UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (date of earliest event reported): October 29, 2014
Phillips 66
(Exact name of registrant as specified in its charter)
|
| | | | |
Delaware | | 001-35349 | | 45-3779385 |
(State or other jurisdiction of | | (Commission | | (I.R.S. Employer |
incorporation) | | File Number) | | Identification No.) |
3010 Briarpark Drive, Houston, Texas 77042
(Address of principal executive offices and zip code)
Registrant’s telephone number, including area code: (281) 293-6600
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 2.02 Results of Operations and Financial Condition.
On October 29, 2014, Phillips 66 issued a press release announcing the company's financial and operating results for the quarter ended September 30, 2014. A copy of the press release is furnished as Exhibit 99.1 hereto and incorporated herein by reference. Additional financial and operating information about the quarter is furnished as Exhibit 99.2 hereto and incorporated herein by reference.
The information in this report and the exhibits hereto shall not be treated as filed for purposes of the Securities Exchange Act of 1934, as amended.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
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| | | |
| 99.1 | — | Press release issued by Phillips 66 on October 29, 2014. |
| 99.2 | — | Supplemental financial and operating information. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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| |
| PHILLIPS 66 |
| |
By: | /s/ C. Doug Johnson |
| C. Doug Johnson Vice President and Controller |
| |
October 29, 2014 | |
EXHIBIT INDEX
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| |
99.1 | Press release issued by Phillips 66 on October 29, 2014. |
|
| |
99.2 | Supplemental financial and operating information. |
Phillips 66 Reports Third-Quarter Earnings of $1.2 Billion
or $2.09 Per Share
Adjusted earnings of $1.1 billion or $2.02 per share
Highlights
| |
• | Strong earnings driven by improved refining and marketing margins |
| |
• | Record advantaged crude runs |
| |
• | Chemicals impacted by unplanned downtime |
| |
• | Announced Dakota Access Pipeline and Energy Transfer Crude Oil Pipeline joint ventures |
| |
• | Returned $771 million of capital to shareholders through dividends and share repurchases |
HOUSTON, Oct. 29, 2014 — Phillips 66 (NYSE: PSX), an energy manufacturing and logistics company, announces third-quarter earnings of $1.2 billion, compared with earnings of $863 million during the second quarter of 2014. Adjusted earnings were $1.1 billion, an increase of $277 million from the second quarter of 2014.
"Our operations ran well during the third quarter, capturing strong margins in our refining and marketing businesses," said Greg Garland, chairman and CEO of Phillips 66. "Chemicals earnings were also strong despite the impact of unplanned downtime."
"We recently announced the Dakota Access Pipeline and Energy Transfer Crude Oil Pipeline projects, which provide integration opportunities with our Beaumont Terminal. We are executing our Midstream growth strategy with increasing momentum," said Garland.
Midstream
Midstream earnings were $115 million in the third quarter, compared with earnings of $108 million in the second quarter of 2014.
Phillips 66’s Transportation business generated earnings of $58 million during the third quarter, in line with earnings of $60 million in the second quarter of 2014. Third-quarter earnings related to the company’s equity investment in DCP Midstream, LLC were $31 million, comparable with $33 million in the second quarter of 2014.
Earnings from the NGL business were $26 million in the third quarter, compared with $15 million in the second quarter of 2014. The increase was primarily related to improved margins and higher equity earnings from the ramp up of throughput volumes on the Sand Hills and Southern Hills pipelines.
Phillips 66 Reports Third-Quarter Earnings of $1.2 Billion (Adjusted Earnings of $1.1 Billion)
Chemicals
The Chemicals segment reflects Phillips 66's equity investment in Chevron Phillips Chemical Company LLC (CPChem). Third-quarter Chemicals earnings were $230 million and adjusted earnings were $299 million. This compares with earnings of $324 million in the second quarter of 2014.
During the third quarter, CPChem's Olefins and Polyolefins (O&P) business contributed $254 million to Phillips 66's Chemicals earnings. O&P's adjusted earnings contribution was $259 million, compared with $310 million in the second quarter of 2014. The decrease was mainly due to an ethylene outage at CPChem's Port Arthur plant from a localized fire in July. Global utilization for O&P was 83 percent during the quarter.
CPChem's Specialties, Aromatics and Styrenics (SA&S) business contributed a loss of $18 million to third-quarter earnings, including asset impairments of $64 million. SA&S's adjusted earnings contribution was $46 million during the third quarter, an increase of $25 million from the second quarter of 2014, primarily driven by lower turnaround activity.
Refining
Refining recorded earnings of $558 million in the third quarter, compared with earnings of $390 million in the second quarter of 2014. The increase was primarily attributable to improved realized refining margins, which included capturing crude location differentials. Margins improved, despite lower worldwide market crack spreads, primarily due to higher clean product realizations. Additionally, secondary product margins benefited from lower crude oil prices.
During the quarter, a record 95 percent of the company's U.S. crude slate was advantaged, compared with 93 percent in the second quarter. Worldwide, Phillips 66’s refining utilization and clean product yield were 94 percent and 84 percent, respectively, in the third quarter of 2014.
Marketing and Specialties
Marketing and Specialties (M&S) third-quarter earnings were $368 million and adjusted earnings were $259 million. This compares with earnings of $162 million during the second quarter of 2014.
Earnings from Marketing and Other were $325 million in the third quarter, which included the expected partial recognition of the deferred gain from the sale of a power plant in July 2013. Adjusted earnings were $216 million, an increase of $97 million compared with earnings in the second quarter of 2014. The business benefited from higher global marketing margins, primarily due to the steady decline of product costs associated with falling crude oil prices during the quarter. Third-quarter refined product exports were 129,000 barrels per day (BPD), a reduction from 181,000 BPD in the second quarter of 2014, reflecting more favorable placement in the domestic market.
Phillips 66’s Specialties businesses generated earnings of $43 million during the third quarter, in line with second-quarter 2014 earnings.
Corporate and Other
Corporate and Other costs were $91 million after-tax in the third quarter, compared with $121 million in the second quarter of 2014. The decreased costs were mostly due to effective tax rate changes, as well as timing of contributions and environmental expenses.
The company's effective tax rate was 31 percent and its adjusted effective tax rate was 33 percent for the third quarter, compared with 36 percent in the second quarter of 2014.
Phillips 66 Reports Third-Quarter Earnings of $1.2 Billion (Adjusted Earnings of $1.1 Billion)
Financial Position, Liquidity and Return of Capital
During the quarter, Phillips 66 generated $429 million of cash from operations. Excluding $828 million of working capital changes, operating cash flow was $1.3 billion. Working capital changes mainly reflect the impact of temporary inventory builds during the quarter. The company funded $1.5 billion in capital expenditures and investments, primarily reflecting growth in its Midstream segment.
Consistent with the company's commitment to return capital to shareholders, Phillips 66 returned $771 million in the third quarter through dividends and share repurchases. The company paid $277 million in dividends and repurchased six million shares of common stock for $494 million. Since August 2012, the company has repurchased 66 million shares for $4.4 billion, as part of $7 billion in share repurchase authorizations. In addition, the company received 17.4 million shares in exchange for its flow improver business earlier this year. Phillips 66 ended the quarter with 554 million shares outstanding.
