•Reported first-quarter earnings of $207 million or $0.51 per share; adjusted earnings of $200 million or $0.49 per share
•Formally increased Sweeny NGL fractionation capacity and Freeport LPG export dock capacity by 23% and 15%, respectively, reflecting 2025 debottlenecking
•Refining operated at 95% capacity utilization with 87% clean product yield
•Increased the annualized quarterly dividend by 7%
•Ended the quarter with liquidity of approximately $6.0 billion
HOUSTON, April 29, 2026 – Phillips 66 (NYSE: PSX) announced first-quarter earnings.
“We are confident in our ability to navigate market volatility due to our integrated business and the strength of our balance sheet. Backed by disciplined execution and strong operating performance, we remain well positioned to provide energy to the global market,” said Mark Lashier, chairman and CEO of Phillips 66.
“Attractive fundamentals across our businesses further support our position to deliver strong returns and long-term shareholder value. We remain committed to our previously stated shareholder return and debt reduction targets.”
Business Highlights and Strategic Priorities Progress
•Recently announced advancement of Western Gateway Pipeline following a successful second open season securing long-term shipper commitments.
•Iron Mesa gas plant, with design capacity of 300 MMCFD, continues construction as planned and is on schedule for startup in the first quarter of 2027.
•In April 2026, completed acquisition of Lindsey Oil Refinery and logistics assets with the plan to utilize select assets, enhancing our U.K. integrated business.
•Progressed Chemicals Golden Triangle Polymers Project in Orange, Texas, and Ras Laffan Polymers Project in Qatar with full operations expected in 2027.
Financial Results Summary
(in millions of dollars, except as indicated)
| 1Q 2026 | 4Q 2025 | |||||||
| Earnings | $ | 207 | 2,906 | |||||
Adjusted Earnings1 | 200 | 1,002 | ||||||
Adjusted EBITDA1 | 1,268 | 2,532 | ||||||
| Earnings Per Share | ||||||||
| Earnings Per Share - Diluted | 0.51 | 7.17 | ||||||
Adjusted Earnings Per Share - Diluted1 | 0.49 | 2.47 | ||||||
| Cash Flow from (Used in) Operations | (2,264) | 2,752 | ||||||
Cash Flow from Operations, Excluding Working Capital1 | 699 | 2,044 | ||||||
| Capital Expenditures & Investments | 582 | 682 | ||||||
| Acquisitions, Net of Cash Acquired | 66 | 1,288 | ||||||
| Proceeds from Asset Dispositions | 7 | 1,489 | ||||||
| Return of Capital to Shareholders | 778 | 756 | ||||||
| Repurchases of Common stock | 269 | 274 | ||||||
| Dividends paid on Common stock | 509 | 482 | ||||||
| Cash and Cash Equivalents | 5,150 | 1,116 | ||||||
| Debt | 27,124 | 19,716 | ||||||
| Debt-to-Capital Ratio | 48% | 39% | ||||||
Net Debt-to-Capital Ratio1 | 43% | 38% | ||||||
1 Represents a non-GAAP financial measure. Reconciliations of these non-GAAP financial measures to the most comparable GAAP financial measure are included within this release. | ||||||||
Segment Financial and Operating Highlights
(Millions of dollars, except as indicated)
| 1Q 2026 | 4Q 2025 | Change | |||||||||
Earnings (Loss)1 | $ | 207 | 2,906 | (2,699) | |||||||
| Midstream | 591 | 638 | (47) | ||||||||
| Chemicals | 114 | (12) | 126 | ||||||||
| Refining | 208 | 822 | (614) | ||||||||
| Marketing and Specialties | (161) | 2,396 | (2,557) | ||||||||
| Renewable Fuels | (41) | (19) | (22) | ||||||||
| Corporate and Other | (451) | (372) | (79) | ||||||||
| Income tax expense | (41) | (526) | 485 | ||||||||
| Noncontrolling interests | (12) | (21) | 9 | ||||||||
Adjusted Earnings (Loss)1,2 | $ | 200 | 1,002 | (802) | |||||||
| Midstream | 591 | 717 | (126) | ||||||||
