Phillips 66 Reports $1 Billion Q2 Earnings

By Tamara Parker • Tuesday, July 30 15:22 • Permanent Link

Phillips 66 (NYSE: PSX) reported second-quarter earnings of $1.0 billion or $2.38 per share, with adjusted earnings of $984 million or $2.31 per share. This represents a significant increase from the first quarter of 2024, where earnings were $748 million, and adjusted earnings were $822 million.

The company returned $1.3 billion to shareholders through dividends and share repurchases, marking a decrease from the $1.6 billion returned in the first quarter.

Midstream NGL pipeline and fractionation volumes reached record levels, reflecting a 65 MBD increase from the first quarter. The chemicals segment also saw an increase in operating income from $205 million to $222 million.

Refining operations showed strong performance with 98% crude utilization, an 86% yield of clean products, and a nearly $1 reduction in costs per barrel when compared to the first quarter.

In terms of cash flow, the company reported $2.097 billion from operations, a significant turnaround from the $236 million cash flow deficit in the first quarter. Excluding working capital, cash flow from operations was $1.181 billion, up from $1.211 billion in the first quarter.

Capital expenditures decreased from $628 million in the first quarter to $367 million in the second quarter.

Phillips 66's return of capital to shareholders decreased from $1.612 billion in the first quarter to $1.325 billion in the second quarter. Share repurchases amounted to $840 million, down from $1.164 billion, while dividends paid increased slightly from $448 million to $485 million.

The company's debt decreased slightly from $20.154 billion in the first quarter to $19.960 billion in the second quarter, leading to a change in the net debt-to-capital ratio from 38% to 36%.

In terms of segment highlights, midstream reported adjusted pre-tax income of $767 million, up from $554 million in the first quarter, while refining adjusted pre-tax income decreased slightly from $313 million to $302 million.

As a result of these announcements, the company's shares have moved 5.1% on the market, and are now trading at a price of $147.54. Check out the company's full 8-K submission here.

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