EX-99.1 2 psx-2026930_ex991.htm EX-99.1 Document


Exhibit 99.1
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•Reported third-quarter earnings and adjusted earnings of $5.6 billion or $14.08 per share
•Refining utilization of 98% with record Central Corridor processed inputs of 848 MBD
•Third-quarter record distillate yield of 41%; clean product yield of 86%
•Midstream fractionation volumes of 1 MMBD, wellhead volumes of 4.6 Bcf/D and 105% utilization at the Freeport LPG export dock
•Returned $2.8 billion to shareholders through dividends and share repurchases
•Decreased total debt by $2.0 billion to $18.5 billion; net debt by $3.8 billion to $12.7 billion



HOUSTON, October 28, 2026 – Phillips 66 (NYSE: PSX) announced third-quarter earnings.

“Phillips 66 delivered strong operating performance in the third quarter and is executing on its financial and operating commitments,” said Mark Lashier, chairman and CEO of Phillips 66. “Our integrated portfolio, commercial capabilities and focus on continuous improvement enable the company to create value for stakeholders.

“The company remains steadfast in its disciplined approach to capital allocation. We target returning more than 50% of net operating cash flow to shareholders and delivering attractive, sustainable dividend growth across commodity cycles. Our recently announced second dividend increase of 2026 reinforces the company’s commitment to prudent long-term returns of capital.”



Business Highlights

•Reached a final investment decision to move forward with the proposed Western Gateway Pipeline system with an expected in-service date in 2029.

•Chevron Phillips Chemical Company LLC progressed the Golden Triangle Polymers Project in Orange, Texas, and Ras Laffan Polymers Project in Qatar, with full operations for both expected in 2027.

•Progressed the Coastal Bend expansion project, with initial volumes expected in the fourth quarter of 2026 and full ramp-up to 350 MBD in early 2027.

•Delivered greater than $50 million of near-term synergies following the acquisition of the remaining 50% interest in WRB Refining LP on October 1, 2025.












Financial Results Summary
(in millions of dollars, except as indicated)
3Q 20262Q 2026
Earnings$5,6163,847
Adjusted Earnings1
5,6193,788
Adjusted EBITDA1
8,0685,891
Earnings Per Share
   Earnings Per Share - Diluted14.089.55
   Adjusted Earnings Per Share - Diluted1
14.089.41
Cash Flow from Operations7,2817,259
Cash Flow from Operations, Excluding Working Capital1
6,1854,317
Capital Expenditures & Investments680726
Acquisitions, Net of Cash Acquired—113
Proceeds from Asset Dispositions1664
Return of Capital to Shareholders2,777887
   Repurchases of Common stock2,273379
   Dividends paid on Common stock504508
Cash and Cash Equivalents5,8484,099
Debt18,53020,565
Net Debt1
12,68216,466
Debt-to-Capital Ratio 34%39%
Net Debt-to-Capital Ratio1
26%33%
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
(in millions of dollars, except as indicated)
3Q 20262Q 2026Change
Earnings (Loss)1
$5,6163,8471,769
   Midstream702785(83)
   Chemicals311404(93)
   Refining6,0313,0622,969
   Marketing and Specialties245583(338)
   Renewable Fuels191544(353)
   Corporate and Other(372)(407)35
   Income tax expense(1,469)(1,092)(377)
   Noncontrolling interests(23)(32)9
Adjusted Earnings (Loss)1,2
$5,6193,7881,831
   Midstream702785(83)
   Chemicals311404(93)
   Refining6,0603,0862,974
   Marketing and Specialties245514(269)
   Renewable Fuels191544(353)
   Corporate and Other(372)(407)35
   Income tax expense(1,495)(1,106)(389)
   Noncontrolling interests(23)(32)9
Adjusted EBITDA2
$8,0685,8912,177
   Midstream9771,046(69)
   Chemicals423528(105)
   Refining6,2783,3072,971
   Marketing and Specialties320580(260)
   Renewable Fuels215568(353)
   Corporate and Other(145)(138)(7)
Operating Highlights
NGL Pipeline Throughput - Y-Grade to Market (MBD)3
98294339
NGL Fractionated (MBD)1,0031,020(17)
Chemicals Global O&P Capacity Utilization 92%91%1%
Refining
   Turnaround Expense79123(44)
   Realized Margin ($/BBL)2
38.0024.0813.92
   Crude Capacity Utilization98%96%2%
   Clean Product Yield 86%86%—%
Renewable Fuels Produced (MBD)4753(6)
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.




