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 30, 2020
Date of Report (date of earliest event reported)
Phillips 66
(Exact name of registrant as specified in its charter)
| Delaware | 001-35349 | 45-3779385 |
|---|---|---|
| (State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) |
2331 CityWest Boulevard
Houston, Texas 77042
(Address of Principal Executive Offices and Zip Code)
(281) 293-6600
Registrant's telephone number, including area code
Not Applicable
(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
|---|---|---|
| Common stock, $0.01 par value | PSX | New York Stock Exchange |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition.
On October 30, 2020, Phillips 66 issued a press release announcing the company's financial and operating results for the quarter ended September 30, 2020. A copy of the press release is furnished as Exhibit 99.1 hereto and incorporated herein by reference. Additional financial and operating information about the quarter is furnished as Exhibit 99.2 hereto and incorporated herein by reference.
The information in this report and the exhibits hereto shall not be treated as filed for purposes of the Securities Exchange Act of 1934, as amended.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
| 99.1 | — | Press release issued by Phillips 66 onOctober30, 2020. |
|---|---|---|
| 99.2 | — | Supplemental financial and operating information. |
| 104 | — | Cover Page Interactive Data File (embedded within the Inline XBRL document). |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| PHILLIPS 66 | |
|---|---|
| By: | /s/ Chukwuemeka A. Oyolu |
| Chukwuemeka A. Oyolu<br><br>Vice President and Controller |
Date: October 30, 2020
2
Document
| Exhibit 99.1 |
|---|
Phillips 66 Reports Third-Quarter 2020 Financial Results
•Reported a third-quarter loss of $799 million or $1.82 per share; adjusted loss of $1 million or $0.01 per share
•Generated operating cash flow of $491 million; $795 million excluding working capital
•Captured improved market conditions in Midstream, Chemicals and Marketing & Specialties
•Recently started operations of Sweeny Fracs 2 and 3
•Announced San Francisco Refinery conversion into the world’s largest renewable fuels plant
HOUSTON, Oct. 30, 2020 – Phillips 66 (NYSE: PSX), a diversified energy manufacturing and logistics company, announces a third-quarter 2020 loss of $799 million, compared with a loss of $141 million in the second quarter of 2020. Excluding special items of $798 million in the third quarter, primarily an impairment related to the planned conversion of the San Francisco Refinery to a renewable fuels plant, the company had an adjusted loss of $1 million, compared with a second-quarter adjusted loss of $324 million.
“Our diversified, integrated portfolio helped us navigate a challenging market environment in the third quarter,” said Greg Garland, chairman and CEO of Phillips 66. “Our Midstream, Chemicals and Marketing businesses benefited from improved market conditions, while Refining continued to be impacted by weak margins. We advanced our growth strategy with the recent startup of Sweeny Fracs 2 and 3, marking completion of the Sweeny Hub phase 2 expansion. Also, we announced Rodeo Renewed, a project to reconfigure our San Francisco Refinery into the world’s largest renewable fuels plant, making investments that advance a lower carbon future.
“We are proud of how our employees continue to step up to the challenges of 2020, from the pandemic to the West Coast fires and the Gulf Coast hurricanes. Our response to the storms in particular underscored our commitment to operating excellence, as our facilities were secured and sustained minimal damage. The people of Phillips 66 continue to demonstrate our values of providing energy and improving lives in what has been a very uncertain and challenging environment.
“Our diversified businesses, strong balance sheet and disciplined capital allocation enable us to effectively manage through a low margin environment. We paid $393 million in dividends in the third quarter and are committed to a secure, competitive and growing dividend. We remain focused on creating value for shareholders through operating excellence, financial discipline and return-enhancing investments.”
Page 1
Phillips 66 Reports Third-Quarter 2020 Financial Results
Midstream
| Millions of Dollars | |||||
|---|---|---|---|---|---|
| Pre-Tax Income | Adjusted Pre-Tax Income | ||||
| Q3 2020 | Q2 2020 | Q3 2020 | Q2 2020 | ||
| Transportation | $ | (3) | 214 | 202 | 130 |
| NGL and Other | 99 | 78 | 102 | 83 | |
| DCP Midstream | 50 | 32 | 50 | 32 | |
| Midstream | $ | 146 | 324 | 354 | 245 |
Midstream third-quarter pre-tax income was $146 million, compared with $324 million in the second quarter. Midstream results in the third quarter included a $120 million impairment of pipeline and terminal assets related to the planned conversion of the San Francisco Refinery to a renewable fuels plant, an $84 million impairment related to the cancellation of the Red Oak Pipeline project, $3 million of pension settlement expense and $1 million of hurricane-related costs. Second-quarter results included an $84 million gain related to Phillips 66 Partners’ prior-year sale of an interest in the Gray Oak Pipeline, as well as $5 million of pension settlement expense.
Transportation third-quarter adjusted pre-tax income of $202 million was $72 million higher than the second quarter. The increase was primarily due to higher pipeline and terminal volumes, including ramp-up of volumes on the Gray Oak Pipeline.
NGL and Other adjusted pre-tax income was $102 million in the third quarter, compared with $83 million in the second quarter. The improvement was mainly due to higher Sweeny Hub volumes and inventory impacts.
The company’s equity investment in DCP Midstream, LLC generated third-quarter adjusted pre-tax income of $50 million, an $18 million increase from the prior quarter, mainly reflecting hedging impacts.
Chemicals
| Millions of Dollars | |||||
|---|---|---|---|---|---|
| Pre-Tax Income | Adjusted Pre-Tax Income | ||||
| Q3 2020 | Q2 2020 | Q3 2020 | Q2 2020 | ||
| Olefins and Polyolefins | $ | 241 | 70 | 148 | 106 |
| Specialties, Aromatics and Styrenics | 11 | — | 5 | 11 | |
| Other | (21) | (28) | (21) | (28) | |
| Chemicals | $ | 231 | 42 | 132 | 89 |
The Chemicals segment reflects Phillips 66’s equity investment in Chevron Phillips Chemical Company LLC (CPChem). Chemicals’ third-quarter 2020 pre-tax income was $231 million, compared with $42 million in the second quarter of 2020. Chemicals results in the third quarter included a $101 million benefit to equity earnings from lower-of-cost-or-market inventory adjustments, partially offset by $2 million of hurricane-related costs. Second-quarter results included reductions to equity earnings of $32 million in lower-of-cost-or-market inventory adjustments, as well as a $15 million asset write-off related to an international joint venture.
Page 2
Phillips 66 Reports Third-Quarter 2020 Financial Results
CPChem’s Olefins and Polyolefins (O&P) business contributed $148 million of adjusted pre-tax income in the third quarter of 2020, compared with $106 million in the second quarter. The $42 million increase was primarily due to higher polyethylene margins, driven by improved sales prices, partially offset by lower polyethylene volumes and higher operating costs. Global O&P utilization was 94% for the quarter, reflecting downtime at U.S. Gulf Coast facilities.
CPChem’s Specialties, Aromatics and Styrenics (SA&S) business contributed third-quarter adjusted pre-tax income of $5 million, compared with $11 million in the second quarter. The decrease was primarily due to lower margins, partially offset by higher volumes.
The $7 million decrease in Other adjusted net costs in the third quarter mainly reflects lower employee-related expenses.
Refining
| Millions of Dollars | |||||
|---|---|---|---|---|---|
| Pre-Tax Loss | Adjusted Pre-Tax Loss | ||||
| Q3 2020 | Q2 2020 | Q3 2020 | Q2 2020 | ||
| Refining | $ | (1,903) | (878) | (970) | (867) |
Refining had a third-quarter pre-tax loss of $1.9 billion, compared with a pre-tax loss of $878 million in the second quarter. Refining results in the third quarter included a $910 million impairment related to the planned conversion of the San Francisco Refinery to a renewable fuels plant, $12 million of pension settlement expense and $11 million of hurricane-related costs. Second-quarter results included $26 million of pension settlement expense and a $15 million benefit to equity earnings from a lower-of-cost-or-market inventory adjustment.
Refining had an adjusted pre-tax loss of $970 million in the third quarter of 2020, compared with an adjusted pre-tax loss of $867 million in the second quarter of 2020. The decreased results were largely driven by lower realized margins, partially offset by higher volumes. Realized margins were down 32% to $1.78 per barrel in the third quarter, reflecting tightening crude spreads and lower secondary product margins. Phillips 66’s worldwide crude utilization rate was 77% in the third quarter, up from 75% in the second quarter. Improved third-quarter utilization mainly reflects increased refining runs in the Central Corridor and West Coast regions, partially offset by downtime at Gulf Coast refineries, including the impact of hurricane-related third-party power outages at the Lake Charles Refinery.
Pre-tax turnaround costs for the third quarter were $41 million, compared with second-quarter costs of $38 million. Clean product yield was 85% in the third quarter.
Page 3
Phillips 66 Reports Third-Quarter 2020 Financial Results
Marketing and Specialties
| Millions of Dollars | |||||
|---|---|---|---|---|---|
| Pre-Tax Income | Adjusted Pre-Tax Income | ||||
| Q3 2020 | Q2 2020 | Q3 2020 | Q2 2020 | ||
| Marketing and Other | $ | 365 | 255 | 366 | 259 |
| Specialties | 50 | 31 | 51 | 34 | |
| Marketing and Specialties | $ | 415 | 286 | 417 | 293 |
Marketing and Specialties (M&S) third-quarter pre-tax income was $415 million, compared with $286 million in the second quarter of 2020. M&S results in the third quarter included hurricane-related costs of $1 million and pension settlement expense of $1 million. Second-quarter results included $4 million of pension settlement expense and a $3 million reduction to equity earnings from a lower-of-cost-or-market inventory adjustment.
Adjusted pre-tax income for Marketing and Other was $366 million in the third quarter of 2020, an increase of $107 million from the second quarter of 2020. The increase primarily reflects higher margins and volumes, driven by improved market conditions and demand recovery. Refined product exports in the third quarter were 139,000 barrels per day (BPD).
Specialties generated third-quarter adjusted pre-tax income of $51 million, up from $34 million in the second quarter. The increase was largely due to higher finished lubricant volumes.
Corporate and Other
| Millions of Dollars | |||||
|---|---|---|---|---|---|
| Pre-Tax Loss | Adjusted Pre-Tax Loss | ||||
| Q3 2020 | Q2 2020 | Q3 2020 | Q2 2020 | ||
| Corporate and Other | $ | (239) | (219) | (213) | (224) |
Corporate and Other third-quarter pre-tax costs were $239 million, compared with pre-tax costs of $219 million in the second quarter. Pre-tax costs in the third quarter included a $25 million asset impairment, and second-quarter pre-tax costs included $8 million of net interest benefits related to tax audit adjustments. Pre-tax costs also included pension settlement expense of $1 million and $3 million in the third quarter and second quarter, respectively.
The $11 million decrease in Corporate and Other adjusted pre-tax costs in the third quarter was mainly driven by lower employee-related expenses, partially offset by higher net interest expense.
Page 4
Phillips 66 Reports Third-Quarter 2020 Financial Results
Financial Position, Liquidity and Return of Capital
Phillips 66 generated $491 million in cash from operations during the third quarter, including $305 million of cash distributions from equity affiliates. Excluding working capital impacts, operating cash flow was $795 million.
Capital expenditures and investments in the third quarter were $552 million. Excluding $3 million of capital funded by Gray Oak joint venture partners, adjusted capital spending was $549 million. The company expects 2020 consolidated capital expenditures and investments to be $3 billion, and adjusted capital spending to be $2.9 billion, net of cash capital contributions from joint venture partners. Phillips 66 paid $393 million in dividends in the third quarter.
As of Sept. 30, 2020, Phillips 66 had $7 billion of liquidity, reflecting $1.5 billion of cash and cash equivalents and approximately $5.5 billion of total committed capacity under its revolving credit facilities. Consolidated debt was $14.5 billion at Sept. 30, 2020, including $3.8 billion at Phillips 66 Partners (PSXP). The company’s consolidated debt-to-capital ratio was 39% and its net debt-to-capital ratio was 37%. Excluding PSXP, the debt-to-capital ratio was 35% and the net debt-to-capital ratio was 32%.
Strategic Update
Phillips 66 has completed the two new 150,000 BPD fractionators at its Sweeny Hub, bringing the site’s total fractionation capacity to 400,000 BPD. Frac 2 reached full rates in September, and Frac 3 started operations in October. The fractionators are supported by long-term customer commitments.
Phillips 66 Partners continued construction of the C2G Pipeline, a 16 inch ethane pipeline that will connect its Clemens Caverns storage facility to petrochemical facilities in Gregory, Texas, near Corpus Christi, Texas. The project is backed by long-term commitments and is expected to be completed in mid-2021.
At the South Texas Gateway Terminal, which is being constructed by Buckeye Partners, L.P., the first dock and 5.1 million barrels of storage capacity have been commissioned. Marine and terminal operations will continue to ramp up through the end of this year as additional phases of construction are completed. Upon project completion in the first quarter of 2021, the marine export terminal will have two deepwater docks with up to 800,000 BPD of throughput capacity, along with storage capacity of 8.6 million barrels. Phillips 66 Partners owns a 25% interest in the terminal.
The company is adding a 200,000 BPD dock at its Beaumont Terminal, bringing the terminal’s total dock capacity to 800,000 BPD. The new dock is expected to be completed in the fourth quarter of 2020. The terminal has total crude and product storage capacity of 16.8 million barrels.
In Chemicals, CPChem and Qatar Petroleum are jointly pursuing development of petrochemical facilities on the U.S. Gulf Coast and in Ras Laffan, Qatar. CPChem is closely monitoring economic developments and has deferred final investment decision for its U.S. Gulf Coast project.
In October, CPChem announced its first U.S. commercial-scale production of polyethylene from recycled mixed-waste plastics. CPChem is using advanced recycling technology to convert plastic waste to valuable liquids that can become new petrochemicals. CPChem’s circular polyethylene matches the performance and safety specifications of traditional polymers.
Page 5
Phillips 66 Reports Third-Quarter 2020 Financial Results
Phillips 66 announced Rodeo Renewed, a project to reconfigure its San Francisco Refinery in Rodeo, California, to meet the growing demand for renewable fuels. The plant would no longer produce fuels from crude oil, but instead would make fuels from used cooking oil, fats, greases, soybean oils and other feedstocks. Upon expected completion in early 2024, the facility would have over 50,000 BPD, or 800 million gallons per year, of renewable fuel production capacity, making it the world’s largest facility of its kind. The conversion is expected to reduce the plant’s greenhouse gas emissions by 50% and help California meet its low carbon objectives.
In Marketing, the company continues its program to roll out updated signature image designs for Phillips 66, 76 and Conoco branded sites in the United States. During the quarter, 284 sites were reimaged. Since the program’s inception in 2015, approximately 5,000 sites have been reimaged.
In Europe, the company continues its program to update signature image designs for JET branded sites. During the quarter, 31 sites were reimaged. Since the program’s inception in 2019, 143 sites have been reimaged.
