 | | 13 | | 15 | | 13 | | 12 | | 53 | | | Realized marketing fuel margins | 57 | | 208 | | | | 265 | | 86 | | 71 | | 178 | | 246 | | 581 | | | Total fuel sales volumes (MB) | 24,926 | | 25,329 | | | | 50,255 | | 21,474 | | 24,539 | | 26,427 | | 25,089 | | 97,529 | | | Income before income taxes ($/BBL) | 0.92 | | 7.30 | | | | 4.14 | | 2.24 | | 1.96 | | 4.84 | | 7.13 | | 4.13 | | | Realized marketing fuel margins ($/BBL)** | 2.30 | | 8.20 | | | | 5.27 | | 4.01 | | 2.89 | | 6.75 | | 9.81 | | 5.96 | | | * Includes other nonfuel revenues and expenses. | | | | | | | | | | | | | | | | | | | | ** Realized marketing fuel margins per barrel, as presented, are calculated using the underlying realized marketing fuel margin amounts, in dollars, divided by sales volumes, in barrels. As such, recalculated per barrel amounts using the rounded margins and barrels presented may differ from the presented per barrel amounts. | | | | | | | | | | | | | | | | | | | | ADJUSTED EFFECTIVE TAX RATE NON-GAAP RECONCILIATION | | | | | | | | | | | | | | | | | | | | RECONCILIATION OF EFFECTIVE TAX RATE TO ADJUSTED EFFECTIVE TAX RATE | | | | | | | | | | | | | | | | | | | | | Millions of Dollars, Except as Indicated | | | | | | | | | | | | | | | | | | | | 2022 | | | | | | | | 2021 | | | | | | | | | | | | 1st Qtr | | 2nd Qtr | | 3rd Qtr | 4th Qtr | YTD | | 1st Qtr | | 2nd Qtr | | 3rd Qtr | | 4th Qtr | | YTD | | | EFFECTIVE TAX RATES | | | | | | | | | | | | | | | | | | | | Income (loss) before income taxes | 828 | | 4,106 | | | | 4,934 | | (771) | | 436 | | 448 | | 1,627 | | 1,740 | | | Special items | 17 | | 121 | | | | 138 | | 244 | | 66 | | 1,329 | | 123 | | 1,762 | | | Adjusted income (loss) before income taxes | 845 | | 4,227 | | | | 5,072 | | (527) | | 502 | | 1,777 | | 1,750 | | 3,502 | | | Income tax expense (benefit) | 171 | | 924 | | | | 1,095 | | (132) | | 62 | | (40) | | 256 | | 146 | | | Special items | 4 | | 3 | | | | 7 | | 48 | | 33 | | 326 | | 98 | | 505 | | | Adjusted income tax expense (benefit) | 175 | | 927 | | | | 1,102 | | (84) | | 95 | | 286 | | 354 | | 651 | | | Effective tax rate (%) | 20.7 | % | 22.5 | % | | | 22.2 | % | 17.1 | % | 14.2 | % | (8.9) | % | 15.7 | % | 8.4 | % | | Adjusted effective tax rate (%) | 20.7 | % | 21.9 | % | | | 21.7 | % | 15.9 | % | 18.9 | % | 16.1 | % | 20.2 | % | 18.6 | % |
Page 16