Third-Quarter 2026 Financial Results

Reported earnings were $5.6 billion for the third quarter of 2026 versus $3.8 billion in the second quarter of 2026. Third-quarter earnings included a pre-tax special item adjustment of ($29) million in the Refining segment. Adjusted earnings for the third quarter were $5.6 billion versus adjusted earnings of $3.8 billion in the second quarter of 2026.

•Midstream pre-tax income decreased compared with the second quarter mainly due to lower margins associated with gas transportation.

•Chemicals pre-tax income decreased compared with the second quarter mainly due to lower polyethylene margins, partially offset by higher polyethylene volumes and lower costs.

•Refining adjusted pre-tax income increased compared with the second quarter mainly due to higher realized margins and volumes. Margins were primarily driven by an increase in market crack spreads.

•Marketing and Specialties adjusted pre-tax income decreased compared with the second quarter mainly due to lower global marketing fuel margins, primarily driven by a rising price environment.

•Renewable Fuels pre-tax income decreased compared with the second quarter mainly due to lower margins, including inventory impacts, as well as higher costs.

•Corporate and Other pre-tax loss decreased compared with the second quarter mainly due to lower net interest expense, partially offset by higher employee-related costs.

As of September 30, 2026, the company had $5.8 billion of cash and cash equivalents and $6.4 billion of committed capacity available under credit facilities.




























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 third-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.

- # # # -
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,” “net debt,” 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 return of capital to shareholders refer 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, include our proportional share of WRB Refining LP (“WRB”) 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
20262025
3Q2QSep YTD3QSep YTD
Midstream$702 785 2,078 697 2,179 
Chemicals311 404 829 176 309 
Refining6,031 3,062 9,301 (518)(1,096)
Marketing and Specialties245 583 667 251 2,104 
Renewable Fuels191 544 694 (43)(361)
Corporate and Other(372)(407)(1,230)(364)(1,168)
Pre-Tax Income7,108 4,971 12,339 199 1,967 
Less: Income tax expense1,469 1,092 2,602 32 366 
Less: Noncontrolling interests23 32 67 34 104 
Phillips 66$5,616 3,847 9,670 133 1,497 
Adjusted Earnings (Loss)
Millions of Dollars
20262025
3Q2QSep YTD3QSep YTD
Midstream$702 785 2,078 697 2,111 
Chemicals311 404 800 176 309 
Refining6,060 3,086 9,354 430 (115)
Marketing and Specialties245 514 618 477 1,402 
Renewable Fuels191 544 694 (43)(361)
Corporate and Other(372)(407)(1,230)(364)(1,102)
Pre-Tax Income7,137 4,926 12,314 1,373 2,244 
Less: Income tax expense1,495 1,106 2,640 314 519 
Less: Noncontrolling interests23 32 67 34 95 
Phillips 66$5,619 3,788 9,607 1,025 1,630 


