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
October 29, 2021
Date of Report (date of earliest event reported)
Phillips 66
(Exact name of registrant as specified in its charter)
| Delaware | 001-35349 | 45-3779385 |
|---|---|---|
| (State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) |
2331 CityWest Boulevard
Houston, Texas 77042
(Address of Principal Executive Offices and Zip Code)
(281) 293-6600
Registrant's telephone number, including area code
Not Applicable
(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
|---|---|---|
| Common stock, $0.01 par value | PSX | New York Stock Exchange |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition.
On October 29, 2021, Phillips 66 issued a press release announcing the company's financial and operating results for the quarter ended September 30, 2021. A copy of the press release is furnished as Exhibit 99.1 hereto and incorporated herein by reference. Additional financial and operating information about the quarter is furnished as Exhibit 99.2 hereto and incorporated herein by reference.
The information in this report and the exhibits hereto shall not be treated as filed for purposes of the Securities Exchange Act of 1934, as amended.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
| 99.1 | — | Press release issued by Phillips 66 onOctober 29, 2021. |
|---|---|---|
| 99.2 | — | Supplemental financial and operating information. |
| 104 | — | Cover Page Interactive Data File (embedded within the Inline XBRL document). |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| PHILLIPS 66 | |
|---|---|
| By: | /s/ J. Scott Pruitt |
| J. Scott Pruitt<br><br>Vice President and Controller |
Date: October 29, 2021
2
Document
| Exhibit 99.1 |
|---|
Phillips 66 Reports Third-Quarter 2021 Financial Results
•Reported third-quarter earnings of $402 million or $0.91 per share; adjusted earnings of $1.4 billion or $3.18 per share
•Generated $2.2 billion of operating cash flow; $1.4 billion excluding working capital
•Delivered strong Midstream, Chemicals, and Marketing and Specialties earnings
•Significant improvement in Refining realized margins
•Paid off $500 million term loan
•Recently increased quarterly dividend to 92 cents per share
•Recently announced agreement to acquire all publicly held units of Phillips 66 Partners
•Announced greenhouse gas emissions reduction targets
•Expanded presence in the battery supply chain through strategic investment in NOVONIX
HOUSTON, Oct. 29, 2021 – Phillips 66 (NYSE: PSX), a diversified energy manufacturing and logistics company, announces third-quarter 2021 earnings of $402 million, compared with earnings of $296 million in the second quarter of 2021. Excluding special items of $1.0 billion, primarily an impairment of the Alliance Refinery following Hurricane Ida, the company had adjusted earnings of $1.4 billion in the third quarter, compared with second-quarter adjusted earnings of $329 million.
“In the third quarter, we delivered a significant improvement in earnings and cash generation,” said Greg Garland, Chairman and CEO of Phillips 66. “Our Midstream, Chemicals, and Marketing and Specialties businesses continued to deliver strong results. In Refining, we saw a notable improvement in realized margins, operated well and navigated hurricane-related challenges.
“So far this year we have reduced debt by $1 billion, further strengthening our balance sheet. We recently increased the dividend, reflecting our confidence in the company’s strategy and cash flow recovery, as well as our commitment to a secure, competitive and growing dividend. We will continue to focus on debt repayment, disciplined capital allocation, and delivering attractive shareholder returns.
“Earlier this week we announced an agreement to buy-in Phillips 66 Partners. The transaction simplifies our structure and asset ownership across our integrated portfolio. We believe both PSX shareholders and PSXP unitholders will benefit from the combination.
“In addition, we recently announced our greenhouse gas emissions intensity reduction targets, demonstrating our commitment to sustainably providing energy today and in the future. Our targets are measurable, achievable and meaningful. We believe achieving the targets will drive value for shareholders and other stakeholders. We are expanding our presence in the battery supply chain through our investment in NOVONIX and announced a collaboration with Plug Power to identify and advance green hydrogen opportunities. We will continue to focus on lower-carbon initiatives that generate strong returns.”
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Phillips 66 Reports Third-Quarter 2021 Financial Results
Midstream
| Millions of Dollars | |||||
|---|---|---|---|---|---|
| Pre-Tax Income | Adjusted Pre-Tax Income | ||||
| Q3 2021 | Q2 2021 | Q3 2021 | Q2 2021 | ||
| Transportation | $ | 244 | 224 | 254 | 224 |
| NGL and Other | 354 | 79 | 357 | 83 | |
| DCP Midstream | 31 | 9 | 31 | 9 | |
| Midstream | $ | 629 | 312 | 642 | 316 |
Midstream third-quarter 2021 pre-tax income was $629 million, compared with $312 million in the second quarter of 2021. Midstream results in the third quarter included a $10 million impairment and $3 million of pension settlement expense. Second-quarter results included $4 million of pension settlement expense.
Transportation third-quarter adjusted pre-tax income of $254 million was $30 million higher than the second quarter, primarily due to higher equity earnings from the Bakken and Gray Oak pipelines.
NGL and Other adjusted pre-tax income was $357 million in the third quarter, compared with $83 million in the second quarter. The increase was primarily due to a $224 million unrealized investment gain related to NOVONIX, as well as inventory impacts.
The company’s equity investment in DCP Midstream, LLC generated third-quarter adjusted pre-tax income of $31 million, a $22 million increase from the prior quarter. The increase was mainly driven by improved margins and hedging impacts.
Chemicals
| Millions of Dollars | |||||
|---|---|---|---|---|---|
| Pre-Tax Income (Loss) | Adjusted Pre-Tax Income (Loss) | ||||
| Q3 2021 | Q2 2021 | Q3 2021 | Q2 2021 | ||
| Olefins and Polyolefins | $ | 611 | 562 | 613 | 593 |
| Specialties, Aromatics and Styrenics | 36 | 79 | 37 | 82 | |
| Other | (16) | (18) | (16) | (18) | |
| Chemicals | $ | 631 | 623 | 634 | 657 |
The Chemicals segment reflects Phillips 66’s equity investment in Chevron Phillips Chemical Company LLC (CPChem). Chemicals third-quarter 2021 pre-tax income was $631 million, compared with $623 million in the second quarter of 2021. Chemicals results in the third quarter included a $2 million reduction to equity earnings for pension settlement expense and $1 million of maintenance and repair costs related to Hurricane Ida. Second-quarter results included an $18 million reduction to equity earnings for pension settlement expense and $16 million of winter-storm-related maintenance and repair costs.
CPChem’s Olefins and Polyolefins (O&P) business contributed $613 million of adjusted pre-tax income in the third quarter, compared with $593 million in the second quarter. The $20 million increase was primarily due to higher polyethylene sales volumes driven by continued strong demand, partially offset by higher utility costs. Global O&P utilization was 102% for the quarter.
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Phillips 66 Reports Third-Quarter 2021 Financial Results
CPChem’s Specialties, Aromatics and Styrenics (SA&S) business contributed third-quarter adjusted pre-tax income of $37 million, compared with $82 million in the second quarter. The decrease was driven by lower margins.
Refining
| Millions of Dollars | |||||
|---|---|---|---|---|---|
| Pre-Tax (Loss) | Adjusted Pre-Tax Income (Loss) | ||||
| Q3 2021 | Q2 2021 | Q3 2021 | Q2 2021 | ||
| Refining | $ | (1,126) | (729) | 184 | (706) |
Refining had a third-quarter 2021 pre-tax loss of $1.1 billion, compared with a pre-tax loss of $729 million in the second quarter of 2021. Refining results in the third quarter included a $1.3 billion impairment of the Alliance Refinery, as well as $12 million of pension settlement expense and $10 million of hurricane-related costs. Second-quarter results included $20 million of pension settlement expense and $3 million of winter-storm-related costs.
Refining had adjusted pre-tax income of $184 million in the third quarter, compared with an adjusted pre-tax loss of $706 million in the second quarter. The improvement was primarily due to higher realized margins. Third-quarter realized margins were $8.57 per barrel, up from $3.92 per barrel mainly due to higher market crack spreads, lower RIN costs and improved product differentials.
Pre-tax turnaround costs for the third quarter were $81 million, compared with second-quarter costs of $118 million. Crude utilization rate was 86% in the third quarter, down from 88% in the second quarter due to hurricane impacts. Clean product yield was 84% in the third quarter, up 2% from the second quarter.
Marketing and Specialties
| Millions of Dollars | |||||
|---|---|---|---|---|---|
| Pre-Tax Income | Adjusted Pre-Tax Income | ||||
| Q3 2021 | Q2 2021 | Q3 2021 | Q2 2021 | ||
| Marketing and Other | $ | 452 | 389 | 454 | 392 |
| Specialties | 93 | 87 | 93 | 87 | |
| Marketing and Specialties | $ | 545 | 476 | 547 | 479 |
Marketing and Specialties (M&S) third-quarter 2021 pre-tax income was $545 million, compared with $476 million in the second quarter of 2021. M&S results included $2 million and $3 million of pension settlement expense in the third quarter and second quarter, respectively.
Adjusted pre-tax income for Marketing and Other was $454 million in the third quarter, an increase of $62 million from the second quarter. The increase was primarily due to higher international margins and volumes driven by the easing of COVID-19 restrictions. Refined product exports in the third quarter were 209,000 barrels per day (BPD).
Specialties generated third-quarter adjusted pre-tax income of $93 million, up from $87 million in the prior quarter, largely due to improved base oil margins.
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Phillips 66 Reports Third-Quarter 2021 Financial Results
Corporate and Other
| Millions of Dollars | |||||
|---|---|---|---|---|---|
| Pre-Tax Loss | Adjusted Pre-Tax Loss | ||||
| Q3 2021 | Q2 2021 | Q3 2021 | Q2 2021 | ||
| Corporate and Other | $ | (231) | (246) | (230) | (244) |
Corporate and Other third-quarter 2021 pre-tax costs were $231 million, compared with pre-tax costs of $246 million in the second quarter of 2021. Pre-tax costs included $1 million and $2 million of pension settlement expense in the third quarter and second quarter, respectively.
In Corporate and Other, the $14 million decrease in adjusted pre-tax loss was driven by lower environmental and employee-related costs, partially offset by higher net interest expense.
Financial Position, Liquidity and Return of Capital
Phillips 66 generated $2.2 billion in cash from operations in the third quarter of 2021, including cash distributions from equity affiliates of $905 million. Excluding working capital impacts, operating cash flow was $1.4 billion.
During the quarter, Phillips 66 funded $552 million of capital expenditures and investments and paid $394 million in dividends. Additionally, Phillips 66 repaid its $500 million term loan due November 2023.
As of Sept. 30, 2021, Phillips 66 had $8.6 billion of liquidity, reflecting $2.9 billion of cash and cash equivalents and approximately $5.7 billion of total committed capacity under revolving credit facilities. Consolidated debt was $14.9 billion at Sept. 30, 2021, including $3.9 billion at Phillips 66 Partners. The company’s consolidated debt-to-capital ratio was 42% and its net debt-to-capital ratio was 37%.
Merger Agreement with Phillips 66 Partners
On Oct. 27, 2021, the company announced it has entered into an agreement to acquire all of the publicly held common units representing limited partner interest in Phillips 66 Partners not already owned by Phillips 66 and its affiliates. The agreement provides for 0.50 shares of Phillips 66 common stock to be issued for each Phillips 66 Partners common unit. Phillips 66 Partners’ preferred units will be converted into common units at a premium to the original issuance price prior to exchange for Phillips 66 common stock. The value of the transaction, which is expected to close in the first quarter of 2022, is $3.4 billion based on Oct. 26, 2021, market closing prices of both companies. Upon closing, the Partnership will be a wholly owned subsidiary of Phillips 66 and will no longer be a publicly traded partnership.
Strategic Update
In Midstream, Phillips 66 Partners recently completed construction of the C2G Pipeline, a 16 inch ethane pipeline that connects its Clemens Caverns storage facility to petrochemical facilities in Gregory, Texas, near Corpus Christi, Texas. The pipeline is expected to begin commercial operations in the fourth quarter of 2021 and is backed by long-term commitments.
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Phillips 66 Reports Third-Quarter 2021 Financial Results
At the Sweeny Hub, Phillips 66 resumed construction of Frac 4 in July. The 150,000-BPD fractionator is expected to be completed in the fourth quarter of 2022 and will increase Sweeny Hub fractionation capacity to 550,000 BPD. The fractionators are supported by long-term commitments.
In Chemicals, CPChem and Qatar Energy are jointly pursuing development of petrochemical facilities on the U.S. Gulf Coast and in Ras Laffan, Qatar. CPChem expects to make a final investment decision for its U.S. Gulf Coast project in 2022.
CPChem is expanding its alpha olefins business with a second world-scale unit to produce 1-hexene, a critical component in high-performance polyethylene. The 266,000 metric tons per year unit will be located in Old Ocean, Texas, near its Sweeny facility. The project will utilize CPChem’s proprietary technology and is expected to start up in 2023.
In August, CPChem received 24 safety awards from the Texas Chemical Council for excellence in safety performance across eight of its sites. The awards reaffirm CPChem’s longstanding commitment to operating excellence.
Phillips 66 is advancing its plans at the San Francisco Refinery in Rodeo, California, to meet the growing demand for renewable fuels. The hydrotreater feedstock flexibility project reached full rates of 8,000 BPD (120 million gallons per year) of renewable diesel in July. Separately, subject to permitting and approvals, the Rodeo Renewed refinery conversion project is expected to be finished in early 2024. Upon completion, the facility will initially have over 50,000 BPD (800 million gallons per year) of renewable fuel production capacity. The conversion will reduce emissions from the facility and produce lower-carbon transportation fuels.
The Alliance Refinery sustained significant impacts from Hurricane Ida and is expected to remain shut down through the fourth quarter of 2021. The company continues to assess future strategic options for the refinery.
In Marketing, Phillips 66 is converting 600 branded retail sites in California to sell renewable diesel produced by the Rodeo facility. In Switzerland, the Phillips 66 COOP retail joint venture is adding hydrogen fueling stations. Phillips 66 is exploring additional opportunities with hydrogen and electric vehicle charging to support European low-carbon goals and growing demand for sustainable fuels.
In September 2021, Phillips 66 announced a set of company-wide greenhouse gas emissions reduction targets that are impactful, attainable and measurable. By 2030, the company expects to reduce GHG emissions intensity by 30% for Scope 1 and 2 emissions from its operations and by 15% for Scope 3 emissions from its energy products, below 2019 levels.
The targets build on the company’s lower-carbon strategy and leverage its Emerging Energy business platform, through which Phillips 66 continues to advance its efforts in renewable fuels, batteries, carbon capture and hydrogen. Recent announcements include:
•Expanding its presence in the battery supply chain. In September 2021, Phillips 66 acquired a 16% stake in NOVONIX Ltd., an ASX-listed company with operations in the United States and Canada that develops technology and supplies materials for lithium-ion batteries. The investment by Phillips 66 supports an expansion of 30,000 metric tons per year of additional synthetic graphite production capacity at NOVONIX’s Chattanooga, Tennessee plant, bringing the plant’s total capacity to 40,000 metric tons per year. The expansion is expected to be completed in 2025.
