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 30, 2024
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 30, 2024, Phillips 66 issued a press release announcing the company's financial and operating results for the quarter ended June 30, 2024. A copy of the press release is furnished as Exhibit 99.1 hereto and incorporated herein by reference. Additional financial and operating information about the quarter is furnished as Exhibit 99.2 hereto and incorporated herein by reference.
The information in this report and the exhibits attached hereto shall not be deemed to be “filed” for purposes of the Securities Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, regardless of any general incorporation language in such filing.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
| 99.1 | — | Press release issued by Phillips 66 onJuly 30, 2024 |
|---|---|---|
| 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/ Ann M. Kluppel |
| Ann M. Kluppel<br><br>Vice President and Controller |
Date: July 30, 2024
2
Document
Exhibit 99.1
•Second-quarter earnings of $1.0 billion or $2.38 per share; adjusted earnings of $984 million or $2.31 per share
•$1.3 billion returned to shareholders through dividends and share repurchases
•Record Midstream NGL pipeline and fractionation volumes; synergy capture driving lower costs
•Strong Refining operations with 98% crude utilization, 86% clean product yield and lower costs
HOUSTON, July 30, 2024 – Phillips 66 (NYSE: PSX), a leading diversified and integrated downstream energy provider, announced second-quarter earnings.
"We are systematically executing on our strategic priorities, which is reflected in our second-quarter results," said Mark Lashier, chairman and CEO of Phillips 66. “Refining crude utilization was our highest in five years and we lowered our costs by nearly a dollar per barrel, reflecting the success of our business transformation efforts. In Midstream, strong results reflect record NGL volumes and increased synergy capture.”
Lashier added, “We continue to increase shareholder value through strong operating performance, disciplined capital allocation and asset portfolio optimization.”
Financial Results Summary
(in millions of dollars, except as indicated)
| 2Q 2024 | 1Q 2024 | ||
|---|---|---|---|
| Earnings | $ | 1,015 | 748 |
| Adjusted Earnings1 | 984 | 822 | |
| Adjusted EBITDA1 | 2,183 | 1,943 | |
| Earnings Per Share | |||
| Earnings Per Share - Diluted | 2.38 | 1.73 | |
| Adjusted Earnings Per Share - Diluted1 | 2.31 | 1.90 | |
| Cash Flow From Operations | 2,097 | (236) | |
| Cash Flow From Operations, Excluding Working Capital1 | 1,181 | 1,211 | |
| Capital Expenditures | 367 | 628 | |
| Return of Capital to Shareholders | 1,325 | 1,612 | |
| Share repurchases | 840 | 1,164 | |
| Dividends paid | 485 | 448 | |
| Cash | 2,444 | 1,570 | |
| Debt | 19,960 | 20,154 | |
| Debt-to-capital ratio | 40% | 40% | |
| Net debt-to-capital ratio1 | 36% | 38% | |
| 1Represents a non-GAAP financial measure. Reconciliations of these non-GAAP financial measures to the most comparable GAAP financial measure are included within this release. |
Page 1
Segment Financial and Operating Highlights
(in millions of dollars, except as indicated)
| 2Q 2024 | 1Q 2024 | Change | ||
|---|---|---|---|---|
| Earnings1 | $ | 1,015 | 748 | 267 |
| Midstream | 767 | 554 | 213 | |
| Chemicals | 222 | 205 | 17 | |
| Refining | 302 | 216 | 86 | |
| Marketing and Specialties | 415 | 366 | 49 | |
| Renewable Fuels | (55) | (55) | — | |
| Corporate and Other | (340) | (322) | (18) | |
| Income tax expense | (291) | (203) | (88) | |
| Noncontrolling interests | (5) | (13) | 8 | |
| Adjusted Earnings1,2 | $ | 984 | 822 | 162 |
| Midstream | 753 | 613 | 140 | |
| Chemicals | 222 | 205 | 17 | |
| Refining | 302 | 313 | (11) | |
| Marketing and Specialties | 415 | 307 | 108 | |
| Renewable Fuels | (55) | (55) | — | |
| Corporate and Other | (340) | (322) | (18) | |
| Income tax expense | (278) | (226) | (52) | |
| Noncontrolling interests | (35) | (13) | (22) | |
| Adjusted EBITDA2 | $ | 2,183 | 1,943 | 240 |
| Midstream | 971 | 861 | 110 | |
| Chemicals | 348 | 325 | 23 | |
| Refining | 531 | 545 | (14) | |
| Marketing and Specialties | 484 | 377 | 107 | |
| Renewable Fuels | (43) | (49) | 6 | |
| Corporate and Other | (108) | (116) | 8 | |
| Operating Highlights | ||||
| Midstream NGL Fractionated Volumes (MBD) | 744 | 679 | 65 | |
| Chemicals Global O&P Utilization | 98% | 96% | 2% | |
| Refining | ||||
| Turnaround Expense ($) | 100 | 124 | (24) | |
| Realized Margin ($/BBL) | 10.01 | 11.01 | (1.00) | |
| Market Capture | 64% | 70% | (6%) | |
| Crude Capacity Utilization | 98% | 92% | 6% | |
| Clean Product Yield | 86% | 84% | 2% | |
| Renewable Fuels Produced (MBD) | 31 | 9 | 22 | |
| 1Segment reporting is pre-tax. | ||||
| 2Represents a non-GAAP financial measure. Reconciliations of these non-GAAP financial measures to the most comparable GAAP financial measure are included within this release. |
Page 2
Second-Quarter 2024 Financial Results
•Midstream second-quarter 2024 adjusted pre-tax income increased compared with the first quarter, primarily due to higher NGL volumes and margins, as well as lower costs.
•Chemicals adjusted pre-tax income increased compared with the first quarter, mainly due to higher margins, partially offset by turnaround costs.
•Refining adjusted pre-tax income decreased slightly compared with the first quarter, primarily due to lower market crack spreads, partially offset by higher volumes and lower costs.
•Marketing and Specialties adjusted pre-tax income increased compared with the first quarter, mainly due to higher realized margins.
•Renewable Fuels reporting segment established; the Rodeo Renewable Energy Complex reached full processing rates of approximately 50,000 barrels per day.
•As of June 30, 2024, the company had $2.4 billion of cash and cash equivalents and $4.1 billion of committed capacity available under a credit facility.
Business Highlights and Strategic Priorities Progress
•Distributed $11.2 billion through share repurchases and dividends since July 2022 and on pace to achieve the company’s $13 billion to $15 billion target by year end.
•Achieved $1.3 billion in run-rate business transformation savings as of June 30, nearing the $1.4 billion target.
•Progressed asset dispositions with the sale of the company’s 25% non-operated interest in Rockies Express Pipeline LLC, generating cash proceeds of $685 million. Since 2022, total proceeds from asset dispositions are $1.1 billion toward the company’s previously announced target of over $3 billion.
•Advanced NGL wellhead-to-market strategy with the acquisition of Pinnacle Midstream on July 1, 2024.
•Completed conversion of Rodeo Renewable Energy Complex, expanding commercial-scale production and positioning the company as a leader in renewable fuels.
Page 3
Investor Webcast
Members of Phillips 66 executive management will host a webcast at noon ET to provide an update on the company’s strategic initiatives and discuss the company’s second-quarter performance. 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.
About Phillips 66
Phillips 66 (NYSE: PSX) is a leading diversified and integrated downstream energy provider that manufactures, transports and markets products that drive the global economy. The company’s portfolio includes Midstream, Chemicals, Refining, Marketing and Specialties, and Renewable Fuels 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.
# # -
| CONTACTS | ||
|---|---|---|
| Jeff Dietert (investors) | Owen Simpson (investors) | Thaddeus Herrick (media) |
| 832-765-2297 | 832-765-2297 | 855-841-2368 |
| jeff.dietert@p66.com | owen.simpson@p66.com | thaddeus.f.herrick@p66.com |
Page 4
CAUTIONARY STATEMENT FOR THE PURPOSES OF THE “SAFE HARBOR” PROVISIONS
OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995
This news release contains forward-looking statements within the meaning of the federal securities laws. Words such as “anticipated,” “estimated,” “expected,” “planned,” “scheduled,” “targeted,” “believe,” “continue,” “intend,” “will,” “would,” “objective,” “goal,” “project,” “efforts,” “strategies” and similar expressions that convey the prospective nature of events or outcomes generally indicate forward-looking statements. However, the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements included in this news release are based on management’s expectations, estimates and projections as of the date they are made. These statements are not guarantees of future performance and you should not unduly rely on them as they involve certain risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecast in such forward-looking statements. Factors that could cause actual results or events to differ materially from those described in the forward-looking statements include: fluctuations in NGL, crude oil, refined petroleum and renewable fuels product and natural gas prices, and refining, marketing and petrochemical margins; changes in governmental policies or laws that relate to NGL, crude oil, natural gas, refined petroleum products, or renewable fuels that regulate profits, pricing, or taxation, or other regulations that limit or restrict refining, marketing and midstream operations or restrict exports; the effects of any widespread public health crisis and its negative impact on commercial activity and demand for refined petroleum or renewable fuels products; our ability 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 including the renewable fuel standards program, low carbon fuel standards and tax credits for biofuels; our ability to achieve the expected benefits of the integration of DCP Midstream, LP, including the realization of synergies; the success of the company’s business transformation initiatives and the realization of savings and cost reductions from actions taken in connection therewith; unexpected changes in costs for constructing, modifying or operating our facilities; our ability to successfully complete, or any material delay in the completion of, asset dispositions or acquisitions that we may pursue; 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 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; our ability to comply with governmental regulations or make capital expenditures to maintain compliance with laws; limited access to capital or significantly higher cost of capital related to illiquidity or uncertainty in the domestic or international financial markets, which may also impact our ability to repurchase shares and declare and pay dividends; potential disruption of our operations due to accidents, weather events, including as a result of climate change, acts of terrorism or cyberattacks; general domestic and international economic and political developments, including armed hostilities (such as the Russia-Ukraine war), expropriation of assets, and other diplomatic developments; international monetary conditions and exchange controls; 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.
Use of Non-GAAP Financial Information—This news release includes the terms “adjusted earnings,” “adjusted pre-tax income (loss),” “adjusted EBITDA,” “adjusted earnings per share,” “cash from operations, excluding working capital,” and “net debt-to-capital ratio.” 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. Where applicable, these measures exclude items that do not reflect the core operating results of our businesses in the current period or other adjustments to reflect how management analyzes results. Reconciliations of these non-GAAP financial measures to the most comparable GAAP financial measure are included within this release.
References in the release to earnings refer to net income attributable to Phillips 66. References to run-rate business transformation savings include cost savings and other benefits that will be captured in the sales and other operating revenues; purchased crude oil and products costs; operating expenses; selling, general and administrative expenses; and equity in earnings of affiliates lines on our consolidated statement of income when realized. Run-rate savings include run-rate sustaining capital savings. Run-rate sustaining capital savings include savings that will be captured in the capital expenditures and investments on our consolidated statement of cash flows when realized.
Basis of Presentation - Effective April 1, 2024, we changed the internal financial information reviewed by our chief executive officer to evaluate performance and allocate resources to our operating segments. This included changes in the composition of our operating segments, as well as measurement changes for certain activities between our operating segments. The primary effects of this realignment included establishment of a Renewable Fuels operating segment, which includes renewable fuels activities and assets historically reported in our Refining, Marketing and Specialties (M&S), and Midstream segments; change in method of allocating results for certain Gulf Coast distillate export activities from our M&S segment to our Refining segment; reclassification of certain crude oil and international clean products trading activities between our M&S segment and our Refining segment; and change in reporting of our 16% investment in NOVONIX from our Midstream segment to Corporate and Other. Accordingly, prior period results have been recast for comparability.