| Chemicals | 85 | 19 | 66 | ||||||||
| Refining | 208 | 542 | (334) | ||||||||
| Marketing and Specialties | (141) | 439 | (580) | ||||||||
| Renewable Fuels | (41) | (19) | (22) | ||||||||
| Corporate and Other | (451) | (363) | (88) | ||||||||
| Income tax expense | (39) | (302) | 263 | ||||||||
| Noncontrolling interests | (12) | (31) | 19 | ||||||||
Adjusted EBITDA2 | $ | 1,268 | 2,532 | (1,264) | |||||||
| Midstream | 860 | 952 | (92) | ||||||||
| Chemicals | 250 | 145 | 105 | ||||||||
| Refining | 423 | 1,019 | (596) | ||||||||
| Marketing and Specialties | (86) | 488 | (574) | ||||||||
| Renewable Fuels | (18) | 5 | (23) | ||||||||
| Corporate and Other | (161) | (77) | (84) | ||||||||
| Operating Highlights | |||||||||||
NGL Pipeline Throughput - Y-Grade to Market (MBD)3 | 930 | 1,006 | (76) | ||||||||
| NGL Fractionated (MBD) | 980 | 1,018 | (38) | ||||||||
| Chemicals Global O&P Capacity Utilization | 94% | 97% | (3%) | ||||||||
| Refining | |||||||||||
| Turnaround Expense | 178 | 135 | 43 | ||||||||
Realized Margin ($/BBL)2 | 10.11 | 12.48 | (2.37) | ||||||||
Crude Capacity Utilization4 | 95% | 99% | (4%) | ||||||||
| Clean Product Yield | 87% | 88% | (1%) | ||||||||
| Renewable Fuels Produced (MBD) | 40 | 32 | 8 | ||||||||
1 Segment reporting is pre-tax. | |||||||||||
2 Represents a non-GAAP financial measure. Reconciliations of these non-GAAP financial measures to the most comparable GAAP financial measure are included within this release. | |||||||||||
3 Represents volumes delivered to fractionation hubs, including Mont Belvieu, Sweeny and Conway. Includes 100% of DCP Midstream Class A Segment and Phillips 66's direct interest in DCP Sand Hills Pipeline, LLC and DCP Southern Hills Pipeline, LLC. | |||||||||||
4 Beginning October 1, 2025, excludes Los Angeles Refinery and includes 100% of Wood River and Borger refineries. As of January 1, 2026, the Refining segment’s net crude throughput capacity increased by 45 MBD to 1,993 MBD. | |||||||||||
First-Quarter 2026 Financial Results
Reported earnings were $207 million for the first quarter of 2026 versus $2.9 billion in the fourth quarter of 2025. First-quarter earnings included pre-tax special item adjustments of $29 million in the Chemicals segment and $(20) million in the Marketing and Specialties segment. Adjusted earnings for the first quarter were $200 million versus adjusted earnings of $1.0 billion in the fourth quarter of 2025.
As a result of a sharp increase in commodity prices during the first quarter, the company’s financial results were impacted by mark-to-market losses of $839 million related to short derivative positions used as economic hedges to manage price risk on certain physical positions. However, the increase in current market value of the associated underlying physical inventory is not reflected in book value under last-in, first-out (LIFO) accounting. The impacts during the quarter were as follows:
| Mark-to-Market Pre-Tax Losses by Segment | |||||
| Millions of Dollars | |||||
| 1Q 2026 | |||||
| Refining | $ | (396) | |||
| Marketing and Specialties | (323) | ||||
| Renewable Fuels | (120) | ||||
•Midstream adjusted pre-tax income decreased compared with the fourth quarter mainly due to lower volumes largely associated with impacts from Winter Storm Fern, lower margins driven primarily by customer recontracting, as well as accelerated depreciation related to a Permian Basin gas plant.
•Chemicals adjusted pre-tax income increased mainly due to higher margins and equity earnings of affiliates, partially offset by lower volumes and higher costs, mainly driven by turnaround expense.