Page 6
Phillips 66 Reports Third-Quarter 2020 Financial Results
Investor Webcast
Later today, members of Phillips 66 executive management will host a webcast at noon EDT to discuss the company’s 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 | |||||||
| 2020 | 2019 | ||||||
| Q3 | Q2 | Sep YTD | Q3 | Sep YTD | |||
| Midstream | $ | 146 | 324 | (232) | (460) | 279 | |
| Chemicals | 231 | 42 | 442 | 227 | 729 | ||
| Refining | (1,903) | (878) | (5,042) | 856 | 1,641 | ||
| Marketing and Specialties | 415 | 286 | 1,214 | 498 | 1,056 | ||
| Corporate and Other | (239) | (219) | (655) | (178) | (593) | ||
| Pre-Tax Income (Loss) | (1,350) | (445) | (4,273) | 943 | 3,112 | ||
| Less: Income tax expense (benefit) | (624) | (378) | (1,053) | 150 | 545 | ||
| Less: Noncontrolling interests | 73 | 74 | 216 | 81 | 227 | ||
| Phillips 66 | $ | (799) | (141) | (3,436) | 712 | 2,340 | |
| Adjusted Earnings (Loss) | |||||||
| Millions of Dollars | |||||||
| 2020 | 2019 | ||||||
| Q3 | Q2 | Sep YTD | Q3 | Sep YTD | |||
| Midstream | $ | 354 | 245 | 1,059 | 440 | 1,179 | |
| Chemicals | 132 | 89 | 414 | 269 | 771 | ||
| Refining | (970) | (867) | (2,238) | 839 | 1,603 | ||
| Marketing and Specialties | 417 | 293 | 1,198 | 498 | 1,056 | ||
| Corporate and Other | (213) | (224) | (634) | (178) | (593) | ||
| Pre-Tax Income (Loss) | (280) | (464) | (201) | 1,868 | 4,016 | ||
| Less: Income tax expense (benefit) | (352) | (190) | (518) | 385 | 821 | ||
| Less: Noncontrolling interests | 73 | 50 | 192 | 81 | 227 | ||
| Phillips 66 | $ | (1) | (324) | 125 | 1,402 | 2,968 |
Page 7
Phillips 66 Reports Third-Quarter 2020 Financial Results
About Phillips 66
Phillips 66 is a diversified energy manufacturing and logistics company. With a portfolio of Midstream, Chemicals, Refining, and Marketing and Specialties businesses, the company processes, transports, stores and markets fuels and products globally. Phillips 66 Partners, the company’s master limited partnership, is integral to the portfolio. Headquartered in Houston, the company has 14,500 employees committed to safety and operating excellence. Phillips 66 had $54 billion of assets as of Sept. 30, 2020. 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, as well as the ability of PSXP to successfully execute its growth plans; and other economic, business, competitive and/or regulatory factors affecting Phillips 66’s businesses generally as set forth in our filings with the Securities and Exchange Commission. Phillips 66 is under no obligation (and expressly disclaims any such obligation) to update or alter its forward-looking statements, whether as a result of new information, future events or otherwise.
Page 8
Phillips 66 Reports Third-Quarter 2020 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. This release includes “adjusted capital spending,” a non-GAAP financial measure that demonstrates the portion of total consolidated capital expenditures and investments funded by Phillips 66. This release also includes “realized refining margin,” a non-GAAP financial measure that demonstrates how well we performed relative to benchmark industry margins.
References in the release to total consolidated earnings (loss) refer to net income (loss) attributable to Phillips 66.
Page 9
Phillips 66 Reports Third-Quarter 2020 Financial Results
| Millions of Dollars | |||||||
|---|---|---|---|---|---|---|---|
| Except as Indicated | |||||||
| 2020 | 2019 | ||||||
| Q3 | Q2 | Sep YTD | Q3 | Sep YTD | |||
| Reconciliation of Consolidated Earnings (Loss) to Adjusted Earnings (Loss) | |||||||
| Consolidated Earnings (Loss) | $ | (799) | (141) | (3,436) | 712 | 2,340 | |
| Pre-tax adjustments: | |||||||
| Pending claims and settlements | — | — | (37) | — | (21) | ||
| Pension settlement expense | 17 | 38 | 55 | — | — | ||
| Impairments | 1,139 | — | 4,145 | 853 | 853 | ||
| Impairments by equity affiliates | — | 15 | 15 | 47 | 47 | ||
| Lower-of-cost-or-market inventory adjustments | (101) | 20 | (29) | 42 | 42 | ||
| Certain tax impacts | — | (8) | (8) | — | — | ||
| Asset dispositions | — | (84) | (84) | (17) | (17) | ||
| Hurricane-related costs | 15 | — | 15 | — | — | ||
| Tax impact of adjustments* | (262) | (208) | (545) | (235) | (231) | ||
| Other tax impacts | (10) | 20 | 10 | — | (45) | ||
| Noncontrolling interests | — | 24 | 24 | — | — | ||
| Adjusted earnings (loss) | $ | (1) | (324) | 125 | 1,402 | 2,968 | |
| Earnings (loss) per share of common stock (dollars) | $ | (1.82) | (0.33) | (7.83) | 1.58 | 5.13 | |
| Adjusted earnings (loss) per share of common stock (dollars)† | $ | (0.01) | (0.74) | 0.27 | 3.11 | 6.51 | |
| Reconciliation of Segment Pre-Tax Income (Loss) to Adjusted Pre-Tax Income (Loss) | |||||||
| Midstream Pre-Tax Income (Loss) | $ | 146 | 324 | (232) | (460) | 279 | |
| Pre-tax adjustments: | |||||||
| Impairments | 204 | — | 1,365 | 853 | 853 | ||
| Pension settlement expense | 3 | 5 | 8 | — | — | ||
| Lower-of-cost-or-market inventory adjustments | — | — | 1 | — | — | ||
| Impairments by equity affiliates | — | — | — | 47 | 47 | ||
| Asset dispositions | — | (84) | (84) | — | — | ||
| Hurricane-related costs | 1 | — | 1 | — | — | ||
| Adjusted pre-tax income | $ | 354 | 245 | 1,059 | 440 | 1,179 | |
| Chemicals Pre-Tax Income | $ | 231 | 42 | 442 | 227 | 729 | |
| Pre-tax adjustments: | |||||||
| Lower-of-cost-or-market inventory adjustments | (101) | 32 | (45) | 42 | 42 | ||
| Impairments by equity affiliates | — | 15 | 15 | — | — | ||
| Hurricane-related costs | 2 | — | 2 | — | — | ||
| Adjusted pre-tax income | $ | 132 | 89 | 414 | 269 | 771 |
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Phillips 66 Reports Third-Quarter 2020 Financial Results
| Millions of Dollars | |||||||
|---|---|---|---|---|---|---|---|
| Except as Indicated | |||||||
| 2020 | 2019 | ||||||
| Q3 | Q2 | Sep YTD | Q3 | Sep YTD | |||
| Reconciliation of Segment Pre-Tax Income (Loss) to Adjusted Pre-Tax Income (Loss) | |||||||
| Refining Pre-Tax Income (Loss) | $ | (1,903) | (878) | (5,042) | 856 | 1,641 | |
| Pre-tax adjustments: | |||||||
| Pending claims and settlements | — | — | — | — | (21) | ||
| Asset dispositions | — | — | — | (17) | (17) | ||
| Pension settlement expense | 12 | 26 | 38 | — | — | ||
| Impairments | 910 | — | 2,755 | — | — | ||
| Lower-of-cost-or-market inventory adjustments | — | (15) | — | — | — | ||
| Hurricane-related costs | 11 | — | 11 | — | — | ||
| Adjusted pre-tax income (loss) | $ | (970) | (867) | (2,238) | 839 | 1,603 | |
| Marketing and Specialties Pre-Tax Income | $ | 415 | 286 | 1,214 | 498 | 1,056 | |
| Pre-tax adjustments: | |||||||
| Lower-of-cost-or-market inventory adjustments | — | 3 | 15 | — | — | ||
| Pending claims and settlements | — | — | (37) | — | — | ||
| Pension settlement expense | 1 | 4 | 5 | — | — | ||
| Hurricane-related costs | 1 | — | 1 | — | — | ||
| Adjusted pre-tax income | $ | 417 | 293 | 1,198 | 498 | 1,056 | |
| Corporate and Other Pre-Tax Loss | $ | (239) | (219) | (655) | (178) | (593) | |
| Pre-tax adjustments: | |||||||
| Impairments | 25 | — | 25 | — | — | ||
| Pension settlement expense | 1 | 3 | 4 | — | — | ||
| Certain tax impacts | — | (8) | (8) | — | — | ||
| Adjusted pre-tax loss | $ | (213) | (224) | (634) | (178) | (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. | |||||||
| †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 2020 Financial Results
| Millions of Dollars | ||||||
|---|---|---|---|---|---|---|
| Except as Indicated | ||||||
| Sept. 30, 2020 | ||||||
| Debt-to-Capital Ratio | ||||||
| Phillips 66 <br>Consolidated | PSXP* | Phillips 66 <br>Excluding PSXP | ||||
| Total Debt | $ | 14,526 | 3,783 | 10,743 | ||
| Total Equity | 22,305 | 2,549 | 19,756 | |||
| Debt-to-Capital Ratio | 39 | % | 35 | % | ||
| Total Cash | $ | 1,462 | 2 | 1,460 | ||
| Net Debt-to-Capital Ratio | 37 | % | 32 | % | ||
| *PSXP’s third-party debt and Phillips 66’s noncontrolling interests attributable to PSXP. | ||||||
| Millions of Dollars | ||||||
| --- | --- | --- | --- | |||
| Except as Indicated | ||||||
| 2020 | ||||||
| Q3 | Q2 | |||||
| Realized Refining Margins | ||||||
| Loss before income taxes | $ | (1,903) | (878) | |||
| Plus: | ||||||
| Taxes other than income taxes | 71 | 76 | ||||
| Depreciation, amortization and impairments | 1,132 | 220 | ||||
| Selling, general and administrative expenses | 33 | 38 | ||||
| Operating expenses | 784 | 803 | ||||
| Equity in losses of affiliates | 121 | 81 | ||||
| Other segment (income) expense, net | (1) | 7 | ||||
| Proportional share of refining gross margins contributed by equity affiliates | 63 | 108 | ||||
| Special items: | ||||||
| Lower-of-cost-or-market inventory adjustments | — | (35) | ||||
| Realized refining margins | $ | 300 | 420 | |||
| Total processed inputs (thousands of barrels) | 150,016 | 146,668 | ||||
| Adjusted total processed inputs (thousands of barrels)* | 168,313 | 161,957 | ||||
| Loss before income taxes (dollars per barrel)** | $ | (12.69) | (5.99) | |||
| Realized refining margins (dollars per barrel)*** | $ | 1.78 | 2.60 | |||
| *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 | ||||||||||||||||||||||
| 2020 | 2019 | |||||||||||||||||||||
| 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | |||||||||||||
| Revenues and Other Income | ||||||||||||||||||||||
| Sales and other operating revenues | 20,878 | 10,913 | 15,929 | 47,720 | 23,103 | 27,847 | 27,218 | 29,125 | 107,293 | |||||||||||||
| Equity in earnings of affiliates | 365 | 157 | 349 | 871 | 516 | 648 | 499 | 464 | 2,127 | |||||||||||||
| Net gain on dispositions | 1 | 85 | 1 | 87 | 1 | — | 18 | 1 | 20 | |||||||||||||
| Other income | — | 28 | 20 | 48 | 38 | 23 | 36 | 22 | 119 | |||||||||||||
| Total Revenues and Other Income | 21,244 | 11,183 | 16,299 | 48,726 | 23,658 | 28,518 | 27,771 | 29,612 | 109,559 | |||||||||||||
| Costs and Expenses | ||||||||||||||||||||||
| Purchased crude oil and products | 18,440 | 9,608 | 14,509 | 42,557 | 21,055 | 24,554 | 23,806 | 26,114 | 95,529 | |||||||||||||
| Operating expenses | 1,341 | 1,026 | 1,016 | 3,383 | 1,307 | 1,165 | 1,206 | 1,396 | 5,074 | |||||||||||||
| Selling, general and administrative expenses | 319 | 409 | 384 | 1,112 | 366 | 408 | 416 | 491 | 1,681 | |||||||||||||
| Depreciation and amortization | 342 | 343 | 352 | 1,037 | 331 | 334 | 336 | 340 | 1,341 | |||||||||||||
| Impairments | 3,006 | — | 1,140 | 4,146 | 1 | 2 | 853 | 5 | 861 | |||||||||||||
| Taxes other than income taxes | 157 | 114 | 106 | 377 | 128 | 97 | 105 | 79 | 409 | |||||||||||||
| Accretion on discounted liabilities | 6 | 5 | 6 | 17 | 6 | 5 | 6 | 6 | 23 | |||||||||||||
| Interest and debt expense | 111 | 117 | 132 | 360 | 119 | 115 | 109 | 115 | 458 | |||||||||||||
| Foreign currency transaction (gains) losses | — | 6 | 4 | 10 | 5 | 9 | (9) | — | 5 | |||||||||||||
| Total Costs and Expenses | 23,722 | 11,628 | 17,649 | 52,999 | 23,318 | 26,689 | 26,828 | 28,546 | 105,381 | |||||||||||||
| Income (loss) before income taxes | (2,478) | (445) | (1,350) | (4,273) | 340 | 1,829 | 943 | 1,066 | 4,178 | |||||||||||||
| Income tax expense (benefit) | (51) | (378) | (624) | (1,053) | 70 | 325 | 150 | 256 | 801 | |||||||||||||
| Net Income (Loss) | (2,427) | (67) | (726) | (3,220) | 270 | 1,504 | 793 | 810 | 3,377 | |||||||||||||
| Less: net income attributable to noncontrolling interests | 69 | 74 | 73 | 216 | 66 | 80 | 81 | 74 | 301 | |||||||||||||
| Net Income (Loss) Attributable to Phillips 66 | (2,496) | (141) | (799) | (3,436) | 204 | 1,424 | 712 | 736 | 3,076 | |||||||||||||
| Net Income (Loss) Attributable to Phillips 66 Per Share of Common Stock (dollars) | ||||||||||||||||||||||
| Basic | (5.66) | (0.33) | (1.82) | (7.83) | 0.44 | 3.13 | 1.58 | 1.65 | 6.80 | |||||||||||||
| Diluted | (5.66) | (0.33) | (1.82) | (7.83) | 0.44 | 3.12 | 1.58 | 1.64 | 6.77 | |||||||||||||
| Weighted-Average Common Shares Outstanding (thousands) | ||||||||||||||||||||||