Page 5
| Earnings | ||||||
|---|---|---|---|---|---|---|
| Millions of Dollars | ||||||
| 2024 | 2023 | |||||
| 2Q | 1Q | Jun YTD | 2Q | Jun YTD | ||
| Midstream | $ | 767 | 554 | 1,321 | 620 | 1,336 |
| Chemicals | 222 | 205 | 427 | 192 | 390 | |
| Refining | 302 | 216 | 518 | 1,175 | 2,769 | |
| Marketing and Specialties | 415 | 366 | 781 | 533 | 896 | |
| Renewable Fuels | (55) | (55) | (110) | 68 | 142 | |
| Corporate and Other | (340) | (322) | (662) | (344) | (638) | |
| Pre-Tax Income | 1,311 | 964 | 2,275 | 2,244 | 4,895 | |
| Less: Income tax expense | 291 | 203 | 494 | 510 | 1,084 | |
| Less: Noncontrolling interests | 5 | 13 | 18 | 37 | 153 | |
| Phillips 66 | $ | 1,015 | 748 | 1,763 | 1,697 | 3,658 |
| Adjusted Earnings | ||||||
| Millions of Dollars | ||||||
| 2024 | 2023 | |||||
| 2Q | 1Q | Jun YTD | 2Q | Jun YTD | ||
| Midstream | $ | 753 | 613 | 1,366 | 642 | 1,334 |
| Chemicals | 222 | 205 | 427 | 192 | 390 | |
| Refining | 302 | 313 | 615 | 1,189 | 2,783 | |
| Marketing and Specialties | 415 | 307 | 722 | 533 | 896 | |
| Renewable Fuels | (55) | (55) | (110) | 68 | 142 | |
| Corporate and Other | (340) | (322) | (662) | (250) | (509) | |
| Pre-Tax Income | 1,297 | 1,061 | 2,358 | 2,374 | 5,036 | |
| Less: Income tax expense | 278 | 226 | 504 | 532 | 1,108 | |
| Less: Noncontrolling interests | 35 | 13 | 48 | 76 | 197 | |
| Phillips 66 | $ | 984 | 822 | 1,806 | 1,766 | 3,731 |
Page 6
| Millions of Dollars | ||||||
|---|---|---|---|---|---|---|
| Except as Indicated | ||||||
| 2024 | 2023 | |||||
| 2Q | 1Q | Jun YTD | 2Q | Jun YTD | ||
| Reconciliation of Consolidated Earnings to Adjusted Earnings | ||||||
| Consolidated Earnings | $ | 1,015 | 748 | 1,763 | 1,697 | 3,658 |
| Pre-tax adjustments: | ||||||
| Impairments1 | 224 | 163 | 387 | — | — | |
| Net (gain) loss on asset dispositions2 | (238) | — | (238) | 14 | (22) | |
| Legal settlement | — | (66) | (66) | — | — | |
| Business transformation restructuring costs3 | — | — | — | 41 | 76 | |
| Loss on early redemption of DCP debt | — | — | — | 53 | 53 | |
| DCP integration restructuring costs4 | — | — | — | 22 | 34 | |
| Tax impact of adjustments5 | 13 | (23) | (10) | (22) | (24) | |
| Noncontrolling interests | (30) | — | (30) | (39) | (44) | |
| Adjusted earnings | $ | 984 | 822 | 1,806 | 1,766 | 3,731 |
| Earnings per share of common stock (dollars) | $ | 2.38 | 1.73 | 4.10 | 3.72 | 7.92 |
| Adjusted earnings per share of common stock (dollars)6 | $ | 2.31 | 1.90 | 4.21 | 3.87 | 8.08 |
| Reconciliation of Segment Pre-Tax Income (Loss) to Adjusted Pre-Tax Income (Loss) | ||||||
| Midstream Pre-Tax Income | $ | 767 | 554 | 1,321 | 620 | 1,336 |
| Pre-tax adjustments: | ||||||
| Impairments1 | 224 | 59 | 283 | — | — | |
| Net gain on asset disposition2 | (238) | — | (238) | — | (36) | |
| DCP integration restructuring costs4 | — | — | — | 22 | 34 | |
| Adjusted pre-tax income | $ | 753 | 613 | 1,366 | 642 | 1,334 |
| Chemicals Pre-Tax Income | $ | 222 | 205 | 427 | 192 | 390 |
| Pre-tax adjustments: | ||||||
| None | — | — | — | — | — | |
| Adjusted pre-tax income | $ | 222 | 205 | 427 | 192 | 390 |
| Refining Pre-Tax Income | $ | 302 | 216 | 518 | 1,175 | 2,769 |
| Pre-tax adjustments: | ||||||
| Impairments1 | — | 104 | 104 | — | — | |
| Net loss on asset disposition | — | — | — | 14 | 14 | |
| Legal settlement | — | (7) | (7) | — | — | |
| Adjusted pre-tax income | $ | 302 | 313 | 615 | 1,189 | 2,783 |
| Marketing and Specialties Pre-Tax Income | $ | 415 | 366 | 781 | 533 | 896 |
| Pre-tax adjustments: | ||||||
| Legal settlement | — | (59) | (59) | — | — | |
| Adjusted pre-tax income | $ | 415 | 307 | 722 | 533 | 896 |
Page 7
| Renewable Fuels Pre-Tax Loss | $ | (55) | (55) | (110) | 68 | 142 |
|---|---|---|---|---|---|---|
| Pre-tax adjustments: | ||||||
| None | — | — | — | — | — | |
| Adjusted pre-tax loss | $ | (55) | (55) | (110) | 68 | 142 |
| Corporate and Other Pre-Tax Loss | $ | (340) | (322) | (662) | (344) | (638) |
| Pre-tax adjustments: | ||||||
| Business transformation restructuring costs3 | — | — | — | 41 | 76 | |
| Loss on early redemption of DCP debt | — | — | — | 53 | 53 | |
| Adjusted pre-tax loss | $ | (340) | (322) | (662) | (250) | (509) |
| 1Impairment, related to certain gathering and processing assets in the Midstream segment, as well as certain crude oil processing and logistics assets in California, reported in the Refining segment. | ||||||
| 2(Gain)/loss from asset dispositions, primarily reflect a gain from the sale of the company’s 25% interest in Rockies Express Pipeline LLC. | ||||||
| 3Restructuring costs, related to Phillips 66’s multi-year business transformation efforts, are primarily due to consulting fees. | ||||||
| 4Restructuring costs, related to the integration of DCP Midstream, primarily reflect severance costs, consulting fees and contract exit costs. A portion of these costs are attributable to noncontrolling interests. | ||||||
| 5We generally tax effect taxable U.S.-based special items using a combined federal and state statutory income tax rate of approximately 24%. Taxable special items attributable to foreign locations likewise use a local statutory income tax rate. Nontaxable events reflect zero income tax. These events include, but are not limited to, most goodwill impairments, transactions legislatively exempt from income tax, transactions related to entities for which we have made an assertion that the undistributed earnings are permanently reinvested, or transactions occurring in jurisdictions with a valuation allowance. | ||||||
| 6Q1 2024 and Q2 2023 are based on adjusted weighted-average diluted shares of 432,158 thousand and 456,173 thousand, respectively. Other periods are based on the same weighted-average diluted shares outstanding as that used in the GAAP diluted earnings per share calculation. Income allocated to participating securities, if applicable, in the adjusted earnings per share calculation is the same as that used in the GAAP diluted earnings per share calculation. |
Page 8
| Millions of Dollars | |||
|---|---|---|---|
| Except as Indicated | |||
| 2024 | |||
| 2Q | 1Q | ||
| Reconciliation of Consolidated Net Income to Adjusted EBITDA | |||
| Net Income | $ | 1,020 | 761 |
| Plus: | |||
| Income tax expense | 291 | 203 | |
| Net interest expense | 200 | 186 | |
| Depreciation and amortization | 497 | 504 | |
| Phillips 66 EBITDA | 2,008 | 1,654 | |
| Special Item Adjustments (pre-tax): | |||
| Impairments | 224 | 163 | |
| Net gain on asset disposition | (238) | — | |
| Legal settlement | — | (66) | |
| Total Special Item Adjustments (pre-tax) | (14) | 97 | |
| Change in Fair Value of NOVONIX Investment | 7 | (5) | |
| Phillips 66 EBITDA, Adjusted for Special Items and Change in Fair Value of NOVONIX Investment | $ | 2,001 | 1,746 |
| Other Adjustments (pre-tax): | |||
| Proportional share of selected equity affiliates income taxes | 26 | 21 | |
| Proportional share of selected equity affiliates net interest | 19 | 23 | |
| Proportional share of selected equity affiliates depreciation and amortization | 195 | 188 | |
| Adjusted EBITDA attributable to noncontrolling interests | (58) | (35) | |
| Phillips 66 Adjusted EBITDA | $ | 2,183 | 1,943 |
| Reconciliation of Segment Income (Loss) before Income Taxes to<br> Adjusted EBITDA | |||
| Midstream Income before income taxes | $ | 767 | 554 |
| Plus: | |||
| Depreciation and amortization | 224 | 229 | |
| Midstream EBITDA | $ | 991 | 783 |
| Special Item Adjustments (pre-tax): | |||
| Net gain on asset disposition | (238) | — | |
| Impairments | 224 | 59 | |
| Midstream EBITDA, Adjusted for Special Items | $ | 977 | 842 |
| Other Adjustments (pre-tax): | |||
| Proportional share of selected equity affiliates income taxes | 5 | 3 | |
| Proportional share of selected equity affiliates net interest | 10 | 13 | |
| Proportional share of selected equity affiliates depreciation <br> and amortization | 37 | 38 | |
| Adjusted EBITDA attributable to noncontrolling interests | (58) | (35) | |
| Midstream Adjusted EBITDA | $ | 971 | 861 |
Page 9
| Chemicals Income before income taxes | $ | 222 | 205 |
|---|---|---|---|
| Plus: | |||
| None | — | — | |
| Chemicals EBITDA | $ | 222 | 205 |
| Special Item Adjustments (pre-tax): | |||
| None | — | — | |
| Chemicals EBITDA, Adjusted for Special Items | $ | 222 | 205 |
| Other Adjustments (pre-tax): | |||
| Proportional share of selected equity affiliates income taxes | 15 | 13 | |
| Proportional share of selected equity affiliates net interest | — | 1 | |
| Proportional share of selected equity affiliates depreciation <br> and amortization | 111 | 106 | |
| Chemicals Adjusted EBITDA | $ | 348 | 325 |
| Refining Income before income taxes | $ | 302 | 216 |
| Plus: | |||
| Depreciation and amortization | 204 | 208 | |
| Refining EBITDA | $ | 506 | 424 |
| Special Item Adjustments (pre-tax): | |||
| Impairments | — | 104 | |
| Legal settlement | — | (7) | |
| Refining EBITDA, Adjusted for Special Items | $ | 506 | 521 |
| Other Adjustments (pre-tax): | |||
| Proportional share of selected equity affiliates income taxes | 1 | — | |
| Proportional share of selected equity affiliates net interest | (2) | (1) | |
| Proportional share of selected equity affiliates depreciation <br> and amortization | 26 | 25 | |
| Refining Adjusted EBITDA | $ | 531 | 545 |
| Marketing and Specialties Income before income taxes | $ | 415 | 366 |
| Plus: | |||
| Depreciation and amortization | 32 | 36 | |
| Marketing and Specialties EBITDA | $ | 447 | 402 |
| Special Item Adjustments (pre-tax): | |||
| Legal settlement | — | (59) | |
| Marketing and Specialties EBITDA, Adjusted for Special Items | $ | 447 | 343 |
| Other Adjustments (pre-tax): | |||
| Proportional share of selected equity affiliates income taxes | 5 | 5 | |
| Proportional share of selected equity affiliates net interest | 11 | 10 | |
| Proportional share of selected equity affiliates depreciation <br> and amortization | 21 | 19 | |
| Marketing and Specialties Adjusted EBITDA | $ | 484 | 377 |
Page 10
| Renewable Fuels Loss before income taxes | $ | (55) | (55) |
|---|---|---|---|
| Plus: | |||
| Depreciation and amortization | 12 | 6 | |
| Renewable Fuels EBITDA | (43) | (49) | |
| Special Item Adjustments (pre-tax): | |||
| None | — | — | |
| Renewable Fuels EBITDA, Adjusted for Special Items | $ | (43) | (49) |
| Corporate and Other Loss before income taxes | $ | (340) | (322) |
| Plus: | |||
| Net interest expense | 200 | 186 | |
| Depreciation and amortization | 25 | 25 | |
| Corporate & Other EBITDA | $ | (115) | (111) |
| Special Item Adjustments (pre-tax): | |||
| None | — | — | |
| Total Special Item Adjustments (pre-tax) | — | — | |
| Change in Fair Value of NOVONIX Investment | 7 | (5) | |
| Corporate EBITDA, Adjusted for Special Items and Change in <br> Fair Value of NOVONIX Investment | $ | (108) | (116) |
| Millions of Dollars | |||
| --- | --- | --- | --- |
| Except as Indicated | |||
| June 30, 2024 | |||
| Debt-to-Capital Ratio | |||
| Total Debt | $ | 19,960 | |
| Total Equity | 30,507 | ||
| Debt-to-Capital Ratio | 40 | % | |
| Total Cash | 2,444 | ||
| Net Debt-to-Capital Ratio | 36 | % | |
| Millions of Dollars | |||
| June 30, 2024 | |||
| Reconciliation of Net Cash Used in Operating Activities to Operating <br> Cash Flow, Excluding Working Capital | |||
| Net Cash Used in Operating Activities | $ | 2,097 | |
| Less: Net Working Capital Changes | 916 | ||
| Operating Cash Flow, Excluding Working Capital | $ | 1,181 |
Page 11
| Millions of Dollars | |||
|---|---|---|---|
| Except as Indicated | |||
| 2024 | |||
| 2Q | 1Q | ||
| Reconciliation of Refining Income Before Income Taxes to Realized <br> Refining Margins | |||
| Income before income taxes | $ | 302 | 216 |
| Plus: | |||
| Taxes other than income taxes | 74 | 121 | |
| Depreciation, amortization and impairments | 203 | 314 | |
| Selling, general and administrative expenses | 51 | 38 | |
| Operating expenses | 884 | 953 | |