•Refining adjusted pre-tax income decreased mainly due to lower margins and volumes, partially offset by the absence of accelerated depreciation at the Los Angeles Refinery. Lower margins were primarily driven by mark-to-market impacts, which were partially offset by higher clean product differentials. Additionally, lower volumes in the quarter were primarily driven by planned turnaround activities.
•Marketing and Specialties adjusted pre-tax loss was a decrease compared to the fourth quarter due to lower margins mainly driven by mark-to-market impacts.
•Renewable Fuels pre-tax loss was a decrease compared to the fourth quarter mainly due to mark-to-market impacts, partially offset by higher credits.
•Corporate and Other adjusted pre-tax loss increased primarily due to the inclusion of costs associated with the decommissioning and redevelopment of the idled Los Angeles Refinery site, along with higher employee-related costs and net interest expense.
As of March 31, 2026, the company had liquidity of approximately $6.0 billion, reflecting $5.2 billion of cash and cash equivalents and total committed capacity available under credit facilities of $800 million.
Investor Webcast
Members of Phillips 66 executive management will host a webcast at noon ET to provide an update on the company’s strategic initiatives and discuss the company’s first-quarter performance. To access the webcast and view related presentation materials, go to phillips66.com/investors and click on “Events & Presentations.” For detailed supplemental information, go to phillips66.com/supplemental.
About Phillips 66
Phillips 66 (NYSE: PSX) is a leading integrated downstream energy provider that manufactures, transports and markets products that drive the global economy. The company’s portfolio includes Midstream, Chemicals, Refining, Marketing and Specialties, and Renewable Fuels businesses. Headquartered in Houston, Texas, Phillips 66 has employees around the globe who are committed to safely and reliably providing energy and improving lives while pursuing a lower-carbon future. For more information, visit phillips66.com or follow @Phillips66Co on LinkedIn.
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| Investor Relations | ||||||||
| investorrelations@p66.com | ||||||||
| Media Relations | ||||||||
| phillips66media@p66.com | ||||||||
Use of Non-GAAP Financial Information—This news release includes the terms “adjusted earnings (loss),” “adjusted pre-tax income (loss),” “adjusted EBITDA,” “adjusted earnings per share,” “adjusted controllable cost,” “cash from (used in) operations, excluding working capital,” “realized refining margin” and “net debt-to-capital ratio.” These are non-GAAP financial measures that 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. Where applicable, these measures exclude items that do not reflect the core operating results of our businesses in the current period or other adjustments to reflect how management analyzes results. Reconciliations of these non-GAAP financial measures to the most comparable GAAP financial measure are included within this release. References in the release to earnings refer to net income attributable to Phillips 66. References in the release to shareholder distributions refers to the sum of dividends paid to Phillips 66 stockholders and proceeds used by Phillips 66 to repurchase shares of its common stock.
Basis of Presentation— Phillips 66 and Refining results included herein through September 30, 2025, includes our proportional share of WRB Refining LP equity earnings and beginning October 1, 2025, includes 100% of Borger Refinery and Wood River Refinery consolidated due to the acquisition of the remaining 50% of WRB.