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Phillips 66 Reports Third-Quarter 2021 Financial Results
•Collaborating on the development of low-carbon hydrogen opportunities. In October 2021, Phillips 66 signed a memorandum of understanding with Plug Power Inc., a leading provider of global green hydrogen solutions. The companies will focus on scaling low-carbon hydrogen throughout the industrial and mobility sectors, while advancing the development of hydrogen-related infrastructure. They will also explore ways to deploy Plug Power’s technology and equipment within Phillips 66’s operations.
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Phillips 66 Reports Third-Quarter 2021 Financial Results
Investor Webcast
Later today, members of Phillips 66 executive management will host a webcast at noon EDT to discuss the company’s third-quarter performance and provide an update on strategic initiatives. To access the webcast and view related presentation materials, go to www.phillips66.com/investors and click on “Events & Presentations.” For detailed supplemental information, go to www.phillips66.com/supplemental.
| Earnings (Loss) | ||||||
|---|---|---|---|---|---|---|
| Millions of Dollars | ||||||
| 2021 | 2020 | |||||
| Q3 | Q2 | Sep YTD | Q3 | Sep YTD | ||
| Midstream | $ | 629 | 312 | 1,017 | 146 | (232) |
| Chemicals | 631 | 623 | 1,408 | 231 | 442 | |
| Refining | (1,126) | (729) | (2,895) | (1,903) | (5,042) | |
| Marketing and Specialties | 545 | 476 | 1,311 | 415 | 1,214 | |
| Corporate and Other | (231) | (246) | (728) | (239) | (655) | |
| Pre-Tax Income (Loss) | 448 | 436 | 113 | (1,350) | (4,273) | |
| Less: Income tax expense (benefit) | (40) | 62 | (110) | (624) | (1,053) | |
| Less: Noncontrolling interests | 86 | 78 | 179 | 73 | 216 | |
| Phillips 66 | $ | 402 | 296 | 44 | (799) | (3,436) |
| Adjusted Earnings (Loss) | ||||||
| Millions of Dollars | ||||||
| 2021 | 2020 | |||||
| Q3 | Q2 | Sep YTD | Q3 | Sep YTD | ||
| Midstream | $ | 642 | 316 | 1,234 | 354 | 1,059 |
| Chemicals | 634 | 657 | 1,475 | 132 | 414 | |
| Refining | 184 | (706) | (1,548) | (970) | (2,238) | |
| Marketing and Specialties | 547 | 479 | 1,316 | 417 | 1,198 | |
| Corporate and Other | (230) | (244) | (725) | (213) | (634) | |
| Pre-Tax Income (Loss) | 1,777 | 502 | 1,752 | (280) | (201) | |
| Less: Income tax expense (benefit) | 286 | 95 | 297 | (352) | (518) | |
| Less: Noncontrolling interests | 88 | 78 | 232 | 73 | 192 | |
| Phillips 66 | $ | 1,403 | 329 | 1,223 | (1) | 125 |
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Phillips 66 Reports Third-Quarter 2021 Financial Results
About Phillips 66
Phillips 66 is a diversified energy manufacturing and logistics company. With a portfolio of Midstream, Chemicals, Refining, and Marketing and Specialties businesses, the company processes, transports, stores and markets fuels and products globally. Headquartered in Houston, the company has 14,100 employees committed to safety and operating excellence. Phillips 66 had $56 billion of assets as of Sept. 30, 2021. For more information, visit www.phillips66.com or follow us on Twitter @Phillips66Co.
# # -
| CONTACTS | ||
|---|---|---|
| Jeff Dietert (investors) | Shannon Holy (investors) | Thaddeus Herrick (media) |
| 832-765-2297 | 832-765-2297 | 855-841-2368 |
| jeff.dietert@p66.com | shannon.m.holy@p66.com | thaddeus.f.herrick@p66.com |
CAUTIONARY STATEMENT FOR THE PURPOSES OF THE “SAFE HARBOR” PROVISIONS
OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995
This news release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are intended to be covered by the safe harbors created thereby. Words and phrases such as “is anticipated,” “is estimated,” “is expected,” “is planned,” “is scheduled,” “is targeted,” “believes,” “continues,” “intends,” “will,” “would,” “objectives,” “goals,” “projects,” “efforts,” “strategies” and similar expressions are used to identify such forward-looking statements. However, the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements included in this news release are based on management’s expectations, estimates and projections as of the date they are made. These statements are not guarantees of future performance and you should not unduly rely on them as they involve certain risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecast in such forward-looking statements. Factors that could cause actual results or events to differ materially from those described in the forward-looking statements include: the continuing effects of the COVID-19 pandemic and its negative impact on commercial activity and demand for refined petroleum products; the inability to timely obtain or maintain permits necessary for capital projects; changes to worldwide government policies relating to renewable fuels and greenhouse gas emissions that adversely affect programs like the renewable fuel standards program, low carbon fuel standards and tax credits for biofuels; fluctuations in NGL, crude oil, and natural gas prices, and petrochemical and refining margins; unexpected changes in costs for constructing, modifying or operating our facilities; unexpected difficulties in manufacturing, refining or transporting our products; the level and success of drilling and production volumes around our Midstream assets; risks and uncertainties with respect to the actions of actual or potential competitive suppliers and transporters of refined petroleum products, renewable fuels or specialty products; lack of, or disruptions in, adequate and reliable transportation for our NGL, crude oil, natural gas, and refined products; potential liability from litigation or for remedial actions, including removal and reclamation obligations under environmental regulations; failure to complete construction of capital projects on time and within budget; the inability to comply with governmental regulations or make capital expenditures to maintain compliance; limited access to capital or significantly higher cost of capital related to illiquidity or uncertainty in the domestic or international financial markets; potential disruption of our operations due to accidents, weather events, including as a result of climate change, terrorism or cyberattacks; general domestic and international economic and political developments including armed hostilities, expropriation of assets, and other political, economic or diplomatic developments, including those caused by public health issues and international monetary conditions and exchange controls; changes in governmental policies relating to NGL, crude oil, natural gas, refined petroleum products, or renewable fuels pricing, regulation or taxation, including exports; changes in estimates or projections used to assess fair value of intangible assets, goodwill and property and equipment and/or strategic decisions with respect to our asset portfolio that cause impairment charges; investments required, or reduced demand for products, as a result of environmental rules and regulations; changes in tax, environmental and other laws and regulations (including alternative energy mandates); the operation, financing and distribution decisions of equity affiliates we do not control; the impact of adverse market conditions or other similar risks to those identified herein affecting PSXP, 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.
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Phillips 66 Reports Third-Quarter 2021 Financial Results
Use of Non-GAAP Financial Information—This news release includes the terms “adjusted earnings (loss),” “adjusted earnings (loss) per share” and “adjusted pre-tax income (loss).” These are non-GAAP financial measures that are included to help facilitate comparisons of operating performance across periods and to help facilitate comparisons with other companies in our industry, by excluding items that do not reflect the core operating results of our businesses in the current period. This release also includes a “debt-to-capital ratio excluding PSXP.” This non-GAAP measure is provided to differentiate the capital structure of Phillips 66 compared with that of Phillips 66 Partners.
References in the release to total consolidated earnings (loss) refer to net income (loss) attributable to Phillips 66.
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Phillips 66 Reports Third-Quarter 2021 Financial Results
| Millions of Dollars | ||||||
|---|---|---|---|---|---|---|
| Except as Indicated | ||||||
| 2021 | 2020 | |||||
| Q3 | Q2 | Sep YTD | Q3 | Sep YTD | ||
| Reconciliation of Consolidated Earnings (Loss) to Adjusted Earnings (Loss) | ||||||
| Consolidated Earnings (Loss) | $ | 402 | 296 | 44 | (799) | (3,436) |
| Pre-tax adjustments: | ||||||
| Impairments | 1,298 | — | 1,496 | 1,139 | 4,145 | |
| Impairments by equity affiliates | — | — | — | — | 15 | |
| Pending claims and settlements | — | — | — | — | (37) | |
| Certain tax impacts | — | — | — | — | (8) | |
| Pension settlement expense | 20 | 47 | 67 | 17 | 55 | |
| Hurricane-related costs | 11 | — | 11 | 15 | 15 | |
| Winter-storm-related costs | — | 19 | 65 | — | — | |
| Lower-of-cost-or-market inventory adjustments | — | — | — | (101) | (29) | |
| Asset dispositions | — | — | — | — | (84) | |
| Tax impact of adjustments* | (323) | (16) | (387) | (262) | (545) | |
| Other tax impacts | (3) | (17) | (20) | (10) | 10 | |
| Noncontrolling interests | (2) | — | (53) | — | 24 | |
| Adjusted earnings (loss) | $ | 1,403 | 329 | 1,223 | (1) | 125 |
| Earnings (loss) per share of common stock (dollars) | $ | 0.91 | 0.66 | 0.08 | (1.82) | (7.83) |
| Adjusted earnings (loss) per share of common stock (dollars)† | $ | 3.18 | 0.74 | 2.76 | (0.01) | 0.27 |
| Reconciliation of Segment Pre-Tax Income (Loss) to Adjusted Pre-Tax Income (Loss) | ||||||
| Midstream Pre-Tax Income (Loss) | $ | 629 | 312 | 1,017 | 146 | (232) |
| Pre-tax adjustments: | ||||||
| Impairments | 10 | — | 208 | 204 | 1,365 | |
| Pension settlement expense | 3 | 4 | 7 | 3 | 8 | |
| Hurricane-related costs | — | — | — | 1 | 1 | |
| Winter-storm-related costs | — | — | 2 | — | — | |
| Lower-of-cost-or-market inventory adjustments | — | — | — | — | 1 | |
| Asset dispositions | — | — | — | — | (84) | |
| Adjusted pre-tax income | $ | 642 | 316 | 1,234 | 354 | 1,059 |
| Chemicals Pre-Tax Income | $ | 631 | 623 | 1,408 | 231 | 442 |
| Pre-tax adjustments: | ||||||
| Impairments by equity affiliates | — | — | — | — | 15 | |
| Pension settlement expense | 2 | 18 | 20 | — | — | |
| Hurricane-related costs | 1 | — | 1 | 2 | 2 | |
| Winter-storm-related costs | — | 16 | 46 | — | — | |
| Lower-of-cost-or-market inventory adjustments | — | — | — | (101) | (45) | |
| Adjusted pre-tax income | $ | 634 | 657 | 1,475 | 132 | 414 |
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Phillips 66 Reports Third-Quarter 2021 Financial Results
| Millions of Dollars | ||||||
|---|---|---|---|---|---|---|
| Except as Indicated | ||||||
| 2021 | 2020 | |||||
| Q3 | Q2 | Sep YTD | Q3 | Sep YTD | ||
| Reconciliation of Segment Pre-Tax Income (Loss) to Adjusted Pre-Tax Income (Loss) | ||||||
| Refining Pre-Tax Loss | $ | (1,126) | (729) | (2,895) | (1,903) | (5,042) |
| Pre-tax adjustments: | ||||||
| Impairments | 1,288 | — | 1,288 | 910 | 2,755 | |
| Pension settlement expense | 12 | 20 | 32 | 12 | 38 | |
| Hurricane-related costs | 10 | — | 10 | 11 | 11 | |
| Winter-storm-related costs | — | 3 | 17 | — | — | |
| Adjusted pre-tax income (loss) | $ | 184 | (706) | (1,548) | (970) | (2,238) |
| Marketing and Specialties Pre-Tax Income | $ | 545 | 476 | 1,311 | 415 | 1,214 |
| Pre-tax adjustments: | ||||||
| Pending claims and settlements | — | — | — | — | (37) | |
| Pension settlement expense | 2 | 3 | 5 | 1 | 5 | |
| Lower-of-cost-or-market inventory adjustments | — | — | — | — | 15 | |
| Hurricane-related costs | — | — | — | 1 | 1 | |
| Adjusted pre-tax income | $ | 547 | 479 | 1,316 | 417 | 1,198 |
| Corporate and Other Pre-Tax Loss | $ | (231) | (246) | (728) | (239) | (655) |
| Pre-tax adjustments: | ||||||
| Impairments | — | — | — | — | 25 | |
| Certain tax impacts | — | — | — | — | (8) | |
| Pension settlement expense | 1 | 2 | 3 | 1 | 4 | |
| Adjusted pre-tax loss | $ | (230) | (244) | (725) | (238) | (634) |
| *We generally tax effect taxable U.S.-based special items using a combined federal and state annual statutory income tax rate of approximately 25%. Taxable special items attributable to foreign locations likewise use a local statutory income tax rate. Nontaxable events reflect zero income tax. These events include, but are not limited to, most goodwill impairments, transactions legislatively exempt from income tax, transactions related to entities for which we have made an assertion that the undistributed earnings are permanently reinvested, or transactions occurring in jurisdictions with a valuation allowance. | ||||||
| †QTD 2021 and YTD 2021 are based on adjusted weighted-average diluted shares of 441,454 thousand 440,263 thousand, respectively. YTD 2020 is based on adjusted weighted-average diluted shares outstanding of 440,156 thousand and other periods are based on the same weighted-average diluted shares outstanding as that used in the GAAP diluted earnings per share calculation. Income allocated to participating securities, if applicable, in the adjusted earnings per share calculation is the same as that used in the GAAP diluted earnings per share calculation. |
Page 11
Phillips 66 Reports Third-Quarter 2021 Financial Results
| Millions of Dollars | |||
|---|---|---|---|
| Except as Indicated | |||
| September 30, 2021 | |||
| Debt-to-Capital Ratio | |||
| Total Debt | $ | 14,910 | |
| Total Equity | 20,597 | ||
| Debt-to-Capital Ratio | 42 | % | |
| Total Cash | $ | 2,897 | |
| Net Debt-to-Capital Ratio | 37 | % | |