As of Sept. 30, 2014, cash and cash equivalents were $3.1 billion and debt was $6.2 billion. The company's debt-to-capital ratio was 22 percent. Additionally, Phillips 66 reported a year-to-date annualized return on capital employed (ROCE) of 18 percent, and a year-to-date annualized adjusted ROCE of 14 percent.
Strategic Update
Phillips 66 is continuing to grow its more highly valued businesses, while enhancing refining returns. The company's Midstream segment is pursuing multiple growth opportunities to further integrate its portfolio and benefit from increasing production in North America.
Phillips 66 recently announced its participation in two joint ventures to develop the Dakota Access Pipeline (DAPL) and Energy Transfer Crude Oil Pipeline (ETCOP). Phillips 66 owns 25 percent interests in both projects and its estimated share of construction cost is approximately $1.2 billion. DAPL is expected to deliver 450,000 BPD of crude oil from the Bakken/Three Forks production area in North Dakota to market centers in the Midwest. ETCOP will provide crude oil transportation service from the Midwest to the Gulf Coast, including Phillips 66's Beaumont Terminal. The DAPL and ETCOP projects are expected to begin commercial operations in the fourth quarter of 2016.
In support of its advantaged crude oil strategy, the company ordered an additional 500 rail cars during the quarter and began operations at its 75,000 BPD rail rack at the Bayway Refinery. The 30,000 BPD rail rack at the Ferndale Refinery is expected to begin operations in the fourth quarter of 2014. In addition, Phillips 66 is constructing a rail-loading facility on land recently acquired in North Dakota. The facility is expected to have up to 200,000 BPD of capacity and further expand Phillips 66 and third-party access to Bakken crude oil.
As recently announced, Phillips 66 Partners LP will acquire the new rail-unloading facilities at Bayway and Ferndale, as well as the Cross-Channel Connector Pipeline, from Phillips 66. The $340 million transaction is anticipated to close in early December 2014.
Construction continued on the Sweeny Fractionator One and Freeport LPG Export Terminal, with startup expected in the second half of 2015 and second half of 2016, respectively. The company also plans to develop a second NGL fractionator and a crude and condensate pipeline in Texas to meet growing demand for domestic crude oil and global market demand for U.S.-supplied products. In addition, the company is considering condensate processing options to meet customer demand.
Phillips 66 Reports Third-Quarter Earnings of $1.2 Billion (Adjusted Earnings of $1.1 Billion)
The proposed 110,000 BPD Sweeny Fractionator Two will be located near the company’s Sweeny Refinery and Sweeny Fractionator One. The planned crude and condensate pipeline will connect Eagle Ford production to the Sweeny Refinery and Phillips 66’s terminal in Freeport, Texas. The pipeline, including gathering systems, will have an initial capacity of 200,000 BPD with the capability to expand to over 400,000 BPD.
The pipeline and Sweeny Fractionator Two projects are currently in the engineering design and permitting phase. Final investment decision for both projects is anticipated in mid-2015, with startup planned for late 2016 for the pipeline and 2017 for Sweeny Fractionator Two.
CPChem is investing in domestic growth projects to realize the benefits of low-cost petrochemical feedstocks in the U.S. Gulf Coast (USGC). Construction continued on its world-scale USGC Petrochemicals Project consisting of an ethane cracker and related polyethylene facilities, with startup anticipated in 2017. In addition, the ethylene production expansion project to add a tenth furnace at CPChem's Sweeny facility is expected to start up in the fourth quarter of 2014.
Later today, Phillips 66 Chairman and Chief Executive Officer Greg Garland; President Tim Taylor; and Executive Vice President and Chief Financial Officer Greg Maxwell will host a webcast at 11 a.m. EDT to discuss the company’s third-quarter performance and provide an update on strategic growth projects. To listen to the conference call and view related presentation materials, go to www.phillips66.com/investors and click on "Events & Presentations." For detailed supplemental information, go to www.phillips66.com/supplemental.
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| | | | | | | | | | | | | | | | | | |
| | | | | | | | |
| Earnings | | | | | | | |
| | Millions of Dollars | |
| | 2014 | | 2013 | |
| | Second Quarter | Third Quarter | Nine Months | | Third Quarter | Nine Months | |
| Midstream | $ | 108 |
| $ | 115 |
| $ | 411 |
| | $ | 147 |
| $ | 348 |
| |
| Chemicals | 324 |
| 230 |
| 870 |
| | 262 |
| 725 |
| |
| Refining | 390 |
| 558 |
| 1,254 |
| | (30 | ) | 1,329 |
| |
| Marketing and Specialties | 162 |
| 368 |
| 667 |
| | 255 |
| 789 |
| |
| Corporate and Other | (121 | ) | (91 | ) | (293 | ) | | (113 | ) | (334 | ) | |
| Discontinued Operations | — |
| — |
| 706 |
| | 14 |
| 43 |
| |
| Phillips 66 | $ | 863 |
| $ | 1,180 |
| $ | 3,615 |
| | $ | 535 |
| $ | 2,900 |
| |
| | | | | | | | |
| Adjusted Earnings | | | | | | | |
| | Millions of Dollars | |
| | 2014 | | 2013 | |
| | Second Quarter | Third Quarter | Nine Months | | Third Quarter | Nine Months | |
| Midstream | $ | 108 |
| $ | 115 |
| $ | 411 |
| | $ | 147 |
| $ | 348 |
| |
| Chemicals | 324 |
| 299 |
| 939 |
| | 262 |
| 725 |
| |
| Refining | 390 |
| 558 |
| 1,254 |
| | (30 | ) | 1,316 |
| |
| Marketing and Specialties | 162 |
| 259 |
| 558 |
| | 255 |
| 780 |
| |
| Corporate and Other | (121 | ) | (91 | ) | (293 | ) | | (113 | ) | (334 | ) | |
| Phillips 66 | $ | 863 |
| $ | 1,140 |
| $ | 2,869 |
| | $ | 521 |
| $ | 2,835 |
| |
|
| | | | | | | |
Phillips 66 Reports Third-Quarter Earnings of $1.2 Billion (Adjusted Earnings of $1.1 Billion)
About Phillips 66
Built on more than 130 years of experience, Phillips 66 is a growing energy manufacturing and logistics company with high-performing Midstream, Chemicals, Refining, and Marketing and Specialties businesses. This integrated portfolio enables Phillips 66 to capture opportunities in the changing energy landscape. Headquartered in Houston, the company has 14,000 employees who are committed to operating excellence and safety. Phillips 66 had $50 billion of assets as of Sept. 30, 2014. For more information, visit www.phillips66.com or follow us on Twitter @Phillips66Co.