| Basic | 441,345 | 438,756 | 438,916 | 439,670 | 457,599 | 453,681 | 449,005 | 445,332 | 451,364 | |||||||||||||
| Diluted | 441,345 | 438,756 | 438,916 | 439,670 | 459,289 | 455,585 | 451,001 | 447,835 | 453,888 | |||||||||||||
| Effective tax rate (%) | 2.1 | % | 84.9 | % | 46.2 | % | 24.6 | % | 20.6 | % | 17.8 | % | 15.9 | % | 24.0 | % | 19.2 | % | ||||
| Adjusted effective tax rate (%) | 4.4 | % | 40.9 | % | 125.7 | % | 257.7 | % | 20.7 | % | 20.2 | % | 20.6 | % | 23.6 | % | 21.1 | % |
Page 1
| Phillips 66 Earnings Release Supplemental Data | | --- || RECONCILIATION OF INCOME (LOSS) BEFORE INCOME TAXES BY SEGMENT TO | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | NET INCOME (LOSS) ATTRIBUTABLE TO PHILLIPS 66 | | | | | | | | | | | | | Millions of Dollars | | | | | | | | | | | | 2020 | | | | | 2019 | | | | | | | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | | Midstream | (702) | 324 | 146 | | (232) | 316 | 423 | (460) | 405 | 684 | | Chemicals | 169 | 42 | 231 | | 442 | 227 | 275 | 227 | 150 | 879 | | Refining | (2,261) | (878) | (1,903) | | (5,042) | (198) | 983 | 856 | 345 | 1,986 | | Marketing and Specialties | 513 | 286 | 415 | | 1,214 | 205 | 353 | 498 | 377 | 1,433 | | Corporate and Other | (197) | (219) | (239) | | (655) | (210) | (205) | (178) | (211) | (804) | | Income (loss) before income taxes | (2,478) | (445) | (1,350) | | (4,273) | 340 | 1,829 | 943 | 1,066 | 4,178 | | Less: income tax expense (benefit) | (51) | (378) | (624) | | (1,053) | 70 | 325 | 150 | 256 | 801 | | Net Income (Loss) | (2,427) | (67) | (726) | | (3,220) | 270 | 1,504 | 793 | 810 | 3,377 | | Less: net income attributable to noncontrolling interests | 69 | 74 | 73 | | 216 | 66 | 80 | 81 | 74 | 301 | | Net Income (Loss) Attributable to Phillips 66 | (2,496) | (141) | (799) | | (3,436) | 204 | 1,424 | 712 | 736 | 3,076 | | RECONCILIATION OF ADJUSTED INCOME (LOSS) BEFORE INCOME TAXES BY SEGMENT TO | | | | | | | | | | | | ADJUSTED NET INCOME (LOSS) ATTRIBUTABLE TO PHILLIPS 66 | | | | | | | | | | | | | Millions of Dollars | | | | | | | | | | | | 2020 | | | | | 2019 | | | | | | | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | | Midstream | | | | | | | | | | | | Transportation | 200 | 130 | 202 | | 532 | 203 | 245 | 248 | 250 | 946 | | NGL and Other | 179 | 83 | 102 | | 364 | 90 | 143 | 169 | 120 | 522 | | DCP Midstream | 81 | 32 | 50 | | 163 | 23 | 35 | 23 | 35 | 116 | | Total Midstream | 460 | 245 | 354 | | 1,059 | 316 | 423 | 440 | 405 | 1,584 | | Chemicals | 193 | 89 | 132 | | 414 | 227 | 275 | 269 | 173 | 944 | | Refining | | | | | | | | | | | | Atlantic Basin/Europe | (196) | (220) | (197) | | (613) | (7) | 258 | 279 | 61 | 591 | | Gulf Coast | (173) | (356) | (389) | | (918) | (118) | 222 | 184 | 76 | 364 | | Central Corridor | 223 | (113) | (129) | | (19) | 56 | 520 | 408 | 333 | 1,317 | | West Coast | (255) | (178) | (255) | | (688) | (150) | (17) | (32) | (125) | (324) | | Total Refining | (401) | (867) | (970) | | (2,238) | (219) | 983 | 839 | 345 | 1,948 | | Marketing and Specialties | | | | | | | | | | | | Marketing and Other | 434 | 259 | 366 | | 1,059 | 138 | 294 | 440 | 237 | 1,109 | | Specialties | 54 | 34 | 51 | | 139 | 67 | 59 | 58 | 50 | 234 | | Total Marketing and Specialties | 488 | 293 | 417 | | 1,198 | 205 | 353 | 498 | 287 | 1,343 | | Corporate and Other | (197) | (224) | (213) | | (634) | (210) | (205) | (178) | (211) | (804) | | Adjusted income (loss) before income taxes | 543 | (464) | (280) | | (201) | 319 | 1,829 | 1,868 | 999 | 5,015 | | Less: adjusted income tax expense (benefit) | 24 | (190) | (352) | | (518) | 66 | 370 | 385 | 236 | 1,057 | | Adjusted Net Income (Loss) | 519 | (274) | 72 | | 317 | 253 | 1,459 | 1,483 | 763 | 3,958 | | Less: adjusted net income attributable to noncontrolling interests | 69 | 50 | 73 | | 192 | 66 | 80 | 81 | 74 | 301 | | Adjusted Net Income (Loss) Attributable to Phillips 66 | 450 | (324) | (1) | | 125 | 187 | 1,379 | 1,402 | 689 | 3,657 |
Page 2
| Phillips 66 Earnings Release Supplemental Data | | --- || SPECIAL ITEMS INCLUDED IN INCOME (LOSS) BEFORE INCOME TAXES BY SEGMENT | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | AND NET INCOME (LOSS) ATTRIBUTABLE TO PHILLIPS 66 | | | | | | | | | | | | | Millions of Dollars | | | | | | | | | | | | 2020 | | | | | 2019 | | | | | | | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | | Midstream | | | | | | | | | | | | Impairments | (1,161) | — | (204) | | (1,365) | — | — | (853) | — | (853) | | Impairments by equity affiliates | — | — | — | | — | — | — | (47) | — | (47) | | Pension settlement expense | — | (5) | (3) | | (8) | — | — | — | — | — | | Hurricane-related costs | — | — | (1) | | (1) | — | — | — | — | — | | Lower-of-cost-or-market inventory adjustments | (1) | — | — | | (1) | — | — | — | — | — | | Asset dispositions | — | 84 | — | | 84 | — | — | — | — | — | | Total Midstream | (1,162) | 79 | (208) | | (1,291) | — | — | (900) | — | (900) | | Chemicals | | | | | | | | | | | | Impairments by equity affiliates | — | (15) | — | | (15) | — | — | — | — | — | | Hurricane-related costs | — | — | (2) | | (2) | — | — | — | — | — | | Lower-of-cost-or-market inventory adjustments | (24) | (32) | 101 | | 45 | — | — | (42) | (23) | (65) | | Total Chemicals | (24) | (47) | 99 | | 28 | — | — | (42) | (23) | (65) | | Refining | | | | | | | | | | | | Impairments | (1,845) | — | (910) | | (2,755) | — | — | — | — | — | | Pending claims and settlements | — | — | — | | — | 21 | — | — | — | 21 | | Pension settlement expense | — | (26) | (12) | | (38) | — | — | — | — | — | | Hurricane-related costs | — | — | (11) | | (11) | — | — | — | — | — | | Lower-of-cost-or-market inventory adjustments | (15) | 15 | — | | — | — | — | — | — | — | | Asset dispositions | — | — | — | | — | — | — | 17 | — | 17 | | Total Refining | (1,860) | (11) | (933) | | (2,804) | 21 | — | 17 | — | 38 | | Marketing and Specialties | | | | | | | | | | | | Pending claims and settlements | 37 | — | — | | 37 | — | — | — | — | — | | Certain tax impacts | — | — | — | | — | — | — | — | 90 | 90 | | Pension settlement expense | — | (4) | (1) | | (5) | — | — | — | — | — | | Hurricane-related costs | — | — | (1) | | (1) | — | — | — | — | — | | Lower-of-cost-or-market inventory adjustments | (12) | (3) | — | | (15) | — | — | — | — | — | | Total Marketing and Specialties | 25 | (7) | (2) | | 16 | — | — | — | 90 | 90 | | Corporate and Other | | | | | | | | | | | | Impairments | — | — | (25) | | (25) | — | — | — | — | — | | Certain tax impacts | — | 8 | — | | 8 | — | — | — | — | — | | Pension settlement expense | — | (3) | (1) | | (4) | — | — | — | — | — | | Total Corporate and Other | — | 5 | (26) | | (21) | — | — | — | — | — | | Total Special Items (Pre-tax) | (3,021) | 19 | (1,070) | | (4,072) | 21 | — | (925) | 67 | (837) | | Less: Income Tax Expense (Benefit) | | | | | | | | | | | | Tax impact of pre-tax special items* | (75) | (208) | (262) | | (545) | 4 | — | (235) | 17 | (214) | | Other tax impacts | — | 20 | (10) | | 10 | — | (45) | — | 3 | (42) | | Total Income Tax Expense (Benefit) | (75) | (188) | (272) | | (535) | 4 | (45) | (235) | 20 | (256) | | Less: Income Attributable to Noncontrolling Interests | | | | | | | | | | | | Asset dispositions | — | 24 | — | | 24 | — | — | — | — | — | | Total: Income Attributable to Noncontrolling Interests | — | 24 | — | | 24 | — | — | — | — | — | | Total Phillips 66 Special Items (After-tax) | (2,946) | 183 | (798) | | (3,561) | 17 | 45 | (690) | 47 | (581) | | * We generally tax effect taxable U.S.-based special items using a combined federal and state annual statutory income tax rate of approximately 25%. Taxable special items attributable to foreign locations likewise use a local statutory income tax rate. Nontaxable events reflect zero income tax. These events include, but are not limited to, most goodwill impairments, transactions legislatively exempt from income tax, transactions related to entities for which we have made an assertion that the undistributed earnings are permanently reinvested, or transactions occurring in jurisdictions with a valuation allowance. | | | | | | | | | | | | SPECIAL ITEMS INCLUDED IN INCOME (LOSS) BEFORE INCOME TAXES BY BUSINESS LINES/REGIONS | | | | | | | | | | | | | Millions of Dollars | | | | | | | | | | | | 2020 | | | | | 2019 | | | | | | | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | | Midstream | | | | | | | | | | | | Transportation | — | 84 | (205) | | (121) | — | — | — | — | — | | NGL and Other | — | (5) | (3) | | (8) | — | — | — | — | — | | DCP Midstream | (1,162) | — | — | | (1,162) | — | — | (900) | — | (900) | | Total Midstream | (1,162) | 79 | (208) | | (1,291) | — | — | (900) | — | (900) | | Refining | | | | | | | | | | | | Atlantic Basin/Europe | (441) | (7) | (2) | | (450) | — | — | 17 | — | 17 | | Gulf Coast | (670) | (9) | (16) | | (695) | — | — | — | — | — | | Central Corridor | (450) | 9 | (3) | | (444) | 21 | — | — | — | 21 | | West Coast | (299) | (4) | (912) | | (1,215) | — | — | — | — | — | | Total Refining | (1,860) | (11) | (933) | | (2,804) | 21 | — | 17 | — | 38 | | Marketing and Specialties | | | | | | | | | | | | Marketing and Other | 37 | (4) | (1) | | 32 | — | — | — | 90 | 90 | | Specialties | (12) | (3) | (1) | | (16) | — | — | — | — | — | | Total Marketing and Specialties | 25 | (7) | (2) | | 16 | — | — | — | 90 | 90 |
Page 3
| Phillips 66 Earnings Release Supplemental Data | | --- || CASH FLOW INFORMATION | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | Millions of Dollars | | | | | | | | | | | | 2020 | | | | | 2019 | | | | | | | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | | Cash Flows From Operating Activities | | | | | | | | | | | | Net income (loss) | (2,427) | (67) | (726) | | (3,220) | 270 | 1,504 | 793 | 810 | 3,377 | | Depreciation and amortization | 342 | 343 | 352 | | 1,037 | 331 | 334 | 336 | 340 | 1,341 | | Impairments | 3,006 | — | 1,140 | | 4,146 | 1 | 2 | 853 | 5 | 861 | | Accretion on discounted liabilities | 6 | 5 | 6 | | 17 | 6 | 5 | 6 | 6 | 23 | | Deferred income taxes | (47) | 26 | 23 | | 2 | 179 | 74 | (138) | 68 | 183 | | Undistributed equity earnings | (4) | 302 | (44) | | 254 | 95 | (139) | 19 | (118) | (143) | | Net gain on dispositions | (1) | (85) | (1) | | (87) | (1) | — | (18) | (1) | (20) | | Other | (139) | 146 | 45 | | 52 | 42 | (101) | (38) | 113 | 16 | | Net working capital changes | (519) | 94 | (304) | | (729) | (1,401) | 251 | (151) | 471 | (830) | | Net Cash Provided by (Used in) Operating Activities | 217 | 764 | 491 | | 1,472 | (478) | 1,930 | 1,662 | 1,694 | 4,808 | | Cash Flows From Investing Activities | | | | | | | | | | | | Capital expenditures and investments | (923) | (939) | (552) | | (2,414) | (1,097) | (631) | (867) | (1,278) | (3,873) | | Return of investments in equity affiliates | 38 | 50 | 51 | | 139 | 21 | 14 | 20 | 16 | 71 | | Proceeds from asset dispositions | 1 | — | 2 | | 3 | 82 | 1 | 1 | 2 | 86 | | Advances/loans—related parties | (8) | (223) | (20) | | (251) | — | (95) | — | (3) | (98) | | Collection of advances/loans—related parties | — | 44 | — | | 44 | — | 95 | — | — | 95 | | Other | 15 | (79) | (23) | | (87) | (18) | 42 | — | 7 | 31 | | Net Cash Used in Investing Activities | (877) | (1,147) | (542) | | (2,566) | (1,012) | (574) | (846) | (1,256) | (3,688) | | Cash Flows From Financing Activities | | | | | | | | | | | | Issuance of debt | 1,199 | 2,031 | 75 | | 3,305 | 725 | 135 | 898 | 25 | 1,783 | | Repayment of debt | (7) | (534) | (5) | | (546) | (592) | (5) | (407) | (303) | (1,307) | | Issuance of common stock | 6 | — | — | | 6 | 8 | 1 | 6 | 17 | 32 | | Repurchase of common stock | (443) | — | — | | (443) | (344) | (455) | (439) | (412) | (1,650) | | Dividends paid on common stock | (396) | (393) | (393) | | (1,182) | (364) | (406) | (402) | (398) | (1,570) | | Distributions to noncontrolling interests | (61) | (66) | (74) | | (201) | (56) | (61) | (59) | (65) | (241) | | Net proceeds from issuance of Phillips 66 Partners LP common units | 2 | — | — | | 2 | 32 | 10 | 91 | 40 | 173 | | Other | (24) | 9 | (7) | | (22) | 307 | (6) | (19) | (13) | 269 | | Net Cash Provided by (Used in) Financing Activities | 276 | 1,047 | (404) | | 919 | (284) | (787) | (331) | (1,109) | (2,511) | | Effect of Exchange Rate Changes on Cash and Cash Equivalents | (9) | 5 | 27 | | 23 | 8 | (3) | (36) | 17 | (14) | | Net Change in Cash and Cash Equivalents | (393) | 669 | (428) | | (152) | (1,766) | 566 | 449 | (654) | (1,405) | | Cash and cash equivalents at beginning of period | 1,614 | 1,221 | 1,890 | | 1,614 | 3,019 | 1,253 | 1,819 | 2,268 | 3,019 | | Cash and Cash Equivalents at End of Period | 1,221 | 1,890 | 1,462 | | 1,462 | 1,253 | 1,819 | 2,268 | 1,614 | 1,614 | | CAPITAL PROGRAM | | | | | | | | | | | | | Millions of Dollars | | | | | | | | | | | | 2020 | | | | | 2019 | | | | | | | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | | Consolidated Capital Expenditures and Investments | | | | | | | | | | | | Midstream | 580 | 597 | 315 | | 1,492 | 419 | 359 | 524 | 567 | 1,869 | | Chemicals | — | — | — | | — | — | — | — | — | — | | Refining | 245 | 164 | 168 | | 577 | 194 | 197 | 254 | 356 | 1,001 | | Marketing and Specialties | 25 | 86 | 28 | | 139 | 19 | 23 | 34 | 298 | 374 | | Corporate and Other | 50 | 54 | 38 | | 142 | 43 | 52 | 55 | 56 | 206 | | Adjusted Capital Spending | 900 | 901 | 549 | | 2,350 | 675 | 631 | 867 | 1,277 | 3,450 | | Capital expenditures and investments funded by certain joint venture partners (Midstream) | 23 | 38 | 3 | | 64 | 422 | — | — | 1 | 423 | | Consolidated Capital Expenditures and Investments | 923 | 939 | 552 | | 2,414 | 1,097 | 631 | 867 | 1,278 | 3,873 | | Proportional Share of Selected Equity Affiliates Capital Expenditures and Investments* | | | | | | | | | | | | DCP Midstream (Midstream) | 46 | 44 | 12 | | 102 | 150 | 128 | 77 | 117 | 472 | | CPChem (Chemicals) | 126 | 13 | 65 | | 204 | 103 | 72 | 77 | 130 | 382 | | WRB (Refining) | 37 | 34 | 39 | | 110 | 37 | 44 | 54 | 40 | 175 | | Selected Equity Affiliates | 209 | 91 | 116 | | 416 | 290 | 244 | 208 | 287 | 1,029 | | * Represents Phillips 66’s portion of self-funded capital spending by DCP Midstream, LLC (DCP Midstream), Chevron Phillips Chemical Company LLC (CPChem) and WRB Refining LP (WRB). | | | | | | | | | | |
Page 4
| Phillips 66 Earnings Release Supplemental Data | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| MIDSTREAM | |||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| 2019 | |||||||||
| 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | |
| Income (Loss) before Income Taxes | |||||||||
| Transportation | 214 | (3) | 411 | 203 | 245 | 248 | 250 | 946 | |
| NGL and Other | 78 | 99 | 356 | 90 | 143 | 169 | 120 | 522 | |
| DCP Midstream | 32 | 50 | (999) | 23 | 35 | (877) | 35 | (784) | |
| Income (Loss) before Income Taxes | 324 | 146 | (232) | 316 | 423 | (460) | 405 | 684 | |
| Adjusted EBITDA* | |||||||||
| PSXP** | 261 | 305 | 878 | 274 | 307 | 313 | 336 | 1,230 | |
| Other Midstream | 80 | 119 | 392 | 133 | 197 | 223 | 155 | 708 | |
| Transportation and NGL and Other | 341 | 424 | 1,270 | 407 | 504 | 536 | 491 | 1,938 | |
| DCP Midstream | 87 | 108 | 334 | 67 | 81 | 79 | 96 | 323 | |
| Adjusted EBITDA | 428 | 532 | 1,604 | 474 | 585 | 615 | 587 | 2,261 | |
| * See reconciliation of income (loss) before income taxes to adjusted EBITDA. | |||||||||
| ** Does not include certain PSXP adjustments made for PSXP stand-alone reporting purposes. | |||||||||
| Equity in Earnings (Losses) of Affiliates | |||||||||
| Transportation | 70 | 103 | 271 | 103 | 124 | 128 | 128 | 483 | |
| NGL and Other | 49 | 44 | 144 | 51 | 53 | 51 | 48 | 203 | |
| DCP Midstream | 32 | 49 | 161 | 23 | 34 | (23) | 34 | 68 | |
| Total | 151 | 196 | 576 | 177 | 211 | 156 | 210 | 754 | |
| Depreciation and Amortization* | |||||||||
| Transportation | 38 | 41 | 117 | 36 | 37 | 40 | 39 | 152 | |
| NGL and Other | 39 | 42 | 120 | 37 | 38 | 38 | 39 | 152 | |
| DCP Midstream | — | — | — | — | — | — | — | — | |
| Total | 77 | 83 | 237 | 73 | 75 | 78 | 78 | 304 | |
| * Excludes D&A of all equity affiliates. | |||||||||
| Operating and SG&A Expenses* | |||||||||
| Transportation | 186 | 185 | 559 | 172 | 173 | 183 | 196 | 724 | |
| NGL and Other | 71 | 71 | 210 | 128 | 76 | 76 | 83 | 363 | |
| DCP Midstream | — | (1) | (1) | — | — | — | — | — | |
| Total | 257 | 255 | 768 | 300 | 249 | 259 | 279 | 1,087 | |
| * Excludes operating and SG&A expenses of all equity affiliates. | |||||||||
| Transportation Volumes (MB/D) | |||||||||
| Pipelines* | 2,840 | 3,076 | 3,032 | 3,176 | 3,417 | 3,443 | 3,544 | 3,396 | |
| Terminals** | 2,883 | 2,966 | 2,999 | 3,063 | 3,261 | 3,381 | 3,548 | 3,315 | |
| * Pipelines represent the sum of volumes transported through each separately tariffed consolidated pipeline segment. | |||||||||
| ** Terminals include Bayway and Ferndale crude oil rail rack volumes. | |||||||||
| PSX Other Volumes | |||||||||
| NGL Fractionated (MB/D)* | 170 | 217 | 195 | 234 | 232 | 203 | 227 | 224 | |
| * Excludes DCP Midstream. | |||||||||
| 100% DCP Midstream, LLC Results | |||||||||
| Net Income (Loss) Attributable to Owners* | (348) | 58 | (240) | 45 | 68 | (47) | 12 | 78 | |
| * Includes impairment charges of 159 million and 650 million in the first and second quarters of 2020, respectively. | |||||||||
| Depreciation and Amortization | 93 | 93 | 285 | 103 | 101 | 100 | 100 | 404 | |
| Operating and SG&A Expenses | 212 | 212 | 626 | 246 | 257 | 257 | 267 | 1,027 | |
| Net Interest Expense* | 71 | 77 | 226 | 70 | 75 | 79 | 84 | 308 | |
| * Net of interest income. | |||||||||
| Capital Expenditures and Investments | 87 | 24 | 203 | 300 | 256 | 154 | 233 | 943 | |
| Selected DCP Operating Statistics | |||||||||
| Wellhead Volume (Bcf/D) | 4.5 | 4.5 | 4.7 | 5.0 | 4.9 | 5.0 | 5.0 | 5.0 | |
| NGL Production (MB/D) | 374 | 414 | 395 | 428 | 423 | 409 | 409 | 417 | |
| Weighted-Average NGL Price* | |||||||||
| DCP Midstream (/gal) | 0.32 | 0.44 | 0.38 | 0.60 | 0.51 | 0.44 | 0.50 | 0.51 | |
| * Based on index prices from the Mont Belvieu market hub, which are weighted by NGL component mix. | |||||||||
| MLP Distributions* | |||||||||
| GP Distribution from PSXP to Phillips 66** | — | — | — | 69 | 70 | — | — | 139 | |
| LP Distribution from PSXP to Phillips 66 | 149 | 148 | 445 | 58 | 58 | 147 | 149 | 412 | |
| GP Distribution from DCP Midstream, LP to DCP Midstream*** | — | — | — | 43 | 43 | 43 | — | 129 | |
| LP Distribution from DCP Midstream, LP to DCP Midstream*** | 46 | **** | 92 | 41 | 41 | 41 | 92 | 215 | |
| * Cash distributions declared attributable to general partner interest, common unit ownership and incentive distribution rights (IDRs). These distributions are eliminated in the respective sponsors consolidated financial statements. | |||||||||
| ** On August 1, 2019, PSXP eliminated its IDRs and 2% economic general partner interest, therefore, no distributions were made to the general partner interest after August 1, 2019. | |||||||||
| *** Represents 100% of DCP Midstream's distributions from DCP Midstream, LP (DCP Partners). On November 6, 2019, DCP Partners completed a transaction to eliminate all general partner economic interests in DCP Partners and IDRs, therefore, no distributions were made to the general partner interest after November 6, 2019. | |||||||||
| **** Pending DCP Midstream release. |
All values are in US Dollars.
Page 5
| Phillips 66 Earnings Release Supplemental Data | | --- || MIDSTREAM (continued) | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | Millions of Dollars | | | | | | | | | | | | 2020 | | | | | 2019 | | | | | | | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | | Reconciliation of Midstream Income (Loss) before Income Taxes to Adjusted EBITDA | | | | | | | | | | | | Income (loss) before income taxes | (702) | 324 | 146 | | (232) | 316 | 423 | (460) | 405 | 684 | | Plus: | | | | | | | | | | | | Depreciation and amortization | 77 | 77 | 83 | | 237 | 73 | 75 | 78 | 78 | 304 | | EBITDA | (625) | 401 | 229 | | 5 | 389 | 498 | (382) | 483 | 988 | | Special Item Adjustments (pre-tax): | | | | | | | | | | | | Impairments | 1,161 | — | 204 | | 1,365 | — | — | 853 | — | 853 | | Impairments by equity affiliates | — | — | — | | — | — | — | 47 | — | 47 | | Pension settlement expense | — | 5 | 3 | | 8 | — | — | — | — | — | | Hurricane-related costs | — | — | 1 | | 1 | — | — | — | — | — | | Lower-of-cost-or-market inventory adjustments | 1 | — | — | | 1 | — | — | — | — | — | | Asset dispositions | — | (84) | — | | (84) | — | — | — | — | — | | EBITDA, Adjusted for Special Items | 537 | 322 | 437 | | 1,296 | 389 | 498 | 518 | 483 | 1,888 | | Other Adjustments (pre-tax): | | | | | | | | | | | | Proportional share of selected equity affiliates income taxes | — | — | 1 | | 1 | — | — | — | — | — | | Proportional share of selected equity affiliates net interest | 39 | 36 | 43 | | 118 | 30 | 30 | 36 | 39 | 135 | | Proportional share of selected equity affiliates depreciation and amortization | 68 | 70 | 71 | | 209 | 55 | 57 | 61 | 65 | 238 | | Adjusted EBITDA attributable to joint venture partners' noncontrolling interests | — | — | (20) | | (20) | — | — | — | — | — | | Adjusted EBITDA | 644 | 428 | 532 | | 1,604 | 474 | 585 | 615 | 587 | 2,261 | | Adjusted EBITDA by Business Line | | | | | | | | | | | | 100% PSXP Results | | | | | | | | | | | | Income before income taxes | 227 | 255 | 217 | | 699 | 199 | 234 | 238 | 255 | 926 | | Plus: | | | | | | | | | | | | Net interest expense | 28 | 29 | 31 | | 88 | 27 | 26 | 25 | 27 | 105 | | Depreciation and amortization | 30 | 31 | 35 | | 96 | 29 | 29 | 30 | 32 | 120 | | EBITDA | 285 | 315 | 283 | | 883 | 255 | 289 | 293 | 314 | 1,151 | | Special Item Adjustments (pre-tax): | | | | | | | | | | | | Hurricane-related costs* | — | — | 1 | | 1 | — | — | — | — | — | | Asset dispositions | — | (84) | — | | (84) | — | — | — | — | — | | EBITDA, Adjusted for Special Items** | 285 | 231 | 284 | | 800 | 255 | 289 | 293 | 314 | 1,151 | | Other Adjustments (pre-tax): | | | | | | | | | | | | Proportional share of selected equity affiliates income taxes | — | — | 1 | | 1 | — | — | — | — | — | | Proportional share of selected equity affiliates net interest | 9 | 9 | 12 | | 30 | 7 | 6 | 7 | 7 | 27 | | Proportional share of selected equity affiliates depreciation and amortization | 18 | 21 | 24 | | 63 | 12 | 12 | 13 | 15 | 52 | | Adjusted EBITDA attributable to joint venture partner's noncontrolling interest | — | — | (16) | | (16) | — | — | — | — | — | | Adjusted EBITDA** | 312 | 261 | 305 | | 878 | 274 | 307 | 313 | 336 | 1,230 | | * Represents a special item adjustment made for PSX reporting purposes only. | | | | | | | | | | | | ** Does not include certain PSXP adjustments made for PSXP stand-alone reporting purposes. | | | | | | | | | | |
Page 6