| Millions of Dollars | |||
| --- | --- | --- | --- |
| Except as Indicated | |||
| 2021 | |||
| Q3 | Q2 | ||
| Realized Refining Margins | |||
| Loss before income taxes | $ | (1,126) | (729) |
| Plus: | |||
| Taxes other than income taxes | 44 | 76 | |
| Depreciation, amortization and impairments | 1,504 | 220 | |
| Selling, general and administrative expenses | 55 | 49 | |
| Operating expenses | 943 | 922 | |
| Equity in (earnings) losses of affiliates | (27) | 67 | |
| Other segment (income) expense, net | 7 | (24) | |
| Proportional share of refining gross margins contributed by equity affiliates | 220 | 167 | |
| Realized refining margins | $ | 1,620 | 748 |
| Total processed inputs (thousands of barrels) | 168,739 | 170,967 | |
| Adjusted total processed inputs (thousands of barrels)* | 188,958 | 190,690 | |
| Loss before income taxes (dollars per barrel)** | $ | (6.67) | (4.26) |
| Realized refining margins (dollars per barrel)*** | $ | 8.57 | 3.92 |
| *Adjusted total processed inputs include our proportional share of processed inputs of an equity affiliate. | |||
| **Loss before income taxes divided by total processed inputs. | |||
| ***Realized refining margins per barrel, as presented, are calculated using the underlying realized refining margin amounts, in dollars, divided by adjusted total processed inputs, in barrels. As such, recalculated per barrel amounts using the rounded margins and barrels presented may differ from the presented per barrel amounts. |
Page 12
Document
| Exhibit 99.2 | ||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Phillips 66 Earnings Release Supplemental Data | CONSOLIDATED STATEMENT OF OPERATIONS | |||||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |||
| Millions of Dollars, Except as Indicated | ||||||||||||||||||||||
| 2021 | 2020 | |||||||||||||||||||||
| 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 | 21,627 | 27,002 | 30,243 | 78,872 | 20,878 | 10,913 | 15,929 | 16,409 | 64,129 | |||||||||||||
| Equity in earnings of affiliates | 285 | 830 | 982 | 2,097 | 365 | 157 | 349 | 320 | 1,191 | |||||||||||||
| Net gain on dispositions | — | 2 | 9 | 11 | 1 | 85 | 1 | 21 | 108 | |||||||||||||
| Other income* | 15 | 51 | 238 | 304 | — | 28 | 20 | 18 | 66 | |||||||||||||
| Total Revenues and Other Income | 21,927 | 27,885 | 31,472 | 81,284 | 21,244 | 11,183 | 16,299 | 16,768 | 65,494 | |||||||||||||
| Costs and Expenses | ||||||||||||||||||||||
| Purchased crude oil and products | 20,065 | 25,218 | 27,529 | 72,812 | 18,440 | 9,608 | 14,509 | 15,150 | 57,707 | |||||||||||||
| Operating expenses | 1,380 | 1,175 | 1,166 | 3,721 | 1,341 | 1,026 | 1,016 | 1,180 | 4,563 | |||||||||||||
| Selling, general and administrative expenses | 408 | 433 | 424 | 1,265 | 319 | 409 | 384 | 432 | 1,544 | |||||||||||||
| Depreciation and amortization | 356 | 364 | 361 | 1,081 | 342 | 343 | 352 | 358 | 1,395 | |||||||||||||
| Impairments | 198 | — | 1,298 | 1,496 | 3,006 | — | 1,140 | 106 | 4,252 | |||||||||||||
| Taxes other than income taxes | 139 | 119 | 85 | 343 | 157 | 114 | 106 | 87 | 464 | |||||||||||||
| Accretion on discounted liabilities | 6 | 6 | 6 | 18 | 6 | 5 | 6 | 5 | 22 | |||||||||||||
| Interest and debt expense | 146 | 143 | 151 | 440 | 111 | 117 | 132 | 139 | 499 | |||||||||||||
| Foreign currency transaction (gains) losses | — | (9) | 4 | (5) | — | 6 | 4 | 2 | 12 | |||||||||||||
| Total Costs and Expenses | 22,698 | 27,449 | 31,024 | 81,171 | 23,722 | 11,628 | 17,649 | 17,459 | 70,458 | |||||||||||||
| Income (loss) before income taxes | (771) | 436 | 448 | 113 | (2,478) | (445) | (1,350) | (691) | (4,964) | |||||||||||||
| Income tax expense (benefit) | (132) | 62 | (40) | (110) | (51) | (378) | (624) | (197) | (1,250) | |||||||||||||
| Net Income (Loss) | (639) | 374 | 488 | 223 | (2,427) | (67) | (726) | (494) | (3,714) | |||||||||||||
| Less: net income attributable to noncontrolling interests | 15 | 78 | 86 | 179 | 69 | 74 | 73 | 45 | 261 | |||||||||||||
| Net Income (Loss) Attributable to Phillips 66 | (654) | 296 | 402 | 44 | (2,496) | (141) | (799) | (539) | (3,975) | |||||||||||||
| Net Income (Loss) Attributable to Phillips 66 Per Share of Common Stock (dollars) | ||||||||||||||||||||||
| Basic | (1.49) | 0.66 | 0.91 | 0.08 | (5.66) | (0.33) | (1.82) | (1.23) | (9.06) | |||||||||||||
| Diluted | (1.49) | 0.66 | 0.91 | 0.08 | (5.66) | (0.33) | (1.82) | (1.23) | (9.06) | |||||||||||||
| Weighted-Average Common Shares Outstanding (thousands) | ||||||||||||||||||||||
| Basic | 439,504 | 439,940 | 440,193 | 439,880 | 441,345 | 438,756 | 438,916 | 439,115 | 439,530 | |||||||||||||
| Diluted | 439,504 | 440,396 | 440,368 | 440,259 | 441,345 | 438,756 | 438,916 | 439,115 | 439,530 | |||||||||||||
| Effective tax rate (%) | 17.1 | % | 14.2 | % | (8.9) | % | (97.3) | % | 2.1 | % | 84.9 | % | 46.2 | % | 28.5 | % | 25.2 | % | ||||
| Adjusted effective tax rate (%) | 15.9 | % | 18.9 | % | 16.1 | % | 17.0 | % | 4.4 | % | 40.9 | % | 125.7 | % | 25.6 | % | 85.2 | % | ||||
| * Includes an unrealized gain associated with the change in fair value of our investment in NOVONIX Limited (NOVONIX). |
Page 1
| Phillips 66 Earnings Release Supplemental Data | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| RECONCILIATION OF INCOME (LOSS) BEFORE INCOME TAXES BY SEGMENT TO | |||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| NET INCOME (LOSS) ATTRIBUTABLE TO PHILLIPS 66 | |||||||||
| 2020 | |||||||||
| 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | |
| Midstream | 312 | 629 | 1,017 | (702) | 324 | 146 | 223 | (9) | |
| Chemicals | 623 | 631 | 1,408 | 169 | 42 | 231 | 193 | 635 | |
| Refining | (729) | (1,126) | (2,895) | (2,261) | (878) | (1,903) | (1,113) | (6,155) | |
| Marketing and Specialties | 476 | 545 | 1,311 | 513 | 286 | 415 | 232 | 1,446 | |
| Corporate and Other | (246) | (231) | (728) | (197) | (219) | (239) | (226) | (881) | |
| Income (loss) before income taxes | 436 | 448 | 113 | (2,478) | (445) | (1,350) | (691) | (4,964) | |
| Less: income tax expense (benefit) | 62 | (40) | (110) | (51) | (378) | (624) | (197) | (1,250) | |
| Net Income (Loss) | 374 | 488 | 223 | (2,427) | (67) | (726) | (494) | (3,714) | |
| Less: net income attributable to noncontrolling interests | 78 | 86 | 179 | 69 | 74 | 73 | 45 | 261 | |
| Net Income (Loss) Attributable to Phillips 66 | 296 | 402 | 44 | (2,496) | (141) | (799) | (539) | (3,975) | |
| RECONCILIATION OF ADJUSTED INCOME (LOSS) BEFORE INCOME TAXES BY SEGMENT TO | |||||||||
| ADJUSTED NET INCOME (LOSS) ATTRIBUTABLE TO PHILLIPS 66 | |||||||||
| 2020 | |||||||||
| 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | |
| Midstream | |||||||||
| Transportation | 224 | 254 | 684 | 200 | 130 | 202 | 196 | 728 | |
| NGL and Other* | 83 | 357 | 476 | 179 | 83 | 102 | 86 | 450 | |
| DCP Midstream | 9 | 31 | 74 | 81 | 32 | 50 | 41 | 204 | |
| Total Midstream | 316 | 642 | 1,234 | 460 | 245 | 354 | 323 | 1,382 | |
| Chemicals | 657 | 634 | 1,475 | 193 | 89 | 132 | 203 | 617 | |
| Refining | |||||||||
| Atlantic Basin/Europe | (108) | 93 | (167) | (196) | (220) | (197) | (166) | (779) | |
| Gulf Coast | (253) | (31) | (531) | (173) | (356) | (389) | (442) | (1,360) | |
| Central Corridor | (76) | 232 | (85) | 223 | (113) | (129) | (177) | (196) | |
| West Coast | (269) | (110) | (765) | (255) | (178) | (255) | (309) | (997) | |
| Total Refining | (706) | 184 | (1,548) | (401) | (867) | (970) | (1,094) | (3,332) | |
| Marketing and Specialties | |||||||||
| Marketing and Other | 392 | 454 | 1,057 | 434 | 259 | 366 | 181 | 1,240 | |
| Specialties | 87 | 93 | 259 | 54 | 34 | 51 | 40 | 179 | |
| Total Marketing and Specialties | 479 | 547 | 1,316 | 488 | 293 | 417 | 221 | 1,419 | |
| Corporate and Other | (244) | (230) | (725) | (197) | (224) | (213) | (235) | (869) | |
| Adjusted income (loss) before income taxes | 502 | 1,777 | 1,752 | 543 | (464) | (280) | (582) | (783) | |
| Less: adjusted income tax expense (benefit) | 95 | 286 | 297 | 24 | (190) | (352) | (149) | (667) | |
| Adjusted Net Income (Loss) | 407 | 1,491 | 1,455 | 519 | (274) | 72 | (433) | (116) | |
| Less: adjusted net income attributable to noncontrolling interests | 78 | 88 | 232 | 69 | 50 | 73 | 74 | 266 | |
| Adjusted Net Income (Loss) Attributable to Phillips 66 | 329 | 1,403 | 1,223 | 450 | (324) | (1) | (507) | (382) | |
| * Includes an unrealized gain of 224 million associated with our investment in NOVONIX in the third quarter of 2021. |
All values are in US Dollars.
Page 2
| Phillips 66 Earnings Release Supplemental Data | | --- || SPECIAL ITEMS INCLUDED IN INCOME (LOSS) BEFORE INCOME TAXES BY SEGMENT | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | AND NET INCOME (LOSS) ATTRIBUTABLE TO PHILLIPS 66 | | | | | | | | | | | | | Millions of Dollars | | | | | | | | | | | | 2021 | | | | | 2020 | | | | | | | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | | Midstream | | | | | | | | | | | | Impairments | (198) | — | (10) | | (208) | (1,161) | — | (204) | (96) | (1,461) | | Pension settlement expense | — | (4) | (3) | | (7) | — | (5) | (3) | (1) | (9) | | Hurricane-related costs | — | — | — | | — | — | — | (1) | (3) | (4) | | Winter-storm-related costs | (2) | — | — | | (2) | — | — | — | — | — | | Lower-of-cost-or-market inventory adjustments | — | — | — | | — | (1) | — | — | — | (1) | | Asset dispositions | — | — | — | | — | — | 84 | — | — | 84 | | Total Midstream | (200) | (4) | (13) | | (217) | (1,162) | 79 | (208) | (100) | (1,391) | | Chemicals | | | | | | | | | | | | Impairments by equity affiliates | — | — | — | | — | — | (15) | — | — | (15) | | Pension settlement expense | — | (18) | (2) | | (20) | — | — | — | (21) | (21) | | Hurricane-related costs | — | — | (1) | | (1) | — | — | (2) | (1) | (3) | | Winter-storm-related costs | (30) | (16) | — | | (46) | — | — | — | — | — | | Lower-of-cost-or-market inventory adjustments | — | — | — | | — | (24) | (32) | 101 | 12 | 57 | | Total Chemicals | (30) | (34) | (3) | | (67) | (24) | (47) | 99 | (10) | 18 | | Refining | | | | | | | | | | | | Impairments | — | — | (1,288) | | (1,288) | (1,845) | — | (910) | — | (2,755) | | Certain tax impacts | — | — | — | | — | — | — | — | 6 | 6 | | Pension settlement expense | — | (20) | (12) | | (32) | — | (26) | (12) | (3) | (41) | | Hurricane-related costs | — | — | (10) | | (10) | — | — | (11) | (22) | (33) | | Winter-storm-related costs | (14) | (3) | — | | (17) | — | — | — | — | — | | Lower-of-cost-or-market inventory adjustments | — | — | — | | — | (15) | 15 | — | — | — | | Total Refining | (14) | (23) | (1,310) | | (1,347) | (1,860) | (11) | (933) | (19) | (2,823) | | Marketing and Specialties | | | | | | | | | | | | Pending claims and settlements | — | — | — | | — | 37 | — | — | — | 37 | | Pension settlement expense | — | (3) | (2) | | (5) | — | (4) | (1) | (1) | (6) | | Hurricane-related costs | — | — | — | | — | — | — | (1) | (2) | (3) | | Lower-of-cost-or-market inventory adjustments | — | — | — | | — | (12) | (3) | — | 14 | (1) | | Total Marketing and Specialties | — | (3) | (2) | | (5) | 25 | (7) | (2) | 11 | 27 | | Corporate and Other | | | | | | | | | | | | Impairments | — | — | — | | — | — | — | (25) | — | (25) | | Certain tax impacts | — | — | — | | — | — | 8 | — | — | 8 | | Pension settlement expense | — | (2) | (1) | | (3) | — | (3) | (1) | — | (4) | | Asset dispositions | — | — | — | | — | — | — | — | 9 | 9 | | Total Corporate and Other | — | (2) | (1) | | (3) | — | 5 | (26) | 9 | (12) | | Total Special Items (Pre-tax) | (244) | (66) | (1,329) | | (1,639) | (3,021) | 19 | (1,070) | (109) | (4,181) | | Less: Income Tax Expense (Benefit) | | | | | | | | | | | | Tax impact of pre-tax special items* | (48) | (16) | (323) | | (387) | (75) | (208) | (262) | (23) | (568) | | Other tax impacts | — | (17) | (3) | | (20) | — | 20 | (10) | (25) | (15) | | Total Income Tax Expense (Benefit) | (48) | (33) | (326) | | (407) | (75) | (188) | (272) | (48) | (583) | | Less: Income (Loss) Attributable to Noncontrolling Interests | | | | | | | | | | | | Impairments | (51) | — | (2) | | (53) | — | — | — | (28) | (28) | | Hurricane-related costs | — | — | — | | — | — | — | — | (1) | (1) | | Asset dispositions | — | — | — | | — | — | 24 | — | — | 24 | | Total Income (Loss) Attributable to Noncontrolling Interests | (51) | — | (2) | | (53) | — | 24 | — | (29) | (5) | | Total Phillips 66 Special Items (After-tax) | (145) | (33) | (1,001) | | (1,179) | (2,946) | 183 | (798) | (32) | (3,593) | | * We generally tax effect taxable U.S.-based special items using a combined federal and state annual statutory income tax rate of approximately 25%. Taxable special items attributable to foreign locations likewise use a local statutory income tax rate. Nontaxable events reflect zero income tax. These events include, but are not limited to, most goodwill impairments, transactions legislatively exempt from income tax, transactions related to entities for which we have made an assertion that the undistributed earnings are permanently reinvested, or transactions occurring in jurisdictions with a valuation allowance. | | | | | | | | | | | | SPECIAL ITEMS INCLUDED IN INCOME (LOSS) BEFORE INCOME TAXES BY BUSINESS LINES/REGIONS | | | | | | | | | | | | | Millions of Dollars | | | | | | | | | | | | 2021 | | | | | 2020 | | | | | | | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | | Midstream | | | | | | | | | | | | Transportation | (199) | — | (10) | | (209) | — | 84 | (205) | (99) | (220) | | NGL and Other | (1) | (4) | (3) | | (8) | — | (5) | (3) | (1) | (9) | | DCP Midstream | — | — | — | | — | (1,162) | — | — | — | (1,162) | | Total Midstream | (200) | (4) | (13) | | (217) | (1,162) | 79 | (208) | (100) | (1,391) | | Refining | | | | | | | | | | | | Atlantic Basin/Europe | (1) | (2) | (3) | | (6) | (441) | (7) | (2) | 5 | (445) | | Gulf Coast | (6) | (11) | (1,302) | | (1,319) | (670) | (9) | (16) | (22) | (717) | | Central Corridor | (7) | (6) | (3) | | (16) | (450) | 9 | (3) | (1) | (445) | | West Coast | — | (4) | (2) | | (6) | (299) | (4) | (912) | (1) | (1,216) | | Total Refining | (14) | (23) | (1,310) | | (1,347) | (1,860) | (11) | (933) | (19) | (2,823) | | Marketing and Specialties | | | | | | | | | | | | Marketing and Other | — | (3) | (2) | | (5) | 37 | (4) | (1) | (1) | 31 | | Specialties | — | — | — | | — | (12) | (3) | (1) | 12 | (4) | | Total Marketing and Specialties | — | (3) | (2) | | (5) | 25 | (7) | (2) | 11 | 27 |