| Equity in earnings of affiliates | (33) | (108) | |
| Other segment expense, net | (1) | (30) | |
| Proportional share of refining gross margins contributed by equity affiliates | 260 | 331 | |
| Special items: | |||
| Legal settlement | — | (7) | |
| Realized refining margins | $ | 1,740 | 1,828 |
| Total processed inputs (thousands of barrels) | 151,296 | 143,700 | |
| Adjusted total processed inputs (thousands of barrels)* | 174,107 | 165,954 | |
| Income before income taxes (dollars per barrel)** | $ | 2.00 | 1.50 |
| Realized refining margins (dollars per barrel)***** | $ | 10.01 | 11.01 |
| *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 12
Document
| Exhibit 99.2 | |||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Phillips 66 Earnings Release Supplemental Data | CONSOLIDATED INCOME STATEMENT | ||||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |||
| Millions of Dollars, Except as Indicated | |||||||||||||||||||||
| 2024 | 2023 | ||||||||||||||||||||
| 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 | 35,811 | 38,129 | 73,940 | 34,396 | 35,090 | 39,643 | 38,270 | 147,399 | |||||||||||||
| Equity in earnings of affiliates | 528 | 487 | 1,015 | 611 | 563 | 562 | 281 | 2,017 | |||||||||||||
| Net gain (loss) on dispositions | — | 237 | 237 | 34 | (12) | 102 | (9) | 115 | |||||||||||||
| Other income** | 97 | 58 | 155 | 48 | 99 | 15 | 197 | 359 | |||||||||||||
| Total Revenues and Other Income | 36,436 | 38,911 | 75,347 | 35,089 | 35,740 | 40,322 | 38,739 | 149,890 | |||||||||||||
| Costs and Expenses | |||||||||||||||||||||
| Purchased crude oil and products | 32,386 | 34,628 | 67,014 | 29,341 | 30,571 | 34,330 | 33,844 | 128,086 | |||||||||||||
| Operating expenses | 1,452 | 1,407 | 2,859 | 1,578 | 1,384 | 1,633 | 1,559 | 6,154 | |||||||||||||
| Selling, general and administrative expenses | 557 | 552 | 1,109 | 605 | 593 | 669 | 658 | 2,525 | |||||||||||||
| Depreciation and amortization | 504 | 497 | 1,001 | 476 | 495 | 488 | 518 | 1,977 | |||||||||||||
| Impairments | 165 | 225 | 390 | 8 | 4 | 3 | 9 | 24 | |||||||||||||
| Taxes other than income taxes | 165 | 49 | 214 | 207 | 174 | 171 | 155 | 707 | |||||||||||||
| Accretion on discounted liabilities | 9 | 10 | 19 | 6 | 7 | 6 | 10 | 29 | |||||||||||||
| Interest and debt expense | 227 | 231 | 458 | 192 | 266 | 221 | 218 | 897 | |||||||||||||
| Foreign currency transaction (gains) losses | 7 | 1 | 8 | 25 | 2 | (12) | 7 | 22 | |||||||||||||
| Total Costs and Expenses | 35,472 | 37,600 | 73,072 | 32,438 | 33,496 | 37,509 | 36,978 | 140,421 | |||||||||||||
| Income before income taxes | 964 | 1,311 | 2,275 | 2,651 | 2,244 | 2,813 | 1,761 | 9,469 | |||||||||||||
| Income tax expense | 203 | 291 | 494 | 574 | 510 | 670 | 476 | 2,230 | |||||||||||||
| Net Income | 761 | 1,020 | 1,781 | 2,077 | 1,734 | 2,143 | 1,285 | 7,239 | |||||||||||||
| Less: net income attributable to noncontrolling interests* | 13 | 5 | 18 | 116 | 37 | 46 | 25 | 224 | |||||||||||||
| Net Income Attributable to Phillips 66* | 748 | 1,015 | 1,763 | 1,961 | 1,697 | 2,097 | 1,260 | 7,015 | |||||||||||||
| Net Income Attributable to Phillips 66 Per Share <br> of Common Stock (dollars) | |||||||||||||||||||||
| Basic | 1.74 | 2.39 | 4.13 | 4.21 | 3.73 | 4.72 | 2.87 | 15.56 | |||||||||||||
| Diluted | 1.73 | 2.38 | 4.10 | 4.20 | 3.72 | 4.69 | 2.86 | 15.48 | |||||||||||||
| Weighted-Average Common Shares Outstanding (thousands) | |||||||||||||||||||||
| Basic | 428,959 | 422,869 | 425,914 | 464,810 | 454,450 | 444,283 | 437,365 | 450,136 | |||||||||||||
| Diluted | 431,906 | 425,734 | 428,993 | 467,034 | 456,168 | 447,258 | 440,575 | 453,210 | |||||||||||||
| Effective tax rate (%) | 21.1 | % | 22.2 | % | 21.7 | % | 21.7 | % | 22.7 | % | 23.8 | % | 27.0 | % | 23.6 | % | |||||
| Adjusted effective tax rate (%) | 21.3 | % | 21.4 | % | 21.4 | % | 21.6 | % | 22.4 | % | 24.0 | % | 22.6 | % | 22.7 | % | |||||
| * Refer to Changes in Basis of Presentation discussion on page 15. | |||||||||||||||||||||
| ** Includes the unrealized investment gain (loss) on our investment in NOVONIX Limited (NOVONIX). See NOVONIX Investment table on page 14 for more details. |
Page 1
| Phillips 66 Earnings Release Supplemental Data | | --- || RECONCILIATION OF INCOME (LOSS) BEFORE INCOME TAXES BY SEGMENT TO | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | NET INCOME ATTRIBUTABLE TO PHILLIPS 66* | | | | | | | | | | | | | Millions of Dollars | | | | | | | | | | | | 2024 | | | | | 2023 | | | | | | | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | | Midstream | 554 | 767 | | | 1,321 | 716 | 620 | 724 | 759 | 2,819 | | Chemicals | 205 | 222 | | | 427 | 198 | 192 | 104 | 106 | 600 | | Refining | 216 | 302 | | | 518 | 1,594 | 1,175 | 1,712 | 859 | 5,340 | | Marketing and Specialties | 366 | 415 | | | 781 | 363 | 533 | 605 | 396 | 1,897 | | Renewable Fuels | (55) | (55) | | | (110) | 74 | 68 | 22 | (11) | 153 | | Corporate and Other | (322) | (340) | | | (662) | (294) | (344) | (354) | (348) | (1,340) | | Income before income taxes | 964 | 1,311 | | | 2,275 | 2,651 | 2,244 | 2,813 | 1,761 | 9,469 | | Less: income tax expense | 203 | 291 | | | 494 | 574 | 510 | 670 | 476 | 2,230 | | Net Income | 761 | 1,020 | | | 1,781 | 2,077 | 1,734 | 2,143 | 1,285 | 7,239 | | Less: net income attributable to noncontrolling interests | 13 | 5 | | | 18 | 116 | 37 | 46 | 25 | 224 | | Net Income Attributable to Phillips 66 | 748 | 1,015 | | | 1,763 | 1,961 | 1,697 | 2,097 | 1,260 | 7,015 | | * Refer to Changes in Basis of Presentation discussion on page 15. | | | | | | | | | | | | RECONCILIATION OF ADJUSTED INCOME (LOSS) BEFORE INCOME TAXES BY SEGMENT TO | | | | | | | | | | | | ADJUSTED NET INCOME ATTRIBUTABLE TO PHILLIPS 66* | | | | | | | | | | | | | Millions of Dollars | | | | | | | | | | | | 2024 | | | | | 2023 | | | | | | | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | | Midstream | | | | | | | | | | | | Transportation | 303 | 309 | | | 612 | 269 | 284 | 285 | 335 | 1,173 | | NGL | 310 | 444 | | | 754 | 423 | 358 | 296 | 422 | 1,499 | | Total Midstream | 613 | 753 | | | 1,366 | 692 | 642 | 581 | 757 | 2,672 | | Chemicals | 205 | 222 | | | 427 | 198 | 192 | 104 | 106 | 600 | | Refining | | | | | | | | | | | | Atlantic Basin/Europe | 78 | 15 | | | 93 | 128 | 132 | 406 | 135 | 801 | | Gulf Coast | 113 | 42 | | | 155 | 730 | 327 | 363 | 336 | 1,756 | | Central Corridor | 213 | 243 | | | 456 | 731 | 633 | 367 | 510 | 2,241 | | West Coast | (91) | 2 | | | (89) | 5 | 97 | 606 | (139) | 569 | | Total Refining | 313 | 302 | | | 615 | 1,594 | 1,189 | 1,742 | 842 | 5,367 | | Marketing and Specialties | 307 | 415 | | | 722 | 363 | 533 | 605 | 396 | 1,897 | | Renewable Fuels | (55) | (55) | | | (110) | 74 | 68 | 22 | (11) | 153 | | Corporate and Other | (322) | (340) | | | (662) | (259) | (250) | (303) | (298) | (1,110) | | Adjusted income before income taxes | 1,061 | 1,297 | | | 2,358 | 2,662 | 2,374 | 2,751 | 1,792 | 9,579 | | Less: adjusted income tax expense | 226 | 278 | | | 504 | 576 | 532 | 660 | 405 | 2,173 | | Adjusted Net Income | 835 | 1,019 | | | 1,854 | 2,086 | 1,842 | 2,091 | 1,387 | 7,406 | | Less: adjusted net income attributable to noncontrolling <br> interests | 13 | 35 | | | 48 | 121 | 76 | 21 | 25 | 243 | | Adjusted Net Income Attributable to Phillips 66 | 822 | 984 | | | 1,806 | 1,965 | 1,766 | 2,070 | 1,362 | 7,163 | | Adjusted Net Income Attributable to Phillips 66 Per Share of Common Stock (dollars) | | | | | | | | | | | | Diluted** | 1.90 | 2.31 | | | 4.21 | 4.21 | 3.87 | 4.63 | 3.09 | 15.81 | | * Refer to Changes in Basis of Presentation discussion on page 15. | | | | | | | | | | | | ** Q1 2024 and Q2 2024 are based on adjusted weighted-average diluted shares of 432,158 thousand and 425,734 thousand, respectively. Q1-Q4 2023 are based on adjusted weighted-average diluted shares of 467,034 thousand, 456,173 thousand, 447,255 thousand, and 440,582 thousand, respectively. Other periods are based on the same weighted-average diluted shares outstanding as that used in the GAAP diluted earnings per share calculation. Income allocated to participating securities, if applicable, in the adjusted earnings per share calculation is the same as that used in the GAAP diluted earnings per share calculation. | | | | | | | | | | | | ADJUSTED EBITDA BY SEGMENT** | | | | | | | | | | | | | Millions of Dollars | | | | | | | | | | | | 2024 | | | | | 2023 | | | | | | | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | | Midstream* | | | | | | | | | | | | Transportation | 384 | 386 | | | 770 | 350 | 365 | 365 | 418 | 1,498 | | NGL | 477 | 585 | | | 1,062 | 398 | 395 | 457 | 576 | 1,826 | | Total Midstream | 861 | 971 | | | 1,832 | 748 | 760 | 822 | 994 | 3,324 | | Chemicals | 325 | 348 | | | 673 | 321 | 319 | 230 | 243 | 1,113 | | Refining | 545 | 531 | | | 1,076 | 1,818 | 1,416 | 1,968 | 1,107 | 6,309 | | Marketing and Specialties | 377 | 484 | | | 861 | 425 | 603 | 672 | 469 | 2,169 | | Renewable Fuels* | (49) | (43) | | | (92) | 76 | 70 | 23 | (7) | 162 | | Corporate and Other | (116) | (108) | | | (224) | (101) | (81) | (111) | (110) | (403) | | Adjusted EBITDA | 1,943 | 2,183 | | | 4,126 | 3,287 | 3,087 | 3,604 | 2,696 | 12,674 | | * Refer to Changes in Basis of Presentation discussion on page 15. | | | | | | | | | | | | ** Refer to Use of Non-GAAP Financial Information on page 15. Also, refer to reconciliations of income (loss) before income taxes to segment Adjusted EBITDA in the "Midstream", "Chemicals", "Refining", "Marketing and Specialties", "Renewable Fuels", "Corporate and Other" sections, as well as the "Reconciliation of Consolidated Net Income to Adjusted EBITDA Attributable to Phillips 66" on page 15. Adjusted EBITDA and Adjusted EBITDA by segment presented includes our proportional share of selected equity affiliates. | | | | | | | | | | |
Page 2
| Phillips 66 Earnings Release Supplemental Data | | --- || SPECIAL ITEMS INCLUDED IN INCOME (LOSS) BEFORE INCOME TAXES BY SEGMENT | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | AND NET INCOME ATTRIBUTABLE TO PHILLIPS 66 | | | | | | | | | | | | | Millions of Dollars | | | | | | | | | | | | 2024 | | | | | 2023 | | | | | | | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | | Midstream | | | | | | | | | | | | Certain tax impacts | — | — | | | — | — | — | — | 2 | 2 | | Net gain on asset disposition | — | 238 | | | 238 | 36 | — | 101 | — | 137 | | Change in inventory method for acquired business | — | — | | | — | — | — | 46 | — | 46 | | Impairments | (59) | (224) | | | (283) | — | — | — | — | — | | DCP integration restructuring costs* | — | — | | | — | (12) | (22) | (4) | — | (38) | | Total Midstream | (59) | 14 | | | (45) | 24 | (22) | 143 | 2 | 147 | | Chemicals | — | — | | | — | — | — | — | — | — | | Refining | | | | | | | | | | | | Certain tax impacts | — | — | | | — | — | — | — | 17 | 17 | | Net loss on asset disposition | — | — | | | — | — | (14) | — | — | (14) | | Impairments | (104) | — | | | (104) | — | — | — | — | — | | Legal accrual | — | — | | | — | — | — | (30) | — | (30) | | Legal settlement | 7 | — | | | 7 | — | — | — | — | — | | Total Refining | (97) | — | | | (97) | — | (14) | (30) | 17 | (27) | | Marketing and Specialties | | | | | | | | | | | | Legal settlement | 59 | — | | | 59 | — | — | — | — | — | | Total Marketing and Specialties | 59 | — | | | 59 | — | — | — | — | — | | Renewable Fuels | — | — | | | — | — | — | — | — | — | | Corporate and Other | | | | | | | | | | | | Business transformation restructuring costs** | — | — | | | — | (35) | (41) | (51) | (50) | (177) | | Loss on early redemption of DCP debt | — | — | | | — | — | (53) | — | — | (53) | | Total Corporate and Other | — | — | | | — | (35) | (94) | (51) | (50) | (230) | | Total Special Items (Pre-tax) | (97) | 14 | | | (83) | (11) | (130) | 62 | (31) | (110) | | Less: Income Tax Expense (Benefit) | | | | | | | | | | | | Tax impact of pre-tax special items*** | (23) | 13 | | | (10) | (2) | (22) | 10 | (12) | (26) | | Other tax impacts | — | — | | | — | — | — | — | 83 | 83 | | Total Income Tax Expense (Benefit) | (23) | 13 | | | (10) | (2) | (22) | 10 | 71 | 57 | | Less: Income (Loss) Attributable to Noncontrolling Interests | | | | | | | | | | | | Loss on early redemption of DCP debt | — | — | | | — | — | (30) | — | — | (30) | | Change in inventory method for acquired business | — | — | | | — | — | — | 26 | — | 26 | | DCP integration restructuring costs* | — | — | | | — | (5) | (9) | (1) | — | (15) | | Impairment of certain DCP assets | — | (30) | | | (30) | — | — | — | — | — | | Total Income (Loss) Attributable to Noncontrolling Interests | — | (30) | | | (30) | (5) | (39) | 25 | — | (19) | | Total Phillips 66 Special Items (After-tax) | (74) | 31 | | | (43) | (4) | (69) | 27 | (102) | (148) | | * Restructuring costs, related to the integration of DCP Midstream, primarily reflect severance costs and consulting fees. A portion of these costs are attributable to noncontrolling interests. | | | | | | | | | | | | ** Restructuring costs are related to Phillips 66’s multi-year business transformation efforts are primarily due to consulting fees. | | | | | | | | | | | | *** We generally tax effect taxable U.S.