HOUSTON: Energy giant Phillips 66 (NYSE: PSX) posted robust second-quarter earnings, powered by peak refining performance and a strategic midstream acquisition, as the company sharpens its wellhead-to-market focus.
The company reported net earnings of $877 million, or $2.15 per share, up from $487 million in Q1. Adjusted earnings reached $973 million, or $2.38 per share, bolstered by strong crack spreads, improved margins, and disciplined cost control. Operating cash flow was $845 million, rising to $1.9 billion excluding working capital.
“We delivered strong financial and operating results across our integrated value chain,” said Chairman and CEO Mark Lashier. “Refining hit its highest utilization rate since 2018 and posted a record year-to-date clean product yield of 87%.”
Refining operated at 98% capacity with an 86% clean product yield, reflecting optimized throughput and cost performance. Notably, the company incurred $239 million in pre-tax accelerated depreciation related to the Los Angeles Refinery, which is scheduled to cease operations by year-end.
Meanwhile, Phillips 66 advanced its midstream strategy with the acquisition of EPIC NGL—now renamed Coastal Bend—which contributed to nearly $1 billion in adjusted EBITDA for the segment. The startup of the Dos Picos II plant in the Midland Basin also increased natural gas processing capacity by 220 MMCF/D.
The company announced the sale of a 65% stake in its Germany and Austria retail marketing business, further streamlining its portfolio. At quarter’s end, Phillips 66 held $1.1 billion in cash and $3.7 billion in credit capacity.
During Q2, the company returned $906 million to shareholders via dividends and buybacks. Lashier added that Phillips 66 remains focused on organic midstream growth and aims to meet its 2027 strategic targets.