Page 3
| Phillips 66 Earnings Release Supplemental Data | | --- || CASH FLOW INFORMATION | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | Millions of Dollars | | | | | | | | | | | | 2021 | | | | | 2020 | | | | | | | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | | Cash Flows From Operating Activities | | | | | | | | | | | | Net income (loss) | (639) | 374 | 488 | | 223 | (2,427) | (67) | (726) | (494) | (3,714) | | Depreciation and amortization | 356 | 364 | 361 | | 1,081 | 342 | 343 | 352 | 358 | 1,395 | | Impairments | 198 | — | 1,298 | | 1,496 | 3,006 | — | 1,140 | 106 | 4,252 | | Accretion on discounted liabilities | 6 | 6 | 6 | | 18 | 6 | 5 | 6 | 5 | 22 | | Deferred income taxes | (103) | 266 | (453) | | (290) | (47) | 26 | 23 | 124 | 126 | | Undistributed equity earnings | 217 | (218) | (77) | | (78) | (4) | 302 | (44) | 80 | 334 | | Net gain on dispositions | — | (2) | (3) | | (5) | (1) | (85) | (1) | (21) | (108) | | Unrealized investment gain* | — | — | (224) | | (224) | — | — | — | — | — | | Other | 138 | 120 | 31 | | 289 | (139) | 146 | 45 | 78 | 130 | | Net working capital changes | 98 | 833 | 776 | | 1,707 | (519) | 94 | (304) | 403 | (326) | | Net Cash Provided by Operating Activities | 271 | 1,743 | 2,203 | | 4,217 | 217 | 764 | 491 | 639 | 2,111 | | Cash Flows From Investing Activities | | | | | | | | | | | | Capital expenditures and investments | (331) | (380) | (552) | | (1,263) | (923) | (939) | (552) | (506) | (2,920) | | Return of investments in equity affiliates | 58 | 100 | 78 | | 236 | 38 | 50 | 51 | 53 | 192 | | Proceeds from asset dispositions | — | 24 | 2 | | 26 | 1 | — | 2 | 48 | 51 | | Advances/loans—related parties | (155) | (90) | (65) | | (310) | (8) | (223) | (20) | (65) | (316) | | Collection of advances/loans—related parties | — | — | 1 | | 1 | — | 44 | — | — | 44 | | Other | (39) | (6) | 40 | | (5) | 15 | (79) | (23) | (43) | (130) | | Net Cash Used in Investing Activities | (467) | (352) | (496) | | (1,315) | (877) | (1,147) | (542) | (513) | (3,079) | | Cash Flows From Financing Activities | | | | | | | | | | | | Issuance of debt | 450 | 15 | (15) | | 450 | 1,199 | 2,031 | 75 | 1,873 | 5,178 | | Repayment of debt | (925) | (54) | (506) | | (1,485) | (7) | (534) | (5) | (505) | (1,051) | | Issuance of common stock | 20 | 4 | — | | 24 | 6 | — | — | 2 | 8 | | Repurchase of common stock | — | — | — | | — | (443) | — | — | — | (443) | | Dividends paid on common stock | (394) | (394) | (394) | | (1,182) | (396) | (393) | (393) | (393) | (1,575) | | Distributions to noncontrolling interests | (76) | (82) | (81) | | (239) | (61) | (66) | (74) | (88) | (289) | | Repurchase of noncontrolling interests | — | (24) | — | | (24) | — | — | — | — | — | | Other | (20) | (7) | (9) | | (36) | (22) | 9 | (7) | (17) | (37) | | Net Cash Provided by (Used in) Financing Activities | (945) | (542) | (1,005) | | (2,492) | 276 | 1,047 | (404) | 872 | 1,791 | | Effect of Exchange Rate Changes on Cash and Cash Equivalents | (22) | 7 | (12) | | (27) | (9) | 5 | 27 | 54 | 77 | | Net Change in Cash and Cash Equivalents | (1,163) | 856 | 690 | | 383 | (393) | 669 | (428) | 1,052 | 900 | | Cash and cash equivalents at beginning of period | 2,514 | 1,351 | 2,207 | | 2,514 | 1,614 | 1,221 | 1,890 | 1,462 | 1,614 | | Cash and Cash Equivalents at End of Period | 1,351 | 2,207 | 2,897 | | 2,897 | 1,221 | 1,890 | 1,462 | 2,514 | 2,514 | | * Represents the change in fair value of our investment in NOVONIX. | | | | | | | | | | | | CAPITAL PROGRAM | | | | | | | | | | | | | Millions of Dollars | | | | | | | | | | | | 2021 | | | | | 2020 | | | | | | | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | | Consolidated Capital Expenditures and Investments | | | | | | | | | | | | Midstream | 100 | 141 | 328 | | 569 | 580 | 597 | 315 | 194 | 1,686 | | Chemicals | — | — | — | | — | — | — | — | — | — | | Refining | 184 | 186 | 158 | | 528 | 245 | 164 | 168 | 239 | 816 | | Marketing and Specialties | 22 | 22 | 28 | | 72 | 25 | 86 | 28 | 34 | 173 | | Corporate and Other | 25 | 31 | 38 | | 94 | 50 | 54 | 38 | 42 | 184 | | Adjusted Capital Spending | 331 | 380 | 552 | | 1,263 | 900 | 901 | 549 | 509 | 2,859 | | Capital expenditures and investments funded by a joint venture partner (Midstream)* | — | — | — | | — | 23 | 38 | 3 | (3) | 61 | | Consolidated Capital Expenditures and Investments | 331 | 380 | 552 | | 1,263 | 923 | 939 | 552 | 506 | 2,920 | | * Includes previously funded capital returned to our joint venture partner in the fourth quarter of 2020. | | | | | | | | | | | | Proportional Share of Selected Equity Affiliates Capital Expenditures and Investments* | | | | | | | | | | | | DCP Midstream (Midstream) | 7 | 14 | 15 | | 36 | 46 | 44 | 12 | 17 | 119 | | CPChem (Chemicals) | 79 | 72 | 88 | | 239 | 126 | 13 | 65 | 80 | 284 | | WRB (Refining) | 59 | 47 | 61 | | 167 | 37 | 34 | 39 | 65 | 175 | | Selected Equity Affiliates | 145 | 133 | 164 | | 442 | 209 | 91 | 116 | 162 | 578 | | * Represents Phillips 66’s portion of self-funded capital spending by DCP Midstream, LLC (DCP Midstream), Chevron Phillips Chemical Company LLC (CPChem) and WRB Refining LP (WRB). | | | | | | | | | | |
Page 4
| Phillips 66 Earnings Release Supplemental Data | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| MIDSTREAM | |||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| 2020 | |||||||||
| 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | |
| Income (Loss) before Income Taxes | |||||||||
| Transportation | 224 | 244 | 475 | 200 | 214 | (3) | 97 | 508 | |
| NGL and Other | 79 | 354 | 468 | 179 | 78 | 99 | 85 | 441 | |
| DCP Midstream | 9 | 31 | 74 | (1,081) | 32 | 50 | 41 | (958) | |
| Income (Loss) before Income Taxes | 312 | 629 | 1,017 | (702) | 324 | 146 | 223 | (9) | |
| Adjusted EBITDA* | |||||||||
| PSXP** | 336 | 367 | 992 | 322 | 271 | 315 | 317 | 1,225 | |
| Other Midstream | 110 | 387 | 589 | 188 | 75 | 115 | 105 | 483 | |
| Transportation and NGL and Other*** | 446 | 754 | 1,581 | 510 | 346 | 430 | 422 | 1,708 | |
| DCP Midstream | 46 | 67 | 184 | 129 | 66 | 88 | 79 | 362 | |
| Adjusted EBITDA*** | 492 | 821 | 1,765 | 639 | 412 | 518 | 501 | 2,070 | |
| * See reconciliation of income (loss) before income taxes to adjusted EBITDA. | |||||||||
| ** Does not include certain PSXP adjustments made for PSXP stand-alone reporting purposes. | |||||||||
| *** Includes an unrealized gain of 224 million associated with our investment in NOVONIX in the third quarter of 2021. | |||||||||
| Equity in Earnings of Affiliates | |||||||||
| Transportation | 120 | 140 | 386 | 98 | 70 | 103 | 108 | 379 | |
| NGL and Other | 44 | 40 | 121 | 51 | 49 | 44 | 37 | 181 | |
| DCP Midstream | 8 | 32 | 74 | 80 | 32 | 49 | 40 | 201 | |
| Total | 172 | 212 | 581 | 229 | 151 | 196 | 185 | 761 | |
| Unrealized Investment Gain* | |||||||||
| NGL and Other | — | 224 | 224 | — | — | — | — | — | |
| * Represents the change in fair value of our investment in NOVONIX. | |||||||||
| Depreciation and Amortization* | |||||||||
| Transportation | 40 | 45 | 125 | 38 | 38 | 41 | 42 | 159 | |
| NGL and Other | 52 | 52 | 156 | 39 | 39 | 42 | 52 | 172 | |
| DCP Midstream | — | — | — | — | — | — | — | — | |
| Total | 92 | 97 | 281 | 77 | 77 | 83 | 94 | 331 | |
| * Excludes D&A of all equity affiliates. | |||||||||
| Operating and SG&A Expenses* | |||||||||
| Transportation | 189 | 188 | 550 | 188 | 186 | 185 | 199 | 758 | |
| NGL and Other | 88 | 85 | 295 | 68 | 71 | 71 | 84 | 294 | |
| DCP Midstream | — | 1 | 1 | — | — | (1) | — | (1) | |
| Total | 277 | 274 | 846 | 256 | 257 | 255 | 283 | 1,051 | |
| * Excludes operating and SG&A expenses of all equity affiliates. | |||||||||
| Transportation Volumes (MB/D) | |||||||||
| Pipelines* | 3,424 | 3,483 | 3,238 | 3,178 | 2,840 | 3,076 | 2,925 | 3,005 | |
| Terminals | 2,786 | 2,771 | 2,744 | 3,148 | 2,883 | 2,966 | 2,886 | 2,971 | |
| * Pipelines represent the sum of volumes transported through each separately tariffed consolidated pipeline segment. | |||||||||
| PSX Other Volumes | |||||||||
| NGL Fractionated (MB/D)* | 401 | 420 | 395 | 198 | 170 | 217 | 411 | 249 | |
| * Excludes DCP Midstream. | |||||||||
| 100% DCP Midstream, LLC Results | |||||||||
| Net Income (Loss) Attributable to Owners* | (35) | 23 | 15 | 50 | (348) | 58 | 38 | (202) | |
| * Includes impairment charges of 159 million and 650 million in the first and second quarters of 2020, respectively. | |||||||||
| Depreciation and Amortization | 92 | 90 | 273 | 99 | 93 | 93 | 91 | 376 | |
| Operating and SG&A Expenses | 222 | 230 | 641 | 202 | 212 | 212 | 240 | 866 | |
| Net Interest Expense* | 77 | 73 | 227 | 78 | 71 | 77 | 76 | 302 | |
| * Net of interest income. | |||||||||
| Capital Expenditures and Investments | 28 | 30 | 72 | 92 | 87 | 24 | 35 | 238 | |
| Selected DCP Operating Statistics | |||||||||
| Wellhead Volume (Bcf/D) | 4.4 | 4.2 | 4.2 | 5.0 | 4.5 | 4.5 | 4.5 | 4.6 | |
| NGL Production (MB/D) | 406 | 398 | 387 | 396 | 374 | 414 | 414 | 399 | |
| Weighted-Average NGL Price* | |||||||||
| DCP Midstream (/gal) | 0.71 | 0.91 | 0.77 | 0.39 | 0.32 | 0.44 | 0.49 | 0.41 | |
| * Based on index prices from the Mont Belvieu market hub, which are weighted by NGL component mix. | |||||||||
| MLP Distributions* | |||||||||
| LP Distribution from PSXP to Phillips 66 | 148 | 149 | 445 | 148 | 149 | 148 | 149 | 594 | |
| LP Distribution from DCP Midstream, LP to DCP Midstream** | 46 | *** | 92 | 46 | 46 | 46 | 46 | 184 | |
| * Cash distributions declared attributable to common unit ownership. These distributions are eliminated in the respective sponsors consolidated financial statements. | |||||||||
| ** Represents 100% of DCP Midstream's distributions from DCP Midstream, LP (DCP Partners). | |||||||||
| *** Pending DCP Midstream release. |
All values are in US Dollars.
Page 5
| Phillips 66 Earnings Release Supplemental Data | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| MIDSTREAM (continued) | |||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| 2020 | |||||||||
| 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | |
| Reconciliation of Midstream Income (Loss) before Income Taxes to Adjusted EBITDA | |||||||||
| Income (loss) before income taxes | 312 | 629 | 1,017 | (702) | 324 | 146 | 223 | (9) | |
| Plus: | |||||||||
| Depreciation and amortization | 92 | 97 | 281 | 77 | 77 | 83 | 94 | 331 | |
| EBITDA* | 404 | 726 | 1,298 | (625) | 401 | 229 | 317 | 322 | |
| Special Item Adjustments (pre-tax): | |||||||||
| Impairments | — | 10 | 208 | 1,161 | — | 204 | 96 | 1,461 | |
| Pension settlement expense | 4 | 3 | 7 | — | 5 | 3 | 1 | 9 | |
| Hurricane-related costs | — | — | — | — | — | 1 | 3 | 4 | |
| Winter-storm-related costs | — | — | 2 | — | — | — | — | — | |
| Lower-of-cost-or-market inventory adjustments | — | — | — | 1 | — | — | — | 1 | |
| Asset dispositions | — | — | — | — | (84) | — | — | (84) | |
| EBITDA, Adjusted for Special Items* | 408 | 739 | 1,515 | 537 | 322 | 437 | 417 | 1,713 | |
| Other Adjustments (pre-tax): | |||||||||
| Proportional share of selected equity affiliates income taxes | 4 | 4 | 10 | 3 | 2 | 3 | 1 | 9 | |
| Proportional share of selected equity affiliates net interest | 43 | 42 | 128 | 39 | 36 | 42 | 44 | 161 | |
| Proportional share of selected equity affiliates depreciation and amortization | 57 | 58 | 172 | 60 | 52 | 56 | 56 | 224 | |
| Adjusted EBITDA attributable to joint venture partners' noncontrolling interests | (20) | (22) | (60) | — | — | (20) | (17) | (37) | |
| Adjusted EBITDA* | 492 | 821 | 1,765 | 639 | 412 | 518 | 501 | 2,070 | |
| * Includes an unrealized gain of 224 million associated with our investment in NOVONIX in the third quarter of 2021. | |||||||||
| Adjusted EBITDA by Business Line | |||||||||
| 100% PSXP Results | |||||||||
| Income (loss) before income taxes | 235 | 255 | 479 | 227 | 255 | 217 | 112 | 811 | |
| Plus: | |||||||||
| Net interest expense | 32 | 31 | 96 | 28 | 29 | 31 | 32 | 120 | |
| Depreciation and amortization | 34 | 38 | 106 | 30 | 31 | 35 | 39 | 135 | |
| EBITDA | 301 | 324 | 681 | 285 | 315 | 283 | 183 | 1,066 | |
| Special Item Adjustments (pre-tax): | |||||||||
| Impairments | — | 10 | 208 | — | — | — | 96 | 96 | |
| Hurricane-related costs* | — | — | — | — | — | 1 | 2 | 3 | |
| Asset dispositions | — | — | — | — | (84) | — | — | (84) | |
| EBITDA, Adjusted for Special Items** | 301 | 334 | 889 | 285 | 231 | 284 | 281 | 1,081 | |
| Other Adjustments (pre-tax): | |||||||||
| Proportional share of selected equity affiliates income taxes | 4 | 5 | 11 | 3 | 2 | 3 | 1 | 9 | |
| Proportional share of selected equity affiliates net interest | 14 | 13 | 41 | 9 | 9 | 13 | 15 | 46 | |
| Proportional share of selected equity affiliates depreciation and amortization | 33 | 33 | 99 | 25 | 29 | 31 | 33 | 118 | |
| Adjusted EBITDA attributable to joint venture partner's noncontrolling interest | (16) | (18) | (48) | — | — | (16) | (13) | (29) | |
| Adjusted EBITDA** | 336 | 367 | 992 | 322 | 271 | 315 | 317 | 1,225 | |
| * Represents a special item adjustment made for PSX reporting purposes only. | |||||||||
| ** Does not include certain PSXP adjustments made for PSXP stand-alone reporting purposes. |
All values are in US Dollars.