-based special items using a combined federal and state annual statutory income tax rate of approximately 24%. Taxable special items attributable to foreign locations likewise use a local statutory income tax rate. Nontaxable events reflect zero income tax. These events include, but are not limited to, most goodwill impairments, transactions legislatively exempt from income tax, transactions related to entities for which we have made an assertion that the undistributed earnings are permanently reinvested, or transactions occurring in jurisdictions with a valuation allowance. | | | | | | | | | | | | SPECIAL ITEMS INCLUDED IN INCOME (LOSS) BEFORE INCOME TAXES BY BUSINESS LINES/REGIONS | | | | | | | | | | | | | Millions of Dollars | | | | | | | | | | | | 2024 | | | | | 2023 | | | | | | | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | | Midstream | | | | | | | | | | | | Transportation | (59) | 238 | | | 179 | 36 | — | 101 | — | 137 | | NGL | — | (224) | | | (224) | (12) | (22) | 42 | 2 | 10 | | Total Midstream | (59) | 14 | | | (45) | 24 | (22) | 143 | 2 | 147 | | Refining | | | | | | | | | | | | Atlantic Basin/Europe | — | — | | | — | — | — | — | 15 | 15 | | Gulf Coast | 7 | — | | | 7 | — | (14) | — | 2 | (12) | | Central Corridor | — | — | | | — | — | — | — | — | — | | West Coast | (104) | — | | | (104) | — | — | (30) | — | (30) | | Total Refining | (97) | — | | | (97) | — | (14) | (30) | 17 | (27) |
Page 3
| Phillips 66 Earnings Release Supplemental Data | | --- || CASH FLOW INFORMATION | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | Millions of Dollars | | | | | | | | | | | | 2024 | | | | | 2023 | | | | | | | 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 | 761 | 1,020 | | | 1,781 | 2,077 | 1,734 | 2,143 | 1,285 | 7,239 | | Depreciation and amortization | 504 | 497 | | | 1,001 | 476 | 495 | 488 | 518 | 1,977 | | Impairments | 165 | 225 | | | 390 | 8 | 4 | 3 | 9 | 24 | | Accretion on discounted liabilities | 9 | 10 | | | 19 | 6 | 7 | 6 | 10 | 29 | | Deferred income taxes | (55) | (145) | | | (200) | 146 | 119 | 408 | 167 | 840 | | Undistributed equity earnings | (180) | (179) | | | (359) | (242) | (324) | (201) | (55) | (822) | | Loss on early redemption of debt | 2 | — | | | 2 | — | 53 | — | — | 53 | | Net (gain) loss on dispositions | — | (237) | | | (237) | (34) | 12 | (102) | 9 | (115) | | Unrealized investment (gain) loss* | (6) | 7 | | | 1 | 11 | 15 | 8 | 4 | 38 | | Other | 11 | (17) | | | (6) | 14 | (115) | (354) | 36 | (419) | | Net working capital changes | (1,447) | 916 | | | (531) | (1,263) | (1,045) | 286 | 207 | (1,815) | | Net Cash Provided by (Used in) Operating Activities | (236) | 2,097 | | | 1,861 | 1,199 | 955 | 2,685 | 2,190 | 7,029 | | Cash Flows From Investing Activities | | | | | | | | | | | | Capital expenditures and investments | (628) | (367) | | | (995) | (378) | (551) | (855) | (634) | (2,418) | | Return of investments in equity affiliates | 41 | 26 | | | 67 | 60 | 59 | 40 | 42 | 201 | | Proceeds from asset dispositions | 2 | 685 | | | 687 | 77 | 13 | 280 | 22 | 392 | | Collection of advances/loans—related parties | — | 2 | | | 2 | — | — | 1 | 2 | 3 | | Other | (80) | (19) | | | (99) | (24) | 47 | 49 | (40) | 32 | | Net Cash Provided by (Used in) Investing Activities | (665) | 327 | | | (338) | (265) | (432) | (485) | (608) | (1,790) | | Cash Flows From Financing Activities | | | | | | | | | | | | Issuance of debt | 3,815 | (196) | | | 3,619 | 2,488 | 2,559 | 678 | 535 | 6,260 | | Repayment of debt | (3,013) | (7) | | | (3,020) | (1,223) | (1,236) | (1,166) | (627) | (4,252) | | Issuance of common stock | 50 | 14 | | | 64 | 10 | 2 | 91 | 20 | 123 | | Repurchase of common stock | (1,164) | (840) | | | (2,004) | (800) | (1,309) | (752) | (1,153) | (4,014) | | Dividends paid on common stock | (448) | (485) | | | (933) | (486) | (474) | (465) | (457) | (1,882) | | Distributions to noncontrolling interests | (13) | (20) | | | (33) | (58) | (67) | (15) | (23) | (163) | | Repurchase of noncontrolling interests | — | — | | | — | — | (3,957) | — | (110) | (4,067) | | Other | (73) | (9) | | | (82) | (48) | (11) | (28) | (10) | (97) | | Net Cash Used in Financing Activities | (846) | (1,543) | | | (2,389) | (117) | (4,493) | (1,657) | (1,825) | (8,092) | | Effect of Exchange Rate Changes on Cash and <br> Cash Equivalents | (6) | (7) | | | (13) | 15 | 34 | (33) | 27 | 43 | | Net Change in Cash and Cash Equivalents | (1,753) | 874 | | | (879) | 832 | (3,936) | 510 | (216) | (2,810) | | Cash and cash equivalents at beginning of period | 3,323 | 1,570 | | | 3,323 | 6,133 | 6,965 | 3,029 | 3,539 | 6,133 | | Cash and Cash Equivalents at End of Period | 1,570 | 2,444 | | | 2,444 | 6,965 | 3,029 | 3,539 | 3,323 | 3,323 | | * Represents the unrealized loss on our investment in NOVONIX. See NOVONIX Investment table on page 14 for more details. | | | | | | | | | | | | CAPITAL PROGRAM | | | | | | | | | | | | | Millions of Dollars | | | | | | | | | | | | 2024 | | | | | 2023 | | | | | | | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | | Consolidated Capital Expenditures and Investments | | | | | | | | | | | | Midstream | 255 | 96 | | | 351 | 124 | 176 | 160 | 165 | 625 | | Chemicals | — | — | | | — | — | — | — | — | — | | Refining | 135 | 105 | | | 240 | 121 | 135 | 136 | 194 | 586 | | Marketing and Specialties | 15 | 20 | | | 35 | 11 | 25 | 287 | 41 | 364 | | Renewable Fuels* | 217 | 128 | | | 345 | 106 | 194 | 246 | 207 | 753 | | Corporate and Other | 6 | 18 | | | 24 | 16 | 21 | 26 | 27 | 90 | | Consolidated Capital Expenditures and Investments | 628 | 367 | | | 995 | 378 | 551 | 855 | 634 | 2,418 | | * Refer to Changes in Basis of Presentation discussion on page 15. | | | | | | | | | | | | Consolidated Capital Expenditures and Investments | | | | | | | | | | | | Growth | 485 | 194 | | | 679 | 228 | 339 | 642 | 358 | 1,567 | | Sustaining | 143 | 173 | | | 316 | 150 | 212 | 213 | 276 | 851 | | Consolidated Capital Expenditures and Investments | 628 | 367 | | | 995 | 378 | 551 | 855 | 634 | 2,418 | | Proportional Share of Selected Equity Affiliates Capital <br> Expenditures and Investments | | | | | | | | | | | | CPChem (Chemicals) | 201 | 199 | | | 400 | 142 | 377 | 254 | 236 | 1,009 | | WRB (Refining) | 24 | 29 | | | 53 | 45 | 47 | 36 | 61 | 189 | | Selected Equity Affiliates | 225 | 228 | | | 453 | 187 | 424 | 290 | 297 | 1,198 |
Page 4
| Phillips 66 Earnings Release Supplemental Data | | --- || MIDSTREAM | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | Millions of Dollars, Except as Indicated | | | | | | | | | | | | 2024 | | | | | 2023 | | | | | | | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | | Income before Income Taxes | | | | | | | | | | | | Transportation | 244 | 547 | | | 791 | 305 | 285 | 386 | 334 | 1,310 | | NGL | 310 | 220 | | | 530 | 411 | 335 | 338 | 425 | 1,509 | | Income before Income Taxes | 554 | 767 | | | 1,321 | 716 | 620 | 724 | 759 | 2,819 | | Equity in Earnings of Affiliates | | | | | | | | | | | | Transportation | 136 | 140 | | | 276 | 124 | 130 | 131 | 141 | 526 | | NGL | 19 | 30 | | | 49 | 27 | 40 | 26 | 29 | 122 | | Total | 155 | 170 | | | 325 | 151 | 170 | 157 | 170 | 648 | | Depreciation and Amortization* | | | | | | | | | | | | Transportation | 44 | 42 | | | 86 | 41 | 40 | 41 | 47 | 169 | | NGL | 185 | 182 | | | 367 | 183 | 194 | 190 | 187 | 754 | | Total | 229 | 224 | | | 453 | 224 | 234 | 231 | 234 | 923 | | * Excludes D&A of all non-consolidated affiliates. | | | | | | | | | | | | Operating and SG&A Expenses* | | | | | | | | | | | | Transportation | 180 | 194 | | | 374 | 177 | 179 | 188 | 207 | 751 | | NGL | 330 | 281 | | | 611 | 371 | 371 | 427 | 364 | 1,533 | | Total | 510 | 475 | | | 985 | 548 | 550 | 615 | 571 | 2,284 | | * Excludes operating and SG&A expenses of all non-consolidated affiliates. | | | | | | | | | | | | Transportation Volumes (MB/D) | | | | | | | | | | | | Pipelines* | 2,979 | 3,059 | | | 3,019 | 3,039 | 3,254 | 3,039 | 2,945 | 3,069 | | Terminals | 3,109 | 3,226 | | | 3,168 | 3,203 | 3,149 | 3,167 | 3,464 | 3,246 | | * Pipelines represent the sum of volumes transported through each separately tariffed consolidated pipeline segment, excluding NGL pipelines. | | | | | | | | | | | | PSX Other Volumes | | | | | | | | | | | | NGL Fractionated (MB/D) | 679 | 744 | | | 712 | 660 | 738 | 703 | 743 | 711 | | NGL Production (MB/D)* | 417 | 437 | | | 427 | 421 | 444 | 432 | 452 | 437 | | NGL Pipelines Throughput (MB/D)** | 896 | 950 | | | 923 | 918 | 898 | 880 | 892 | 897 | | Wellhead Volume (Bcf/D)* | 4.4 | 4.5 | | | 4.5 | 4.5 | 4.5 | 4.6 | 4.7 | 4.6 | | * Includes 100% of DCP Midstream Class A Segment. | | | | | | | | | | | | ** Includes 100% of DCP Midstream Class A Segment and Phillips 66's direct interest in DCP Sand Hills and DCP Southern Hills. | | | | | | | | | | | | Market Indicator | | | | | | | | | | | | Weighted-Average NGL Price ($/gal)* | 0.70 | 0.68 | | | 0.69 | 0.74 | 0.61 | 0.67 | 0.65 | 0.67 | | Henry Hub Natural Gas Price ($/MMBtu)** | 2.41 | 2.04 | | | 2.23 | 2.67 | 2.12 | 2.58 | 2.74 | 2.53 | | WTI ($/BBL)** | 77.07 | 80.73 | | | 78.90 | 76.11 | 73.78 | 82.49 | 78.36 | 77.69 | | * Based on index prices from the Mont Belvieu market hub, which are weighted by NGL component mix. | | | | | | | | | | | | ** Based on daily spot prices. | | | | | | | | | | |
Page 5
| Phillips 66 Earnings Release Supplemental Data | | --- || MIDSTREAM (continued) | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | Millions of Dollars | | | | | | | | | | | | 2024 | | | | | 2023 | | | | | | | 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 <br> Adjusted EBITDA | | | | | | | | | | | | Income before income taxes | 554 | 767 | | | 1,321 | 716 | 620 | 724 | 759 | 2,819 | | Plus: | | | | | | | | | | | | Depreciation and amortization | 229 | 224 | | | 453 | 224 | 234 | 231 | 234 | 923 | | EBITDA | 783 | 991 | | | 1,774 | 940 | 854 | 955 | 993 | 3,742 | | Special Item Adjustments (pre-tax): | | | | | | | | | | | | Certain tax impacts | — | — | | | — | — | — | — | (2) | (2) | | Net gain on asset disposition | — | (238) | | | (238) | (36) | — | (101) | — | (137) | | Change in inventory method for acquired business | — | — | | | — | — | — | (46) | — | (46) | | Impairments | 59 | 224 | | | 283 | — | — | — | — | — | | DCP integration restructuring costs | — | — | | | — | 12 | 19 | 4 | — | 35 | | EBITDA, Adjusted for Special Items | 842 | 977 | | | 1,819 | 916 | 873 | 812 | 991 | 3,592 | | Other Adjustments (pre-tax): | | | | | | | | | | | | Proportional share of selected equity affiliates income taxes | 3 | 5 | | | 8 | 4 | 5 | 5 | 4 | 18 | | Proportional share of selected equity affiliates net interest | 13 | 10 | | | 23 | 13 | 12 | 13 | 13 | 51 | | Proportional share of selected equity affiliates depreciation <br> and amortization | 38 | 37 | | | 75 | 41 | 39 | 39 | 37 | 156 | | Adjusted EBITDA attributable to noncontrolling interests | (35) | (58) | | | (93) | (226) | (169) | (47) | (51) | (493) | | Adjusted EBITDA | 861 | 971 | | | 1,832 | 748 | 760 | 822 | 994 | 3,324 |