- # # # -
CONTACTS
Dennis Nuss (media)
832-765-1850
dennis.h.nuss@p66.com
Rosy Zuklic (investors)
832-765-2297
rosy.zuklic@p66.com
CAUTIONARY STATEMENT FOR THE PURPOSES OF THE "SAFE HARBOR" PROVISIONS
OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995
This news release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are intended to be covered by the safe harbors created thereby. Words and phrases such as “is anticipated,” “is estimated,” “is expected,” “is planned,” “is scheduled,” “is targeted,” “believes,” “intends,” “objectives,” “projects,” “strategies” and similar expressions are used to identify such forward-looking statements. However, the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements relating to Phillips 66’s operations (including joint venture operations) are based on management’s expectations, estimates and projections about the company, its interests and the energy industry in general on the date this news release was prepared. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecast in such forward-looking statements. Factors that could cause actual results or events to differ materially from those described in the forward-looking statements include fluctuations in crude oil, NGL, and natural gas prices, and refining and petrochemical margins; unexpected changes in costs for constructing, modifying or operating our facilities; unexpected difficulties in manufacturing, refining or transporting our products; lack of, or disruptions in, adequate and reliable transportation for our crude oil, natural gas, NGL, and refined products; potential liability from litigation or for remedial actions, including removal and reclamation obligations under environmental regulations; limited access to capital or significantly higher cost of capital related to illiquidity or uncertainty in the domestic or international financial markets; and other economic, business, competitive and/or regulatory factors affecting Phillips 66’s businesses generally as set forth in our filings with the Securities and Exchange Commission. Phillips 66 is under no obligation (and expressly disclaims any such obligation) to update or alter its forward-looking statements, whether as a result of new information, future events or otherwise.
Use of Non-GAAP Financial Information -- This news release includes the terms adjusted earnings, adjusted earnings per share, adjusted effective tax rate, operating cash flow excluding working capital, and adjusted ROCE. These are non-GAAP financial measures that are included to help facilitate comparisons of company operating performance across periods.
References in the release to earnings refer to net income attributable to Phillips 66.
Prior period results have been recast to reflect realignment of certain businesses between segments and business lines. Within the Midstream segment, certain NGL pipelines were moved from the Transportation business to the NGL business. Sales commissions for specialty coke, polypropylene and solvents businesses are recorded in the M&S segment. Certain joint ventures, such as a base oil business, were moved from the Refining segment to the M&S segment.
Phillips 66 Reports Third-Quarter Earnings of $1.2 Billion (Adjusted Earnings of $1.1 Billion)
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| | | | | | | | | | | | | | | | | | |
| | | Millions of Dollars | | |
| | | Except as Indicated | | |
| | 2014 | | 2013 | |
| | 2Q | 3Q | Sep YTD | | 3Q | Sep YTD | |
| Reconciliation of Earnings to Adjusted Earnings | | | | | | | |
| Consolidated | | | | | | | |
| Earnings | $ | 863 |
| $ | 1,180 |
| $ | 3,615 |
| | $ | 535 |
| $ | 2,900 |
| |
| Adjustments: | | | | | | | |
| Gain on asset dispositions | — |
| (109 | ) | (109 | ) | | — |
| (23 | ) | |
| Impairments | — |
| 69 |
| 69 |
| | — |
| — |
| |
| Pending claims and settlements | — |
| — |
| — |
| | — |
| (16 | ) | |
| Exit of a business line | — |
| — |
| — |
| | — |
| 34 |
| |
| Tax law impacts | — |
| — |
| — |
| | — |
| (17 | ) | |
| Discontinued operations | — |
| — |
| (706 | ) | | (14 | ) | (43 | ) | |
| Adjusted earnings | $ | 863 |
| $ | 1,140 |
| $ | 2,869 |
| | $ | 521 |
| $ | 2,835 |
| |
| | | | | | | | |
| Earnings per share of common stock (dollars) | $ | 1.51 |
| $ | 2.09 |
| $ | 6.28 |
| | $ | 0.87 |
| $ | 4.65 |
| |
| | | | | | | | |
| Adjusted earnings per share of common stock (dollars) | $ | 1.51 |
| $ | 2.02 |
| $ | 4.98 |
| | $ | 0.85 |
| $ | 4.54 |
| |
| | | | | | | | |
| Chemicals | | | | | | | |
| Earnings | $ | 324 |
| $ | 230 |
| $ | 870 |
| | $ | 262 |
| $ | 725 |
| |
| Adjustments: | | | | | | | |
| Impairments | — |
| 69 |
| 69 |
| | — |
| — |
| |
| Adjusted earnings | $ | 324 |
| $ | 299 |
| $ | 939 |
| | $ | 262 |
| $ | 725 |
| |
| | | | | | | | |
| Refining | | | | | | | |
| Earnings (loss) | $ | 390 |
| $ | 558 |
| $ | 1,254 |