Page 6
| Phillips 66 Earnings Release Supplemental Data | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| MIDSTREAM (continued) | |||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| 2020 | |||||||||
| 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | |
| Total Transportation and NGL and Other | |||||||||
| Income before income taxes | 303 | 598 | 943 | 379 | 292 | 96 | 182 | 949 | |
| Plus: | |||||||||
| Depreciation and amortization | 92 | 97 | 281 | 77 | 77 | 83 | 94 | 331 | |
| EBITDA*† | 395 | 695 | 1,224 | 456 | 369 | 179 | 276 | 1,280 | |
| Special Item Adjustments (pre-tax): | |||||||||
| Impairments | — | 10 | 208 | — | — | 204 | 96 | 300 | |
| Pension settlement expense | 4 | 3 | 7 | — | 5 | 3 | 1 | 9 | |
| Hurricane-related costs | — | — | — | — | — | 1 | 3 | 4 | |
| Winter-storm-related costs | — | — | 2 | — | — | — | — | — | |
| Asset dispositions | — | — | — | — | (84) | — | — | (84) | |
| EBITDA, Adjusted for Special Items*† | 399 | 708 | 1,441 | 456 | 290 | 387 | 376 | 1,509 | |
| Other Adjustments (pre-tax): | |||||||||
| Proportional share of selected equity affiliates income taxes | 4 | 4 | 10 | 3 | 2 | 3 | 1 | 9 | |
| Proportional share of selected equity affiliates net interest | 21 | 21 | 63 | 17 | 16 | 20 | 22 | 75 | |
| Proportional share of selected equity affiliates depreciation and amortization | 42 | 43 | 127 | 34 | 38 | 40 | 40 | 152 | |
| Adjusted EBITDA attributable to joint venture partners' noncontrolling interests | (20) | (22) | (60) | — | — | (20) | (17) | (37) | |
| Adjusted EBITDA*† | 446 | 754 | 1,581 | 510 | 346 | 430 | 422 | 1,708 | |
| * Includes PSXP results. Does not include certain PSXP adjustments made for PSXP stand-alone reporting purposes. | |||||||||
| † Includes an unrealized gain of 224 million associated with our investment in NOVONIX in the third quarter of 2021. | |||||||||
| DCP Midstream | |||||||||
| Income (loss) before income taxes | 9 | 31 | 74 | (1,081) | 32 | 50 | 41 | (958) | |
| Plus: | |||||||||
| None | — | — | — | — | — | — | — | — | |
| EBITDA | 9 | 31 | 74 | (1,081) | 32 | 50 | 41 | (958) | |
| Special Item Adjustments (pre-tax): | |||||||||
| Impairments | — | — | — | 1,161 | — | — | — | 1,161 | |
| Lower-of-cost-or-market inventory adjustments | — | — | — | 1 | — | — | — | 1 | |
| EBITDA, Adjusted for Special Items | 9 | 31 | 74 | 81 | 32 | 50 | 41 | 204 | |
| Other Adjustments (pre-tax): | |||||||||
| Proportional share of selected equity affiliates income taxes | — | — | — | — | — | — | — | — | |
| Proportional share of selected equity affiliates net interest | 22 | 21 | 65 | 22 | 20 | 22 | 22 | 86 | |
| Proportional share of selected equity affiliates depreciation and amortization | 15 | 15 | 45 | 26 | 14 | 16 | 16 | 72 | |
| Adjusted EBITDA* | 46 | 67 | 184 | 129 | 66 | 88 | 79 | 362 | |
| * Proportional share of selected equity affiliates is net of noncontrolling interests. |
All values are in US Dollars.
Page 7
| Phillips 66 Earnings Release Supplemental Data | | --- || CHEMICALS | | | | | | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | Millions of Dollars, Except as Indicated | | | | | | | | | | | | | | | | | | | | | 2021 | | | | | | | | | 2020 | | | | | | | | | | | | 1st Qtr | | 2nd Qtr | | 3rd Qtr | | 4th Qtr | YTD | | 1st Qtr | | 2nd Qtr | | 3rd Qtr | | 4th Qtr | | YTD | | | Income before Income Taxes | 154 | | 623 | | 631 | | | 1,408 | | 169 | | 42 | | 231 | | 193 | | 635 | | | Equity in Earnings of Affiliate | 152 | | 620 | | 627 | | | 1,399 | | 166 | | 39 | | 229 | | 191 | | 625 | | | 100% CPChem Results | | | | | | | | | | | | | | | | | | | | | Net Income (Loss), excludes parent company income tax related to CPChem's earnings | | | | | | | | | | | | | | | | | | | | | Olefins and Polyolefins | 288 | | 1,124 | | 1,224 | | | 2,636 | | 354 | | 142 | | 488 | | 410 | | 1,394 | | | Specialties, Aromatics and Styrenics | 53 | | 157 | | 73 | | | 283 | | 9 | | — | | 23 | | 30 | | 62 | | | Corporate and Other | (37) | | (41) | | (44) | | | (122) | | (26) | | (59) | | (54) | | (57) | | (196) | | | Total | 304 | | 1,240 | | 1,253 | | | 2,797 | | 337 | | 83 | | 457 | | 383 | | 1,260 | | | Income (Loss) before Income Taxes | | | | | | | | | | | | | | | | | | | | | Olefins and Polyolefins | 299 | | 1,143 | | 1,237 | | | 2,679 | | 360 | | 142 | | 498 | | 416 | | 1,416 | | | Specialties, Aromatics and Styrenics | 58 | | 164 | | 80 | | | 302 | | 10 | | 3 | | 24 | | 33 | | 70 | | | Corporate and Other | (37) | | (41) | | (41) | | | (119) | | (26) | | (59) | | (54) | | (57) | | (196) | | | Total | 320 | | 1,266 | | 1,276 | | | 2,862 | | 344 | | 86 | | 468 | | 392 | | 1,290 | | | Depreciation and Amortization | 146 | | 144 | | 151 | | | 441 | | 148 | | 144 | | 146 | | 155 | | 593 | | | Net Interest Expense* | 22 | | 24 | | 24 | | | 70 | | 16 | | 24 | | 23 | | 21 | | 84 | | | * Net of interest income. | | | | | | | | | | | | | | | | | | | | | Investing Cash Flows—Outflows/(Inflows) | | | | | | | | | | | | | | | | | | | | | Capital Expenditures and Investments | 157 | | 144 | | 177 | | | 478 | | 252 | | 25 | | 130 | | 161 | | 568 | | | Repayments from Equity Companies | — | | — | | — | | | — | | (21) | | — | | — | | (29) | | (50) | | | Return of Investments from Equity Companies | (30) | | (107) | | (82) | | | (219) | | (25) | | — | | — | | — | | (25) | | | Olefins and Polyolefins Capacity Utilization (%) | 79 | % | 102 | % | 102 | % | | 94 | % | 98 | % | 103 | % | 94 | % | 101 | % | 99 | % | | Market Indicators* | | | | | | | | | | | | | | | | | | | | | U.S. Industry Prices | | | | | | | | | | | | | | | | | | | | | Ethylene, Average Acquisition Contract (cents/lb) | 41.9 | | 41.1 | | 45.6 | | | 42.9 | | 19.7 | | 17.1 | | 23.8 | | 27.7 | | 22.1 | | | HDPE Blow Molding, Domestic Spot (cents/lb) | 71.9 | | 88.3 | | 98.8 | | | 86.4 | | 40.0 | | 35.5 | | 45.6 | | 53.6 | | 43.7 | | | U.S. Industry Costs | | | | | | | | | | | | | | | | | | | | | Ethylene, Cash Cost Weighted Average Feed (cents/lb) | 13.2 | | 12.5 | | 16.1 | | | 14.0 | | 8.8 | | 11.7 | | 13.1 | | 12.6 | | 11.5 | | | HDPE Blow Molding, Total Cash Cost (cents/lb) | 55.7 | | 54.9 | | 59.7 | | | 56.8 | | 32.9 | | 30.2 | | 37.1 | | 41.2 | | 35.3 | | | Ethylene to High-Density Polyethylene Chain Cash Margin (cents/lb) | 44.9 | | 62.0 | | 68.6 | | | 58.5 | | 18.0 | | 10.7 | | 19.2 | | 27.5 | | 18.9 | | | * Source: IHS, Inc. | | | | | | | | | | | | | | | | | | | | | Reconciliation of Chemicals Income before Income Taxes to Adjusted EBITDA | | | | | | | | | | | | | | | | | | | | | Income before income taxes | 154 | | 623 | | 631 | | | 1,408 | | 169 | | 42 | | 231 | | 193 | | 635 | | | Plus: | | | | | | | | | | | | | | | | | | | | | None | — | | — | | — | | | — | | — | | — | | — | | — | | — | | | EBITDA | 154 | | 623 | | 631 | | | 1,408 | | 169 | | 42 | | 231 | | 193 | | 635 | | | Special Item Adjustments (pre-tax): | | | | | | | | | | | | | | | | | | | | | Impairments by equity affiliates | — | | — | | — | | | — | | — | | 15 | | — | | — | | 15 | | | Pension settlement expense | — | | 18 | | 2 | | | 20 | | — | | — | | — | | 21 | | 21 | | | Hurricane-related costs | — | | — | | 1 | | | 1 | | — | | — | | 2 | | 1 | | 3 | | | Winter-storm-related costs | 30 | | 16 | | — | | | 46 | | — | | — | | — | | — | | — | | | Lower-of-cost-or-market inventory adjustments | — | | — | | — | | | — | | 24 | | 32 | | (101) | | (12) | | (57) | | | EBITDA, Adjusted for Special Items | 184 | | 657 | | 634 | | | 1,475 | | 193 | | 89 | | 132 | | 203 | | 617 | | | Other Adjustments (pre-tax): | | | | | | | | | | | | | | | | | | | | | Proportional share of selected equity affiliates income taxes | 28 | | 48 | | 33 | | | 109 | | 13 | | 5 | | 14 | | 15 | | 47 | | | Proportional share of selected equity affiliates net interest | 11 | | 12 | | 12 | | | 35 | | 9 | | 11 | | 12 | | 12 | | 44 | | | Proportional share of selected equity affiliates depreciation and amortization | 103 | | 102 | | 102 | | | 307 | | 106 | | 105 | | 104 | | 108 | | 423 | | | Adjusted EBITDA | 326 | | 819 | | 781 | | | 1,926 | | 321 | | 210 | | 262 | | 338 | | 1,131 | |
Page 8
| Phillips 66 Earnings Release Supplemental Data | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| REFINING | |||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| 2020 | |||||||||
| 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | |
| Income (Loss) before Income Taxes | |||||||||
| Atlantic Basin/Europe | (110) | 90 | (173) | (637) | (227) | (199) | (161) | (1,224) | |
| Gulf Coast | (264) | (1,333) | (1,850) | (843) | (365) | (405) | (464) | (2,077) | |
| Central Corridor | (82) | 229 | (101) | (227) | (104) | (132) | (178) | (641) | |
| West Coast | (273) | (112) | (771) | (554) | (182) | (1,167) | (310) | (2,213) | |
| Income (Loss) before Income Taxes | (729) | (1,126) | (2,895) | (2,261) | (878) | (1,903) | (1,113) | (6,155) | |
| Income (Loss) before Income Taxes (/BBL) | |||||||||
| Atlantic Basin/Europe | (2.20) | 1.88 | (1.23) | (15.41) | (5.80) | (4.61) | (3.43) | (7.18) | |
| Gulf Coast | (3.81) | (20.82) | (9.84) | (13.16) | (5.98) | (7.86) | (12.46) | (9.71) | |
| Central Corridor | (3.49) | 8.68 | (1.45) | (9.72) | (5.01) | (5.35) | (7.66) | (6.96) | |
| West Coast | (9.70) | (3.67) | (9.11) | (19.87) | (7.07) | (38.12) | (11.75) | (20.01) | |
| Worldwide | (4.26) | (6.67) | (6.00) | (14.44) | (5.99) | (12.69) | (8.32) | (10.48) | |
| Realized Refining Margins (/BBL)* | |||||||||
| Atlantic Basin/Europe | 4.63 | 9.27 | 6.28 | 2.38 | 1.53 | 1.65 | 2.99 | 2.17 | |
| Gulf Coast | 2.10 | 5.75 | 3.72 | 6.76 | 0.36 | (0.61) | (0.78) | 1.85 | |
| Central Corridor | 6.40 | 12.47 | 8.53 | 13.50 | 5.78 | 4.46 | 4.27 | 7.17 | |
| West Coast | 3.37 | 7.46 | 4.83 | 4.80 | 5.05 | 2.23 | 1.79 | 3.43 | |
| Worldwide | 3.92 | 8.57 | 5.68 | 7.11 | 2.60 | 1.78 | 2.18 | 3.51 | |
| * 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) | (7) | (2) | (3) | (2) | (3) | (10) | |
| Gulf Coast | — | (1) | (4) | 1 | 1 | (1) | (4) | (3) | |
| Central Corridor | (65) | 31 | (151) | (51) | (79) | (118) | (115) | (363) | |
| West Coast | — | — | — | — | — | — | — | — | |
| Total | (67) | 27 | (162) | (52) | (81) | (121) | (122) | (376) | |
| Depreciation and Amortization* | |||||||||
| Atlantic Basin/Europe | 52 | 52 | 156 | 51 | 49 | 50 | 51 | 201 | |
| Gulf Coast | 77 | 73 | 227 | 71 | 75 | 75 | 75 | 296 | |
| Central Corridor | 34 | 34 | 102 | 34 | 33 | 33 | 33 | 133 | |
| West Coast | 57 | 57 | 168 | 65 | 63 | 64 | 57 | 249 | |
| Total | 220 | 216 | 653 | 221 | 220 | 222 | 216 | 879 | |
| * Excludes D&A of all equity affiliates. | |||||||||
| Operating and SG&A Expenses* | |||||||||
| Atlantic Basin/Europe | 235 | 258 | 737 | 207 | 202 | 186 | 223 | 818 | |
| Gulf Coast | 313 | 327 | 971 | 499 | 287 | 269 | 338 | 1,393 | |
| Central Corridor | 132 | 136 | 480 | 142 | 127 | 118 | 139 | 526 | |
| West Coast | 291 | 277 | 961 | 293 | 225 | 244 | 276 | 1,038 | |
| Total | 971 | 998 | 3,149 | 1,141 | 841 | 817 | 976 | 3,775 | |
| * Excludes operating and SG&A expenses of all equity affiliates. | |||||||||
| Turnaround Expense, included in Operating and SG&A Expenses* | |||||||||
| Atlantic Basin/Europe | 13 | 32 | 62 | 16 | 9 | 11 | 12 | 48 | |
| Gulf Coast | 9 | 24 | 66 | 240 | 13 | 8 | 24 | 285 | |
| Central Corridor | 36 | 13 | 66 | 15 | 3 | 6 | 9 | 33 | |
| West Coast | 60 | 12 | 197 | 58 | 13 | 16 | 31 | 118 | |
| Total | 118 | 81 | 391 | 329 | 38 | 41 | 76 | 484 | |
| * Excludes turnaround expense of all equity affiliates. | |||||||||
| Taxes Other than Income Taxes | |||||||||
| Atlantic Basin/Europe | 18 | 15 | 53 | 19 | 15 | 14 | 13 | 61 | |
| Gulf Coast | 25 | 13 | 65 | 37 | 25 | 30 | 15 | 107 | |
| Central Corridor | 11 | 12 | 38 | 17 | 14 | 11 | 9 | 51 | |
| West Coast | 22 | 4 | 49 | 31 | 22 | 16 | 20 | 89 | |
| Total | 76 | 44 | 205 | 104 | 76 | 71 | 57 | 308 | |
| Foreign Currency Gains (Losses) Pre-Tax | 9 | (4) | 6 | 1 | (5) | 1 | (1) | (4) | |
| Refining—Equity Affiliate Information | |||||||||
| Equity in earnings (losses) of affiliates | (67) | 27 | (162) | (52) | (81) | (121) | (122) | (376) | |
| Less: Share of equity affiliate gross margin included in Realized Refining Margin and other equity affiliate-related costs* | (167) | (220) | (516) | (156) | (72) | (70) | (54) | (352) | |
| Equity affiliate-related expenses not included in Realized Refining Margins | (234) | (193) | (678) | (208) | (153) | (191) | (176) | (728) | |
| Regional Totals | |||||||||
| Atlantic Basin/Europe | (44) | (22) | (111) | (11) | (16) | (28) | (9) | (64) | |
| Gulf Coast | — | (1) | (4) | 2 | — | (1) | (4) | (3) | |
| Central Corridor | (190) | (170) | (563) | (199) | (137) | (162) | (163) | (661) | |
| Total | (234) | (193) | (678) | (208) | (153) | (191) | (176) | (728) | |
| * Other costs associated with equity affiliates which do not flow through equity earnings (losses). |
All values are in US Dollars.