| Phillips 66 Earnings Release Supplemental Data | | --- || MIDSTREAM (continued) | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | Millions of Dollars | | | | | | | | | | | | 2020 | | | | | 2019 | | | | | | | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | | Total Transportation and NGL and Other | | | | | | | | | | | | Income before income taxes | 379 | 292 | 96 | | 767 | 293 | 388 | 417 | 370 | 1,468 | | Plus: | | | | | | | | | | | | Depreciation and amortization | 77 | 77 | 83 | | 237 | 73 | 75 | 78 | 78 | 304 | | EBITDA* | 456 | 369 | 179 | | 1,004 | 366 | 463 | 495 | 448 | 1,772 | | Special Item Adjustments (pre-tax): | | | | | | | | | | | | Impairments | — | — | 204 | | 204 | — | — | — | — | — | | Pension settlement expense | — | 5 | 3 | | 8 | — | — | — | — | — | | Hurricane-related costs | — | — | 1 | | 1 | — | — | — | — | — | | Asset dispositions | — | (84) | — | | (84) | — | — | — | — | — | | EBITDA, Adjusted for Special Items* | 456 | 290 | 387 | | 1,133 | 366 | 463 | 495 | 448 | 1,772 | | Other Adjustments (pre-tax): | | | | | | | | | | | | Proportional share of selected equity affiliates income taxes | — | — | 1 | | 1 | — | — | — | — | — | | Proportional share of selected equity affiliates net interest | 17 | 16 | 21 | | 54 | 15 | 14 | 14 | 15 | 58 | | Proportional share of selected equity affiliates depreciation and amortization | 32 | 35 | 35 | | 102 | 26 | 27 | 27 | 28 | 108 | | Adjusted EBITDA attributable to joint venture partners' noncontrolling interests | — | — | (20) | | (20) | — | — | — | — | — | | Adjusted EBITDA* | 505 | 341 | 424 | | 1,270 | 407 | 504 | 536 | 491 | 1,938 | | * Includes PSXP results. Does not include certain PSXP adjustments made for PSXP stand-alone reporting purposes. | | | | | | | | | | | | DCP Midstream | | | | | | | | | | | | Income (loss) before income taxes | (1,081) | 32 | 50 | | (999) | 23 | 35 | (877) | 35 | (784) | | Plus: | | | | | | | | | | | | None | — | — | — | | — | — | — | — | — | — | | EBITDA | (1,081) | 32 | 50 | | (999) | 23 | 35 | (877) | 35 | (784) | | Special Item Adjustments (pre-tax): | | | | | | | | | | | | Impairments | 1,161 | — | — | | 1,161 | — | — | 853 | — | 853 | | Impairments by equity affiliates | — | — | — | | — | — | — | 47 | — | 47 | | Lower-of-cost-or-market inventory adjustments | 1 | — | — | | 1 | — | — | — | — | — | | EBITDA, Adjusted for Special Items | 81 | 32 | 50 | | 163 | 23 | 35 | 23 | 35 | 116 | | Other Adjustments (pre-tax): | | | | | | | | | | | | Proportional share of selected equity affiliates income taxes | — | — | — | | — | — | — | — | — | — | | Proportional share of selected equity affiliates net interest | 22 | 20 | 22 | | 64 | 15 | 16 | 22 | 24 | 77 | | Proportional share of selected equity affiliates depreciation and amortization | 36 | 35 | 36 | | 107 | 29 | 30 | 34 | 37 | 130 | | Adjusted EBITDA* | 139 | 87 | 108 | | 334 | 67 | 81 | 79 | 96 | 323 | | * Proportional share of selected equity affiliates is net of noncontrolling interests. | | | | | | | | | | |
Page 7
| Phillips 66 Earnings Release Supplemental Data | | --- || CHEMICALS | | | | | | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | Millions of Dollars, Except as Indicated | | | | | | | | | | | | | | | | | | | | | 2020 | | | | | | | | | 2019 | | | | | | | | | | | | 1st Qtr | | 2nd Qtr | | 3rd Qtr | | 4th Qtr | YTD | | 1st Qtr | | 2nd Qtr | | 3rd Qtr | | 4th Qtr | | YTD | | | Income before Income Taxes | 169 | | 42 | | 231 | | | 442 | | 227 | | 275 | | 227 | | 150 | | 879 | | | Equity in Earnings of Affiliate | 166 | | 39 | | 229 | | | 434 | | 225 | | 274 | | 224 | | 147 | | 870 | | | 100% CPChem Results | | | | | | | | | | | | | | | | | | | | | Net Income (Loss), excludes parent company income tax related to CPChem's earnings | | | | | | | | | | | | | | | | | | | | | Olefins and Polyolefins | 354 | | 142 | | 488 | | | 984 | | 434 | | 525 | | 417 | | 262 | | 1,638 | | | Specialties, Aromatics and Styrenics | 9 | | — | | 23 | | | 32 | | 49 | | 70 | | 73 | | 70 | | 262 | | | Corporate and Other | (26) | | (59) | | (54) | | | (139) | | (34) | | (36) | | (34) | | (36) | | (140) | | | Total | 337 | | 83 | | 457 | | | 877 | | 449 | | 559 | | 456 | | 296 | | 1,760 | | | Income (Loss) before Income Taxes | | | | | | | | | | | | | | | | | | | | | Olefins and Polyolefins | 360 | | 142 | | 498 | | | 1,000 | | 446 | | 536 | | 430 | | 266 | | 1,678 | | | Specialties, Aromatics and Styrenics | 10 | | 3 | | 24 | | | 37 | | 57 | | 78 | | 78 | | 74 | | 287 | | | Corporate and Other | (26) | | (59) | | (54) | | | (139) | | (34) | | (36) | | (33) | | (36) | | (139) | | | Total | 344 | | 86 | | 468 | | | 898 | | 469 | | 578 | | 475 | | 304 | | 1,826 | | | Depreciation and Amortization | 148 | | 144 | | 146 | | | 438 | | 146 | | 139 | | 140 | | 150 | | 575 | | | Net Interest Expense* | 16 | | 24 | | 23 | | | 63 | | 20 | | 17 | | 19 | | 16 | | 72 | | | * Net of interest income. | | | | | | | | | | | | | | | | | | | | | Investing Cash Flows—Outflows/(Inflows) | | | | | | | | | | | | | | | | | | | | | Capital Expenditures and Investments | 252 | | 25 | | 130 | | | 407 | | 206 | | 144 | | 153 | | 260 | | 763 | | | Advance Repayments from Equity Companies | (21) | | — | | — | | | (21) | | (26) | | (28) | | (9) | | — | | (63) | | | Return of Investments from Equity Companies | (25) | | — | | — | | | (25) | | — | | — | | — | | — | | — | | | Olefins and Polyolefins Capacity Utilization (%) | 98 | % | 103 | % | 94 | % | | 98 | % | 98 | % | 95 | % | 97 | % | 97 | % | 97 | % | | Market Indicators* | | | | | | | | | | | | | | | | | | | | | U.S. Industry Prices | | | | | | | | | | | | | | | | | | | | | Ethylene, Average Acquisition Contract (cents/lb) | 19.7 | | 17.1 | | 23.8 | | | 20.2 | | 22.4 | | 19.1 | | 23.9 | | 25.2 | | 22.7 | | | HDPE Blow Molding, Domestic Spot (cents/lb) | 40.0 | | 35.5 | | 45.6 | | | 40.4 | | 52.7 | | 51.1 | | 45.4 | | 41.2 | | 47.6 | | | U.S. Industry Costs | | | | | | | | | | | | | | | | | | | | | Ethylene, Cash Cost Weighted Average Feed (cents/lb) | 9.0 | | 12.0 | | 13.2 | | | 11.4 | | 16.4 | | 11.9 | | 9.5 | | 11.8 | | 12.3 | | | HDPE Blow Molding, Total Cash Cost (cents/lb) | 32.9 | | 30.3 | | 37.1 | | | 33.4 | | 35.5 | | 32.0 | | 36.7 | | 38.2 | | 35.6 | | | Ethylene to High-Density Polyethylene Chain Cash Margin (cents/lb) | 17.8 | | 10.3 | | 19.0 | | | 15.7 | | 23.2 | | 26.4 | | 23.1 | | 16.5 | | 22.4 | | | * Source: IHS, Inc. | | | | | | | | | | | | | | | | | | | | | Reconciliation of Chemicals Income before Income Taxes to Adjusted EBITDA | | | | | | | | | | | | | | | | | | | | | Income before income taxes | 169 | | 42 | | 231 | | | 442 | | 227 | | 275 | | 227 | | 150 | | 879 | | | Plus: | | | | | | | | | | | | | | | | | | | | | None | — | | — | | — | | | — | | — | | — | | — | | — | | — | | | EBITDA | 169 | | 42 | | 231 | | | 442 | | 227 | | 275 | | 227 | | 150 | | 879 | | | Special Item Adjustments (pre-tax): | | | | | | | | | | | | | | | | | | | | | Impairments by equity affiliates | — | | 15 | | — | | | 15 | | — | | — | | — | | — | | — | | | Hurricane-related costs | — | | — | | 2 | | | 2 | | — | | — | | — | | — | | — | | | Lower-of-cost-or-market inventory adjustments | 24 | | 32 | | (101) | | | (45) | | — | | — | | 42 | | 23 | | 65 | | | EBITDA, Adjusted for Special Items | 193 | | 89 | | 132 | | | 414 | | 227 | | 275 | | 269 | | 173 | | 944 | | | Other Adjustments (pre-tax): | | | | | | | | | | | | | | | | | | | | | Proportional share of selected equity affiliates income taxes | 13 | | 5 | | 14 | | | 32 | | 22 | | 24 | | 23 | | 10 | | 79 | | | Proportional share of selected equity affiliates net interest | 9 | | 11 | | 12 | | | 32 | | 13 | | 8 | | 10 | | 9 | | 40 | | | Proportional share of selected equity affiliates depreciation and amortization | 103 | | 103 | | 104 | | | 310 | | 105 | | 106 | | 104 | | 100 | | 415 | | | Adjusted EBITDA | 318 | | 208 | | 262 | | | 788 | | 367 | | 413 | | 406 | | 292 | | 1,478 | |
Page 8
| Phillips 66 Earnings Release Supplemental Data | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| REFINING | |||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| 2019 | |||||||||
| 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | |
| Income (Loss) before Income Taxes | |||||||||
| Atlantic Basin/Europe | (227) | (199) | (1,063) | (7) | 258 | 296 | 61 | 608 | |
| Gulf Coast | (365) | (405) | (1,613) | (118) | 222 | 184 | 76 | 364 | |
| Central Corridor | (104) | (132) | (463) | 77 | 520 | 408 | 333 | 1,338 | |
| West Coast | (182) | (1,167) | (1,903) | (150) | (17) | (32) | (125) | (324) | |
| Income (Loss) before Income Taxes | (878) | (1,903) | (5,042) | (198) | 983 | 856 | 345 | 1,986 | |
| Income (Loss) before Income Taxes (/BBL) | |||||||||
| Atlantic Basin/Europe | (5.80) | (4.61) | (8.60) | (0.17) | 5.04 | 5.93 | 1.16 | 3.11 | |
| Gulf Coast | (5.98) | (7.86) | (9.13) | (1.80) | 2.88 | 2.46 | 1.00 | 1.24 | |
| Central Corridor | (5.01) | (5.35) | (6.73) | 3.22 | 19.81 | 15.26 | 12.61 | 12.95 | |
| West Coast | (7.07) | (38.12) | (22.59) | (4.89) | (0.52) | (0.93) | (3.89) | (2.49) | |
| Worldwide | (5.99) | (12.69) | (11.12) | (1.22) | 5.25 | 4.60 | 1.84 | 2.75 | |
| Realized Refining Margins (/BBL)* | |||||||||
| Atlantic Basin/Europe | 1.53 | 1.65 | 1.86 | 7.76 | 10.85 | 11.48 | 7.06 | 9.33 | |
| Gulf Coast | 0.36 | (0.61) | 2.40 | 5.44 | 8.20 | 8.34 | 7.45 | 7.42 | |
| Central Corridor | 5.78 | 4.46 | 8.09 | 10.23 | 17.84 | 15.99 | 14.92 | 14.91 | |
| West Coast | 5.05 | 2.23 | 3.94 | 6.25 | 9.94 | 10.11 | 10.22 | 9.18 | |
| Worldwide | 2.60 | 1.78 | 3.91 | 7.23 | 11.37 | 11.18 | 9.50 | 9.91 | |
| * See note on the use of non-GAAP measures. Also, reconciliations of income (loss) before income taxes to realized refining margin for each period and by region are included in the "Realized Margin Non-GAAP Reconciliations" section. | |||||||||
| Equity in Earnings (Losses) of Affiliates | |||||||||
| Atlantic Basin/Europe | (3) | (2) | (7) | (3) | (3) | (3) | (2) | (11) | |
| Gulf Coast | 1 | (1) | 1 | — | (2) | 1 | (1) | (2) | |
| Central Corridor | (79) | (118) | (248) | 84 | 133 | 69 | 45 | 331 | |
| West Coast | — | — | — | — | — | — | — | — | |
| Total | (81) | (121) | (254) | 81 | 128 | 67 | 42 | 318 | |
| Depreciation and Amortization* | |||||||||
| Atlantic Basin/Europe | 49 | 50 | 150 | 50 | 49 | 49 | 50 | 198 | |
| Gulf Coast | 75 | 75 | 221 | 67 | 68 | 66 | 67 | 268 | |
| Central Corridor | 33 | 33 | 100 | 33 | 34 | 34 | 34 | 135 | |
| West Coast | 63 | 64 | 192 | 62 | 63 | 66 | 62 | 253 | |
| Total | 220 | 222 | 663 | 212 | 214 | 215 | 213 | 854 | |
| * Excludes D&A of all equity affiliates. | |||||||||
| Operating and SG&A Expenses* | |||||||||
| Atlantic Basin/Europe | 202 | 186 | 595 | 240 | 211 | 218 | 233 | 902 | |
| Gulf Coast | 287 | 269 | 1,055 | 382 | 330 | 352 | 408 | 1,472 | |
| Central Corridor | 127 | 118 | 387 | 146 | 141 | 131 | 154 | 572 | |
| West Coast | 225 | 244 | 762 | 254 | 257 | 290 | 373 | 1,174 | |
| Total | 841 | 817 | 2,799 | 1,022 | 939 | 991 | 1,168 | 4,120 | |
| * Excludes operating and SG&A expenses of all equity affiliates. | |||||||||
| Turnaround Expense, included in Operating and SG&A Expenses* | |||||||||
| Atlantic Basin/Europe | 9 | 11 | 36 | 20 | 13 | 17 | 15 | 65 | |
| Gulf Coast | 13 | 8 | 261 | 90 | 29 | 44 | 94 | 257 | |
| Central Corridor | 3 | 6 | 24 | 25 | 8 | 9 | 10 | 52 | |
| West Coast | 13 | 16 | 87 | 13 | 17 | 50 | 113 | 193 | |
| Total | 38 | 41 | 408 | 148 | 67 | 120 | 232 | 567 | |
| * Excludes turnaround expense of all equity affiliates. | |||||||||
| Taxes Other than Income Taxes | |||||||||
| Atlantic Basin/Europe | 15 | 14 | 48 | 15 | 11 | 12 | 14 | 52 | |
| Gulf Coast | 25 | 30 | 92 | 23 | 16 | 23 | 11 | 73 | |
| Central Corridor | 14 | 11 | 42 | 13 | 10 | 10 | 7 | 40 | |
| West Coast | 22 | 16 | 69 | 24 | 21 | 23 | 17 | 85 | |
| Total | 76 | 71 | 251 | 75 | 58 | 68 | 49 | 250 | |
| Foreign Currency Gains (Losses) Pre-Tax | (5) | 1 | (3) | (5) | (7) | 10 | 2 | — | |
| Refining—Equity Affiliate Information | |||||||||
| Equity in earnings (losses) of affiliates | (81) | (121) | (254) | 81 | 128 | 67 | 42 | 318 | |
| Less: Share of equity affiliate gross margin included in Realized Refining Margin and other equity affiliate-related costs* | (72) | (70) | (298) | (277) | (309) | (273) | (237) | (1,096) | |
| Equity affiliate-related expenses not included in Realized Refining Margins | (153) | (191) | (552) | (196) | (181) | (206) | (195) | (778) | |
| Regional Totals | |||||||||
| Atlantic Basin/Europe | (16) | (28) | (55) | (13) | (14) | (7) | — | (34) | |
| Gulf Coast | — | (1) | 1 | — | (2) | 1 | (1) | (2) | |
| Central Corridor | (137) | (162) | (498) | (183) | (165) | (200) | (194) | (742) | |
| Total | (153) | (191) | (552) | (196) | (181) | (206) | (195) | (778) | |
| * Other costs associated with equity affiliates which do not flow through equity earnings. |
All values are in US Dollars.