| | $ | (30 | ) | $ | 1,329 |
| |
| Adjustments: | | | | | | | |
| Tax law impacts | — |
| — |
| — |
| | — |
| (13 | ) | |
| Adjusted earnings | $ | 390 |
| $ | 558 |
| $ | 1,254 |
| | $ | (30 | ) | $ | 1,316 |
| |
| | | | | | | | |
| Marketing and Specialties | | | | | | | |
| Earnings | $ | 162 |
| $ | 368 |
| $ | 667 |
| | $ | 255 |
| $ | 789 |
| |
| Adjustments: | | | | | | | |
| Gain on asset dispositions | — |
| (109 | ) | (109 | ) | | — |
| (23 | ) | |
| Pending claims and settlements | — |
| — |
| — |
| | — |
| (16 | ) | |
| Exit of a business line | — |
| — |
| — |
| | — |
| 34 |
| |
| Tax law impacts | — |
| — |
| — |
| | — |
| (4 | ) | |
| Adjusted earnings | $ | 162 |
| $ | 259 |
| $ | 558 |
| | $ | 255 |
| $ | 780 |
| |
|
| | | | | |
| | Millions of Dollars | |
| | 3Q | |
| | 2014 | |
| Cash Flows from Operating Activities | | |
| | | |
| Net Cash Provided by Operating Activities, excluding working capital | $ | 1,257 |
| |
| | | |
| Changes in working capital | (828 | ) | |
| Net Cash Provided by Operating Activities | $ | 429 |
| |
Phillips 66 Reports Third-Quarter Earnings of $1.2 Billion (Adjusted Earnings of $1.1 Billion)
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| | | | | |
|
| Millions of Dollars | |
|
| 2014 YTD | |
| Phillips 66 - ROCE |
| |
| Numerator |
| |
| Net income | $ | 3,639 |
| |
| After-tax interest expense | 126 |
| |
| GAAP ROCE earnings | 3,765 |
| |
| Special items | (746 | ) | |
| Adjusted ROCE earnings | $ | 3,019 |
| |
|
| | |
| Denominator | | |
| GAAP average capital employed* | $ | 28,477 |
| |
| Discontinued operations | (96 | ) | |
| Adjusted average capital employed | $ | 28,381 |
| |
|
| | |
| Annualized Adjusted ROCE (percent) | 14 | % | |
| Annualized GAAP ROCE (percent) | 18 | % | |
| *Total equity plus total debt. |
| |
|
| | | | | |
| | Millions of Dollars | |
| | 3Q | |
| | 2014 | |
| Effective Tax Rates | | |
| Income before taxes | $ | 1,727 |
| |
| Special items | (21 | ) | |
| Adjusted income before taxes | $ | 1,706 |
| |
| | | |
| Provision for taxes | $ | 538 |
| |
| Special items | 19 |
| |
| Adjusted provision for taxes | $ | 557 |
| |
| | | |
| GAAP effective tax rate (percent) | 31 | % | |
| Adjusted effective tax rate (percent) | 33 | % | |
|
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | Exhibit 99.2 |
Phillips 66 Earnings Release Supplemental Data |
| | | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | | | | | | | | | |
CONSOLIDATED INCOME STATEMENT |
| | | | | | | | | | | | | | |
| | | | Millions of Dollars |
| | | | 2013 | | 2014 |
| | | | 1st Qtr |
| 2nd Qtr |
| 3rd Qtr |
| 4th Qtr |
| YTD |
| | 1st Qtr |
| 2nd Qtr |
| 3rd Qtr |
| 4th Qtr | YTD |
|
Revenues and Other Income | | | | | | | | | | | |
Sales and other operating revenues* | 41,211 |
| 43,190 |
| 44,146 |
| 43,049 |
| 171,596 |
| | 40,283 |
| 45,549 |
| 40,417 |
| | 126,249 |
|
Equity in earnings of affiliates | 1,039 |
| 618 |
| 647 |
| 769 |
| 3,073 |
| | 778 |
| 764 |
| 511 |
| | 2,053 |
|
Net gain on dispositions | 1 |
| 41 |
| 8 |
| 5 |
| 55 |
| | 7 |
| 9 |
| 109 |
| | 125 |
|
Other income (loss) | 23 |
| 49 |
| (7 | ) | 20 |
| 85 |
| | 31 |
| 17 |
| 11 |
| | 59 |
|
Total Revenues and Other Income | 42,274 |
| 43,898 |
| 44,794 |
| 43,843 |
| 174,809 |
| | 41,099 |
| 46,339 |
| 41,048 |
| | 128,486 |
|
| | | | | | | | | | | | | | |
Costs and Expenses | | | | | | | | | | | |
Purchased crude oil and products | 35,243 |
| 37,257 |
| 38,717 |
| 37,028 |
| 148,245 |
| | 34,381 |
| 39,316 |
| 33,602 |
| | 107,299 |
|
Operating expenses | 978 |
| 1,032 |
| 992 |
| 1,204 |
| 4,206 |
| | 1,090 |
| 1,077 |
| 1,104 |
| | 3,271 |
|
Selling, general and administrative expenses | 327 |
| 368 |
| 349 |
| 434 |
| 1,478 |
| | 402 |
| 412 |
| 401 |
| | 1,215 |
|
Depreciation and amortization | 242 |
| 229 |
| 233 |
| 243 |
| 947 |
| | 234 |
| 239 |
| 249 |
| | 722 |
|
Impairments | 24 |
| 1 |
| 1 |
| 3 |
| 29 |
| | 1 |
| 3 |
| 12 |
| | 16 |
|
Taxes other than income taxes* | 3,324 |
| 3,501 |
| 3,624 |
| 3,670 |
| 14,119 |
| | 3,638 |
| 3,832 |
| 3,874 |
| | 11,344 |
|
Accretion on discounted liabilities | 6 |
| 6 |
| 6 |
| 6 |
| 24 |
| | 6 |
| 6 |
| 6 |
| | 18 |
|
Interest and debt expense | 70 |
| 69 |
| 68 |
| 68 |
| 275 |
| | 68 |
| 66 |
| 60 |
| | 194 |
|
Foreign currency transaction (gains) losses | 2 |
| (18 | ) | — |
| (24 | ) | (40 | ) | | (19 | ) | 29 |
| 13 |
| | 23 |
|
Total Costs and Expenses | 40,216 |
| 42,445 |
| 43,990 |
| 42,632 |
| 169,283 |
| | 39,801 |
| 44,980 |
| 39,321 |
| | 124,102 |
|
Income from continuing operations before income taxes | 2,058 |
| 1,453 |
| 804 |
| 1,211 |
| 5,526 |
| | 1,298 |
| 1,359 |
| 1,727 |
| | 4,384 |
|
Provision for income taxes | 663 |
| 507 |
| 278 |
| 396 |
| 1,844 |
| | 426 |
| 487 |
| 538 |
| | 1,451 |
|
Income From Continuing Operations | 1,395 |
| 946 |
| 526 |
| 815 |
| 3,682 |
| | 872 |