Page 6
| Phillips 66 Earnings Release Supplemental Data | | --- || MIDSTREAM (continued) | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | Millions of Dollars | | | | | | | | | | | | 2024 | | | | | 2023 | | | | | | | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | | Transportation | | | | | | | | | | | | Income before income taxes | 244 | 547 | | | 791 | 305 | 285 | 386 | 334 | 1,310 | | Plus: | | | | | | | | | | | | Depreciation and amortization | 44 | 42 | | | 86 | 41 | 40 | 41 | 47 | 169 | | EBITDA | 288 | 589 | | | 877 | 346 | 325 | 427 | 381 | 1,479 | | Special Item Adjustments (pre-tax): | | | | | | | | | | | | Net gain on asset disposition | — | (238) | | | (238) | (36) | — | (101) | — | (137) | | Impairments | 59 | — | | | 59 | — | — | — | — | — | | EBITDA, Adjusted for Special Items | 347 | 351 | | | 698 | 310 | 325 | 326 | 381 | 1,342 | | Other Adjustments (pre-tax): | | | | | | | | | | | | Proportional share of selected equity affiliates income taxes | 3 | 5 | | | 8 | 4 | 5 | 5 | 4 | 18 | | Proportional share of selected equity affiliates net interest | 13 | 10 | | | 23 | 13 | 12 | 13 | 12 | 50 | | Proportional share of selected equity affiliates depreciation <br> and amortization | 26 | 25 | | | 51 | 27 | 27 | 26 | 26 | 106 | | Adjusted EBITDA attributable to noncontrolling interests | (5) | (5) | | | (10) | (4) | (4) | (5) | (5) | (18) | | Adjusted EBITDA | 384 | 386 | | | 770 | 350 | 365 | 365 | 418 | 1,498 | | NGL | | | | | | | | | | | | Income before income taxes | 310 | 220 | | | 530 | 411 | 335 | 338 | 425 | 1,509 | | Plus: | | | | | | | | | | | | Depreciation and amortization | 185 | 182 | | | 367 | 183 | 194 | 190 | 187 | 754 | | EBITDA | 495 | 402 | | | 897 | 594 | 529 | 528 | 612 | 2,263 | | Special Item Adjustments (pre-tax): | | | | | | | | | | | | Certain tax impacts | — | — | | | — | — | — | — | (2) | (2) | | Change in inventory method for acquired business | — | — | | | — | — | — | (46) | — | (46) | | DCP integration restructuring costs | — | — | | | — | 12 | 19 | 4 | — | 35 | | Impairments | — | 224 | | | 224 | — | — | — | — | — | | EBITDA, Adjusted for Special Items | 495 | 626 | | | 1,121 | 606 | 548 | 486 | 610 | 2,250 | | Other Adjustments (pre-tax): | | | | | | | | | | | | Proportional share of selected equity affiliates income taxes | — | — | | | — | — | — | — | — | — | | Proportional share of selected equity affiliates net interest | — | — | | | — | — | — | — | 1 | 1 | | Proportional share of selected equity affiliates depreciation <br> and amortization | 12 | 12 | | | 24 | 14 | 12 | 13 | 11 | 50 | | Adjusted EBITDA attributable to noncontrolling interests | (30) | (53) | | | (83) | (222) | (165) | (42) | (46) | (475) | | Adjusted EBITDA | 477 | 585 | | | 1,062 | 398 | 395 | 457 | 576 | 1,826 |
Page 7
| Phillips 66 Earnings Release Supplemental Data | | --- || CHEMICALS | | | | | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | Millions of Dollars, Except as Indicated | | | | | | | | | | | | | | | | | | | | 2024 | | | | | | | | 2023 | | | | | | | | | | | | 1st Qtr | | 2nd Qtr | | 3rd Qtr | 4th Qtr | YTD | | 1st Qtr | | 2nd Qtr | | 3rd Qtr | | 4th Qtr | | YTD | | | Income before Income Taxes | 205 | | 222 | | | | 427 | | 198 | | 192 | | 104 | | 106 | | 600 | | | Equity in Earnings of Affiliate | 201 | | 219 | | | | 420 | | 195 | | 189 | | 101 | | 101 | | 586 | | | 100% CPChem Results | | | | | | | | | | | | | | | | | | | | Net Income, excludes parent company income tax related to CPChem's earnings | 402 | | 438 | | | | 840 | | 390 | | 377 | | 202 | | 204 | | 1,173 | | | Income before Income Taxes | 413 | | 450 | | | | 863 | | 401 | | 389 | | 217 | | 214 | | 1,221 | | | Depreciation and Amortization | 153 | | 154 | | | | 307 | | 142 | | 141 | | 143 | | 184 | | 610 | | | Net Interest Expense* | 7 | | 2 | | | | 9 | | 6 | | 2 | | 2 | | 3 | | 13 | | | * Net of interest income. | | | | | | | | | | | | | | | | | | | | Investing Cash Flows | | | | | | | | | | | | | | | | | | | | Capital Expenditures and Investments | 401 | | 399 | | | | 800 | | 283 | | 755 | | 507 | | 473 | | 2,018 | | | Return of Investments from Equity Companies | — | | (14) | | | | (14) | | — | | — | | — | | — | | — | | | Olefins and Polyolefins Capacity Utilization (%) | 96 | % | 98 | % | | | 97 | % | 94 | % | 98 | % | 99 | % | 94 | % | 96 | % | | Market Indicators* | | | | | | | | | | | | | | | | | | | | Ethylene to High-Density Polyethylene Chain Cash Margin <br> (cents/lb) | 16.4 | | 18.4 | | | | 17.4 | | 17.1 | | 19.4 | | 12.9 | | 16.1 | | 16.4 | | | * Source: IHS, Inc. | | | | | | | | | | | | | | | | | | | | Reconciliation of Chemicals Income before Income Taxes to Adjusted EBITDA | | | | | | | | | | | | | | | | | | | | Income before income taxes | 205 | | 222 | | | | 427 | | 198 | | 192 | | 104 | | 106 | | 600 | | | Plus: | | | | | | | | | | | | | | | | | | | | None | — | | — | | | | — | | — | | — | | — | | — | | — | | | EBITDA | 205 | | 222 | | | | 427 | | 198 | | 192 | | 104 | | 106 | | 600 | | | Special Item Adjustments (pre-tax): | | | | | | | | | | | | | | | | | | | | None | — | | — | | | | — | | — | | — | | — | | — | | — | | | EBITDA, Adjusted for Special Items | 205 | | 222 | | | | 427 | | 198 | | 192 | | 104 | | 106 | | 600 | | | Other Adjustments (pre-tax): | | | | | | | | | | | | | | | | | | | | Proportional share of selected equity affiliates income taxes | 13 | | 15 | | | | 28 | | 20 | | 26 | | 24 | | 9 | | 79 | | | Proportional share of selected equity affiliates net interest | 1 | | — | | | | 1 | | 1 | | — | | (1) | | 2 | | 2 | | | Proportional share of selected equity affiliates depreciation <br> and amortization | 106 | | 111 | | | | 217 | | 102 | | 101 | | 103 | | 126 | | 432 | | | Adjusted EBITDA | 325 | | 348 | | | | 673 | | 321 | | 319 | | 230 | | 243 | | 1,113 | |
Page 8
| Phillips 66 Earnings Release Supplemental Data | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| REFINING | |||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| 2023 | |||||||||
| 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | |
| Income (Loss) before Income Taxes | |||||||||
| Atlantic Basin/Europe | 15 | 93 | 128 | 132 | 406 | 150 | 816 | ||
| Gulf Coast | 42 | 162 | 729 | 313 | 364 | 338 | 1,744 | ||
| Central Corridor | 243 | 456 | 732 | 633 | 367 | 509 | 2,241 | ||
| West Coast | 2 | (193) | 5 | 97 | 575 | (138) | 539 | ||
| Income before Income Taxes | 302 | 518 | 1,594 | 1,175 | 1,712 | 859 | 5,340 | ||
| Income (Loss) before Income Taxes (/BBL) | |||||||||
| Atlantic Basin/Europe | 0.30 | 0.95 | 3.23 | 2.95 | 8.68 | 2.93 | 4.48 | ||
| Gulf Coast | 0.82 | 1.64 | 14.22 | 6.22 | 6.83 | 6.54 | 8.44 | ||
| Central Corridor | 8.69 | 8.51 | 28.15 | 23.13 | 15.14 | 20.27 | 21.81 | ||
| West Coast | 0.10 | (4.27) | 0.18 | 3.23 | 18.29 | (5.02) | 4.63 | ||
| Worldwide | 2.00 | 1.76 | 11.06 | 7.70 | 11.00 | 5.51 | 8.78 | ||
| Realized Refining Margins (/BBL)* | |||||||||
| Atlantic Basin/Europe | 8.10 | 8.87 | 16.06 | 10.64 | 16.15 | 9.11 | 12.80 | ||
| Gulf Coast | 7.88 | 9.36 | 21.76 | 13.22 | 13.99 | 13.72 | 15.67 | ||
| Central Corridor | 12.75 | 12.66 | 26.62 | 22.58 | 19.25 | 21.72 | 22.50 | ||
| West Coast | 13.06 | 11.77 | 15.77 | 15.80 | 31.65 | 11.03 | 18.95 | ||
| Worldwide | 10.01 | 10.50 | 20.69 | 15.55 | 19.06 | 13.88 | 17.26 | ||
| * See note on the use of non-GAAP measures. Also, reconciliations of income (loss) before income taxes to realized refining margin for each period and by region are included in the "Realized Margin Non-GAAP Reconciliations" section. | |||||||||
| Equity in Earnings (Losses) of Affiliates | |||||||||
| Atlantic Basin/Europe | (2) | (3) | (2) | (2) | (2) | (2) | (8) | ||
| Gulf Coast | — | 1 | 1 | — | 1 | — | 2 | ||
| Central Corridor | 35 | 143 | 200 | 119 | 209 | (83) | 445 | ||
| West Coast | — | — | — | — | — | — | — | ||
| Total | 33 | 141 | 199 | 117 | 208 | (85) | 439 | ||
| Depreciation and Amortization* | |||||||||
| Atlantic Basin/Europe | 51 | 103 | 50 | 52 | 52 | 53 | 207 | ||
| Gulf Coast | 65 | 127 | 60 | 60 | 61 | 62 | 243 | ||
| Central Corridor | 42 | 86 | 38 | 38 | 42 | 45 | 163 | ||
| West Coast | 46 | 96 | 53 | 53 | 52 | 60 | 218 | ||
| Total | 204 | 412 | 201 | 203 | 207 | 220 | 831 | ||
| * Excludes D&A of all equity affiliates. | |||||||||
| Operating and SG&A Expenses* | |||||||||
| Atlantic Basin/Europe | 276 | 530 | 375 | 245 | 262 | 257 | 1,139 | ||
| Gulf Coast | 278 | 585 | 290 | 253 | 291 | 289 | 1,123 | ||
| Central Corridor | 167 | 334 | 187 | 174 | 240 | 212 | 813 | ||
| West Coast | 214 | 477 | 348 | 298 | 348 | 345 | 1,339 | ||
| Total | 935 | 1,926 | 1,200 | 970 | 1,141 | 1,103 | 4,414 | ||
| * Excludes operating and SG&A expenses of all equity affiliates. | |||||||||
| Turnaround Expense, included in Operating and SG&A Expenses* | |||||||||
| Atlantic Basin/Europe | 33 | 52 | 125 | 38 | 21 | 12 | 196 | ||
| Gulf Coast | 39 | 121 | 56 | 23 | 28 | 19 | 126 | ||
| Central Corridor | 3 | 4 | 12 | 12 | 57 | 40 | 121 | ||
| West Coast | 25 | 47 | 37 | 31 | 13 | 14 | 95 | ||
| Total | 100 | 224 | 230 | 104 | 119 | 85 | 538 | ||
| * Excludes turnaround expense of all equity affiliates. | |||||||||
| Taxes Other than Income Taxes | |||||||||
| Atlantic Basin/Europe | 15 | 39 | 23 | 17 | 13 | 18 | 71 | ||
| Gulf Coast | 19 | 57 | 33 | 25 | 28 | 20 | 106 | ||
| Central Corridor | 22 | 50 | 25 | 26 | 23 | 20 | 94 | ||
| West Coast | 18 | 49 | 31 | 27 | 26 | 27 | 111 | ||
| Total | 74 | 195 | 112 | 95 | 90 | 85 | 382 | ||
| Foreign Currency Gains (Losses) Pre-Tax | (1) | — | (21) | (1) | 9 | (6) | (19) | ||
| Refining—Equity Affiliate Information | |||||||||
| Equity in earnings (losses) of affiliates | 33 | 141 | 199 | 117 | 208 | (85) | 439 | ||
| Less: Share of equity affiliate gross margin included in Realized Refining Margin and other equity affiliate-related costs* | (260) | (591) | (429) | (335) | (416) | (167) | (1,347) | ||
| Equity affiliate-related expenses not included in Realized Refining Margins | (227) | (450) | (230) | (218) | (208) | (252) | (908) | ||
| * Other costs associated with equity affiliates which do not flow through equity earnings (losses). | |||||||||
| Proportional Share of Certain* Equity Affiliate Operating and SG&A Expenses | 184 | 365 | 190 | 182 | 168 | 194 | 734 | ||
| Proportional Share of Certain* Equity Affiliate Turnaround Expense, included in Equity Affiliate Operating and SG&A Expenses | 30 | 52 | 16 | 22 | 16 | 39 | 93 | ||
| * Includes WRB Refining, LP (WRB) and Mineraloelraffinerie Oberrhein GmbH (MiRO). | |||||||||
| Operating expenses | 884 | 1,837 | 1,156 | 933 | 1,108 | 1,048 | 4,245 | ||
| Selling, general and administrative expenses | 51 | 89 | 44 | 37 | 33 | 55 | 169 | ||
| Refining Controllable Costs* | 935 | 1,926 | 1,200 | 970 | 1,141 | 1,103 | 4,414 | ||
| Refining Controllable Costs (/BBL)* | 6.18 | 6.53 | 8.33 | 6.36 | 7.33 | 7.09 | 7.26 | ||
| * Excludes operating and SG&A expenses of all equity affiliates. See note on the use of non-GAAP measures. Also, see reconciliation of Refining operating and SG&A expenses to Refining Adjusted Controllable Costs per barrel included in the "Reconciliation of Refining Operating and SG&A Expenses to Refining Adjusted Controllable Costs" section. | |||||||||
| Refining Adjusted Controllable Costs (/BBL)* | 6.43 | 6.74 | 8.55 | 6.69 | 7.35 | 7.51 | 7.51 | ||
| * See note on the use of non-GAAP measures. Also, see reconciliation of Refining operating and SG&A expenses to Refining Adjusted Controllable Costs included in the "Reconciliation of Refining Operating and SG&A Expenses to Refining Adjusted Controllable Costs" section. |
All values are in US Dollars.
