Phillips 66 Reports Record Earnings

By Chris Stiles • Thursday, February 05 11:02 • Permanent Link

Phillips 66 (NYSE: PSX) has reported its fourth-quarter earnings, revealing a significant increase in reported earnings to $2.9 billion or $7.17 per share, as compared to $133 million in the third quarter of 2025. The adjusted earnings for the fourth quarter were $1.0 billion, in line with the third quarter.

Key financial highlights for the full-year 2025 include earnings of $4.4 billion or $10.79 per share and adjusted earnings of $2.6 billion or $6.44 per share. The company achieved record NGL transportation and fractionation volumes, with over 1 million barrels per day (mmbd) each. Additionally, it returned $3.1 billion to shareholders, representing more than 50% of net operating cash flow.

The company generated $2.8 billion of net operating cash flow in the fourth quarter, with $2.0 billion excluding working capital. It also reduced debt by $2.0 billion during the quarter, ending the year at $19.7 billion.

In terms of strategic milestones, Phillips 66 acquired the remaining 50% interest in WRB Refining LP, gaining full ownership of the Wood River and Borger refineries. It also sold a 65% interest in its Germany and Austria retail marketing business and ceased fuel production at the Los Angeles refinery.

Looking at segment financial and operating highlights, the midstream segment saw adjusted pre-tax income increase compared with the third quarter, mainly due to higher volumes, while the chemicals segment saw a decrease mainly due to lower margins. The refining segment's adjusted pre-tax income benefited from the acquisition and consolidation of the remaining ownership interest of WRB Refining LP.

As of December 31, 2025, the company had $1.1 billion of cash and cash equivalents and $5.7 billion of committed capacity available under credit facilities.

Phillips 66 announced a 2026 capital budget of $2.4 billion, including $1.1 billion for sustaining capital and $1.3 billion for organic growth capital.

Following these announcements, the company's shares moved -1.24%, and are now trading at a price of $138.28. For more information, read the company's full 8-K submission here.

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