| 872 |
| 1,189 |
| | 2,933 |
|
Income from discontinued operations** | 15 |
| 14 |
| 14 |
| 18 |
| 61 |
| | 706 |
| — |
| — |
| | 706 |
|
Net Income | 1,410 |
| 960 |
| 540 |
| 833 |
| 3,743 |
| | 1,578 |
| 872 |
| 1,189 |
| | 3,639 |
|
Less: net income attributable to noncontrolling interests | 3 |
| 2 |
| 5 |
| 7 |
| 17 |
| | 6 |
| 9 |
| 9 |
| | 24 |
|
Net Income Attributable to Phillips 66 | 1,407 |
| 958 |
| 535 |
| 826 |
| 3,726 |
| | 1,572 |
| 863 |
| 1,180 |
| | 3,615 |
|
* Includes excise taxes on petroleum products sales: | 3,258 |
| 3,428 |
| 3,568 |
| 3,612 |
| 13,866 |
| | 3,522 |
| 3,743 |
| 3,781 |
| | 11,046 |
|
** Net of provision for income taxes on discontinued operations: | 8 |
| 7 |
| 8 |
| 11 |
| 34 |
| | 5 |
| — |
| — |
| | 5 |
|
| | | | | | | | | | | | | | |
Amounts Attributable to Phillips 66 Common Stockholders: | | | | | | | | | | | |
Income from continuing operations | 1,392 |
| 944 |
| 521 |
| 808 |
| 3,665 |
| | 866 |
| 863 |
| 1,180 |
| | 2,909 |
|
Income from discontinued operations | 15 |
| 14 |
| 14 |
| 18 |
| 61 |
| | 706 |
| — |
| — |
| | 706 |
|
Net Income Attributable to Phillips 66 | 1,407 |
| 958 |
| 535 |
| 826 |
| 3,726 |
| | 1,572 |
| 863 |
| 1,180 |
| | 3,615 |
|
| | | | | | | | | | | | | | |
Net Income Attributable to Phillips 66 | | | | | | | | | | | |
Per Share of Common Stock (dollars) | | | | | | | | | | | |
Basic | | | | | | | | | | | |
Continuing operations | 2.23 |
| 1.53 |
| 0.86 |
| 1.35 |
| 5.97 |
| | 1.48 |
| 1.52 |
| 2.11 |
| | 5.10 |
|
Discontinued operations | 0.02 |
| 0.02 |
| 0.02 |
| 0.03 |
| 0.10 |
| | 1.21 |
| — |
| — |
| | 1.24 |
|
Net Income Attributable to Phillips 66 | | | | | | | | | | | |
Per Share of Common Stock | 2.25 |
| 1.55 |
| 0.88 |
| 1.38 |
| 6.07 |
| | 2.69 |
| 1.52 |
| 2.11 |
| | 6.34 |
|
Diluted | | | | | | | | | | | | | |
Continuing operations | 2.21 |
| 1.51 |
| 0.85 |
| 1.34 |
| 5.92 |
| | 1.47 |
| 1.51 |
| 2.09 |
| | 5.05 |
|
Discontinued operations | 0.02 |
| 0.02 |
| 0.02 |
| 0.03 |
| 0.10 |
| | 1.20 |
| — |
| — |
| | 1.23 |
|
Net Income Attributable to Phillips 66 | | | | | | | | | | | |
Per Share of Common Stock | 2.23 |
| 1.53 |
| 0.87 |
| 1.37 |
| 6.02 |
| | 2.67 |
| 1.51 |
| 2.09 |
| | 6.28 |
|
| | | | | | | | | | | | | | |
Average Common Shares Outstanding (in thousands) | | | | | | | | | | | |
Basic | | | | 625,030 |
| 619,143 |
| 608,934 |
| 598,553 |
| 612,918 |
| | 584,053 |
| 565,799 |
| 559,492 |
| | 569,692 |
|
Diluted | | | | 631,288 |
| 624,907 |
| 614,519 |
| 604,165 |
| 618,989 |
| | 589,575 |
| 571,285 |
| 564,958 |
| | 575,589 |
|
| | | | | | | | | | | | | | |
SUMMARY OF INCOME (LOSS) ATTRIBUTABLE TO PHILLIPS 66 BY SEGMENT |
| | | | | | | | | | | | | | |
| | | | Millions of Dollars |
| | | | 2013 | | 2014 |
| | | | 1st Qtr |
| 2nd Qtr |
| 3rd Qtr |
| 4th Qtr |
| YTD |
| | 1st Qtr |
| 2nd Qtr |
| 3rd Qtr |
| 4th Qtr | YTD |
|
| | | | | | | | | | | | | | |
Midstream | 111 |
| 90 |
| 147 |
| 121 |
| 469 |
| | 188 |
| 108 |
| 115 |
| | 411 |
|
Chemicals | 282 |
| 181 |
| 262 |
| 261 |
| 986 |
| | 316 |
| 324 |
| 230 |
| | 870 |
|
Refining | 904 |
| 455 |
| (30 | ) | 418 |
| 1,747 |
| | 306 |
| 390 |
| 558 |
| | 1,254 |
|
Marketing and Specialties | 190 |
| 344 |
| 255 |
| 105 |
| 894 |
| | 137 |
| 162 |
| 368 |
| | 667 |
|
Corporate and Other | (95 | ) | (126 | ) | (113 | ) | (97 | ) | (431 | ) | | (81 | ) | (121 | ) | (91 | ) | | (293 | ) |
Discontinued Operations | 15 |
| 14 |
| 14 |
| 18 |
| 61 |
| | 706 |
| — |
| — |
| | 706 |
|
Consolidated | 1,407 |
| 958 |
| 535 |
| 826 |
| 3,726 |
| | 1,572 |
| 863 |
| 1,180 |
| | 3,615 |
|
| | | | | | | | | | | | | | |
SUMMARY OF INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE TAXES BY SEGMENT |
| | | | | | | | | | | | | | |
| | | | Millions of Dollars |
| | | | 2013 | | 2014 |
| | | | 1st Qtr |
| 2nd Qtr |
| 3rd Qtr |
| 4th Qtr |
| YTD |
| | 1st Qtr |
| 2nd Qtr |
| 3rd Qtr |
| 4th Qtr | YTD |
|
| | | | | | | | | | | | | | |
Midstream | 177 |
| 141 |
| 239 |
| 193 |
| 750 |
| | 302 |
| 180 |
| 194 |
| | 676 |
|
Chemicals | 403 |
| 232 |
| 367 |
| 359 |
| 1,361 |
| | 442 |
| 466 |
| 328 |
| | 1,236 |
|
Refining | 1,371 |
| 735 |
| (8 | ) | 684 |
| 2,782 |
| | 508 |
| 647 |
| 859 |
| | 2,014 |
|
Marketing and Specialties | 282 |
| 531 |
| 362 |
| 152 |
| 1,327 |
| | 205 |
| 248 |
| 495 |
| | 948 |
|
Corporate and Other | (175 | ) | (186 | ) | (156 | ) | (177 | ) | (694 | ) | | (159 | ) | (182 | ) | (149 | ) | | (490 | ) |
Consolidated | 2,058 |
| 1,453 |
| 804 |
| 1,211 |
| 5,526 |
| | 1,298 |
| 1,359 |
| 1,727 |
| | 4,384 |
|
| | | | | | | | | | | | | | |
EFFECTIVE TAX RATES ON INCOME FROM CONTINUING OPERATIONS |
| | | | | | | | | | | | | | |
| | | | 2013 | | 2014 |
| | | | 1st Qtr |
| 2nd Qtr |
| 3rd Qtr |
| 4th Qtr |
| YTD |
| | 1st Qtr |
| 2nd Qtr |
| 3rd Qtr |
| 4th Qtr | YTD |
|
| | | | | | | | | | | | | | |