Page 9
| Phillips 66 Earnings Release Supplemental Data | |||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| REFINING (continued) | |||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| 2023 | |||||||||||||||||
| 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | |||||||||
| Reconciliation of Refining Income before Income Taxes to Adjusted EBITDA ( Millions) | |||||||||||||||||
| Income before income taxes | 302 | 518 | 1,594 | 1,175 | 1,712 | 859 | 5,340 | ||||||||||
| Plus: | |||||||||||||||||
| Depreciation and amortization | 204 | 412 | 201 | 203 | 207 | 220 | 831 | ||||||||||
| EBITDA | 506 | 930 | 1,795 | 1,378 | 1,919 | 1,079 | 6,171 | ||||||||||
| Special Item Adjustments (pre-tax): | |||||||||||||||||
| Certain tax impacts | — | — | — | — | — | (17) | (17) | ||||||||||
| Net loss on asset disposition | — | — | — | 14 | — | — | 14 | ||||||||||
| Impairments | — | 104 | — | — | — | — | — | ||||||||||
| Legal accrual | — | — | — | — | 30 | — | 30 | ||||||||||
| Legal settlement | — | (7) | — | — | — | — | — | ||||||||||
| EBITDA, Adjusted for Special Items | 506 | 1,027 | 1,795 | 1,392 | 1,949 | 1,062 | 6,198 | ||||||||||
| Other Adjustments (pre-tax): | |||||||||||||||||
| Proportional share of selected equity affiliates income taxes | 1 | 1 | — | 1 | — | — | 1 | ||||||||||
| Proportional share of selected equity affiliates net interest | (2) | (3) | 1 | (2) | (4) | (1) | (6) | ||||||||||
| Proportional share of selected equity affiliates depreciation and amortization | 26 | 51 | 22 | 25 | 23 | 46 | 116 | ||||||||||
| Adjusted EBITDA | 531 | 1,076 | 1,818 | 1,416 | 1,968 | 1,107 | 6,309 | ||||||||||
| Operating Statistics | |||||||||||||||||
| Atlantic Basin/Europe* | |||||||||||||||||
| Crude Oil Charge Input (MB/D) | 527 | 500 | 443 | 464 | 492 | 518 | 479 | ||||||||||
| Total Processed Inputs (MB/D) | 555 | 535 | 438 | 492 | 509 | 557 | 499 | ||||||||||
| Crude Oil Capacity Utilization (%) | % | 98 | % | 93 | % | 82 | % | 86 | % | 92 | % | 97 | % | 89 | % | ||
| Clean Product Yield (%) | % | 87 | % | 87 | % | 84 | % | 85 | % | 86 | % | 86 | % | 86 | % | ||
| * Includes our proportionate share of a refinery complex in Karlsruhe, Germany. | |||||||||||||||||
| Gulf Coast | |||||||||||||||||
| Crude Oil Charge Input (MB/D) | 507 | 491 | 519 | 498 | 519 | 508 | 511 | ||||||||||
| Total Processed Inputs (MB/D) | 563 | 542 | 571 | 553 | 577 | 561 | 566 | ||||||||||
| Crude Oil Capacity Utilization (%) | % | 96 | % | 93 | % | 98 | % | 94 | % | 98 | % | 96 | % | 97 | % | ||
| Clean Product Yield (%) | % | 83 | % | 80 | % | 77 | % | 80 | % | 80 | % | 84 | % | 80 | % | ||
| Central Corridor* | |||||||||||||||||
| Crude Oil Charge Input (MB/D) | 541 | 525 | 475 | 498 | 492 | 441 | 477 | ||||||||||
| Total Processed Inputs (MB/D) | 558 | 542 | 492 | 515 | 509 | 459 | 494 | ||||||||||
| Crude Oil Capacity Utilization (%) | % | 102 | % | 99 | % | 89 | % | 94 | % | 93 | % | 83 | % | 90 | % | ||
| Clean Product Yield (%) | % | 89 | % | 89 | % | 89 | % | 89 | % | 87 | % | 92 | % | 89 | % | ||
| * Includes our proportionate share of the Borger Refinery and Wood River Refinery. | |||||||||||||||||
| West Coast | |||||||||||||||||
| Crude Oil Charge Input (MB/D) | 227 | 236 | 281 | 314 | 323 | 279 | 299 | ||||||||||
| Total Processed Inputs (MB/D) | 237 | 248 | 303 | 331 | 342 | 301 | 319 | ||||||||||
| Crude Oil Capacity Utilization (%) | % | 93 | % | 97 | % | 88 | % | 98 | % | 101 | % | 94 | % | 95 | % | ||
| Clean Product Yield (%) | % | 88 | % | 86 | % | 86 | % | 90 | % | 89 | % | 88 | % | 88 | % | ||
| Worldwide—Including Proportionate Share of Equity Affiliates | |||||||||||||||||
| Crude Oil Charge Input (MB/D) | 1,802 | 1,752 | 1,718 | 1,774 | 1,826 | 1,746 | 1,766 | ||||||||||
| Total Processed Inputs (MB/D) | 1,913 | 1,867 | 1,804 | 1,891 | 1,937 | 1,878 | 1,878 | ||||||||||
| Crude Oil Capacity Utilization (%) | % | 98 | % | 95 | % | 90 | % | 93 | % | 95 | % | 92 | % | 92 | % | ||
| Clean Product Yield (%) | % | 86 | % | 85 | % | 83 | % | 86 | % | 85 | % | 87 | % | 85 | % |
All values are in US Dollars.
Page 10
| Phillips 66 Earnings Release Supplemental Data | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| REFINING (continued) | |||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| 2023 | |||||||||
| 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 | 242 | 235 | 170 | 210 | 214 | 235 | 207 | ||
| Distillates | 226 | 216 | 187 | 198 | 213 | 232 | 208 | ||
| Other | 88 | 88 | 81 | 87 | 84 | 95 | 87 | ||
| Total | 556 | 539 | 438 | 495 | 511 | 562 | 502 | ||
| * Includes our proportionate share of a refinery complex in Karlsruhe, Germany. | |||||||||
| Gulf Coast | |||||||||
| Gasoline | 234 | 213 | 222 | 231 | 245 | 240 | 235 | ||
| Distillates | 216 | 204 | 205 | 200 | 208 | 219 | 208 | ||
| Other | 121 | 131 | 153 | 132 | 133 | 108 | 131 | ||
| Total | 571 | 548 | 580 | 563 | 586 | 567 | 574 | ||
| Central Corridor* | |||||||||
| Gasoline | 266 | 262 | 244 | 253 | 246 | 236 | 245 | ||
| Distillates | 231 | 221 | 192 | 202 | 196 | 185 | 194 | ||
| Other | 67 | 62 | 58 | 64 | 72 | 38 | 58 | ||
| Total | 564 | 545 | 494 | 519 | 514 | 459 | 497 | ||
| * Includes our proportionate share of the Borger Refinery and Wood River Refinery. | |||||||||
| West Coast | |||||||||
| Gasoline | 119 | 123 | 165 | 174 | 183 | 154 | 169 | ||
| Distillates | 87 | 89 | 95 | 123 | 121 | 110 | 112 | ||
| Other | 28 | 34 | 42 | 34 | 38 | 36 | 38 | ||
| Total | 234 | 246 | 302 | 331 | 342 | 300 | 319 | ||
| Worldwide—Including Proportionate Share of Equity Affiliates | |||||||||
| Gasoline | 861 | 833 | 801 | 868 | 888 | 865 | 856 | ||
| Distillates | 760 | 730 | 679 | 723 | 738 | 746 | 722 | ||
| Other | 304 | 315 | 334 | 317 | 327 | 277 | 314 | ||
| Total | 1,925 | 1,878 | 1,814 | 1,908 | 1,953 | 1,888 | 1,892 | ||
| Market Indicators* | |||||||||
| Crude and Crude Differentials (/BBL) | |||||||||
| WTI | 80.73 | 78.90 | 76.11 | 73.78 | 82.49 | 78.36 | 77.69 | ||
| Brent | 84.94 | 84.09 | 81.27 | 78.39 | 86.76 | 84.05 | 82.62 | ||
| LLS | 83.60 | 81.68 | 79.00 | 75.85 | 84.83 | 80.96 | 80.16 | ||
| ANS | 86.39 | 83.93 | 79.14 | 78.60 | 87.96 | 83.95 | 82.41 | ||
| WTI less Maya | 7.26 | 7.39 | 13.28 | 10.11 | 5.07 | 6.47 | 8.73 | ||
| WTI less WCS (settlement differential) | 13.55 | 16.44 | 24.77 | 15.06 | 12.89 | 21.88 | 18.65 | ||
| Natural Gas (/MMBtu) | |||||||||
| Henry Hub | 2.04 | 2.23 | 2.67 | 2.12 | 2.58 | 2.74 | 2.53 | ||
| Product Margins (/BBL) | |||||||||
| Atlantic Basin/Europe | |||||||||
| East Coast Gasoline less Brent | 21.07 | 16.09 | 20.45 | 30.79 | 30.08 | 9.01 | 22.58 | ||
| East Coast Distillate less Brent | 19.69 | 25.08 | 42.42 | 24.62 | 40.76 | 36.76 | 36.14 | ||
| Gulf Coast | |||||||||
| Gulf Coast Gasoline less LLS | 12.70 | 13.29 | 21.42 | 22.79 | 23.47 | 4.13 | 17.96 | ||
| Gulf Coast Distillate less LLS | 18.86 | 24.61 | 41.66 | 24.45 | 39.64 | 31.01 | 34.19 | ||
| Central Corridor | |||||||||
| Central Gasoline less WTI | 16.72 | 14.82 | 26.02 | 31.35 | 32.51 | 8.82 | 24.67 | ||
| Central Distillate less WTI | 20.52 | 23.53 | 42.25 | 32.59 | 44.44 | 37.79 | 39.27 | ||
| West Coast | |||||||||
| West Coast Gasoline less ANS | 29.41 | 28.09 | 35.35 | 37.20 | 50.81 | 19.89 | 35.81 | ||
| West Coast Distillate less ANS | 20.08 | 25.36 | 43.08 | 21.86 | 53.07 | 40.43 | 39.61 | ||
| Composite Market Crack Spread (/BBL)** | 18.96 | 19.21 | 30.59 | 28.65 | 36.06 | 18.18 | 28.37 | ||
| Renewable Volume Obligation (RVO) Cost in Crack (/BBL) | 3.39 | 3.53 | 8.20 | 7.69 | 7.42 | 4.77 | 7.02 | ||
| * 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 | |||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| 2023 | |||||||||
| 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | |
| Income before Income Taxes | 415 | 781 | 363 | 533 | 605 | 396 | 1,897 | ||
| Income before Income Taxes (/BBL) | |||||||||
| U.S. | 1.16 | 1.26 | 1.45 | 1.82 | 2.42 | 0.91 | 1.65 | ||
| International | 5.02 | 4.00 | 3.64 | 5.31 | 4.20 | 5.77 | 4.72 | ||
| Realized Marketing Fuel Margins (/BBL)* | |||||||||
| U.S. | 1.70 | 1.65 | 1.96 | 2.25 | 2.85 | 1.45 | 2.12 | ||
| International | 5.87 | 5.38 | 5.02 | 6.50 | 5.55 | 6.80 | 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* | 248 | 544 | 220 | 241 | 248 | 247 | 957 | ||
| * Excludes gain on dispositions and excise taxes on sales of refined petroleum products. | |||||||||
| Equity in Earnings of Affiliates | 66 | 130 | 66 | 88 | 96 | 95 | 345 | ||
| Depreciation and Amortization* | 32 | 68 | 27 | 30 | 30 | 35 | 122 | ||
| * Excludes D&A of all equity affiliates. | |||||||||
| Operating and SG&A Expenses* | 358 | 693 | 320 | 338 | 374 | 361 | 1,393 | ||
| * Excludes operating and SG&A expenses of all equity affiliates. | |||||||||
| Refined Petroleum Products Sales (MB/D) | |||||||||
| U.S. Marketing | |||||||||
| Gasoline | 1,259 | 1,185 | 1,021 | 1,131 | 1,136 | 1,218 | 1,127 | ||
| Distillates | 843 | 820 | 675 | 807 | 814 | 853 | 788 | ||
| Other | 12 | 15 | — | — | — | — | — | ||
| Total | 2,114 | 2,020 | 1,696 | 1,938 | 1,950 | 2,071 | 1,915 | ||
| International Marketing | |||||||||
| Gasoline | 112 | 108 | 109 | 111 | 120 | 107 | 113 | ||
| Distillates | 165 | 168 | 173 | 167 | 170 | 166 | 169 | ||
| Other | 40 | 35 | 26 | 35 | 26 | 22 | 27 | ||
| Total | 317 | 311 | 308 | 313 | 316 | 295 | 309 | ||
| Worldwide Marketing | |||||||||
| Gasoline | 1,371 | 1,293 | 1,130 | 1,242 | 1,256 | 1,325 | 1,240 | ||
| Distillates | 1,008 | 988 | 848 | 974 | 984 | 1,019 | 957 | ||
| Other | 52 | 50 | 26 | 35 | 26 | 22 | 27 | ||
| Total | 2,431 | 2,331 | 2,004 | 2,251 | 2,266 | 2,366 | 2,224 | ||
| Foreign Currency Losses Pre-Tax | — | (7) | (1) | (1) | — | — | (2) | ||
| Reconciliation of Marketing and Specialties Income before Income Taxes to Adjusted EBITDA | |||||||||
| Income before income taxes | 415 | 781 | 363 | 533 | 605 | 396 | 1,897 | ||
| Plus: | |||||||||
| Depreciation and amortization | 32 | 68 | 27 | 30 | 30 | 35 | 122 | ||
| EBITDA | 447 | 849 | 390 | 563 | 635 | 431 | 2,019 | ||
| Special Item Adjustments (pre-tax): | |||||||||
| Legal settlement | — | (59) | — | — | — | — | — | ||
| EBITDA, Adjusted for Special Items | 447 | 790 | 390 | 563 | 635 | 431 | 2,019 | ||
| Other Adjustments (pre-tax): | |||||||||
| Proportional share of selected equity affiliates income taxes | 5 | 10 | 5 | 6 | 7 | 6 | 24 | ||
| Proportional share of selected equity affiliates net interest | 11 | 21 | 9 | 15 | 10 | 11 | 45 | ||
| Proportional share of selected equity affiliates depreciation and amortization | 21 | 40 | 21 | 19 | 20 | 21 | 81 | ||
| Adjusted EBITDA | 484 | 861 | 425 | 603 | 672 | 469 | 2,169 |
All values are in US Dollars.