Page 1


Exhibit 99.1
 Millions of Dollars
 Except as Indicated
20262025
3Q2QSep YTD3QSep YTD
Reconciliation of Consolidated Earnings to Adjusted Earnings
Consolidated Earnings$5,616 3,847 9,670 133 1,497 
Pre-tax adjustments:
Impairments1
29 — 29 948 969 
Net gain on asset dispositions2
— (110)(110)(15)(1,011)
Lower-of-cost-or-market inventory adjustments— — (29)— — 
  Legal accrual3
— 65 85 241 274 
  Professional advisory fees— — — — 45 
Tax impact of adjustments4
(7)(14)(19)(282)(122)
Other tax impacts(19)— (19)— (31)
Noncontrolling interests— — — — 9 
Adjusted earnings $5,619 3,788 9,607 1,025 1,630 
Earnings per share of common stock (dollars)5
$14.08 9.55 24.05 0.32 3.66 
Adjusted earnings per share of common stock (dollars)5
$14.08 9.41 23.89 2.52 3.98 
Adjusted weighted-average diluted common shares outstanding (thousands)
398,953 402,618 402,119 406,045 407,903
Reconciliation of Segment Pre-Tax Income (Loss) to Adjusted Pre-Tax Income (Loss)
Midstream Pre-Tax Income $702 785 2,078 697 2,179 
Pre-tax adjustments:
Net gain on asset dispositions— — — — (68)
Adjusted pre-tax income$702 785 2,078 697 2,111 
Chemicals Pre-Tax Income $311 404 829 176 309 
Pre-tax adjustments:
Lower-of-cost-or-market inventory adjustments— — (29)— — 
Adjusted pre-tax income$311 404 800 176 309 
Refining Pre-Tax Income (Loss)$6,031 3,062 9,301 (518)(1,096)
Pre-tax adjustments:
Impairments1
29 — 29 948 948 
Legal accrual— 24 24 — 33 
Adjusted pre-tax income (loss)$6,060 3,086 9,354 430 (115)
Marketing and Specialties Pre-Tax Income $245 583 667 251 2,104 
Pre-tax adjustments:
  Net gain on asset dispositions2
— (110)(110)(15)(943)
  Legal accrual3
— 41 61 241 241 
Adjusted pre-tax income $245 514 618 477 1,402 
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Exhibit 99.1
Renewable Fuels Pre-Tax Income (Loss)$191 544 694 (43)(361)
Pre-tax adjustments:
  None— — — — — 
Adjusted pre-tax income (loss)$191 544 694 (43)(361)
Corporate and Other Pre-Tax Loss$(372)(407)(1,230)(364)(1,168)
Pre-tax adjustments:
Impairments— — — — 21 
  Professional advisory fees— — — — 45 
Adjusted pre-tax loss$(372)(407)(1,230)(364)(1,102)
1 Impairments recorded in the third quarter 2025 are related to our 50% equity investment in WRB Refining LP as a result of the definitive agreement entered into in September 2025, and closed on October 1, 2025 in the Refining segment.
2 Net gain on dispositions in the second quarter of 2026 relates to the post-closing adjustments from the December 2025 sale of 65% of our interest in our Germany and Austria retail marketing business.
3 Legal accrual primarily related to ongoing litigation with Propel Fuels, Inc.
4 We generally tax effect taxable U.S.-based special items using a combined federal and state annual statutory income tax rate of approximately 24%. Taxable special items attributable to foreign locations likewise generally use a local statutory income tax rate, but certain transactions may be partially exempt, which could result in a lower overall effective tax rate on these items. 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.
5 When applicable, includes impacts from income allocated to participating securities.