Midstream | 35.6 | % | 34.8 | % | 36.4 | % | 33.7 | % | 35.2 | % | | 35.8 | % | 35.0 | % | 36.1 | % | | 35.7 | % |
Chemicals | 30.0 | % | 22.0 | % | 28.6 | % | 27.3 | % | 27.6 | % | | 28.5 | % | 30.5 | % | 29.9 | % | | 29.6 | % |
Refining | 34.1 | % | 38.1 | % | (275.0 | )% | 38.9 | % | 37.2 | % | | 39.8 | % | 39.7 | % | 35.0 | % | | 37.7 | % |
Marketing and Specialties | 32.6 | % | 35.2 | % | 29.6 | % | 30.9 | % | 32.6 | % | | 33.2 | % | 34.7 | % | 25.7 | % | | 29.6 | % |
Corporate and Other | 45.7 | % | 32.3 | % | 27.6 | % | 45.2 | % | 37.9 | % | | 49.1 | % | 33.5 | % | 38.9 | % | | 40.2 | % |
Consolidated | 32.2 | % | 34.9 | % | 34.6 | % | 32.7 | % | 33.4 | % | | 32.8 | % | 35.8 | % | 31.2 | % | | 33.1 | % |
| | | | | | | | | | | | | | |
SUMMARY OF ADJUSTED NET INCOME (LOSS) ATTRIBUTABLE TO PHILLIPS 66 BY SEGMENT |
| | | | | | | | | | | | | | |
| | | | Millions of Dollars |
| | | | 2013 | | 2014 |
| | | | 1st Qtr |
| 2nd Qtr |
| 3rd Qtr |
| 4th Qtr |
| YTD |
| | 1st Qtr |
| 2nd Qtr |
| 3rd Qtr |
| 4th Qtr | YTD |
|
| | | | | | | | | | | | | | |
Midstream | 111 |
| 90 |
| 147 |
| 121 |
| 469 |
| | 188 |
| 108 |
| 115 |
| | 411 |
|
Chemicals | 282 |
| 181 |
| 262 |
| 261 |
| 986 |
| | 316 |
| 324 |
| 299 |
| | 939 |
|
Refining | 891 |
| 455 |
| (30 | ) | 418 |
| 1,734 |
| | 306 |
| 390 |
| 558 |
| | 1,254 |
|
Marketing and Specialties | 204 |
| 321 |
| 255 |
| 105 |
| 885 |
| | 137 |
| 162 |
| 259 |
| | 558 |
|
Corporate and Other | (95 | ) | (126 | ) | (113 | ) | (97 | ) | (431 | ) | | (81 | ) | (121 | ) | (91 | ) | | (293 | ) |
Consolidated | 1,393 |
| 921 |
| 521 |
| 808 |
| 3,643 |
| | 866 |
| 863 |
| 1,140 |
| | 2,869 |
|
|
| | | | | | | | | | | | | | | | | | | | | | | |
SPECIAL ITEMS INCLUDED IN NET INCOME ATTRIBUTABLE TO PHILLIPS 66 |
(AFTER-TAX) |
| | | | | | | | | | | | | | |
| | | | Millions of Dollars |
| | | | 2013 | | 2014 |
| | | | 1st Qtr |
| 2nd Qtr |
| 3rd Qtr |
| 4th Qtr |
| YTD |
| | 1st Qtr |
| 2nd Qtr |
| 3rd Qtr |
| 4th Qtr | YTD |
|
| | | | | | | | | | | | | | |
Midstream | — |
| — |
| — |
| — |
| — |
| | — |
| — |
| — |
| | — |
|
| | | | | | | | | | | | | | |
Chemicals | | | | | | | | | | | |
Impairments | — |
| — |
| — |
| — |
| — |
| | — |
| — |
| (69 | ) | | (69 | ) |
Total Chemicals | — |
| — |
| — |
| — |
| — |
| | — |
| — |
| (69 | ) | | (69 | ) |
| | | | | | | | | | | | | | |
Refining | | | | | | | | | | | |
Tax law impacts | 13 |
| — |
| — |
| — |
| 13 |
| | — |
| — |
| — |
| | — |
|
Total Refining | 13 |
| — |
| — |
| — |
| 13 |
| | — |
| — |
| — |
| | — |
|
| | | | | | | | | | | | | | |
Marketing and Specialties | | | | | | | | | | | |
Gain on asset dispositions | — |
| 23 |
| — |
| — |
| 23 |
| | — |
| — |
| 109 |
| | 109 |
|
Pending claims and settlements | 16 |
| — |
| — |
| — |
| 16 |
| | — |
| — |
| — |
| | — |
|
Exit of a business line | (34 | ) | — |
| — |
| — |
| (34 | ) | | — |
| — |
| — |
| | — |
|
Tax law impacts | 4 |
| — |
| — |
| — |
| 4 |
| | — |
| — |
| — |
| | — |
|
Total Marketing and Specialties | (14 | ) | 23 |
| — |
| — |
| 9 |
| | — |
| — |
| 109 |
| | 109 |
|
| | | | | | | | | | | | | | |
Corporate and Other | — |
| — |
| — |
| — |
| — |
| | — |
| — |
| — |
| | — |
|
| | | | | | | | | | | | | | |
Discontinued Operations | 15 |
| 14 |
| 14 |
| 18 |
| 61 |
| | 706 |
| — |
| — |
| | 706 |
|
| | | | | | | | | | | | | | |
Total Phillips 66 | 14 |
| 37 |
| 14 |
| 18 |
| 83 |
| | 706 |
| — |
| 40 |
| | 746 |
|
| | | | | | | | | | | | | | |
By Business Lines/Regions | | | | | | | | | | | |
Midstream | | | | | | | | | | | |
Transportation | — |
| — |
| — |
| — |
| — |
| | — |
| — |
| — |
| | — |
|
DCP Midstream | — |
| — |
| — |
| — |
| — |
| | — |
| — |
| — |
| | — |
|
NGL | — |
| — |
| — |
| — |
| — |
| | — |
| — |
| — |
| | — |
|
Total Midstream | — |
| — |
| — |
| — |
| — |
| | — |
| — |
| — |
| | — |
|
| | | | | | | | | | | | | | |
Refining | | | | | | | | | | | |
Atlantic Basin/Europe | 7 |
| — |
| — |
| — |
| 7 |
| | — |
| — |
| — |
| | — |
|
Gulf Coast | — |
| — |
| — |
| — |
| — |
| | — |
| — |
| — |
| | — |
|
Central Corridor | 3 |
| — |
| — |
| — |
| 3 |
| | — |
| — |
| — |
| | — |
|
Western/Pacific | 2 |
| — |
| — |
| — |
| 2 |
| | — |
| — |
| — |
| | — |
|
Other Refining | 1 |
| — |
| — |
| — |
| 1 |
| | — |
| — |
| — |
| | — |
|
Total Refining | 13 |
| — |
| — |
| — |
| 13 |
| | — |
| — |
| — |
| | — |
|
| | | | | | | | | | | | | | |
Marketing and Specialties | | | | | | | | | | | |
Marketing and Other | 20 |
| — |
| — |
| — |
| 20 |
| | — |
| — |
| 109 |
| | 109 |
|
Specialties | (34 | ) | 23 |
| — |
| — |
| (11 | ) | | — |
| — |
| — |
| | — |
|
Total Marketing and Specialties | (14 | ) | 23 |
| — |
| — |
| 9 |
| | — |
| — |
| 109 |
| | 109 |
|
| | | | | | | | | | | | | | |
SPECIAL ITEMS INCLUDED IN INCOME FROM CONTINUING OPERATIONS |
(PRE-TAX) |
| | | | | | | | | | | | | | |
| | | | Millions of Dollars |
| | | | 2013 | | 2014 |