Page 12
| Phillips 66 Earnings Release Supplemental Data | | --- || RENEWABLE FUELS | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | Millions of Dollars, Except as Indicated | | | | | | | | | | | | 2024 | | | | | 2023 | | | | | | | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | | Income (Loss) before Income Taxes | (55) | (55) | | | (110) | 74 | 68 | 22 | (11) | 153 | | Operating and SG&A Expenses* | 83 | 110 | | | 193 | 15 | 11 | 46 | 34 | 106 | | * Excludes operating and SG&A expenses of all equity affiliates. | | | | | | | | | | | | Operating Statistics | | | | | | | | | | | | Total Renewable Fuels Produced (MB/D) | 9 | 31 | | | 20 | 11 | 10 | 7 | 10 | 10 | | Total Renewable Fuel Sales (MB/D) | 34 | 45 | | | 40 | 26 | 27 | 27 | 33 | 28 | | Market Indicators* | | | | | | | | | | | | Chicago Board of Trade (CBOT) soybean oil (dollars per pound) | 0.47 | 0.45 | | | 0.46 | 0.60 | 0.53 | 0.66 | 0.52 | 0.58 | | California Low-Carbon Fuel Standard (LCFS) carbon credit (dollars per metric ton) | 63.86 | 51.83 | | | 57.85 | 66.17 | 81.11 | 74.80 | 68.97 | 72.76 | | California Air Resource Board (CARB) ULSD - San Francisco (dollars per gallon) | 2.65 | 2.64 | | | 2.65 | 2.91 | 2.44 | 3.33 | 2.82 | 2.87 | | Biodiesel Renewable Identification Number (RIN) (dollars per RIN) | 0.58 | 0.51 | | | 0.54 | 1.63 | 1.51 | 1.40 | 0.84 | 1.35 | | * Based on daily spot prices, unless otherwise noted. | | | | | | | | | | | | Reconciliation of Renewable Fuels Income before Income Taxes to <br> Adjusted EBITDA | | | | | | | | | | | | Income before income taxes | (55) | (55) | | | (110) | 74 | 68 | 22 | (11) | 153 | | Plus: | | | | | | | | | | | | Depreciation and amortization | 6 | 12 | | | 18 | 2 | 2 | 1 | 4 | 9 | | EBITDA | (49) | (43) | | | (92) | 76 | 70 | 23 | (7) | 162 | | Special Item Adjustments (pre-tax): | | | | | | | | | | | | None | — | — | | | — | — | — | — | — | — | | EBITDA, Adjusted for Special Items | (49) | (43) | | | (92) | 76 | 70 | 23 | (7) | 162 |
Page 13
| Phillips 66 Earnings Release Supplemental Data | | --- || CORPORATE AND OTHER | | | | | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | Millions of Dollars, Except as Indicated | | | | | | | | | | | | | | | | | | | | 2024 | | | | | | | | 2023 | | | | | | | | | | | | 1st Qtr | | 2nd Qtr | | 3rd Qtr | 4th Qtr | YTD | | 1st Qtr | | 2nd Qtr | | 3rd Qtr | | 4th Qtr | | YTD | | | Loss before Income Taxes | (322) | | (340) | | | | (662) | | (294) | | (344) | | (354) | | (348) | | (1,340) | | | Detail of Loss before Income Taxes | | | | | | | | | | | | | | | | | | | | Net interest expense | (186) | | (200) | | | | (386) | | (124) | | (182) | | (164) | | (159) | | (629) | | | Corporate overhead and other | (141) | | (133) | | | | (274) | | (158) | | (147) | | (182) | | (185) | | (672) | | | NOVONIX | 5 | | (7) | | | | (2) | | (12) | | (15) | | (8) | | (4) | | (39) | | | Total | (322) | | (340) | | | | (662) | | (294) | | (344) | | (354) | | (348) | | (1,340) | | | Net Interest Expense | | | | | | | | | | | | | | | | | | | | Interest expense | (238) | | (238) | | | | (476) | | (198) | | (273) | | (229) | | (228) | | (928) | | | Capitalized interest | 10 | | 8 | | | | 18 | | 6 | | 7 | | 8 | | 10 | | 31 | | | Interest income | 42 | | 30 | | | | 72 | | 68 | | 84 | | 57 | | 59 | | 268 | | | Total | (186) | | (200) | | | | (386) | | (124) | | (182) | | (164) | | (159) | | (629) | | | NOVONIX Investment | | | | | | | | | | | | | | | | | | | | Unrealized Investment Gain (Loss) | 6 | | (7) | | | | (1) | | (11) | | (15) | | (8) | | (4) | | (38) | | | Unrealized Foreign Currency Transaction Gain (Loss) | (1) | | — | | | | (1) | | (1) | | — | | — | | — | | (1) | | | Change in Fair Value of NOVONIX Investment | 5 | | (7) | | | | (2) | | (12) | | (15) | | (8) | | (4) | | (39) | | | Reconciliation of Corporate and Other Loss before Income Taxes to Adjusted EBITDA | | | | | | | | | | | | | | | | | | | | Loss before income taxes | (322) | | (340) | | | | (662) | | (294) | | (344) | | (354) | | (348) | | (1,340) | | | Plus: | | | | | | | | | | | | | | | | | | | | Net interest expense | 186 | | 200 | | | | 386 | | 124 | | 182 | | 164 | | 159 | | 629 | | | Depreciation and amortization | 25 | | 25 | | | | 50 | | 22 | | 25 | | 20 | | 25 | | 92 | | | EBITDA | (111) | | (115) | | | | (226) | | (148) | | (137) | | (170) | | (164) | | (619) | | | Special Item Adjustments (pre-tax): | | | | | | | | | | | | | | | | | | | | Business transformation restructuring costs | — | | — | | | | — | | 35 | | 41 | | 51 | | 50 | | 177 | | | Total Special Item Adjustments (pre-tax) | — | | — | | | | — | | 35 | | 41 | | 51 | | 50 | | 177 | | | Change in Fair Value of NOVONIX Investment | (5) | | 7 | | | | 2 | | 12 | | 15 | | 8 | | 4 | | 39 | | | EBITDA, Adjusted for Special Items and Change in <br> Fair Value of NOVONIX Investment | (116) | | (108) | | | | (224) | | (101) | | (81) | | (111) | | (110) | | (403) | | | Other Adjustments (pre-tax): | | | | | | | | | | | | | | | | | | | | None | — | | — | | | | — | | — | | — | | — | | — | | — | | | Adjusted EBITDA | (116) | | (108) | | | | (224) | | (101) | | (81) | | (111) | | (110) | | (403) | | | Foreign Currency Gains (Losses) Pre-Tax | — | | — | | | | — | | 1 | | — | | (1) | | 2 | | 2 | | | Phillips 66 Company | | | | | | | | | | | | | | | | | | | | Total Debt | 20,154 | | 19,960 | | | | 19,960 | | 18,485 | | 19,866 | | 19,444 | | 19,359 | | 19,359 | | | Total Equity | 30,794 | | 30,507 | | | | 30,507 | | 34,916 | | 31,060 | | 31,989 | | 31,650 | | 31,650 | | | Debt-to-Capital Ratio (%) | 40 | % | 40 | % | | | 40 | % | 35 | % | 39 | % | 38 | % | 38 | % | 38 | % | | Cash | 1,570 | | 2,444 | | | | 2,444 | | 6,965 | | 3,029 | | 3,539 | | 3,323 | | 3,323 | | | Net Debt-to-Capital Ratio (%) | 38 | % | 36 | % | | | 36 | % | 25 | % | 35 | % | 33 | % | 34 | % | 34 | % |
Page 14
| Phillips 66 Earnings Release Supplemental Data | | --- || RECONCILIATION OF CONSOLIDATED NET INCOME TO ADJUSTED EBITDA ATTRIBUTABLE TO PHILLIPS 66 | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | Millions of Dollars | | | | | | | | | | | | 2024 | | | | | 2023 | | | | | | | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | | Net income | 761 | 1,020 | | | 1,781 | 2,077 | 1,734 | 2,143 | 1,285 | 7,239 | | Plus: | | | | | | | | | | | | Income tax expense | 203 | 291 | | | 494 | 574 | 510 | 670 | 476 | 2,230 | | Net interest expense | 186 | 200 | | | 386 | 124 | 182 | 164 | 159 | 629 | | Depreciation and amortization | 504 | 497 | | | 1,001 | 476 | 494 | 489 | 518 | 1,977 | | Phillips 66 EBITDA | 1,654 | 2,008 | | | 3,662 | 3,251 | 2,920 | 3,466 | 2,438 | 12,075 | | Special Item Adjustments (pre-tax): | | | | | | | | | | | | Certain tax impacts | — | — | | | — | — | — | — | (19) | (19) | | Net (gain) loss on asset disposition | — | (238) | | | (238) | (36) | 14 | (101) | — | (123) | | Change in inventory method for acquired business | — | — | | | — | — | — | (46) | — | (46) | | DCP integration restructuring costs | — | — | | | — | 12 | 19 | 4 | — | 35 | | Business transformation restructuring costs | — | — | | | — | 35 | 41 | 51 | 50 | 177 | | Impairments | 163 | 224 | | | 387 | — | — | — | — | — | | Legal accrual | — | — | | | — | — | — | 30 | — | 30 | | Legal settlement | (66) | — | | | (66) | — | — | — | — | — | | Total Special Item Adjustments (pre-tax) | 97 | (14) | | | 83 | 11 | 74 | (62) | 31 | 54 | | Change in Fair Value of NOVONIX Investment* | (5) | 7 | | | 2 | 12 | 15 | 8 | 4 | 39 | | Phillips 66 EBITDA, Adjusted for Special Items and Change in Fair Value of NOVONIX Investment | 1,746 | 2,001 | | | 3,747 | 3,274 | 3,009 | 3,412 | 2,473 | 12,168 | | Other Adjustments (pre-tax): | | | | | | | | | | | | Proportional share of selected equity affiliates income taxes | 21 | 26 | | | 47 | 29 | 38 | 36 | 19 | 122 | | Proportional share of selected equity affiliates net interest | 23 | 19 | | | 42 | 24 | 25 | 18 | 25 | 92 | | Proportional share of selected equity affiliates depreciation <br> and amortization | 188 | 195 | | | 383 | 186 | 184 | 185 | 230 | 785 | | Adjusted EBITDA attributable to noncontrolling interests | (35) | (58) | | | (93) | (226) | (169) | (47) | (51) | (493) | | Phillips 66 Adjusted EBITDA | 1,943 | 2,183 | | | 4,126 | 3,287 | 3,087 | 3,604 | 2,696 | 12,674 | | * See NOVONIX Investment table on page 14 for more details. | | | | | | | | | | | | Use of Non-GAAP Financial Information—This earnings release supplemental data includes the terms "EBITDA," "adjusted EBITDA," "realized refining margin per barrel," "realized marketing fuel margin per barrel," and "refining adjusted controllable costs 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. Refining controllable cost and Refining adjusted controllable costs per barrel are included to help facilitate comparisons with other companies in our industry on refinery operational performance. The GAAP measures most directly comparable to Refining controllable cost are operating expenses and selling, general and administrative expenses (SG&A). A reconciliation of refining operating and SG&A expenses to refining adjusted controllable costs plus our proportional share of operating and SG&A expenses of two refining equity affiliates that are reflected in earnings of affliates, is included in this earnings release supplemental data. Adjusted effective tax rate demonstrates the effective tax rate with the consideration of the tax effect on special items. The GAAP financial measure most comparable to adjusted effective tax rate is effective tax rate. A reconciliation of effective tax rate to adjusted effective tax rate is included in this earnings release supplemental data. | | | | | | | | | | | | Changes in Basis of Presentation—We completed the acquisition of all publicly held common units of DCP Midstream, LP (DCP LP) on June 15, 2023, resulting in an increase in our aggregate direct and indirect economic interest in DCP LP from 43.3% to 86.8%, and an increase in our aggregate direct and indirect economic interests in DCP Sand Hills Pipeline, LLC and DCP Southern Hills Pipeline, LLC from 62.2% to 91.2%.<br><br>Effective April 1, 2024, we changed the internal financial information reviewed by our chief executive officer to evaluate performance and allocate resources to our operating segments. This included changes in the composition of our operating segments, as well as measurement changes for certain activities between our operating segments. The primary effects of this segment realignment included establishment of a Renewable Fuels operating segment, which includes renewable fuels activities and assets historically reported in our Refining, Marketing and Specialties (M&S), and Midstream segments; change in method of allocating results for certain Gulf Coast distillate export activities from our M&S segment to our Refining segment; reclassification of certain crude oil and international clean products trading activities between our M&S segment and our Refining segment; and change in reporting of our 16% investment in NOVONIX from our Midstream segment to Corporate and Other. Accordingly, prior period results have been recast for comparability. | | | | | | | | | | |
Page 15
| Phillips 66 Earnings Release Supplemental Data | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| REALIZED MARGIN NON-GAAP RECONCILIATIONS | |||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| RECONCILIATION OF INCOME (LOSS) BEFORE INCOME TAXES TO REALIZED REFINING MARGINS | |||||||||
| 2023 | |||||||||
| 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | |
| ATLANTIC BASIN/OPE | |||||||||
| Income before income taxes | 15 | 93 | 128 | 132 | 406 | 150 | 816 | ||
| Plus: | |||||||||
| Taxes other than income taxes | 15 | 39 | 23 | 17 | 13 | 18 | 71 | ||
| Depreciation, amortization and impairments | 51 | 103 | 50 | 53 | 53 | 53 | 209 | ||
| Selling, general and administrative expenses | 12 | 15 | 11 | 9 | 10 | 12 | 42 | ||
| Operating expenses | 264 | 515 | 364 | 236 | 252 | 245 | 1,097 | ||
| Equity in losses of affiliates | 2 | 3 | 2 | 2 | 2 | 2 | 8 | ||
| Other segment (income) expense, net | 18 | 31 | 30 | 6 | (2) | (18) | 16 | ||
| Proportional share of refining gross margins contributed by equity affiliates | 32 | 65 | 26 | 22 | 23 | 19 | 90 | ||
| Special items: | |||||||||
| Certain tax impacts | — | — | — | — | — | (15) | (15) | ||
| Realized refining margins | 409 | 864 | 634 | 477 | 757 | 466 | 2,334 | ||
| Total processed inputs (MB) | 50,545 | 97,456 | 39,472 | 44,781 | 46,731 | 51,229 | 182,213 | ||
| Adjusted total processed inputs (MB) | 50,545 | 97,456 | 39,472 | 44,781 | 46,731 | 51,229 | 182,213 | ||
| Income before income taxes (/BBL)** | 0.30 | 0.95 | 3.23 | 2.95 | 8.68 | 2.93 | 4.48 | ||
| Realized refining margins (/BBL)*** | 8.10 | 8.87 | 16.06 | 10.64 | 16.15 | 9.11 | 12.80 | ||
| GULF COAST | |||||||||
| Income before income taxes | 42 | 162 | 729 | 313 | 364 | 338 | 1,744 | ||
| Plus: | |||||||||
| Taxes other than income taxes | 19 | 57 | 33 | 25 | 28 | 20 | 106 | ||
| Depreciation, amortization and impairments | 64 | 126 | 60 | 62 | 62 | 62 | 246 | ||
| Selling, general and administrative expenses | 9 | 15 | 4 | 4 | 5 | 6 | 19 | ||
| Operating expenses | 269 | 570 | 286 | 249 | 286 | 283 | 1,104 | ||
| Equity in earnings of affiliates | — | (1) | (1) | — | (1) | — | (2) | ||
| Other segment expense, net | 1 | 2 | 5 | 12 | — | — | 17 | ||
| Proportional share of refining gross margins contributed by equity affiliates | — | — | — | — | — | — | — | ||
| Special items: | |||||||||
| Legal settlement | — | (7) | — | — | — | — | — | ||
| Realized refining margins | 404 | 924 | 1,116 | 665 | 744 | 709 | 3,234 | ||
| Total processed inputs (MB) | 51,204 | 98,696 | 51,349 | 50,266 | 53,120 | 51,621 | 206,356 | ||
| Adjusted total processed inputs (MB) | 51,204 | 98,696 | 51,349 | 50,266 | 53,120 | 51,621 | 206,356 | ||
| Income before income taxes (/BBL)** | 0.82 | 1.64 | 14.22 | 6.22 | 6.83 | 6.54 | 8.44 | ||
| Realized refining margins (/BBL)*** | 7.88 | 9.36 | 21.76 | 13.22 | 13.99 | 13.72 | 15.67 | ||
| CENTRAL CORRIDOR | |||||||||
| Income before income taxes | 243 | 456 | 732 | 633 | 367 | 509 | 2,241 | ||
| Plus: | |||||||||
| Taxes other than income taxes | 22 | 50 | 25 | 26 | 23 | 20 | 94 | ||
| Depreciation, amortization and impairments | 44 | 88 | 38 | 39 | 41 | 45 | 163 | ||
| Selling, general and administrative expenses | 25 | 49 | 21 | 17 | 18 | 21 | 77 | ||
| Operating expenses | 142 | 285 | 166 | 157 | 222 | 191 | 736 | ||
| Equity in (earnings) losses of affiliates | (35) | (143) | (200) | (119) | (209) | 83 | (445) | ||
| Other segment (income) expense, net | (22) | (62) | (4) | (8) | 46 | (101) | (67) | ||
| Proportional share of refining gross margins contributed by equity affiliates | 228 | 526 | 403 | 313 | 393 | 148 | 1,257 | ||
| Realized refining margins | 647 | 1,249 | 1,181 | 1,058 | 901 | 916 | 4,056 | ||
| Total processed inputs (MB) | 27,994 | 53,652 | 26,004 | 27,370 | 24,242 | 25,158 | 102,774 | ||
| Adjusted total processed inputs (MB)* | 50,805 | 98,717 | 44,315 | 46,841 | 46,871 | 42,224 | 180,251 | ||
| Income before income taxes (/BBL)** | 8.69 | 8.51 | 28.15 | 23.13 | 15.14 | 20.27 | 21.81 | ||
| Realized refining margins (/BBL)*** | 12.75 | 12.66 | 26.62 | 22.58 | 19.25 | 21.72 | 22.50 |
All values are in Euros.