Page 9
| Phillips 66 Earnings Release Supplemental Data | ||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| REFINING (continued) | ||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| 2019 | ||||||||||||||||||
| 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | ||||||||||
| Reconciliation of Refining Income (Loss) before Income Taxes to Adjusted EBITDA ( Millions) | ||||||||||||||||||
| Income (loss) before income taxes | (878) | (1,903) | (5,042) | (198) | 983 | 856 | 345 | 1,986 | ||||||||||
| Plus: | ||||||||||||||||||
| Depreciation and amortization | 220 | 222 | 663 | 212 | 214 | 215 | 213 | 854 | ||||||||||
| EBITDA | (658) | (1,681) | (4,379) | 14 | 1,197 | 1,071 | 558 | 2,840 | ||||||||||
| Special Item Adjustments (pre-tax): | ||||||||||||||||||
| Impairments | — | 910 | 2,755 | — | — | — | — | — | ||||||||||
| Pending claims and settlements | — | — | — | (21) | — | — | — | (21) | ||||||||||
| Pension settlement expense | 26 | 12 | 38 | — | — | — | — | — | ||||||||||
| Hurricane-related costs | — | 11 | 11 | — | — | — | — | — | ||||||||||
| Lower-of-cost-or-market inventory adjustments | (15) | — | — | — | — | — | — | — | ||||||||||
| Asset dispositions | — | — | — | — | — | (17) | — | (17) | ||||||||||
| EBITDA, Adjusted for Special Items | (647) | (748) | (1,575) | (7) | 1,197 | 1,054 | 558 | 2,802 | ||||||||||
| Other Adjustments (pre-tax): | ||||||||||||||||||
| Proportional share of selected equity affiliates income taxes | (1) | — | (1) | — | — | 1 | (1) | — | ||||||||||
| Proportional share of selected equity affiliates net interest | 1 | 1 | 2 | (1) | (1) | (1) | — | (3) | ||||||||||
| Proportional share of selected equity affiliates depreciation and amortization | 72 | 69 | 219 | 71 | 69 | 70 | 71 | 281 | ||||||||||
| Adjusted EBITDA | (575) | (678) | (1,355) | 63 | 1,265 | 1,124 | 628 | 3,080 | ||||||||||
| Operating Statistics | ||||||||||||||||||
| Atlantic Basin/Europe* | ||||||||||||||||||
| Crude Oil Charge Input (MB/D) | 402 | 432 | 424 | 427 | 519 | 509 | 531 | 497 | ||||||||||
| Total Processed Inputs (MB/D) | 430 | 469 | 451 | 463 | 562 | 542 | 574 | 536 | ||||||||||
| Crude Oil Capacity Utilization (%) | % | 75 | % | 81 | % | 79 | % | 80 | % | 97 | % | 95 | % | 99 | % | 92 | % | |
| Clean Product Yield (%) | % | 82 | % | 83 | % | 83 | % | 86 | % | 88 | % | 87 | % | 90 | % | 88 | % | |
| * Includes our proportionate share of a refinery complex in Karlsruhe, Germany. | ||||||||||||||||||
| Gulf Coast | ||||||||||||||||||
| Crude Oil Charge Input (MB/D) | 609 | 506 | 586 | 654 | 757 | 729 | 759 | 725 | ||||||||||
| Total Processed Inputs (MB/D) | 671 | 560 | 645 | 727 | 849 | 815 | 827 | 805 | ||||||||||
| Crude Oil Capacity Utilization (%) | % | 79 | % | 66 | % | 76 | % | 85 | % | 99 | % | 95 | % | 99 | % | 95 | % | |
| Clean Product Yield (%) | % | 79 | % | 82 | % | 77 | % | 80 | % | 81 | % | 78 | % | 80 | % | 80 | % | |
| Central Corridor* | ||||||||||||||||||
| Crude Oil Charge Input (MB/D) | 386 | 455 | 437 | 445 | 521 | 517 | 509 | 498 | ||||||||||
| Total Processed Inputs (MB/D) | 396 | 467 | 450 | 466 | 538 | 531 | 526 | 515 | ||||||||||
| Crude Oil Capacity Utilization (%) | % | 73 | % | 86 | % | 82 | % | 86 | % | 101 | % | 100 | % | 99 | % | 97 | % | |
| Clean Product Yield (%) | % | 87 | % | 89 | % | 88 | % | 90 | % | 88 | % | 88 | % | 91 | % | 89 | % | |
| * Includes our proportionate share of the Borger Refinery and Wood River Refinery. | ||||||||||||||||||
| West Coast | ||||||||||||||||||
| Crude Oil Charge Input (MB/D) | 263 | 311 | 285 | 307 | 317 | 351 | 318 | 323 | ||||||||||
| Total Processed Inputs (MB/D) | 283 | 333 | 307 | 341 | 359 | 375 | 349 | 356 | ||||||||||
| Crude Oil Capacity Utilization (%) | % | 72 | % | 85 | % | 78 | % | 84 | % | 87 | % | 97 | % | 87 | % | 89 | % | |
| Clean Product Yield (%) | % | 87 | % | 89 | % | 90 | % | 88 | % | 81 | % | 85 | % | 76 | % | 83 | % | |
| Worldwide—Including Proportionate Share of Equity Affiliates | ||||||||||||||||||
| Crude Oil Charge Input (MB/D) | 1,660 | 1,704 | 1,732 | 1,833 | 2,114 | 2,106 | 2,117 | 2,043 | ||||||||||
| Total Processed Inputs (MB/D) | 1,780 | 1,829 | 1,853 | 1,997 | 2,308 | 2,263 | 2,276 | 2,212 | ||||||||||
| Crude Oil Capacity Utilization (%) | % | 75 | % | 77 | % | 79 | % | 84 | % | 97 | % | 97 | % | 97 | % | 94 | % | |
| Clean Product Yield (%) | % | 83 | % | 85 | % | 83 | % | 85 | % | 84 | % | 84 | % | 84 | % | 84 | % |
All values are in US Dollars.
Page 10
| Phillips 66 Earnings Release Supplemental Data | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| REFINING (continued) | |||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| 2019 | |||||||||
| 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | |
| Refined Petroleum Products Production (MB/D) | |||||||||
| Atlantic Basin/Europe* | |||||||||
| Gasoline | 178 | 207 | 192 | 202 | 240 | 230 | 266 | 234 | |
| Distillates | 160 | 168 | 167 | 185 | 241 | 227 | 234 | 222 | |
| Other | 95 | 98 | 95 | 80 | 89 | 88 | 82 | 85 | |
| Total | 433 | 473 | 454 | 467 | 570 | 545 | 582 | 541 | |
| * Includes our proportionate share of a refinery complex in Karlsruhe, Germany. | |||||||||
| Gulf Coast | |||||||||
| Gasoline | 277 | 247 | 252 | 296 | 348 | 312 | 332 | 322 | |
| Distillates | 231 | 187 | 223 | 261 | 310 | 297 | 301 | 292 | |
| Other | 167 | 129 | 172 | 165 | 192 | 208 | 192 | 190 | |
| Total | 675 | 563 | 647 | 722 | 850 | 817 | 825 | 804 | |
| Central Corridor* | |||||||||
| Gasoline | 183 | 241 | 223 | 244 | 260 | 256 | 267 | 257 | |
| Distillates | 161 | 173 | 172 | 175 | 214 | 208 | 210 | 202 | |
| Other | 52 | 55 | 56 | 49 | 67 | 71 | 51 | 59 | |
| Total | 396 | 469 | 451 | 468 | 541 | 535 | 528 | 518 | |
| * Includes our proportionate share of the Borger Refinery and Wood River Refinery. | |||||||||
| West Coast | |||||||||
| Gasoline | 126 | 159 | 146 | 165 | 167 | 170 | 148 | 163 | |
| Distillates | 121 | 137 | 130 | 136 | 124 | 148 | 116 | 131 | |
| Other | 33 | 38 | 31 | 41 | 66 | 53 | 81 | 60 | |
| Total | 280 | 334 | 307 | 342 | 357 | 371 | 345 | 354 | |
| Worldwide—Including Proportionate Share of Equity Affiliates | |||||||||
| Gasoline | 764 | 854 | 813 | 907 | 1,015 | 968 | 1,013 | 976 | |
| Distillates | 673 | 665 | 692 | 757 | 889 | 880 | 861 | 847 | |
| Other | 347 | 320 | 354 | 335 | 414 | 420 | 406 | 394 | |
| Total | 1,784 | 1,839 | 1,859 | 1,999 | 2,318 | 2,268 | 2,280 | 2,217 | |
| Market Indicators* | |||||||||
| Crude and Crude Differentials (/BBL) | |||||||||
| WTI | 27.80 | 40.91 | 38.23 | 54.87 | 59.80 | 56.44 | 56.98 | 57.02 | |
| Brent | 29.20 | 43.00 | 40.82 | 63.20 | 68.82 | 61.94 | 63.25 | 64.30 | |
| LLS | 30.07 | 42.46 | 40.28 | 62.40 | 66.92 | 60.64 | 60.79 | 62.69 | |
| ANS | 30.37 | 42.74 | 41.50 | 64.50 | 68.18 | 63.07 | 64.41 | 65.04 | |
| WTI less Maya | 3.40 | 1.72 | 3.31 | (3.91) | (2.26) | (0.20) | 4.06 | (0.58) | |
| WTI less WCS (settlement differential) | 11.47 | 9.09 | 13.69 | 12.29 | 10.67 | 12.24 | 15.83 | 12.76 | |
| Natural Gas (/MMBtu) | |||||||||
| Henry Hub | 1.65 | 1.95 | 1.83 | 2.89 | 2.51 | 2.33 | 2.35 | 2.52 | |
| Product Margins (/BBL) | |||||||||
| Atlantic Basin/Europe | |||||||||
| East Coast Gasoline less Brent | 7.87 | 9.52 | 7.41 | 1.79 | 12.06 | 11.84 | 6.44 | 8.03 | |
| East Coast Distillate less Brent | 10.95 | 7.17 | 11.02 | 18.05 | 14.27 | 17.43 | 18.66 | 17.10 | |
| Gulf Coast | |||||||||
| Gulf Coast Gasoline less LLS | 3.66 | 5.88 | 4.84 | 1.58 | 8.18 | 8.24 | 5.48 | 5.87 | |
| Gulf Coast Distillate less LLS | 8.04 | 6.10 | 9.33 | 16.41 | 14.28 | 17.22 | 17.62 | 16.38 | |
| Central Corridor | |||||||||
| Central Gasoline less WTI | 6.18 | 8.15 | 7.34 | 9.72 | 18.71 | 15.28 | 10.75 | 13.61 | |
| Central Distillate less WTI | 11.41 | 8.55 | 12.43 | 24.92 | 22.49 | 21.39 | 22.29 | 22.77 | |
| West Coast | |||||||||
| West Coast Gasoline less ANS | 9.36 | 13.12 | 11.93 | 11.83 | 23.50 | 19.48 | 16.85 | 17.92 | |
| West Coast Distillate less ANS | 10.36 | 9.34 | 12.31 | 16.20 | 21.10 | 18.38 | 21.49 | 19.29 | |
| Worldwide Market Crack Spread (/BBL)** | 7.47 | 8.17 | 8.49 | 9.77 | 15.24 | 14.60 | 12.45 | 13.01 | |
| * Based on daily spot prices, unless otherwise noted. | |||||||||
| ** Weighted average based on Phillips 66 crude capacity. |
All values are in US Dollars.
Page 11
| Phillips 66 Earnings Release Supplemental Data | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| MARKETING AND SPECIALTIES | |||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| 2019 | |||||||||
| 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | |
| Income before Income Taxes | |||||||||
| Marketing and Other | 255 | 365 | 1,091 | 138 | 294 | 440 | 327 | 1,199 | |
| Specialties | 31 | 50 | 123 | 67 | 59 | 58 | 50 | 234 | |
| Income before Income Taxes | 286 | 415 | 1,214 | 205 | 353 | 498 | 377 | 1,433 | |
| Income before Income Taxes (/BBL) | |||||||||
| U.S. | 1.24 | 1.74 | 1.60 | 0.60 | 1.09 | 1.66 | 1.42 | 1.22 | |
| International | 3.48 | 5.01 | 5.16 | 2.25 | 4.81 | 5.19 | 2.01 | 3.58 | |
| Realized Marketing Fuel Margins (/BBL)* | |||||||||
| U.S. | 1.75 | 2.23 | 2.03 | 1.06 | 1.53 | 2.11 | 1.51 | 1.57 | |
| International | 5.07 | 6.28 | 6.78 | 3.80 | 6.03 | 6.37 | 3.35 | 4.90 | |
| * See note on the use of non-GAAP measures. Also, reconciliations of income before income taxes to realized marketing fuel margin for each period and by region are included in the "Realized Margin Non-GAAP Reconciliations" section. | |||||||||
| Other Realized Margins and Revenues not included in Marketing Fuel Margins* | |||||||||
| Marketing and Other | 123 | 107 | 347 | 131 | 143 | 168 | 233 | 675 | |
| Specialties | 56 | 83 | 220 | 100 | 93 | 83 | 74 | 350 | |
| Total | 179 | 190 | 567 | 231 | 236 | 251 | 307 | 1,025 | |
| * Excludes gain on dispositions and excise taxes on sales of refined petroleum products. | |||||||||
| Equity in Earnings of Affiliates | |||||||||
| Marketing and Other | 38 | 42 | 102 | 22 | 28 | 31 | 45 | 126 | |
| Specialties | 10 | 3 | 13 | 11 | 7 | 21 | 20 | 59 | |
| Total | 48 | 45 | 115 | 33 | 35 | 52 | 65 | 185 | |
| Depreciation and Amortization* | |||||||||
| Marketing and Other | 21 | 21 | 62 | 21 | 21 | 21 | 22 | 85 | |
| Specialties | 4 | 5 | 14 | 5 | 4 | 4 | 5 | 18 | |
| Total | 25 | 26 | 76 | 26 | 25 | 25 | 27 | 103 | |
| * Excludes D&A of all equity affiliates. | |||||||||
| Operating and SG&A Expenses* | |||||||||
| Marketing and Other | 232 | 259 | 702 | 261 | 297 | 300 | 340 | 1,198 | |
| Specialties | 30 | 30 | 91 | 36 | 36 | 39 | 38 | 149 | |
| Total | 262 | 289 | 793 | 297 | 333 | 339 | 378 | 1,347 | |
| * Excludes operating and SG&A expenses of all equity affiliates. | |||||||||
| Refined Petroleum Products Sales (MB/D) | |||||||||
| U.S. Marketing | |||||||||
| Gasoline | 881 | 997 | 955 | 1,063 | 1,151 | 1,132 | 1,213 | 1,141 | |
| Distillates | 707 | 698 | 752 | 759 | 898 | 914 | 1,106 | 920 | |
| Other | — | — | — | — | — | — | — | — | |
| Total | 1,588 | 1,695 | 1,707 | 1,822 | 2,049 | 2,046 | 2,319 | 2,061 | |
| International Marketing | |||||||||
| Gasoline | 60 | 83 | 74 | 88 | 89 | 90 | 89 | 89 | |
| Distillates | 140 | 165 | 163 | 181 | 187 | 185 | 183 | 184 | |
| Other | 15 | 15 | 17 | 18 | 19 | 16 | 20 | 18 | |
| Total | 215 | 263 | 254 | 287 | 295 | 291 | 292 | 291 | |
| Worldwide Marketing | |||||||||
| Gasoline | 941 | 1,080 | 1,029 | 1,151 | 1,240 | 1,222 | 1,302 | 1,230 | |
| Distillates | 847 | 863 | 915 | 940 | 1,085 | 1,099 | 1,289 | 1,104 | |
| Other | 15 | 15 | 17 | 18 | 19 | 16 | 20 | 18 | |
| Total | 1,803 | 1,958 | 1,961 | 2,109 | 2,344 | 2,337 | 2,611 | 2,352 | |
| Foreign Currency Gains (Losses) Pre-Tax | — | (1) | — | 2 | (1) | — | (1) | — | |
| Reconciliation of Marketing and Specialties Income before Income Taxes to Adjusted EBITDA | |||||||||
| Income before income taxes | 286 | 415 | 1,214 | 205 | 353 | 498 | 377 | 1,433 | |
| Plus: | |||||||||
| Depreciation and amortization | 25 | 26 | 76 | 26 | 25 | 25 | 27 | 103 | |
| EBITDA | 311 | 441 | 1,290 | 231 | 378 | 523 | 404 | 1,536 | |
| Special Item Adjustments (pre-tax): | |||||||||
| Pending claims and settlements | — | — | (37) | — | — | — | — | — | |
| Certain tax impacts | — | — | — | — | — | — | (90) | (90) | |
| Pension settlement expense | 4 | 1 | 5 | — | — | — | — | — | |
| Hurricane-related costs | — | 1 | 1 | — | — | — | — | — | |
| Lower-of-cost-or-market inventory adjustments | 3 | — | 15 | — | — | — | — | — | |
| EBITDA, Adjusted for Special Items | 318 | 443 | 1,274 | 231 | 378 | 523 | 314 | 1,446 | |
| Other Adjustments (pre-tax): | |||||||||
| Proportional share of selected equity affiliates income taxes | — | — | — | — | — | — | — | — | |
| Proportional share of selected equity affiliates net interest | 4 | 4 | 14 | 1 | 2 | 1 | 2 | 6 | |
| Proportional share of selected equity affiliates depreciation and amortization | 6 | 7 | 20 | 3 | 2 | 3 | 3 | 11 | |
| Adjusted EBITDA | 328 | 454 | 1,308 | 235 | 382 | 527 | 319 | 1,463 |
All values are in US Dollars.
