Phillips 66 reported second-quarter earnings of $3.847 billion, up from $207 million in the first quarter. Adjusted earnings rose to $3.788 billion from $200 million.
Revenue-like operating strength also improved across the portfolio. Adjusted EBITDA climbed to $5.891 billion from $1.230 billion. Cash flow from operations swung to $7.259 billion from a use of $2.264 billion in the prior quarter, while cash flow from operations excluding working capital rose to $4.317 billion from $699 million.
Debt fell sharply in the quarter. Total debt dropped by $6.559 billion to $20.565 billion from $27.124 billion, and net debt fell to $16.466 billion from $21.974 billion. The debt-to-capital ratio improved to 39% from 48%, while the net debt-to-capital ratio moved to 33% from 43%.
On capital returns, Phillips 66 sent $887 million back to shareholders, slightly above the $778 million in the first quarter. That included $379 million in share repurchases, up from $269 million, and $508 million in dividends, compared with $509 million.
Operating performance improved in refining. Crude capacity utilization rose to 96% from 95%, while clean product yield slipped to 86% from 87%. Refining realized margin jumped to $24.08 per barrel from $10.11. Turnaround expense fell to $123 million from $178 million.
Midstream earnings increased to $785 million from $591 million, helped by stronger margins and higher volumes. NGL fractionated volumes rose to 1.020 million barrels per day from 980,000 barrels per day, while NGL pipeline throughput edged up to 394,000 barrels per day from 393,000.
Chemicals earnings increased to $404 million from $114 million, and chemicals adjusted EBITDA rose to $528 million from $212 million. Global operating and production capacity utilization in chemicals eased to 91% from 94%.
Marketing and specialties adjusted earnings improved to $514 million from a loss of $141 million. Renewable fuels adjusted earnings rose to $544 million from a loss of $41 million, while renewable fuels production increased to 53,000 barrels per day from 40,000 barrels per day.
Corporate and other pre-tax loss narrowed to $407 million from $451 million.
The company ended the quarter with $4.099 billion in cash and cash equivalents, down from $5.150 billion at the end of the first quarter. The market has reacted to these announcements by moving the company's shares -1.33% to a price of $203.155. For more information, read the company's full 8-K submission here.