Page 9
| Phillips 66 Earnings Release Supplemental Data | ||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| REFINING (continued) | ||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| 2020 | ||||||||||||||||||
| 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | ||||||||||
| Reconciliation of Refining Loss before Income Taxes to Adjusted EBITDA ( Millions) | ||||||||||||||||||
| Loss before income taxes | (729) | (1,126) | (2,895) | (2,261) | (878) | (1,903) | (1,113) | (6,155) | ||||||||||
| Plus: | ||||||||||||||||||
| Depreciation and amortization | 220 | 216 | 653 | 221 | 220 | 222 | 216 | 879 | ||||||||||
| EBITDA | (509) | (910) | (2,242) | (2,040) | (658) | (1,681) | (897) | (5,276) | ||||||||||
| Special Item Adjustments (pre-tax): | ||||||||||||||||||
| Impairments | — | 1,288 | 1,288 | 1,845 | — | 910 | — | 2,755 | ||||||||||
| Certain tax impacts | — | — | — | — | — | — | (6) | (6) | ||||||||||
| Pension settlement expense | 20 | 12 | 32 | — | 26 | 12 | 3 | 41 | ||||||||||
| Hurricane-related costs | — | 10 | 10 | — | — | 11 | 22 | 33 | ||||||||||
| Winter-storm-related costs | 3 | — | 17 | — | — | — | — | — | ||||||||||
| Lower-of-cost-or-market inventory adjustments | — | — | — | 15 | (15) | — | — | — | ||||||||||
| EBITDA, Adjusted for Special Items | (486) | 400 | (895) | (180) | (647) | (748) | (878) | (2,453) | ||||||||||
| Other Adjustments (pre-tax): | ||||||||||||||||||
| Proportional share of selected equity affiliates income taxes | (1) | — | (3) | — | (1) | — | (1) | (2) | ||||||||||
| Proportional share of selected equity affiliates net interest | 2 | 1 | 5 | — | 1 | 1 | 1 | 3 | ||||||||||
| Proportional share of selected equity affiliates depreciation and amortization | 26 | 27 | 78 | 32 | 26 | 23 | 24 | 105 | ||||||||||
| Adjusted EBITDA | (459) | 428 | (815) | (148) | (621) | (724) | (854) | (2,347) | ||||||||||
| Operating Statistics | ||||||||||||||||||
| Atlantic Basin/Europe* | ||||||||||||||||||
| Crude Oil Charge Input (MB/D) | 513 | 487 | 479 | 437 | 402 | 432 | 466 | 434 | ||||||||||
| Total Processed Inputs (MB/D) | 549 | 519 | 515 | 454 | 430 | 469 | 510 | 466 | ||||||||||
| Crude Oil Capacity Utilization (%) | % | 96 | % | 91 | % | 89 | % | 81 | % | 75 | % | 81 | % | 87 | % | 81 | % | |
| Clean Product Yield (%) | % | 83 | % | 84 | % | 84 | % | 83 | % | 82 | % | 83 | % | 87 | % | 84 | % | |
| * Includes our proportionate share of a refinery complex in Karlsruhe, Germany. | ||||||||||||||||||
| Gulf Coast | ||||||||||||||||||
| Crude Oil Charge Input (MB/D) | 687 | 623 | 621 | 645 | 609 | 506 | 371 | 533 | ||||||||||
| Total Processed Inputs (MB/D) | 762 | 697 | 689 | 704 | 671 | 560 | 404 | 584 | ||||||||||
| Crude Oil Capacity Utilization (%) | % | 88 | % | 80 | % | 79 | % | 84 | % | 79 | % | 66 | % | 48 | % | 69 | % | |
| Clean Product Yield (%) | % | 78 | % | 78 | % | 76 | % | 71 | % | 79 | % | 82 | % | 79 | % | 77 | % | |
| Central Corridor* | ||||||||||||||||||
| Crude Oil Charge Input (MB/D) | 462 | 493 | 447 | 471 | 386 | 455 | 414 | 431 | ||||||||||
| Total Processed Inputs (MB/D) | 475 | 506 | 460 | 487 | 396 | 467 | 428 | 445 | ||||||||||
| Crude Oil Capacity Utilization (%) | % | 87 | % | 93 | % | 84 | % | 89 | % | 73 | % | 86 | % | 78 | % | 81 | % | |
| Clean Product Yield (%) | % | 87 | % | 88 | % | 87 | % | 88 | % | 87 | % | 89 | % | 89 | % | 89 | % | |
| * Includes our proportionate share of the Borger Refinery and Wood River Refinery. | ||||||||||||||||||
| West Coast | ||||||||||||||||||
| Crude Oil Charge Input (MB/D) | 286 | 302 | 286 | 279 | 263 | 311 | 263 | 279 | ||||||||||
| Total Processed Inputs (MB/D) | 309 | 332 | 309 | 306 | 283 | 333 | 287 | 302 | ||||||||||
| Crude Oil Capacity Utilization (%) | % | 79 | % | 83 | % | 78 | % | 77 | % | 72 | % | 85 | % | 72 | % | 77 | % | |
| Clean Product Yield (%) | % | 83 | % | 90 | % | 86 | % | 93 | % | 87 | % | 89 | % | 91 | % | 90 | % | |
| Worldwide—Including Proportionate Share of Equity Affiliates | ||||||||||||||||||
| Crude Oil Charge Input (MB/D) | 1,948 | 1,905 | 1,833 | 1,832 | 1,660 | 1,704 | 1,514 | 1,677 | ||||||||||
| Total Processed Inputs (MB/D) | 2,095 | 2,054 | 1,973 | 1,951 | 1,780 | 1,829 | 1,629 | 1,797 | ||||||||||
| Crude Oil Capacity Utilization (%) | % | 88 | % | 86 | % | 83 | % | 83 | % | 75 | % | 77 | % | 69 | % | 76 | % | |
| Clean Product Yield (%) | % | 82 | % | 84 | % | 82 | % | 82 | % | 83 | % | 85 | % | 86 | % | 84 | % |
All values are in US Dollars.
Page 10
| Phillips 66 Earnings Release Supplemental Data | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| REFINING (continued) | |||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| 2020 | |||||||||
| 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 | 232 | 232 | 191 | 178 | 207 | 241 | 204 | |
| Distillates | 197 | 188 | 187 | 174 | 160 | 168 | 187 | 172 | |
| Other | 113 | 103 | 100 | 91 | 95 | 98 | 89 | 94 | |
| Total | 552 | 523 | 519 | 456 | 433 | 473 | 517 | 470 | |
| * Includes our proportionate share of a refinery complex in Karlsruhe, Germany. | |||||||||
| Gulf Coast | |||||||||
| Gasoline | 310 | 281 | 270 | 234 | 277 | 247 | 157 | 229 | |
| Distillates | 257 | 235 | 231 | 248 | 231 | 187 | 147 | 203 | |
| Other | 196 | 184 | 188 | 221 | 167 | 129 | 100 | 154 | |
| Total | 763 | 700 | 689 | 703 | 675 | 563 | 404 | 586 | |
| Central Corridor* | |||||||||
| Gasoline | 227 | 255 | 224 | 245 | 183 | 241 | 214 | 221 | |
| Distillates | 183 | 187 | 173 | 183 | 161 | 173 | 166 | 171 | |
| Other | 65 | 68 | 64 | 60 | 52 | 55 | 50 | 54 | |
| Total | 475 | 510 | 461 | 488 | 396 | 469 | 430 | 446 | |
| * Includes our proportionate share of the Borger Refinery and Wood River Refinery. | |||||||||
| West Coast | |||||||||
| Gasoline | 138 | 166 | 148 | 151 | 126 | 159 | 144 | 145 | |
| Distillates | 118 | 131 | 119 | 134 | 121 | 137 | 117 | 127 | |
| Other | 51 | 32 | 41 | 21 | 33 | 38 | 24 | 29 | |
| Total | 307 | 329 | 308 | 306 | 280 | 334 | 285 | 301 | |
| Worldwide—Including Proportionate Share of Equity Affiliates | |||||||||
| Gasoline | 917 | 934 | 874 | 821 | 764 | 854 | 756 | 799 | |
| Distillates | 755 | 741 | 710 | 739 | 673 | 665 | 617 | 673 | |
| Other | 425 | 387 | 393 | 393 | 347 | 320 | 263 | 331 | |
| Total | 2,097 | 2,062 | 1,977 | 1,953 | 1,784 | 1,839 | 1,636 | 1,803 | |
| Market Indicators* | |||||||||
| Crude and Crude Differentials (/BBL) | |||||||||
| WTI | 66.09 | 70.58 | 64.84 | 45.97 | 27.80 | 40.91 | 42.56 | 39.31 | |
| Brent | 68.83 | 73.47 | 67.73 | 50.26 | 29.20 | 43.00 | 44.23 | 41.67 | |
| LLS | 67.95 | 71.51 | 66.48 | 48.30 | 30.07 | 42.46 | 44.05 | 41.22 | |
| ANS | 68.44 | 72.73 | 67.31 | 51.40 | 30.37 | 42.74 | 44.82 | 42.33 | |
| WTI less Maya | 3.21 | 4.37 | 3.01 | 4.81 | 3.40 | 1.72 | 2.02 | 2.99 | |
| WTI less WCS (settlement differential) | 11.49 | 13.58 | 12.51 | 20.53 | 11.47 | 9.09 | 9.31 | 12.60 | |
| Natural Gas (/MMBtu) | |||||||||
| Henry Hub | 2.88 | 4.28 | 3.56 | 1.88 | 1.65 | 1.95 | 2.47 | 1.99 | |
| Product Margins (/BBL) | |||||||||
| Atlantic Basin/Europe | |||||||||
| East Coast Gasoline less Brent | 18.61 | 21.15 | 17.16 | 4.84 | 7.87 | 9.52 | 7.48 | 7.43 | |
| East Coast Distillate less Brent | 15.24 | 16.07 | 14.47 | 14.93 | 10.95 | 7.17 | 9.51 | 10.64 | |
| Gulf Coast | |||||||||
| Gulf Coast Gasoline less LLS | 15.47 | 18.61 | 15.10 | 4.97 | 3.66 | 5.88 | 5.10 | 4.90 | |
| Gulf Coast Distillate less LLS | 14.03 | 15.87 | 13.73 | 13.86 | 8.04 | 6.10 | 8.14 | 9.03 | |
| Central Corridor | |||||||||
| Central Gasoline less WTI | 19.96 | 20.83 | 18.57 | 7.70 | 6.18 | 8.15 | 5.76 | 6.95 | |
| Central Distillate less WTI | 18.40 | 19.38 | 18.34 | 17.34 | 11.41 | 8.55 | 11.21 | 12.13 | |
| West Coast | |||||||||
| West Coast Gasoline less ANS | 24.76 | 23.54 | 21.73 | 13.32 | 9.36 | 13.12 | 10.76 | 11.64 | |
| West Coast Distillate less ANS | 15.28 | 18.55 | 15.99 | 17.22 | 10.36 | 9.34 | 12.74 | 12.42 | |
| Worldwide Market Crack Spread (/BBL)** | 17.76 | 19.44 | 16.81 | 9.82 | 7.47 | 8.17 | 7.84 | 8.33 | |
| * 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 | |||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| 2020 | |||||||||
| 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | |
| Income before Income Taxes | |||||||||
| Marketing and Other | 389 | 452 | 1,052 | 471 | 255 | 365 | 180 | 1,271 | |
| Specialties | 87 | 93 | 259 | 42 | 31 | 50 | 52 | 175 | |
| Income before Income Taxes | 476 | 545 | 1,311 | 513 | 286 | 415 | 232 | 1,446 | |
| Income before Income Taxes (/BBL) | |||||||||
| U.S. | 2.15 | 1.93 | 1.84 | 1.79 | 1.24 | 1.74 | 0.83 | 1.42 | |
| International | 1.96 | 4.84 | 3.09 | 6.58 | 3.48 | 5.01 | 3.91 | 4.84 | |
| Realized Marketing Fuel Margins (/BBL)* | |||||||||
| U.S. | 2.62 | 2.29 | 2.30 | 2.08 | 1.75 | 2.23 | 1.37 | 1.87 | |
| International | 2.89 | 6.75 | 4.63 | 8.53 | 5.07 | 6.28 | 5.07 | 6.34 | |
| * See note on the use of non-GAAP measures. Also, reconciliations of income before income taxes to realized marketing fuel margin for each period and by region are included in the "Realized Margin Non-GAAP Reconciliations" section. | |||||||||
| Other Realized Margins and Revenues not included in Marketing Fuel Margins* | |||||||||
| Marketing and Other | 138 | 111 | 353 | 117 | 123 | 107 | 104 | 451 | |
| Specialties | 64 | 61 | 209 | 81 | 56 | 83 | 64 | 284 | |
| Total | 202 | 172 | 562 | 198 | 179 | 190 | 168 | 735 | |
| * Excludes gain on dispositions and excise taxes on sales of refined petroleum products. | |||||||||
| Equity in Earnings of Affiliates | |||||||||
| Marketing and Other | 46 | 48 | 120 | 22 | 38 | 42 | 37 | 139 | |
| Specialties | 59 | 68 | 159 | — | 10 | 3 | 29 | 42 | |
| Total | 105 | 116 | 279 | 22 | 48 | 45 | 66 | 181 | |
| Depreciation and Amortization* | |||||||||
| Marketing and Other | 24 | 23 | 70 | 20 | 21 | 21 | 22 | 84 | |
| Specialties | 6 | 4 | 14 | 5 | 4 | 5 | 5 | 19 | |
| Total | 30 | 27 | 84 | 25 | 25 | 26 | 27 | 103 | |
| * Excludes D&A of all equity affiliates. | |||||||||
| Operating and SG&A Expenses* | |||||||||