Page 12
| Phillips 66 Earnings Release Supplemental Data | | --- || CORPORATE AND OTHER | | | | | | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | Millions of Dollars, Except as Indicated | | | | | | | | | | | | | | | | | | | | | 2020 | | | | | | | | | 2019 | | | | | | | | | | | | 1st Qtr | | 2nd Qtr | | 3rd Qtr | | 4th Qtr | YTD | | 1st Qtr | | 2nd Qtr | | 3rd Qtr | | 4th Qtr | | YTD | | | Loss before Income Taxes | (197) | | (219) | | (239) | | | (655) | | (210) | | (205) | | (178) | | (211) | | (804) | | | Detail of Loss before Income Taxes | | | | | | | | | | | | | | | | | | | | | Net interest expense | (103) | | (114) | | (131) | | | (348) | | (108) | | (105) | | (98) | | (104) | | (415) | | | Corporate overhead and other | (94) | | (105) | | (108) | | | (307) | | (102) | | (100) | | (80) | | (107) | | (389) | | | Total | (197) | | (219) | | (239) | | | (655) | | (210) | | (205) | | (178) | | (211) | | (804) | | | Net Interest Expense | | | | | | | | | | | | | | | | | | | | | Interest expense | (137) | | (139) | | (150) | | | (426) | | (132) | | (133) | | (131) | | (139) | | (535) | | | Capitalized interest | 26 | | 22 | | 18 | | | 66 | | 13 | | 18 | | 22 | | 24 | | 77 | | | Interest income | 8 | | 3 | | 1 | | | 12 | | 11 | | 10 | | 11 | | 11 | | 43 | | | Total | (103) | | (114) | | (131) | | | (348) | | (108) | | (105) | | (98) | | (104) | | (415) | | | Reconciliation of Corporate and Other Loss before Income Taxes to Adjusted EBITDA | | | | | | | | | | | | | | | | | | | | | Loss before income taxes | (197) | | (219) | | (239) | | | (655) | | (210) | | (205) | | (178) | | (211) | | (804) | | | Plus: | | | | | | | | | | | | | | | | | | | | | Net interest expense | 103 | | 114 | | 131 | | | 348 | | 108 | | 105 | | 98 | | 104 | | 415 | | | Depreciation and amortization | 19 | | 21 | | 21 | | | 61 | | 20 | | 20 | | 18 | | 22 | | 80 | | | EBITDA | (75) | | (84) | | (87) | | | (246) | | (82) | | (80) | | (62) | | (85) | | (309) | | | Special Item Adjustments (pre-tax): | | | | | | | | | | | | | | | | | | | | | Impairments | — | | — | | 25 | | | 25 | | — | | — | | — | | — | | — | | | Pension settlement expense | — | | 3 | | 1 | | | 4 | | — | | — | | — | | — | | — | | | EBITDA, Adjusted for Special Items | (75) | | (81) | | (61) | | | (217) | | (82) | | (80) | | (62) | | (85) | | (309) | | | Other Adjustments (pre-tax): | | | | | | | | | | | | | | | | | | | | | None | — | | — | | — | | | — | | — | | — | | — | | — | | — | | | Adjusted EBITDA | (75) | | (81) | | (61) | | | (217) | | (82) | | (80) | | (62) | | (85) | | (309) | | | Foreign Currency Losses Pre-Tax | (2) | | (1) | | (4) | | | (7) | | (1) | | (2) | | (1) | | (1) | | (5) | | | Phillips 66 Total Company Debt | | | | | | | | | | | | | | | | | | | | | Total Debt | 12,963 | | 14,446 | | 14,526 | | | 14,526 | | 11,298 | | 11,439 | | 11,925 | | 11,763 | | 11,763 | | | Debt-to-Capital Ratio (%) | 35 | % | 38 | % | 39 | % | | 39 | % | 30 | % | 30 | % | 31 | % | 30 | % | 30 | % | | Total Equity | 23,639 | | 23,295 | | 22,305 | | | 22,305 | | 26,745 | | 27,306 | | 27,092 | | 27,169 | | 27,169 | | | RECONCILIATION OF CONSOLIDATED NET INCOME (LOSS) TO ADJUSTED EBITDA ATTRIBUTABLE TO PHILLIPS 66 | | | | | | | | | | | | | | | | | | | | | | Millions of Dollars | | | | | | | | | | | | | | | | | | | | | 2020 | | | | | | | | | 2019 | | | | | | | | | | | | 1st Qtr | | 2nd Qtr | | 3rd Qtr | | 4th Qtr | YTD | | 1st Qtr | | 2nd Qtr | | 3rd Qtr | | 4th Qtr | | YTD | | | Net income (loss) | (2,427) | | (67) | | (726) | | | (3,220) | | 270 | | 1,504 | | 793 | | 810 | | 3,377 | | | Plus: | | | | | | | | | | | | | | | | | | | | | Income tax expense (benefit) | (51) | | (378) | | (624) | | | (1,053) | | 70 | | 325 | | 150 | | 256 | | 801 | | | Net interest expense | 103 | | 114 | | 131 | | | 348 | | 108 | | 105 | | 98 | | 104 | | 415 | | | Depreciation and amortization | 342 | | 343 | | 352 | | | 1,037 | | 331 | | 334 | | 336 | | 340 | | 1,341 | | | Phillips 66 EBITDA | (2,033) | | 12 | | (867) | | | (2,888) | | 779 | | 2,268 | | 1,377 | | 1,510 | | 5,934 | | | Special Item Adjustments (pre-tax): | | | | | | | | | | | | | | | | | | | | | Impairments | 3,006 | | — | | 1,139 | | | 4,145 | | — | | — | | 853 | | — | | 853 | | | Impairments by equity affiliates | — | | 15 | | — | | | 15 | | — | | — | | 47 | | — | | 47 | | | Pending claims and settlements | (37) | | — | | — | | | (37) | | (21) | | — | | — | | — | | (21) | | | Certain tax impacts | — | | — | | — | | | — | | — | | — | | — | | (90) | | (90) | | | Pension settlement expense | — | | 38 | | 17 | | | 55 | | — | | — | | — | | — | | — | | | Hurricane-related costs | — | | — | | 15 | | | 15 | | — | | — | | — | | — | | — | | | Lower-of-cost-or-market inventory adjustments | 52 | | 20 | | (101) | | | (29) | | — | | — | | 42 | | 23 | | 65 | | | Asset dispositions | — | | (84) | | — | | | (84) | | — | | — | | (17) | | — | | (17) | | | Phillips 66 EBITDA, Adjusted for Special Items | 988 | | 1 | | 203 | | | 1,192 | | 758 | | 2,268 | | 2,302 | | 1,443 | | 6,771 | | | Other Adjustments (pre-tax): | | | | | | | | | | | | | | | | | | | | | Proportional share of selected equity affiliates income taxes | 13 | | 4 | | 15 | | | 32 | | 22 | | 24 | | 24 | | 9 | | 79 | | | Proportional share of selected equity affiliates net interest | 54 | | 52 | | 60 | | | 166 | | 43 | | 39 | | 46 | | 50 | | 178 | | | Proportional share of selected equity affiliates depreciation and amortization | 256 | | 251 | | 251 | | | 758 | | 234 | | 234 | | 238 | | 239 | | 945 | | | Adjusted EBITDA attributable to joint venture partners' noncontrolling interests | — | | — | | (20) | | | (20) | | — | | — | | — | | — | | — | | | Adjusted EBITDA attributable to public ownership interest in PSXP | (94) | | (78) | | (88) | | | (260) | | (89) | | (102) | | (105) | | (95) | | (391) | | | Phillips 66 Adjusted EBITDA | 1,217 | | 230 | | 421 | | | 1,868 | | 968 | | 2,463 | | 2,505 | | 1,646 | | 7,582 | | | Use of Non-GAAP Financial Information—This earnings release supplemental data includes the terms "EBITDA," "adjusted EBITDA," "realized refining margin per barrel," "realized marketing fuel margin per barrel," and "adjusted capital spending." These are non-GAAP financial measures. EBITDA and adjusted EBITDA are included to help facilitate comparisons of operating performance across periods, to help facilitate comparisons with other companies in our industry and to help facilitate determination of enterprise value. The GAAP measures most directly comparable to EBITDA and adjusted EBITDA are net income for consolidated company information and income before income taxes for segment information. Reconciliations of net income (loss) and income (loss) before income taxes to EBITDA and adjusted EBITDA are included in this earnings release supplemental data. Realized refining margin per barrel is calculated on a similar basis as industry crack spreads and we believe it provides a useful measure of how well we performed relative to benchmark industry margins. Realized marketing fuel margin per barrel demonstrates the value uplift our marketing operations provide by optimizing the placement and ultimate sale of our refineries' fuel production. The GAAP measure most directly comparable to both realized margin per barrel measures is income before income taxes per barrel. Reconciliations of income (loss) before income taxes per barrel to realized refining margin and realized marketing fuel margin are included in this earnings release supplemental data. Adjusted capital spending is a non-GAAP financial measure that demonstrates the portion of total consolidated capital expenditures and investments funded by Phillips 66. The GAAP financial measure most comparable to adjusted capital spending is capital expenditures and investments. A reconciliation of capital expenditures and investments to adjusted capital spending is included in this earnings release supplemental data. Adjusted effective tax rate demonstrates the effective tax rate with the consideration of the tax effect on special items. The GAAP financial measure most comparable to adjusted effective tax rate is effective tax rate. A reconciliation of effective tax rate to adjusted effective tax rate is included in this earnings release supplemental data. | | | | | | | | | | | | | | | | | | | |
Page 13
| Phillips 66 Earnings Release Supplemental Data | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| REALIZED MARGIN NON-GAAP RECONCILIATIONS | |||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| RECONCILIATION OF INCOME (LOSS) BEFORE INCOME TAXES TO REALIZED REFINING MARGINS | |||||||||
| 2019 | |||||||||
| 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | |
| ATLANTIC BASIN/OPE | |||||||||
| Income (loss) before income taxes | (227) | (199) | (1,063) | (7) | 258 | 296 | 61 | 608 | |
| Plus: | |||||||||
| Taxes other than income taxes | 15 | 14 | 48 | 15 | 11 | 12 | 14 | 52 | |
| Depreciation, amortization and impairments | 49 | 50 | 591 | 50 | 49 | 49 | 50 | 198 | |
| Selling, general and administrative expenses | 12 | 6 | 31 | 7 | 10 | 10 | 12 | 39 | |
| Operating expenses | 190 | 180 | 564 | 233 | 201 | 208 | 221 | 863 | |
| Equity in losses of affiliates | 3 | 2 | 7 | 3 | 3 | 3 | 2 | 11 | |
| Other segment (income) expense, net | 3 | — | 1 | 6 | 4 | (24) | (2) | (16) | |
| Proportional share of refining gross margins contributed by equity affiliates | 16 | 18 | 50 | 17 | 19 | 19 | 14 | 69 | |
| Realized refining margins | 61 | 71 | 229 | 324 | 555 | 573 | 372 | 1,824 | |
| Total processed inputs (MB) | 39,121 | 43,176 | 123,632 | 41,682 | 51,172 | 49,895 | 52,757 | 195,506 | |
| Adjusted total processed inputs (MB) | 39,121 | 43,176 | 123,632 | 41,682 | 51,172 | 49,895 | 52,757 | 195,506 | |
| Income (loss) before income taxes (/BBL)** | (5.80) | (4.61) | (8.60) | (0.17) | 5.04 | 5.93 | 1.16 | 3.11 | |
| Realized refining margins (/BBL)*** | 1.53 | 1.65 | 1.86 | 7.76 | 10.85 | 11.48 | 7.06 | 9.33 | |
| GULF COAST | |||||||||
| Income (loss) before income taxes | (365) | (405) | (1,613) | (118) | 222 | 184 | 76 | 364 | |
| Plus: | |||||||||
| Taxes other than income taxes | 25 | 30 | 92 | 23 | 16 | 23 | 11 | 73 | |
| Depreciation, amortization and impairments | 75 | 75 | 891 | 67 | 68 | 66 | 70 | 271 | |
| Selling, general and administrative expenses | 10 | 11 | 28 | (2) | 8 | 7 | 10 | 23 | |
| Operating expenses | 277 | 258 | 1,027 | 384 | 322 | 345 | 398 | 1,449 | |
| Equity in (earnings) losses of affiliates | (1) | 1 | (1) | — | 2 | (1) | 1 | 2 | |
| Other segment (income) expense, net | — | (1) | — | 1 | (5) | 1 | — | (3) | |
| Proportional share of refining gross margins contributed by equity affiliates | — | — | — | — | — | — | — | — | |