| | | | 1st Qtr |
| 2nd Qtr |
| 3rd Qtr |
| 4th Qtr |
| YTD |
| | 1st Qtr |
| 2nd Qtr |
| 3rd Qtr |
| 4th Qtr | YTD |
|
Midstream | | | | | | | | | | | |
Transportation | — |
| — |
| — |
| — |
| — |
| | — |
| — |
| — |
| | — |
|
DCP Midstream | — |
| — |
| — |
| — |
| — |
| | — |
| — |
| — |
| | — |
|
NGL | — |
| — |
| — |
| — |
| — |
| | — |
| — |
| — |
| | — |
|
Total Midstream | — |
| — |
| — |
| — |
| — |
| | — |
| — |
| — |
| | — |
|
| | | | | | | | | | | | | | |
Chemicals | — |
| — |
| — |
| — |
| — |
| | — |
| — |
| (88 | ) | | (88 | ) |
| | | | | | | | | | | | | | |
Refining | | | | | | | | | | | |
Atlantic Basin/Europe | 12 |
| — |
| — |
| — |
| 12 |
| | — |
| — |
| — |
| | — |
|
Gulf Coast | — |
| — |
| — |
| — |
| — |
| | — |
| — |
| — |
| | — |
|
Central Corridor | 5 |
| — |
| — |
| — |
| 5 |
| | — |
| — |
| — |
| | — |
|
Western/Pacific | 3 |
| — |
| — |
| — |
| 3 |
| | — |
| — |
| — |
| | — |
|
Other Refining | 2 |
| — |
| — |
| — |
| 2 |
| | — |
| — |
| — |
| | — |
|
Total Refining | 22 |
| — |
| — |
| — |
| 22 |
| | — |
| — |
| — |
| | — |
|
| | | | | | | | | | | | | | |
Marketing and Specialties | | | | | | | | | | | |
Marketing and Other | 31 |
| — |
| — |
| — |
| 31 |
| | — |
| — |
| 109 |
| | 109 |
|
Specialties | (54 | ) | 40 |
| — |
| — |
| (14 | ) | | — |
| — |
| — |
| | — |
|
Total Marketing and Specialties | (23 | ) | 40 |
| — |
| — |
| 17 |
| | — |
| — |
| 109 |
| | 109 |
|
| | | | | | | | | | | | | | |
Corporate and Other | — |
| — |
| — |
| — |
| — |
| | — |
| — |
| — |
| | — |
|
| | | | | | | | | | | | | | |
Discontinued Operations | 23 |
| 21 |
| 22 |
| 29 |
| 95 |
| | 711 |
| — |
| — |
| | 711 |
|
| | | | | | | | | | | | | | |
Total Phillips 66 | 22 |
| 61 |
| 22 |
| 29 |
| 134 |
| | 711 |
| — |
| 21 |
| | 732 |
|
|
| | | | | | | | | | | | | | | | | | | | | | | |
CASH FLOW INFORMATION |
| | | | | | | | | | | | | | |
| | | | Millions of Dollars |
| | | | 2013 | | 2014 |
| | | | 1st Qtr |
| 2nd Qtr |
| 3rd Qtr |
| 4th Qtr |
| YTD |
| | 1st Qtr |
| 2nd Qtr |
| 3rd Qtr |
| 4th Qtr | YTD |
|
Cash Flows From Operating Activities | | | | | | | | | | | |
Net income | 1,410 |
| 960 |
| 540 |
| 833 |
| 3,743 |
| | 1,578 |
| 872 |
| 1,189 |
| | 3,639 |
|
Depreciation and amortization | 242 |
| 229 |
| 233 |
| 243 |
| 947 |
| | 234 |
| 239 |
| 249 |
| | 722 |
|
Impairments | 24 |
| 1 |
| 1 |
| 3 |
| 29 |
| | 1 |
| 3 |
| 12 |
| | 16 |
|
Accretion on discounted liabilities | 6 |
| 6 |
| 6 |
| 6 |
| 24 |
| | 6 |
| 6 |
| 6 |
| | 18 |
|
Deferred taxes | 82 |
| 80 |
| 120 |
| 312 |
| 594 |
| | (444 | ) | (11 | ) | (72 | ) | | (527 | ) |
Undistributed equity earnings | 77 |
| (98 | ) | (55 | ) | (278 | ) | (354 | ) | | 632 |
| (253 | ) | (19 | ) | | 360 |
|
Net gain on dispositions | (1 | ) | (41 | ) | (8 | ) | (5 | ) | (55 | ) | | (7 | ) | (9 | ) | (109 | ) | | (125 | ) |
Income from discontinued operations | (15 | ) | (14 | ) | (14 | ) | (18 | ) | (61 | ) | | (706 | ) | — |
| — |
| | (706 | ) |
Other | (34 | ) | 35 |
| 33 |
| 161 |
| 195 |
| | (21 | ) | 90 |
| 1 |
| | 70 |
|
Net working capital changes | 400 |
| (204 | ) | 1,076 |
| (392 | ) | 880 |
| | 123 |
| (107 | ) | (828 | ) | | (812 | ) |
Net cash provided by continuing operating activities | 2,191 |
| 954 |
| 1,932 |
| 865 |
| 5,942 |
| | 1,396 |
| 830 |
| 429 |
| | 2,655 |
|
Net cash provided by discontinued operations | 22 |
| 14 |
| 17 |
| 32 |
| 85 |
| | 2 |
| — |
| — |
| | 2 |
|
Net Cash Provided by Operating Activities | 2,213 |
| 968 |
| 1,949 |
| 897 |
| 6,027 |
| | 1,398 |
| 830 |
| 429 |
| | 2,657 |
|
| | | | | | | | | | | | | | |
Cash Flows From Investing Activities | | | | | | | | | | | |
Capital expenditures and investments | (382 | ) | (366 | ) | (408 | ) | (623 | ) | (1,779 | ) | | (572 | ) | (561 | ) | (1,514 | ) | | (2,647 | ) |
Proceeds from asset dispositions* | 9 |
| 60 |
| 1,119 |
| 26 |
| 1,214 |
| | 507 |
| 150 |
| 6 |
| | 663 |
|
Advances/loans—related parties | — |
| — |
| (65 | ) | — |
| (65 | ) | | — |
| (3 | ) | — |
| | (3 | ) |
Collection of advances/loans—related parties | 55 |
| 45 |
| — |
| 65 |
| 165 |
| | — |
| — |
| — |
| | — |
|
Other | — |
| — |
| — |
| 48 |
| 48 |
| | 13 |
| 21 |
| 127 |
| | 161 |
|
Net cash provided by (used in) continuing investing activities | (318 | ) | (261 | ) | 646 |
| (484 | ) | (417 | ) | | (52 | ) | (393 | ) | (1,381 | ) | | (1,826 | ) |
Net cash provided by (used in) discontinued operations | (5 | ) | (5 | ) | (4 | ) | (13 | ) | (27 | ) | | (34 | ) | 32 |
| — |
| | (2 | ) |
Net Cash Provided by (Used in) Investing Activities | (323 | ) | (266 | ) | 642 |
| (497 | ) | (444 | ) | | (86 | ) | (361 | ) | (1,381 | ) | | (1,828 | ) |
| | | | | | | | | | | | | | |
Cash Flows From Financing Activities | | | | | | | | | | | |
Repayment of debt | (3 | ) | (502 | ) | (510 | ) | (5 | ) | (1,020 | ) | | (8 | ) | (9 | ) | (13 | ) | | (30 | ) |
