Phillips 66 has recently released its 10-Q report, detailing its operations as an energy manufacturing and logistics company operating in the United States, the United Kingdom, Germany, and internationally. The company operates through five segments: Midstream, Chemicals, Refining, Marketing and Specialties (M&S), and Renewable Fuels. In the second quarter of 2025, Phillips 66 reported earnings of $877 million and cash provided by operating activities of $845 million. The company funded capital expenditures and investments of $587 million and an acquisition of $2.2 billion, net of cash acquired. Additionally, it received $2.4 billion from net debt borrowings, paid $419 million to repurchase shares of its common stock, and paid $487 million of dividends to its common stockholders. At the end of the second quarter of 2025, the company had $1.1 billion of cash and cash equivalents and $3.7 billion of total committed capacity available under its credit facilities.
The company's strategic priorities include creating shareholder value, driving disciplined growth and returns, and maintaining financial strength and flexibility. Phillips 66 is focused on operational and cost reduction targets intended to drive world-class operations across its portfolio, while maintaining emphasis on growing its Midstream and Chemicals businesses. The company aims to return greater than 50% of net cash provided by operating activities to shareholders through share repurchases and dividends.
In the second quarter of 2025, Phillips 66 reported net income of $877 million, compared with $1,015 million in the second quarter of 2024. For the six months ended June 30, 2025, the company reported net income of $1,364 million, compared with $1,763 million for the same period in 2024. The decrease in net income was attributed to various factors including accelerated depreciation for the Los Angeles Refinery, lower equity earnings from CPChem, and a gain on the sale of ownership interest in Rockies Express Pipeline LLC (REX) that was recognized in 2024. These decreases were partially offset by higher U.S. and international marketing fuel margins, improved realized refining margins, and a before-tax impairment of certain Midstream assets recognized in 2024.
In the second quarter of 2025, sales and other operating revenues decreased by 13%, and purchased crude oil and products decreased by 16%. The company also reported a net loss on dispositions of $93 million. Equity in earnings of affiliates decreased by 69% for the three months ended June 30, 2025, primarily attributable to lower equity earnings from CPChem, as well as lower equity earnings from sales of ownership interests in REX, Coop and GCX.
These results demonstrate the complex and dynamic nature of Phillips 66's operations, influenced by factors such as commodity prices, demand, and market margins across its various business segments. As a result of these announcements, the company's shares have moved 1.96% on the market, and are now trading at a price of $127.42. Check out the company's full 10-Q submission here.