| Realized refining margins | 21 | (31) | 424 | 355 | 633 | 625 | 566 | 2,179 | |
| Total processed inputs (MB) | 61,032 | 51,543 | 176,641 | 65,434 | 77,186 | 74,936 | 76,110 | 293,666 | |
| Adjusted total processed inputs (MB) | 61,032 | 51,543 | 176,641 | 65,434 | 77,186 | 74,936 | 76,110 | 293,666 | |
| Income (loss) before income taxes (/BBL)** | (5.98) | (7.86) | (9.13) | (1.80) | 2.88 | 2.46 | 1.00 | 1.24 | |
| Realized refining margins (/BBL)*** | 0.36 | (0.61) | 2.40 | 5.44 | 8.20 | 8.34 | 7.45 | 7.42 | |
| CENTRAL CORRIDOR | |||||||||
| Income (loss) before income taxes | (104) | (132) | (463) | 77 | 520 | 408 | 333 | 1,338 | |
| Plus: | |||||||||
| Taxes other than income taxes | 14 | 11 | 42 | 13 | 10 | 10 | 7 | 40 | |
| Depreciation, amortization and impairments | 33 | 33 | 535 | 33 | 34 | 34 | 34 | 135 | |
| Selling, general and administrative expenses | 7 | 7 | 20 | 1 | 7 | 6 | 8 | 22 | |
| Operating expenses | 120 | 111 | 367 | 145 | 134 | 125 | 146 | 550 | |
| Equity in (earnings) losses of affiliates | 79 | 118 | 248 | (84) | (133) | (69) | (45) | (331) | |
| Other segment (income) expense, net | 3 | (1) | (1) | (2) | 4 | (3) | 1 | — | |
| Proportional share of refining gross margins contributed by equity affiliates | 92 | 45 | 250 | 267 | 298 | 269 | 239 | 1,073 | |
| Special items: | |||||||||
| Pending claims and settlements | — | — | — | (21) | — | — | — | (21) | |
| Lower-of-cost-or-market inventory adjustments | (35) | — | — | — | — | — | — | — | |
| Realized refining margins | 209 | 192 | 998 | 429 | 874 | 780 | 723 | 2,806 | |
| Total processed inputs (MB) | 20,778 | 24,682 | 68,805 | 23,893 | 26,244 | 26,740 | 26,417 | 103,294 | |
| Adjusted total processed inputs (MB)* | 36,067 | 42,979 | 123,337 | 41,896 | 48,932 | 48,853 | 48,364 | 188,045 | |
| Income (loss) before income taxes (/BBL)** | (5.01) | (5.35) | (6.73) | 3.22 | 19.81 | 15.26 | 12.61 | 12.95 | |
| Realized refining margins (/BBL)*** | 5.78 | 4.46 | 8.09 | 10.23 | 17.84 | 15.99 | 14.92 | 14.91 |
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 | | | | | | | | | | | | 2020 | | | | | 2019 | | | | | | | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | | WEST COAST | | | | | | | | | | | | Loss before income taxes | (554) | (182) | (1,167) | | (1,903) | (150) | (17) | (32) | (125) | (324) | | Plus: | | | | | | | | | | | | Taxes other than income taxes | 31 | 22 | 16 | | 69 | 24 | 21 | 23 | 17 | 85 | | Depreciation, amortization and impairments | 364 | 63 | 974 | | 1,401 | 62 | 63 | 66 | 62 | 253 | | Selling, general and administrative expenses | 10 | 9 | 9 | | 28 | 5 | 8 | 8 | 10 | 31 | | Operating expenses | 283 | 216 | 235 | | 734 | 249 | 249 | 282 | 363 | 1,143 | | Other segment expense, net | 1 | 1 | 1 | | 3 | 2 | 1 | 1 | 1 | 5 | | Realized refining margins | 135 | 129 | 68 | | 332 | 192 | 325 | 348 | 328 | 1,193 | | Total processed inputs (MB) | 27,877 | 25,737 | 30,615 | | 84,229 | 30,703 | 32,697 | 34,498 | 32,116 | 130,014 | | Adjusted total processed inputs (MB) | 27,877 | 25,737 | 30,615 | | 84,229 | 30,703 | 32,697 | 34,498 | 32,116 | 130,014 | | Loss before income taxes ($/BBL)** | (19.87) | (7.07) | (38.12) | | (22.59) | (4.89) | (0.52) | (0.93) | (3.89) | (2.49) | | Realized refining margins ($/BBL)*** | 4.80 | 5.05 | 2.23 | | 3.94 | 6.25 | 9.94 | 10.11 | 10.22 | 9.18 | | WORLDWIDE | | | | | | | | | | | | Income (loss) before income taxes | (2,261) | (878) | (1,903) | | (5,042) | (198) | 983 | 856 | 345 | 1,986 | | Plus: | | | | | | | | | | | | Taxes other than income taxes | 104 | 76 | 71 | | 251 | 75 | 58 | 68 | 49 | 250 | | Depreciation, amortization and impairments | 2,066 | 220 | 1,132 | | 3,418 | 212 | 214 | 215 | 216 | 857 | | Selling, general and administrative expenses | 36 | 38 | 33 | | 107 | 11 | 33 | 31 | 40 | 115 | | Operating expenses | 1,105 | 803 | 784 | | 2,692 | 1,011 | 906 | 960 | 1,128 | 4,005 | | Equity in (earnings) losses of affiliates | 52 | 81 | 121 | | 254 | (81) | (128) | (67) | (42) | (318) | | Other segment (income) expense, net | (3) | 7 | (1) | | 3 | 7 | 4 | (25) | — | (14) | | Proportional share of refining gross margins contributed by equity affiliates | 129 | 108 | 63 | | 300 | 284 | 317 | 288 | 253 | 1,142 | | Special items: | | | | | | | | | | | | Pending claims and settlements | — | — | — | | — | (21) | — | — | — | (21) | | Lower-of-cost-or-market inventory adjustments | 35 | (35) | — | | — | — | — | — | — | — | | Realized refining margins | 1,263 | 420 | 300 | | 1,983 | 1,300 | 2,387 | 2,326 | 1,989 | 8,002 | | Total processed inputs (MB) | 156,623 | 146,668 | 150,016 | | 453,307 | 161,712 | 187,299 | 186,069 | 187,400 | 722,480 | | Adjusted total processed inputs (MB)* | 177,569 | 161,957 | 168,313 | | 507,839 | 179,715 | 209,987 | 208,182 | 209,347 | 807,231 | | Income (loss) before income taxes ($/BBL)** | (14.44) | (5.99) | (12.69) | | (11.12) | (1.22) | 5.25 | 4.60 | 1.84 | 2.75 | | Realized refining margins ($/BBL)*** | 7.11 | 2.60 | 1.78 | | 3.91 | 7.23 | 11.37 | 11.18 | 9.50 | 9.91 | | * Adjusted total processed inputs include our proportional share of processed inputs of an equity affiliate. | | | | | | | | | | | | ** Income (loss) before income taxes divided by total processed inputs. | | | | | | | | | | | | *** Realized refining margins per barrel, as presented, are calculated using the underlying realized refining margin amounts, in dollars, divided by adjusted total processed inputs, in barrels. As such, recalculated per barrel amounts using the rounded margins and barrels presented may differ from the presented per barrel amounts. | | | | | | | | | | |
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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 | | | | | | | | | | | | | | | | | | | | | 2020 | | | | | | | | | 2019 | | | | | | | | | | | | 1st Qtr | | 2nd Qtr | | 3rd Qtr | | 4th Qtr | YTD | | 1st Qtr | | 2nd Qtr | | 3rd Qtr | | 4th Qtr | | YTD | | | UNITED STATES | | | | | | | | | | | | | | | | | | | | | Income before income taxes | 299 | | 179 | | 271 | | | 749 | | 98 | | 203 | | 312 | | 303 | | 916 | | | Plus: | | | | | | | | | | | | | | | | | | | | | Taxes other than income taxes | 2 | | 2 | | — | | | 4 | | 2 | | 3 | | 3 | | (3) | | 5 | | | Depreciation and amortization | 3 | | 3 | | 3 | | | 9 | | 2 | | 3 | | 2 | | 3 | | 10 | | | Selling, general and administrative expenses | 127 | | 151 | | 174 | | | 452 | | 155 | | 183 | | 184 | | 221 | | 743 | | | Equity in earnings of affiliates | — | | (11) | | (10) | | | (21) | | (1) | | (3) | | (3) | | (20) | | (27) | | | Other operating revenues* | (84) | | (71) | | (90) | | | (245) | | (82) | | (103) | | (101) | | (93) | | (379) | | | Special items: | | | | | | | | | | | | | | | | | | | | | Certain tax impacts | — | | — | | — | | | — | | — | | — | | — | | (90) | | (90) | | | Realized marketing fuel margins | 347 | | 253 | | 348 | | | 948 | | 174 | | 286 | | 397 | | 321 | | 1,178 | | | Total fuel sales volumes (MB) | 167,178 | | 144,517 | | 155,948 | | | 467,643 | | 164,058 | | 186,488 | | 188,172 | | 213,346 | | 752,064 | | | Income before income taxes ($/BBL) | 1.79 | | 1.24 | | 1.74 | | | 1.60 | | 0.60 | | 1.09 | | 1.66 | | 1.42 | | 1.22 | | | Realized marketing fuel margins ($/BBL)** | 2.08 | | 1.75 | | 2.23 | | | 2.03 | | 1.06 | | 1.53 | | 2.11 | | 1.51 | | 1.57 | | | INTERNATIONAL | | | | | | | | | | | | | | | | | | | | | Income before income taxes | 171 | | 68 | | 121 | | | 360 | | 58 | | 129 | | 139 | | 54 | | 380 | | | Plus: | | | | | | | | | | | | | | | | | | | | | Taxes other than income taxes | 1 | | 2 | | 1 | | | 4 | | 2 | | 1 | | 2 | | 1 | | 6 | | | Depreciation and amortization | 17 | | 16 | | 18 | | | 51 | | 16 | | 16 | | 16 | | 17 | | 65 | | | Selling, general and administrative expenses | 63 | | 57 | | 62 | | | 182 | | 62 | | 61 | | 61 | | 65 | | 249 | | | Equity in earnings of affiliates | (22) | | (28) | | (31) | | | (81) | | (22) | | (25) | | (27) | | (25) | | (99) | | | Other operating revenues* | 2 | | (4) | | (7) | | | (9) | | (6) | | (9) | | (10) | | (12) | | (37) | | | Other segment (income) expense, net | — | | 1 | | (1) | | | — | | (2) | | 1 | | 1 | | 1 | | 1 | | | Marketing margins | 232 | | 112 | | 163 | | | 507 | | 108 | | 174 | | 182 | | 101 | | 565 | | | Less: margin for nonfuel related sales | 10 | | 13 | | 11 | | | 34 | | 10 | | 12 | | 11 | | 11 | | 44 | | | Realized marketing fuel margins | 222 | | 99 | | 152 | | | 473 | | 98 | | 162 | | 171 | | 90 | | 521 | | | Total fuel sales volumes (MB) | 25,979 | | 19,583 | | 24,164 | | | 69,726 | | 25,796 | | 26,837 | | 26,796 | | 26,834 | | 106,263 | | | Income before income taxes ($/BBL) | 6.58 | | 3.48 | | 5.01 | | | 5.16 | | 2.25 | | 4.81 | | 5.19 | | 2.01 | | 3.58 | | | Realized marketing fuel margins ($/BBL)** | 8.53 | | 5.07 | | 6.28 | | | 6.78 | | 3.80 | | 6.03 | | 6.37 | | 3.35 | | 4.90 | | | * Includes other nonfuel revenues. | | | | | | | | | | | | | | | | | | | | | ** Realized marketing fuel margins per barrel, as presented, are calculated using the underlying realized marketing fuel margin amounts, in dollars, divided by sales volumes, in barrels. As such, recalculated per barrel amounts using the rounded margins and barrels presented may differ from the presented per barrel amounts. | | | | | | | | | | | | | | | | | | | | | ADJUSTED EFFECTIVE TAX RATE NON-GAAP RECONCILIATION | | | | | | | | | | | | | | | | | | | | | RECONCILIATION OF EFFECTIVE TAX RATE TO ADJUSTED EFFECTIVE TAX RATE | | | | | | | | | | | | | | | | | | | | | | Millions of Dollars, Except as Indicated | | | | | | | | | | | | | | | | | | | | | 2020 | | | | | | | | | 2019 | | | | | | | | | | | | 1st Qtr | | 2nd Qtr | | 3rd Qtr | | 4th Qtr | YTD | | 1st Qtr | | 2nd Qtr | | 3rd Qtr | | 4th Qtr | | YTD | | | EFFECTIVE TAX RATES | | | | | | | | | | | | | | | | | | | | | Income (loss) before income taxes | (2,478) | | (445) | | (1,350) | | | (4,273) | | 340 | | 1,829 | | 943 | | 1,066 | | 4,178 | | | Special items | 3,021 | | (19) | | 1,070 | | | 4,072 | | (21) | | — | | 925 | | (67) | | 837 | | | Adjusted income (loss) before income taxes | 543 | | (464) | | (280) | | | (201) | | 319 | | 1,829 | | 1,868 | | 999 | | 5,015 | | | Income tax expense (benefit) | (51) | | (378) | | (624) | | | (1,053) | | 70 | | 325 | | 150 | | 256 | | 801 | | | Special items | 75 | | 188 | | 272 | | | 535 | | (4) | | 45 | | 235 | | (20) | | 256 | | | Adjusted income tax expense (benefit) | 24 | | (190) | | (352) | | | (518) | | 66 | | 370 | | 385 | | 236 | | 1,057 | | | Effective tax rate (%) | 2.1 | % | 84.9 | % | 46.2 | % | | 24.6 | % | 20.6 | % | 17.8 | % | 15.9 | % | 24.0 | % | 19.2 | % | | Adjusted effective tax rate (%) | 4.4 | % | 40.9 | % | 125.7 | % | | 257.7 | % | 20.7 | % | 20.2 | % | 20.6 | % | 23.6 | % | 21.1 | % |
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