Cautionary Statement for the Purposes of the “Safe Harbor” Provisions of the Private Securities Litigation Reform Act of 1995—This news release contains forward-looking statements within the meaning of the federal securities laws relating to Phillips 66’s operations, strategy and performance. Words such as “anticipated,” “estimated,” “expected,” “planned,” “scheduled,” “targeted,” “believe,” “continue,” “intend,” “will,” “would,” “objective,” “goal,” “project,” “efforts,” “strategies” and similar expressions that convey the prospective nature of events or outcomes generally indicate forward-looking statements. However, the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements included in this news release are based on management’s expectations, estimates and projections as of the date they are made. These statements are not guarantees of future events or 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: changes in governmental policies relating to NGL, crude oil, natural gas, refined petroleum or renewable fuels products pricing, regulation or taxation, including exports; our ability to timely obtain or maintain permits, including those necessary for capital projects; fluctuations in NGL, crude oil, refined petroleum products, renewable fuels, renewable feedstocks and natural gas prices, and refined product, marketing and petrochemical margins; the effects of any widespread public health crisis and its negative impact on commercial activity and demand for our products; changes to government policies relating to renewable fuels and greenhouse gas emissions that adversely affect programs including the renewable fuel standards program, low carbon fuel standards and tax credits for biofuels; liability resulting from pending or future litigation or other legal proceedings; liability for remedial actions, including removal and reclamation obligations under environmental regulations; unexpected changes in costs or technical requirements for constructing, modifying or operating our facilities or transporting our products; our ability to successfully complete, or any material delay in the completion of, any asset disposition, acquisition, shutdown or conversion that we may pursue, including receipt of any necessary regulatory approvals or permits related thereto; unexpected technological or commercial difficulties in manufacturing, refining or transporting our products, including chemical products; the level and success of producers’ drilling plans and the amount and quality of 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; changes in the cost or availability of adequate and reliable transportation for our NGL, crude oil, natural gas and refined petroleum and renewable fuels products; failure to complete definitive agreements and feasibility studies for, and to complete construction of, announced and future capital projects on time or within budget; our ability to comply with governmental regulations or make capital expenditures to maintain compliance; limited access to capital or significantly higher cost of capital related to our credit profile or illiquidity or uncertainty in the domestic or international financial markets; damage to our facilities due to accidents, weather and climate events, civil unrest, insurrections, political events, terrorism or cyberattacks; domestic and international economic and political developments including war and armed hostilities, instability in the financial services and banking sector, excess inflation, expropriation of assets and changes in fiscal policy, including interest rates; international monetary conditions and exchange controls; changes in estimates or projections used to assess fair value of intangible assets, goodwill and properties, plants and equipment and/or strategic decisions or other developments with respect to our asset portfolio that cause impairment charges; substantial investments required, or reduced demand for products, as a result of existing or future environmental rules and regulations, including greenhouse gas emissions reductions and reduced consumer demand for refined petroleum products; changes in tax, environmental and other laws and regulations (including alternative energy mandates) applicable to our business; political and societal concerns about climate change that could result in changes to our business or increase expenditures, including litigation-related expenses; the operation, financing and distribution decisions of our joint ventures that we do not control; the potential impact of activist shareholder actions or tactics; 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.
| Earnings (Loss) | ||||||||||||||
| Millions of Dollars | ||||||||||||||
| 2026 | 2025 | |||||||||||||
| 1Q | 4Q | 1Q | ||||||||||||
| Midstream | $ | 591 | 638 | 751 | ||||||||||
| Chemicals | 114 | (12) | 113 | |||||||||||
| Refining | 208 | 822 | (937) | |||||||||||
| Marketing and Specialties | (161) | 2,396 | 1,282 | |||||||||||
| Renewable Fuels | (41) | (19) | (185) | |||||||||||
| Corporate and Other | (451) | (372) | (376) | |||||||||||
| Pre-Tax Income | 260 | 3,453 | 648 | |||||||||||
| Less: Income tax expense | 41 | 526 | 122 | |||||||||||
| Less: Noncontrolling interests | 12 | 21 | 39 | |||||||||||
| Phillips 66 | $ | 207 | 2,906 | 487 | ||||||||||
| Adjusted Earnings (Loss) | ||||||||||||||
| Millions of Dollars | ||||||||||||||
| 2026 | 2025 | |||||||||||||
| 1Q | 4Q | 1Q | ||||||||||||
| Midstream | $ | 591 | 717 | 683 | ||||||||||
| Chemicals | 85 | 19 | 113 | |||||||||||
| Refining | 208 | 542 | (937) | |||||||||||
| Marketing and Specialties | (141) | 439 | 265 | |||||||||||
| Renewable Fuels | (41) | (19) | (185) | |||||||||||
| Corporate and Other | (451) | (363) | (355) | |||||||||||
| Pre-Tax Income (Loss) | 251 | 1,335 | (416) | |||||||||||
| Less: Income tax expense (benefit) | 39 | 302 | (78) | |||||||||||
| Less: Noncontrolling interests | 12 | 31 | 30 | |||||||||||
| Phillips 66 | $ | 200 | 1,002 | (368) | ||||||||||
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