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Exhibit 99.1
 Millions of Dollars
Except as Indicated
2026
3Q2Q
Reconciliation of Consolidated Net Income to Adjusted EBITDA Attributable to Phillips 66
Net Income$5,639 3,879 
Plus:
   Income tax expense1,469 1,092 
   Net interest expense187 233 
   Depreciation and amortization591 585 
Phillips 66 EBITDA$7,886 5,789 
Special Item Adjustments (pre-tax):
Impairments29 — 
Net gain on asset dispositions— (110)
  Legal accrual— 65 
Total Special Item Adjustments (pre-tax)29 (45)
Change in Fair Value of NOVONIX Investment3 6 
Phillips 66 EBITDA, Adjusted for Special Items and Change in Fair Value of NOVONIX Investment$7,918 5,750 
Other Adjustments (pre-tax):
   Proportional share of selected equity affiliates income taxes7 14 
   Proportional share of selected equity affiliates net interest9 11 
   Proportional share of selected equity affiliates depreciation and amortization177 168 
   Adjusted EBITDA attributable to noncontrolling interests(43)(52)
Phillips 66 Adjusted EBITDA$8,068 5,891 
Reconciliation of Segment Income before Income Taxes to Adjusted EBITDA
Midstream Income before income taxes$702 785 
Plus:
Depreciation and amortization291 284 
Midstream EBITDA$993 1,069 
Special Item Adjustments (pre-tax):
  None— — 
Midstream EBITDA, Adjusted for Special Items$993 1,069 
Other Adjustments (pre-tax):
   Proportional share of selected equity affiliates income taxes1 2 
   Proportional share of selected equity affiliates net interest3 3 
   Proportional share of selected equity affiliates depreciation and amortization23 24 
   Adjusted EBITDA attributable to noncontrolling interests(43)(52)
Midstream Adjusted EBITDA$977 1,046 
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Exhibit 99.1
Chemicals Income before income taxes$311 404 
Plus:
None— — 
Chemicals EBITDA$311 404 
Special Item Adjustments (pre-tax):
  None— — 
Chemicals EBITDA, Adjusted for Special Items$311 404 
Other Adjustments (pre-tax):
Proportional share of selected equity affiliates income taxes(1)2 
Proportional share of selected equity affiliates net interest(3)— 
Proportional share of selected equity affiliates depreciation and amortization116 122 
Chemicals Adjusted EBITDA$423 528 
Refining Income before income taxes$6,031 3,062 
Plus:
Depreciation and amortization218 221 
Refining EBITDA$6,249 3,283 
Special Item Adjustments (pre-tax):
Impairments29 — 
Legal accrual— 24 
Refining EBITDA, Adjusted for Special Items$6,278 3,307 
Marketing and Specialties Income before income taxes$245 583 
Plus:
Depreciation and amortization21 26 
Marketing and Specialties EBITDA$266 609 
Special Item Adjustments (pre-tax):
Legal accrual— 41 
Net gain on asset dispositions— (110)
Marketing and Specialties EBITDA, Adjusted for Special Items$266 540 
Other Adjustments (pre-tax):
Proportional share of selected equity affiliates income taxes7 10 
Proportional share of selected equity affiliates net interest9 8 
Proportional share of selected equity affiliates depreciation and amortization38 22 
Marketing and Specialties Adjusted EBITDA$320 580 
Renewable Fuels Income before income taxes$191 544 
Plus:
Depreciation and amortization24 24 
Renewable Fuels EBITDA$215 568 
Special Item Adjustments (pre-tax):
None— — 
Renewable Fuels EBITDA, Adjusted for Special Items$215 568 
Page 5


Exhibit 99.1
Corporate and Other Loss before income taxes$(372)(407)
Plus:
   Net interest expense187 233 
   Depreciation and amortization37 30 
Corporate and Other EBITDA$(148)(144)
Special Item Adjustments (pre-tax):
  None— — 
Total Special Item Adjustments (pre-tax)— — 
Change in Fair Value of NOVONIX Investment3 6 
Corporate EBITDA, Adjusted for Special Items and Change in Fair Value of
  NOVONIX Investment		$(145)(138)




Millions of Dollars
 Except as Indicated
Sept. 30, 2026June 30, 2026
Debt-to-Capital Ratio
Total Debt$18,53020,565
Total Equity35,50332,703
Debt-to-Capital Ratio34%39%
Total Debt18,53020,565
Less: Cash and Cash Equivalents5,8484,099
Net Debt12,68216,466
Net Debt-to-Capital Ratio26%33%



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Exhibit 99.1
Millions of Dollars
Except as Indicated
2026
3Q2Q
Reconciliation of Refining Income Before Income Taxes to Realized Refining
  Margins
Income before income taxes$6,031 3,062 
Plus:
  Taxes other than income taxes96 88 
  Depreciation, amortization and impairments249 222 
  Selling, general and administrative expenses55 25 
  Operating expenses1,166 1,144 
  Equity in losses of affiliates1 1 
  Other segment income, net(161)(63)
  Proportional share of refining gross margins contributed by equity affiliates15 20 
Special items:
None— — 
Realized refining margins$7,452 4,499 
Total processed inputs (thousands of barrels)
196,088 186,860 
Income before income taxes (dollars per barrel)1
$30.76 16.39 
Realized refining margins (dollars per barrel)2
$38.00 24.08 
1 Income before income taxes divided by total processed inputs.
2 Realized refining margins per barrel, as presented, are calculated using the underlying realized refining margin amounts, in dollars, divided by 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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