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| Phillips 66 Earnings Release Supplemental Data | | --- || RECONCILIATION OF INCOME (LOSS) BEFORE INCOME TAXES TO REALIZED REFINING MARGINS (continued) | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | Millions of Dollars, Except as Indicated | | | | | | | | | | | | 2024 | | | | | 2023 | | | | | | | 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 | (195) | 2 | | | (193) | 5 | 97 | 575 | (138) | 539 | | Plus: | | | | | | | | | | | | Taxes other than income taxes | 31 | 18 | | | 49 | 31 | 27 | 26 | 27 | 111 | | Depreciation, amortization and impairments | 156 | 44 | | | 200 | 52 | 53 | 54 | 64 | 223 | | Selling, general and administrative expenses | 5 | 5 | | | 10 | 8 | 7 | — | 16 | 31 | | Operating expenses | 258 | 209 | | | 467 | 340 | 291 | 348 | 329 | 1,308 | | Other segment (income) expense, net | (4) | 2 | | | (2) | (4) | 1 | (7) | 7 | (3) | | Realized refining margins | 251 | 280 | | | 531 | 432 | 476 | 996 | 305 | 2,209 | | Total processed inputs (MB) | 23,639 | 21,553 | | | 45,192 | 27,310 | 30,154 | 31,504 | 27,647 | 116,615 | | Adjusted total processed inputs (MB) | 23,639 | 21,553 | | | 45,192 | 27,310 | 30,154 | 31,504 | 27,647 | 116,615 | | Income (loss) before income taxes ($/BBL)** | (8.26) | 0.10 | | | (4.27) | 0.18 | 3.23 | 18.29 | (5.02) | 4.63 | | Realized refining margins ($/BBL)*** | 10.60 | 13.06 | | | 11.77 | 15.77 | 15.80 | 31.65 | 11.03 | 18.95 | | WORLDWIDE | | | | | | | | | | | | Income before income taxes | 216 | 302 | | | 518 | 1,594 | 1,175 | 1,712 | 859 | 5,340 | | Plus: | | | | | | | | | | | | Taxes other than income taxes | 121 | 74 | | | 195 | 112 | 95 | 90 | 85 | 382 | | Depreciation, amortization and impairments | 314 | 203 | | | 517 | 200 | 207 | 210 | 224 | 841 | | Selling, general and administrative expenses | 38 | 51 | | | 89 | 44 | 37 | 33 | 55 | 169 | | Operating expenses | 953 | 884 | | | 1,837 | 1,156 | 933 | 1,108 | 1,048 | 4,245 | | Equity in (earnings) losses of affiliates | (108) | (33) | | | (141) | (199) | (117) | (208) | 85 | (439) | | Other segment (income) expense, net | (30) | (1) | | | (31) | 27 | 11 | 37 | (112) | (37) | | Proportional share of refining gross margins contributed by <br> equity affiliates | 331 | 260 | | | 591 | 429 | 335 | 416 | 167 | 1,347 | | Special items: | | | | | | | | | | | | Certain tax impacts | — | — | | | — | — | — | — | (15) | (15) | | Legal settlement | (7) | — | | | (7) | — | — | — | — | — | | Realized refining margins | 1,828 | 1,740 | | | 3,568 | 3,363 | 2,676 | 3,398 | 2,396 | 11,833 | | Total processed inputs (MB) | 143,700 | 151,296 | | | 294,996 | 144,135 | 152,571 | 155,597 | 155,655 | 607,958 | | Adjusted total processed inputs (MB)* | 165,954 | 174,107 | | | 340,061 | 162,446 | 172,042 | 178,226 | 172,721 | 685,435 | | Income before income taxes ($/BBL)** | 1.50 | 2.00 | | | 1.76 | 11.06 | 7.70 | 11.00 | 5.51 | 8.78 | | Realized refining margins ($/BBL)*** | 11.01 | 10.01 | | | 10.50 | 20.69 | 15.55 | 19.06 | 13.88 | 17.26 | | * 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. | | | | | | | | | | | | OPERATING AND SG&A EXPENSES NON-GAAP RECONCILIATION | | | | | | | | | | | | RECONCILIATION OF REFINING OPERATING AND SG&A EXPENSES TO REFINING ADJUSTED CONTROLLABLE COSTS | | | | | | | | | | | | | Millions of Dollars, Except as Indicated | | | | | | | | | | | | 2024 | | | | | 2023 | | | | | | | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | | WORLDWIDE | | | | | | | | | | | | Turnaround expenses | 124 | 100 | | | 224 | 230 | 104 | 119 | 85 | 538 | | Other operating expenses | 829 | 784 | | | 1,613 | 926 | 829 | 989 | 963 | 3,707 | | Total operating expenses | 953 | 884 | | | 1,837 | 1,156 | 933 | 1,108 | 1,048 | 4,245 | | Selling, general and administrative expenses | 38 | 51 | | | 89 | 44 | 37 | 33 | 55 | 169 | | Refining Controllable Costs | 991 | 935 | | | 1,926 | 1,200 | 970 | 1,141 | 1,103 | 4,414 | | Plus: | | | | | | | | | | | | Proportional share of equity affiliate turnaround expenses* | 22 | 30 | | | 52 | 16 | 22 | 16 | 39 | 93 | | Proportional share of equity affiliate other operating and SG&A expenses* | 159 | 154 | | | 313 | 174 | 160 | 152 | 155 | 641 | | Total proportional share of equity affiliate operating and SG&A expenses* | 181 | 184 | | | 365 | 190 | 182 | 168 | 194 | 734 | | Refining Adjusted Controllable Costs | 1,172 | 1,119 | | | 2,291 | 1,390 | 1,152 | 1,309 | 1,297 | 5,148 | | Total processed inputs (MB) | 143,700 | 151,296 | | | 294,996 | 144,135 | 152,571 | 155,597 | 155,655 | 607,958 | | Adjusted total processed inputs (MB)** | 165,954 | 174,107 | | | 340,061 | 162,446 | 172,042 | 178,226 | 172,721 | 685,435 | | Refining turnaround expense ($/BBL)*** | 0.86 | 0.66 | | | 0.76 | 1.60 | 0.68 | 0.76 | 0.55 | 0.88 | | Refining controllable costs, excluding turnaround expense ($/BBL)*** | 6.03 | 5.52 | | | 5.77 | 6.73 | 5.68 | 6.57 | 6.54 | 6.38 | | Refining Controllable Costs ($/BBL)*** | 6.89 | 6.18 | | | 6.53 | 8.33 | 6.36 | 7.33 | 7.09 | 7.26 | | Refining adjusted turnaround expense ($/BBL)**** | 0.88 | 0.75 | | | 0.81 | 1.51 | 0.73 | 0.76 | 0.72 | 0.92 | | Refining adjusted controllable costs, excluding adjusted turnaround expense ($/BBL)**** | 6.18 | 5.68 | | | 5.93 | 7.04 | 5.96 | 6.59 | 6.79 | 6.59 | | Refining Adjusted Controllable Costs ($/BBL)**** | 7.06 | 6.43 | | | 6.74 | 8.55 | 6.69 | 7.35 | 7.51 | 7.51 | | * Represents proportional share of operating and SG&A of equity affiliates for our Refining segment that are reflected as a component of equity in earnings of affiliates on our consolidated statement of income. | | | | | | | | | | | | ** Adjusted total processed inputs include our proportional share of processed inputs of an equity affiliate. | | | | | | | | | | | | *** Denominator is total processed inputs. | | | | | | | | | | | | **** Denominator is adjusted total processed inputs. | | | | | | | | | | |
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| Phillips 66 Earnings Release Supplemental Data | | --- || RECONCILIATION OF INCOME BEFORE INCOME TAXES TO REALIZED MARKETING FUEL MARGINS | | | | | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | Millions of Dollars, Except as Indicated | | | | | | | | | | | | | | | | | | | | 2024 | | | | | | | | 2023 | | | | | | | | | | | | 1st Qtr | | 2nd Qtr | | 3rd Qtr | 4th Qtr | YTD | | 1st Qtr | | 2nd Qtr | | 3rd Qtr | | 4th Qtr | | YTD | | | UNITED STATES | | | | | | | | | | | | | | | | | | | | Income before income taxes | 242 | | 223 | | | | 465 | | 222 | | 321 | | 435 | | 173 | | 1,151 | | | Plus: | | | | | | | | | | | | | | | | | | | | Depreciation and amortization | 10 | | 9 | | | | 19 | | 3 | | 3 | | 5 | | 12 | | 23 | | | Selling, general and administrative expenses | 186 | | 217 | | | | 403 | | 180 | | 204 | | 216 | | 213 | | 813 | | | Equity in earnings of affiliates | (2) | | (12) | | | | (14) | | (3) | | (12) | | (18) | | (20) | | (53) | | | Other operating revenues* | (108) | | (123) | | | | (231) | | (109) | | (122) | | (133) | | (113) | | (477) | | | Other expense, net | 11 | | 14 | | | | 25 | | 6 | | 3 | | 7 | | 11 | | 27 | | | Special items: | | | | | | | | | | | | | | | | | | | | Legal settlement | (59) | | — | | | | (59) | | — | | — | | — | | — | | — | | | Realized marketing fuel margins | 280 | | 328 | | | | 608 | | 299 | | 397 | | 512 | | 276 | | 1,484 | | | Total fuel sales volumes (MB) | 175,269 | | 192,398 | | | | 367,667 | | 152,662 | | 176,349 | | 179,432 | | 190,518 | | 698,961 | | | Income before income taxes ($/BBL) | 1.38 | | 1.16 | | | | 1.26 | | 1.45 | | 1.82 | | 2.42 | | 0.91 | | 1.65 | | | Realized marketing fuel margins ($/BBL)** | 1.60 | | 1.70 | | | | 1.65 | | 1.96 | | 2.25 | | 2.85 | | 1.45 | | 2.12 | | | INTERNATIONAL | | | | | | | | | | | | | | | | | | | | Income before income taxes | 81 | | 145 | | | | 226 | | 101 | | 152 | | 122 | | 157 | | 532 | | | Plus: | | | | | | | | | | | | | | | | | | | | Depreciation and amortization | 18 | | 18 | | | | 36 | | 18 | | 21 | | 18 | | 19 | | 76 | | | Selling, general and administrative expenses | 64 | | 63 | | | | 127 | | 61 | | 62 | | 63 | | 63 | | 249 | | | Equity in earnings of affiliates | (24) | | (29) | | | | (53) | | (23) | | (30) | | (32) | | (31) | | (116) | | | Other operating revenues* | (6) | | (9) | | | | (15) | | (10) | | (8) | | (1) | | (12) | | (31) | | | Other (income) expense, net | 15 | | (2) | | | | 13 | | 5 | | 5 | | 4 | | — | | 14 | | | Marketing margins | 148 | | 186 | | | | 334 | | 152 | | 202 | | 174 | | 196 | | 724 | | | Less: margin for nonfuel related sales | 13 | | 16 | | | | 29 | | 12 | | 16 | | 13 | | 11 | | 52 | | | Realized marketing fuel margins | 135 | | 170 | | | | 305 | | 140 | | 186 | | 161 | | 185 | | 672 | | | Total fuel sales volumes (MB) | 27,590 | | 28,893 | | | | 56,483 | | 27,728 | | 28,605 | | 29,080 | | 27,194 | | 112,607 | | | Income before income taxes ($/BBL) | 2.94 | | 5.02 | | | | 4.00 | | 3.64 | | 5.31 | | 4.20 | | 5.77 | | 4.72 | | | Realized marketing fuel margins ($/BBL)** | 4.88 | | 5.87 | | | | 5.38 | | 5.02 | | 6.50 | | 5.55 | | 6.80 | | 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 | | | | | | | | | | | | | | | | | | | | 2024 | | | | | | | | 2023 | | | | | | | | | | | | 1st Qtr | | 2nd Qtr | | 3rd Qtr | 4th Qtr | YTD | | 1st Qtr | | 2nd Qtr | | 3rd Qtr | | 4th Qtr | | YTD | | | EFFECTIVE TAX RATES | | | | | | | | | | | | | | | | | | | | Income before income taxes | 964 | | 1,311 | | | | 2,275 | | 2,651 | | 2,244 | | 2,813 | | 1,761 | | 9,469 | | | Special items | 97 | | (14) | | | | 83 | | 11 | | 130 | | (62) | | 31 | | 110 | | | Adjusted income before income taxes | 1,061 | | 1,297 | | | | 2,358 | | 2,662 | | 2,374 | | 2,751 | | 1,792 | | 9,579 | | | Income tax expense | 203 | | 291 | | | | 494 | | 574 | | 510 | | 670 | | 476 | | 2,230 | | | Special items | 23 | | (13) | | | | 10 | | 2 | | 22 | | (10) | | (71) | | (57) | | | Adjusted income tax expense | 226 | | 278 | | | | 504 | | 576 | | 532 | | 660 | | 405 | | 2,173 | | | Effective tax rate (%) | 21.1 | % | 22.2 | % | | | 21.7 | % | 21.7 | % | 22.7 | % | 23.8 | % | 27.0 | % | 23.6 | % | | Adjusted effective tax rate (%) | 21.3 | % | 21.4 | % | | | 21.4 | % | 21.6 | % | 22.4 | % | 24.0 | % | 22.6 | % | 22.7 | % |
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