| Marketing and Other | 284 | 280 | 822 | 211 | 232 | 259 | 263 | 965 | |
| Specialties | 30 | 30 | 89 | 31 | 30 | 30 | 35 | 126 | |
| Total | 314 | 310 | 911 | 242 | 262 | 289 | 298 | 1,091 | |
| * Excludes operating and SG&A expenses of all equity affiliates. | |||||||||
| Refined Petroleum Products Sales (MB/D) | |||||||||
| U.S. Marketing | |||||||||
| Gasoline | 1,095 | 1,098 | 1,052 | 984 | 881 | 997 | 922 | 946 | |
| Distillates | 776 | 895 | 778 | 854 | 707 | 698 | 667 | 731 | |
| Other | — | — | — | — | — | — | — | — | |
| Total | 1,871 | 1,993 | 1,830 | 1,838 | 1,588 | 1,695 | 1,589 | 1,677 | |
| International Marketing | |||||||||
| Gasoline | 81 | 91 | 78 | 82 | 60 | 83 | 74 | 75 | |
| Distillates | 171 | 179 | 169 | 183 | 140 | 165 | 168 | 164 | |
| Other | 18 | 17 | 18 | 20 | 15 | 15 | 20 | 17 | |
| Total | 270 | 287 | 265 | 285 | 215 | 263 | 262 | 256 | |
| Worldwide Marketing | |||||||||
| Gasoline | 1,176 | 1,189 | 1,130 | 1,066 | 941 | 1,080 | 996 | 1,021 | |
| Distillates | 947 | 1,074 | 947 | 1,037 | 847 | 863 | 835 | 895 | |
| Other | 18 | 17 | 18 | 20 | 15 | 15 | 20 | 17 | |
| Total | 2,141 | 2,280 | 2,095 | 2,123 | 1,803 | 1,958 | 1,851 | 1,933 | |
| Foreign Currency Gains (Losses) Pre-Tax | 1 | — | 1 | 1 | — | (1) | — | — | |
| Reconciliation of Marketing and Specialties Income before Income Taxes to Adjusted EBITDA | |||||||||
| Income before income taxes | 476 | 545 | 1,311 | 513 | 286 | 415 | 232 | 1,446 | |
| Plus: | |||||||||
| Depreciation and amortization | 30 | 27 | 84 | 25 | 25 | 26 | 27 | 103 | |
| EBITDA | 506 | 572 | 1,395 | 538 | 311 | 441 | 259 | 1,549 | |
| Special Item Adjustments (pre-tax): | |||||||||
| Pending claims and settlements | — | — | — | (37) | — | — | — | (37) | |
| Pension settlement expense | 3 | 2 | 5 | — | 4 | 1 | 1 | 6 | |
| Hurricane-related costs | — | — | — | — | — | 1 | 2 | 3 | |
| Lower-of-cost-or-market inventory adjustments | — | — | — | 12 | 3 | — | (14) | 1 | |
| EBITDA, Adjusted for Special Items | 509 | 574 | 1,400 | 513 | 318 | 443 | 248 | 1,522 | |
| Other Adjustments (pre-tax): | |||||||||
| Proportional share of selected equity affiliates income taxes | 6 | 7 | 18 | 4 | 6 | 7 | 6 | 23 | |
| Proportional share of selected equity affiliates net interest | 4 | 4 | 12 | 6 | 5 | 4 | 3 | 18 | |
| Proportional share of selected equity affiliates depreciation and amortization | 17 | 17 | 51 | 17 | 14 | 16 | 17 | 64 | |
| Adjusted EBITDA | 536 | 602 | 1,481 | 540 | 343 | 470 | 274 | 1,627 |
All values are in US Dollars.
Page 12
| Phillips 66 Earnings Release Supplemental Data | ||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| CORPORATE AND OTHER | ||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| 2020 | ||||||||||||||||||
| 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | ||||||||||
| Loss before Income Taxes | (246) | (231) | (728) | (197) | (219) | (239) | (226) | (881) | ||||||||||
| Detail of Loss before Income Taxes | ||||||||||||||||||
| Net interest expense | (141) | (148) | (432) | (103) | (114) | (131) | (137) | (485) | ||||||||||
| Corporate overhead and other | (105) | (83) | (296) | (94) | (105) | (108) | (89) | (396) | ||||||||||
| Total | (246) | (231) | (728) | (197) | (219) | (239) | (226) | (881) | ||||||||||
| Net Interest Expense | ||||||||||||||||||
| Interest expense | (148) | (159) | (457) | (137) | (139) | (150) | (148) | (574) | ||||||||||
| Capitalized interest | 5 | 8 | 17 | 26 | 22 | 18 | 9 | 75 | ||||||||||
| Interest income | 2 | 3 | 8 | 8 | 3 | 1 | 2 | 14 | ||||||||||
| Total | (141) | (148) | (432) | (103) | (114) | (131) | (137) | (485) | ||||||||||
| Reconciliation of Corporate and Other Loss before Income Taxes to Adjusted EBITDA | ||||||||||||||||||
| Loss before income taxes | (246) | (231) | (728) | (197) | (219) | (239) | (226) | (881) | ||||||||||
| Plus: | ||||||||||||||||||
| Net interest expense | 141 | 148 | 432 | 103 | 114 | 131 | 137 | 485 | ||||||||||
| Depreciation and amortization | 22 | 21 | 63 | 19 | 21 | 21 | 21 | 82 | ||||||||||
| EBITDA | (83) | (62) | (233) | (75) | (84) | (87) | (68) | (314) | ||||||||||
| Special Item Adjustments (pre-tax): | ||||||||||||||||||
| Impairments | — | — | — | — | — | 25 | — | 25 | ||||||||||
| Pension settlement expense | 2 | 1 | 3 | — | 3 | 1 | — | 4 | ||||||||||
| Asset dispositions | — | — | — | — | — | — | (9) | (9) | ||||||||||
| EBITDA, Adjusted for Special Items | (81) | (61) | (230) | (75) | (81) | (61) | (77) | (294) | ||||||||||
| Other Adjustments (pre-tax): | ||||||||||||||||||
| None | — | — | — | — | — | — | — | — | ||||||||||
| Adjusted EBITDA | (81) | (61) | (230) | (75) | (81) | (61) | (77) | (294) | ||||||||||
| Foreign Currency Losses Pre-Tax | (1) | — | (2) | (2) | (1) | (4) | (1) | (8) | ||||||||||
| Phillips 66 Total Company Debt | ||||||||||||||||||
| Total Debt | 15,413 | 14,910 | 14,910 | 12,963 | 14,446 | 14,526 | 15,893 | 15,893 | ||||||||||
| Debt-to-Capital Ratio (%) | % | 43 | % | 42 | % | 42 | % | 35 | % | 38 | % | 39 | % | 42 | % | 42 | % | |
| Total Equity | 20,602 | 20,597 | 20,597 | 23,639 | 23,295 | 22,305 | 21,523 | 21,523 | ||||||||||
| RECONCILIATION OF CONSOLIDATED NET INCOME (LOSS) TO ADJUSTED EBITDA ATTRIBUTABLE TO PHILLIPS 66 | ||||||||||||||||||
| 2020 | ||||||||||||||||||
| 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | ||||||||||
| Net income (loss) | 374 | 488 | 223 | (2,427) | (67) | (726) | (494) | (3,714) | ||||||||||
| Plus: | ||||||||||||||||||
| Income tax expense (benefit) | 62 | (40) | (110) | (51) | (378) | (624) | (197) | (1,250) | ||||||||||
| Net interest expense | 141 | 148 | 432 | 103 | 114 | 131 | 137 | 485 | ||||||||||
| Depreciation and amortization | 364 | 361 | 1,081 | 342 | 343 | 352 | 358 | 1,395 | ||||||||||
| Phillips 66 EBITDA* | 941 | 957 | 1,626 | (2,033) | 12 | (867) | (196) | (3,084) | ||||||||||
| Special Item Adjustments (pre-tax): | ||||||||||||||||||
| Impairments | — | 1,298 | 1,496 | 3,006 | — | 1,139 | 96 | 4,241 | ||||||||||
| Impairments by equity affiliates | — | — | — | — | 15 | — | — | 15 | ||||||||||
| Pending claims and settlements | — | — | — | (37) | — | — | — | (37) | ||||||||||
| Certain tax impacts | — | — | — | — | — | — | (6) | (6) | ||||||||||
| Pension settlement expense | 47 | 20 | 67 | — | 38 | 17 | 26 | 81 | ||||||||||
| Hurricane-related costs | — | 11 | 11 | — | — | 15 | 28 | 43 | ||||||||||
| Winter-storm-related costs | 19 | — | 65 | — | — | — | — | — | ||||||||||
| Lower-of-cost-or-market inventory adjustments | — | — | — | 52 | 20 | (101) | (26) | (55) | ||||||||||
| Asset dispositions | — | — | — | — | (84) | — | (9) | (93) | ||||||||||
| Phillips 66 EBITDA, Adjusted for Special Items* | 1,007 | 2,286 | 3,265 | 988 | 1 | 203 | (87) | 1,105 | ||||||||||
| Other Adjustments (pre-tax): | ||||||||||||||||||
| Proportional share of selected equity affiliates income taxes | 57 | 44 | 134 | 20 | 12 | 24 | 21 | 77 | ||||||||||
| Proportional share of selected equity affiliates net interest | 61 | 59 | 180 | 54 | 53 | 59 | 60 | 226 | ||||||||||
| Proportional share of selected equity affiliates depreciation and amortization | 202 | 204 | 608 | 215 | 197 | 199 | 205 | 816 | ||||||||||
| Adjusted EBITDA attributable to joint venture partners' noncontrolling interests | (20) | (22) | (60) | — | — | (20) | (17) | (37) | ||||||||||
| Adjusted EBITDA attributable to public ownership interest in PSXP | (95) | (103) | (281) | (95) | (80) | (87) | (91) | (353) | ||||||||||
| Phillips 66 Adjusted EBITDA* | 1,212 | 2,468 | 3,846 | 1,182 | 183 | 378 | 91 | 1,834 | ||||||||||
| * Includes an unrealized gain of 224 million associated with our investment in NOVONIX in the third quarter of 2021. | ||||||||||||||||||
| Use of Non-GAAP Financial Information—This earnings release supplemental data includes the terms "EBITDA," "adjusted EBITDA," "realized refining margin per barrel," "realized marketing fuel margin per barrel," and "adjusted capital spending." These are non-GAAP financial measures. EBITDA and adjusted EBITDA are included to help facilitate comparisons of operating performance across periods, to help facilitate comparisons with other companies in our industry and to help facilitate determination of enterprise value. The GAAP measures most directly comparable to EBITDA and adjusted EBITDA are net income for consolidated company information and income before income taxes for segment information. Reconciliations of net income (loss) and income (loss) before income taxes to EBITDA and adjusted EBITDA are included in this earnings release supplemental data. Realized refining margin per barrel is calculated on a similar basis as industry crack spreads and we believe it provides a useful measure of how well we performed relative to benchmark industry margins. Realized marketing fuel margin per barrel demonstrates the value uplift our marketing operations provide by optimizing the placement and ultimate sale of our refineries' fuel production. The GAAP measure most directly comparable to both realized margin per barrel measures is income before income taxes per barrel. Reconciliations of income (loss) before income taxes per barrel to realized refining margin and realized marketing fuel margin are included in this earnings release supplemental data. Adjusted capital spending is a non-GAAP financial measure that demonstrates the portion of total consolidated capital expenditures and investments funded by Phillips 66. The GAAP financial measure most comparable to adjusted capital spending is capital expenditures and investments. A reconciliation of capital expenditures and investments to adjusted capital spending is included in this earnings release supplemental data. Adjusted effective tax rate demonstrates the effective tax rate with the consideration of the tax effect on special items. The GAAP financial measure most comparable to adjusted effective tax rate is effective tax rate. A reconciliation of effective tax rate to adjusted effective tax rate is included in this earnings release supplemental data. |
All values are in US Dollars.
