Phillips 66 reported a significant sequential decline in earnings and adjusted EBITDA, primarily driven by substantial mark-to-market losses on derivative positions and lower refining margins. Despite these headwinds, the company highlighted progress on strategic initiatives, increased its dividend, and maintained a strong liquidity position.
Increased the annualized quarterly dividend by 7%.
positiveEnded the quarter with liquidity of approximately $6.0 billion, reflecting $5.2 billion of cash and cash equivalents.
positiveRefining operated at 95% capacity utilization with 87% clean product yield.
neutralFormally increased Sweeny NGL fractionation capacity and Freeport LPG export dock capacity by 23% and 15%, respectively.
positiveReported earnings of $207 million or $0.51 per share, a significant decrease from $2.9 billion or $7.17 per share in Q4 2025.
negativeAdjusted earnings were $200 million or $0.49 per share, down from $1.0 billion or $2.47 per share in Q4 2025.
negativeAdjusted EBITDA decreased to $1.268 billion from $2.532 billion in Q4 2025.
negativeMark-to-market losses of $839 million related to short derivative positions impacted financial results.
negativeRefining adjusted pre-tax income decreased mainly due to lower margins and volumes, with realized margin dropping from $12.48/BBL to $10.11/BBL.
negativeMarketing and Specialties adjusted pre-tax loss was $(141) million, a significant decrease from adjusted pre-tax income of $439 million in Q4 2025.
negativeMargin metrics will be available once backend extracts data from insights_json
| Segment | Current | Prior Yr | YoY | % Total |
|---|---|---|---|---|
Midstream | N/A | — | — | — |
Chemicals | N/A | — | — | — |
Refining | N/A | — | — | — |
Marketing and Specialties | N/A | — | — | — |
Renewable Fuels | N/A | — | — | — |
Corporate and Other | N/A | — | — | — |
| Total Revenue | $0.00M | — | — | 100.0% |
Segment performance shows business unit health and growth drivers.
| Metric | Value | Period | Specificity | vs Prior |
|---|---|---|---|---|
| debt | approximately $19 billion | end of this year | point | New |
| debt | $17 billion | next year | point | New |
| refining_utilization_rate | low to mid 90s | second quarter | directional | New |
| turnaround_expense | $120-150 million | second quarter | tight_range | New |
| corporate_and_other_costs | $430-450 million | second quarter | tight_range | New |
| refining_utilization_rate | mid-90s | Q2 | directional | New |
| debt | approximately $19 billion | end of this year | point | New |
| debt | $17 billion | next year | point | New |
| free_cash_flow | material free cash flow infection | year over year | directional | New |
| refinery_margin | throughout the rest of this year and into early next year | rest of this year and into early next year | directional | New |
| operating_expenses | $5.50 per barrel target | 2027 | point | New |
| Western Gateway FID | mid to late summer | this year | directional | New |
| Western Gateway in service date | 2029 | 2029 | point | New |
Special items are non-recurring events that may distort period-over-period comparisons. Analysts typically adjust for these when calculating normalized earnings.
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.
Attractive fundamentals across our businesses further support our position to deliver strong returns and long-term shareholder value.
Commentary excerpts from earnings call transcripts provide management's perspective on performance, strategy, and outlook. Always review full transcripts for complete context.
Operational metrics provide insight into business drivers and customer engagement beyond traditional financial measures.