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| Phillips 66 Earnings Release Supplemental Data | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| REALIZED MARGIN NON-GAAP RECONCILIATIONS | |||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| RECONCILIATION OF INCOME (LOSS) BEFORE INCOME TAXES TO REALIZED REFINING MARGINS | |||||||||
| 2020 | |||||||||
| 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | |
| ATLANTIC BASIN/OPE | |||||||||
| Income (loss) before income taxes | (110) | 90 | (173) | (637) | (227) | (199) | (161) | (1,224) | |
| Plus: | |||||||||
| Taxes other than income taxes | 18 | 15 | 53 | 19 | 15 | 14 | 13 | 61 | |
| Depreciation, amortization and impairments | 52 | 52 | 156 | 492 | 49 | 50 | 52 | 643 | |
| Selling, general and administrative expenses | 18 | 19 | 51 | 13 | 12 | 6 | 13 | 44 | |
| Operating expenses | 217 | 239 | 686 | 194 | 190 | 180 | 210 | 774 | |
| Equity in losses of affiliates | 2 | 3 | 7 | 2 | 3 | 2 | 3 | 10 | |
| Other segment (income) expense, net | (8) | 6 | (2) | (2) | 3 | — | — | 1 | |
| Proportional share of refining gross margins contributed by equity affiliates | 42 | 19 | 104 | 16 | 16 | 18 | 17 | 67 | |
| Special items: | |||||||||
| Certain tax impacts | — | — | — | — | — | — | (6) | (6) | |
| Realized refining margins | 231 | 443 | 882 | 97 | 61 | 71 | 141 | 370 | |
| Total processed inputs (MB) | 49,979 | 47,792 | 140,597 | 41,335 | 39,121 | 43,176 | 46,904 | 170,536 | |
| Adjusted total processed inputs (MB) | 49,979 | 47,792 | 140,597 | 41,335 | 39,121 | 43,176 | 46,904 | 170,536 | |
| Income (loss) before income taxes (/BBL)** | (2.20) | 1.88 | (1.23) | (15.41) | (5.80) | (4.61) | (3.43) | (7.18) | |
| Realized refining margins (/BBL)*** | 4.63 | 9.27 | 6.28 | 2.38 | 1.53 | 1.65 | 2.99 | 2.17 | |
| GULF COAST | |||||||||
| Loss before income taxes | (264) | (1,333) | (1,850) | (843) | (365) | (405) | (464) | (2,077) | |
| Plus: | |||||||||
| Taxes other than income taxes | 25 | 13 | 65 | 37 | 25 | 30 | 15 | 107 | |
| Depreciation, amortization and impairments | 77 | 1,361 | 1,515 | 741 | 75 | 75 | 77 | 968 | |
| Selling, general and administrative expenses | 14 | 15 | 39 | 7 | 10 | 11 | 11 | 39 | |
| Operating expenses | 299 | 312 | 932 | 492 | 277 | 258 | 327 | 1,354 | |
| Equity in (earnings) losses of affiliates | — | 1 | 4 | (1) | (1) | 1 | 4 | 3 | |
| Other segment (income) expense, net | (6) | (1) | (7) | 1 | — | (1) | 1 | 1 | |
| Proportional share of refining gross margins contributed by equity affiliates | — | — | — | — | — | — | — | — | |
| Realized refining margins | 145 | 368 | 698 | 434 | 21 | (31) | (29) | 395 | |
| Total processed inputs (MB) | 69,364 | 64,016 | 187,940 | 64,066 | 61,032 | 51,543 | 37,230 | 213,871 | |
| Adjusted total processed inputs (MB) | 69,364 | 64,016 | 187,940 | 64,066 | 61,032 | 51,543 | 37,230 | 213,871 | |
| Loss before income taxes (/BBL)** | (3.81) | (20.82) | (9.84) | (13.16) | (5.98) | (7.86) | (12.46) | (9.71) | |
| Realized refining margins (/BBL)*** | 2.10 | 5.75 | 3.72 | 6.76 | 0.36 | (0.61) | (0.78) | 1.85 | |
| CENTRAL CORRIDOR | |||||||||
| Income (loss) before income taxes | (82) | 229 | (101) | (227) | (104) | (132) | (178) | (641) | |
| Plus: | |||||||||
| Taxes other than income taxes | 11 | 12 | 38 | 17 | 14 | 11 | 9 | 51 | |
| Depreciation, amortization and impairments | 34 | 34 | 102 | 469 | 33 | 33 | 36 | 571 | |
| Selling, general and administrative expenses | 7 | 10 | 24 | 6 | 7 | 7 | 8 | 28 | |
| Operating expenses | 125 | 126 | 456 | 136 | 120 | 111 | 131 | 498 | |
| Equity in (earnings) losses of affiliates | 65 | (31) | 151 | 51 | 79 | 118 | 115 | 363 | |
| Other segment (income) expense, net | (8) | — | (10) | (3) | 3 | (1) | (1) | (2) | |
| Proportional share of refining gross margins contributed by equity affiliates | 125 | 201 | 412 | 113 | 92 | 45 | 48 | 298 | |
| Special items: | |||||||||
| Lower-of-cost-or-market inventory adjustments | — | — | — | 35 | (35) | — | — | — | |
| Realized refining margins | 277 | 581 | 1,072 | 597 | 209 | 192 | 168 | 1,166 | |
| Total processed inputs (MB) | 23,466 | 26,373 | 69,593 | 23,345 | 20,778 | 24,682 | 23,245 | 92,050 | |
| Adjusted total processed inputs (MB)* | 43,189 | 46,592 | 125,492 | 44,291 | 36,067 | 42,979 | 39,356 | 162,693 | |
| Income (loss) before income taxes (/BBL)** | (3.49) | 8.68 | (1.45) | (9.72) | (5.01) | (5.35) | (7.66) | (6.96) | |
| Realized refining margins (/BBL)*** | 6.40 | 12.47 | 8.53 | 13.50 | 5.78 | 4.46 | 4.27 | 7.17 |
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 | | | | | | | | | | | | 2021 | | | | | 2020 | | | | | | | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | | WEST COAST | | | | | | | | | | | | Loss before income taxes | (386) | (273) | (112) | | (771) | (554) | (182) | (1,167) | (310) | (2,213) | | Plus: | | | | | | | | | | | | Taxes other than income taxes | 23 | 22 | 4 | | 49 | 31 | 22 | 16 | 20 | 89 | | Depreciation, amortization and impairments | 54 | 57 | 57 | | 168 | 364 | 63 | 974 | 59 | 1,460 | | Selling, general and administrative expenses | 11 | 10 | 11 | | 32 | 10 | 9 | 9 | 10 | 38 | | Operating expenses | 382 | 281 | 266 | | 929 | 283 | 216 | 235 | 266 | 1,000 | | Other segment (income) expense, net | 2 | (2) | 2 | | 2 | 1 | 1 | 1 | 2 | 5 | | Realized refining margins | 86 | 95 | 228 | | 409 | 135 | 129 | 68 | 47 | 379 | | Total processed inputs (MB) | 25,917 | 28,158 | 30,558 | | 84,633 | 27,877 | 25,737 | 30,615 | 26,373 | 110,602 | | Adjusted total processed inputs (MB) | 25,917 | 28,158 | 30,558 | | 84,633 | 27,877 | 25,737 | 30,615 | 26,373 | 110,602 | | Loss before income taxes ($/BBL)** | (14.89) | (9.70) | (3.67) | | (9.11) | (19.87) | (7.07) | (38.12) | (11.75) | (20.01) | | Realized refining margins ($/BBL)*** | 3.33 | 3.37 | 7.46 | | 4.83 | 4.80 | 5.05 | 2.23 | 1.79 | 3.43 | | WORLDWIDE | | | | | | | | | | | | Loss before income taxes | (1,040) | (729) | (1,126) | | (2,895) | (2,261) | (878) | (1,903) | (1,113) | (6,155) | | Plus: | | | | | | | | | | | | Taxes other than income taxes | 85 | 76 | 44 | | 205 | 104 | 76 | 71 | 57 | 308 | | Depreciation, amortization and impairments | 217 | 220 | 1,504 | | 1,941 | 2,066 | 220 | 1,132 | 224 | 3,642 | | Selling, general and administrative expenses | 42 | 49 | 55 | | 146 | 36 | 38 | 33 | 42 | 149 | | Operating expenses | 1,138 | 922 | 943 | | 3,003 | 1,105 | 803 | 784 | 934 | 3,626 | | Equity in (earnings) losses of affiliates | 122 | 67 | (27) | | 162 | 52 | 81 | 121 | 122 | 376 | | Other segment (income) expense, net | — | (24) | 7 | | (17) | (3) | 7 | (1) | 2 | 5 | | Proportional share of refining gross margins contributed by equity affiliates | 129 | 167 | 220 | | 516 | 129 | 108 | 63 | 65 | 365 | | Special items: | | | | | | | | | | | | Certain tax impacts | — | — | — | | — | — | — | — | (6) | (6) | | Lower-of-cost-or-market inventory adjustments | — | — | — | | — | 35 | (35) | — | — | — | | Realized refining margins | 693 | 748 | 1,620 | | 3,061 | 1,263 | 420 | 300 | 327 | 2,310 | | Total processed inputs (MB) | 143,057 | 170,967 | 168,739 | | 482,763 | 156,623 | 146,668 | 150,016 | 133,752 | 587,059 | | Adjusted total processed inputs (MB)* | 159,014 | 190,690 | 188,958 | | 538,662 | 177,569 | 161,957 | 168,313 | 149,863 | 657,702 | | Loss before income taxes ($/BBL)** | (7.27) | (4.26) | (6.67) | | (6.00) | (14.44) | (5.99) | (12.69) | (8.32) | (10.48) | | Realized refining margins ($/BBL)*** | 4.36 | 3.92 | 8.57 | | 5.68 | 7.11 | 2.60 | 1.78 | 2.18 | 3.51 | | * Adjusted total processed inputs include our proportional share of processed inputs of an equity affiliate. | | | | | | | | | | | | ** Income (loss) before income taxes divided by total processed inputs. | | | | | | | | | | | | *** Realized refining margins per barrel, as presented, are calculated using the underlying realized refining margin amounts, in dollars, divided by adjusted total processed inputs, in barrels. As such, recalculated per barrel amounts using the rounded margins and barrels presented may differ from the presented per barrel amounts. | | | | | | | | | | |
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| Phillips 66 Earnings Release Supplemental Data | | --- || RECONCILIATION OF INCOME BEFORE INCOME TAXES TO REALIZED MARKETING FUEL MARGINS | | | | | | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | Millions of Dollars, Except as Indicated | | | | | | | | | | | | | | | | | | | | | 2021 | | | | | | | | | 2020 | | | | | | | | | | | | 1st Qtr | | 2nd Qtr | | 3rd Qtr | | 4th Qtr | YTD | | 1st Qtr | | 2nd Qtr | | 3rd Qtr | | 4th Qtr | | YTD | | | UNITED STATES | | | | | | | | | | | | | | | | | | | | | Income before income taxes | 199 | | 366 | | 354 | | | 919 | | 299 | | 179 | | 271 | | 121 | | 870 | | | Plus: | | | | | | | | | | | | | | | | | | | | | Taxes other than income taxes | 4 | | 2 | | 2 | | | 8 | | 2 | | 2 | | — | | (3) | | 1 | | | Depreciation and amortization | 3 | | 5 | | 3 | | | 11 | | 3 | | 3 | | 3 | | 3 | | 12 | | | Selling, general and administrative expenses | 165 | | 198 | | 201 | | | 564 | | 127 | | 151 | | 174 | | 171 | | 623 | | | Equity in earnings of affiliates | (2) | | (15) | | (18) | | | (35) | | — | | (11) | | (10) | | (10) | | (31) | | | Other operating revenues* | (86) | | (110) | | (120) | | | (316) | | (84) | | (71) | | (90) | | (82) | | (327) | | | Realized marketing fuel margins | 283 | | 446 | | 422 | | | 1,151 | | 347 | | 253 | | 348 | | 200 | | 1,148 | | | Total fuel sales volumes (MB) | 145,794 | | 170,228 | | 183,332 | | | 499,354 | | 167,178 | | 144,517 | | 155,948 | | 146,226 | | 613,869 | | | Income before income taxes ($/BBL) | 1.36 | | 2.15 | | 1.93 | | | 1.84 | | 1.79 | | 1.24 | | 1.74 | | 0.83 | | 1.42 | | | Realized marketing fuel margins ($/BBL)** | 1.94 | | 2.62 | | 2.29 | | | 2.30 | | 2.08 | | 1.75 | | 2.23 | | 1.37 | | 1.87 | | | INTERNATIONAL | | | | | | | | | | | | | | | | | | | | | Income before income taxes | 48 | | 48 | | 128 | | | 224 | | 171 | | 68 | | 121 | | 94 | | 454 | | | Plus: | | | | | | | | | | | | | | | | | | | | | Taxes other than income taxes | 2 | | 1 | | 1 | | | 4 | | 1 | | 2 | | 1 | | 1 | | 5 | | | Depreciation and amortization | 19 | | 19 | | 18 | | | 56 | | 17 | | 16 | | 18 | | 19 | | 70 | | | Selling, general and administrative expenses | 60 | | 60 | | 64 | | | 184 | | 63 | | 57 | | 62 | | 64 | | 246 | | | Equity in earnings of affiliates | (24) | | (31) | | (30) | | | (85) | | (22) | | (28) | | (31) | | (27) | | (108) | | | Other operating (revenues) expenses* | (5) | | (10) | | 9 | | | (6) | | 2 | | (4) | | (7) | | (18) | | (27) | | | Other segment (income) expense, net | (1) | | (1) | | 1 | | | (1) | | — | | 1 | | (1) | | 1 | | 1 | | | Marketing margins | 99 | | 86 | | 191 | | | 376 | | 232 | | 112 | | 163 | | 134 | | 641 | | | Less: margin for nonfuel related sales | 13 | | 15 | | 13 | | | 41 | | 10 | | 13 | | 11 | | 12 | | 46 | | | Realized marketing fuel margins | 86 | | 71 | | 178 | | | 335 | | 222 | | 99 | | 152 | | 122 | | 595 | | | Total fuel sales volumes (MB) | 21,474 | | 24,539 | | 26,427 | | | 72,440 | | 25,979 | | 19,583 | | 24,164 | | 24,047 | | 93,773 | | | Income before income taxes ($/BBL) | 2.24 | | 1.96 | | 4.84 | | | 3.09 | | 6.58 | | 3.48 | | 5.01 | | 3.91 | | 4.84 | | | Realized marketing fuel margins ($/BBL)** | 4.01 | | 2.89 | | 6.75 | | | 4.63 | | 8.53 | | 5.07 | | 6.28 | | 5.07 | | 6.34 | | | * 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 | | | | | | | | | | | | | | | | | | | | | 2021 | | | | | | | | | 2020 | | | | | | | | | | | | 1st Qtr | | 2nd Qtr | | 3rd Qtr | | 4th Qtr | YTD | | 1st Qtr | | 2nd Qtr | | 3rd Qtr | | 4th Qtr | | YTD | | | EFFECTIVE TAX RATES | | | | | | | | | | | | | | | | | | | | | Income (loss) before income taxes | (771) | | 436 | | 448 | | | 113 | | (2,478) | | (445) | | (1,350) | | (691) | | (4,964) | | | Special items | 244 | | 66 | | 1,329 | | | 1,639 | | 3,021 | | (19) | | 1,070 | | 109 | | 4,181 | | | Adjusted income (loss) before income taxes | (527) | | 502 | | 1,777 | | | 1,752 | | 543 | | (464) | | (280) | | (582) | | (783) | | | Income tax expense (benefit) | (132) | | 62 | | (40) | | | (110) | | (51) | | (378) | | (624) | | (197) | | (1,250) | | | Special items | 48 | | 33 | | 326 | | | 407 | | 75 | | 188 | | 272 | | 48 | | 583 | | | Adjusted income tax expense (benefit) | (84) | | 95 | | 286 | | | 297 | | 24 | | (190) | | (352) | | (149) | | (667) | | | Effective tax rate (%) | 17.1 | % | 14.2 | % | (8.9) | % | | (97.3) | % | 2.1 | % | 84.9 | % | 46.2 | % | 28.5 | % | 25.2 | % | | Adjusted effective tax rate (%) | 15.9 | % | 18.9 | % | 16.1 | % | | 17.0 | % | 4.4 | % | 40.9 | % | 125.7 | % | 25.6 | % | 85.2 | % |
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