Issuance of common stock | (6 | ) | 3 |
| (1 | ) | 10 |
| 6 |
| | (20 | ) | 8 |
| 13 |
| | 1 |
|
Repurchase of common stock | (382 | ) | (546 | ) | (674 | ) | (644 | ) | (2,246 | ) | | (640 | ) | (616 | ) | (494 | ) | | (1,750 | ) |
Share exchange—PSPI transaction | — |
| — |
| — |
| — |
| — |
| | (450 | ) | — |
| — |
| | (450 | ) |
Dividends paid on common stock | (194 | ) | (192 | ) | (189 | ) | (232 | ) | (807 | ) | | (229 | ) | (281 | ) | (277 | ) | | (787 | ) |
Distributions to noncontrolling interests | — |
| (1 | ) | — |
| (9 | ) | (10 | ) | | (4 | ) | (9 | ) | (5 | ) | | (18 | ) |
Net proceeds from issuance of Phillips 66 Partners LP common units | — |
| — |
| 404 |
| — |
| 404 |
| | — |
| — |
| — |
| | — |
|
Other | — |
| (3 | ) | (1 | ) | (2 | ) | (6 | ) | | (4 | ) | 29 |
| (2 | ) | | 23 |
|
Net cash used in continuing financing activities | (585 | ) | (1,241 | ) | (971 | ) | (882 | ) | (3,679 | ) | | (1,355 | ) | (878 | ) | (778 | ) | | (3,011 | ) |
Net cash provided by (used in) discontinued operations | — |
| — |
| — |
| — |
| — |
| | — |
| — |
| — |
| | — |
|
Net Cash Used in Financing Activities | (585 | ) | (1,241 | ) | (971 | ) | (882 | ) | (3,679 | ) | | (1,355 | ) | (878 | ) | (778 | ) | | (3,011 | ) |
| | | | | | | | | | | | | | |
Effect of Exchange Rate Changes on Cash and Cash Equivalents | (26 | ) | 6 |
| 102 |
| (60 | ) | 22 |
| | (31 | ) | 39 |
| (118 | ) | | (110 | ) |
| | | | | | | | | | | | | | |
Net Change in Cash and Cash Equivalents | 1,279 |
| (533 | ) | 1,722 |
| (542 | ) | 1,926 |
| | (74 | ) | (370 | ) | (1,848 | ) | | (2,292 | ) |
Cash and cash equivalents at beginning of period | 3,474 |
| 4,753 |
| 4,220 |
| 5,942 |
| 3,474 |
| | 5,400 |
| 5,326 |
| 4,956 |
| | 5,400 |
|
Cash and Cash Equivalents at End of Period | 4,753 |
| 4,220 |
| 5,942 |
| 5,400 |
| 5,400 |
| | 5,326 |
| 4,956 |
| 3,108 |
| | 3,108 |
|
* Includes return of investments in equity affiliates. | | | | | | | | | | | |
| | | | | | | | | | | | | | |
CAPITAL PROGRAM |
| | | | | | | | | | | | | | |
| | | | Millions of Dollars |
| | | | 2013 | | 2014 |
| | | | 1st Qtr |
| 2nd Qtr |
| 3rd Qtr |
| 4th Qtr |
| YTD |
| | 1st Qtr |
| 2nd Qtr |
| 3rd Qtr |
| 4th Qtr | YTD |
|
Consolidated Capital Expenditures and Investments | | | | | | | | | | | |
Midstream | 115 |
| 131 |
| 131 |
| 220 |
| 597 |
| | 288 |
| 298 |
| 946 |
| | 1,532 |
|
Chemicals | — |
| — |
| — |
| — |
| — |
| | — |
| — |
| — |
| | — |
|
Refining | 131 |
| 151 |
| 229 |
| 309 |
| 820 |
| | 186 |
| 215 |
| 278 |
| | 679 |
|
Marketing and Specialties | 97 |
| 42 |
| 41 |
| 46 |
| 226 |
| | 84 |
| 26 |
| 248 |
| | 358 |
|
Corporate and Other | 39 |
| 42 |
| 7 |
| 48 |
| 136 |
| | 14 |
| 22 |
| 42 |
| | 78 |
|
Total Consolidated from Continuing Operations | 382 |
| 366 |
| 408 |
| 623 |
| 1,779 |
| | 572 |
| 561 |
| 1,514 |
| | 2,647 |
|
| | | | | | | | | | | | | | |
Discontinued Operations | 5 |
| 5 |
| 4 |
| 13 |
| 27 |
| | — |
| — |
| — |
| | — |
|
| | | | | | | | | | | | | | |
Proportional Share of Selected Equity Affiliates Capital Expenditures and Investments* | | | | | | | | | | | |
DCP Midstream (Midstream) | 274 |
| 268 |
| 218 |
| 211 |
| 971 |
| | 178 |
| 176 |
| 207 |
| | 561 |
|
CPChem (Chemicals) | 106 |
| 142 |
| 172 |
| 193 |
| 613 |
| | 155 |
| 224 |
| 244 |
| | 623 |
|
WRB Refining (Refining) | 29 |
| 30 |
| 19 |
| 31 |
| 109 |
| | 23 |
| 38 |
| 35 |
| | 96 |
|
Select Equity Affiliates | 409 |
| 440 |
| 409 |
| 435 |
| 1,693 |
| | 356 |
| 438 |
| 486 |
| | 1,280 |
|
| | | | | | | | | | | | | | |
Total Capital Program* | | | | | | | | | | | |
Midstream | 389 |
| 399 |
| 349 |
| 431 |
| 1,568 |
| | 466 |
| 474 |
| 1,153 |
| | 2,093 |
|
Chemicals | 106 |
| 142 |
| 172 |
| 193 |
| 613 |
| | 155 |
| 224 |
| 244 |
| | 623 |
|
Refining | 160 |
| 181 |
| 248 |
| 340 |
| 929 |
| | 209 |
| 253 |
| 313 |
| | 775 |
|
Marketing and Specialties | 97 |
| 42 |
| 41 |
| 46 |
| 226 |
| | 84 |
| 26 |
| 248 |
| | 358 |
|
Corporate and Other | 39 |
| 42 |
| 7 |
| 48 |
| 136 |
| | 14 |
| 22 |
| 42 |
| | 78 |
|
Discontinued Operations | 5 |
| 5 |
| 4 |
| 13 |
| 27 |
| | — |
| — |
| — |
| | — |
|
Total Capital Program | 796 |
| 811 |
| 821 |
| 1,071 |
| 3,499 |
| | 928 |
| 999 |
| 2,000 |
| | 3,927 |
|
| | | | | | | | | | | | | | |
* Includes Phillips 66’s portion of self-funded capital spending by DCP Midstream, LLC (DCP Midstream), Chevron Phillips Chemical Company LLC (CPChem) and WRB Refining. |
|
|
| | | | | | | | | | | | | | | | | | | | | | | |
MIDSTREAM |
| | | | | | | | | | | | | | |
| | | | 2013 | | 2014 |
| | | | 1st Qtr |
| 2nd Qtr |
| 3rd Qtr |
| 4th Qtr |
| YTD |
| | 1st Qtr |
| 2nd Qtr |
| 3rd Qtr |
| 4th Qtr | YTD |
|
Midstream Net Income Attributable to Phillips 66 ($ Millions) | | | | | | | | | | | |
Transportation | 45 |
| 50 |
| 54 |
| 50 |
| 199 |
| | 62 |
| 60 |
| 58 |
| | 180 |
|
DCP Midstream | 56 |
| 30 |
| 87 |
| 37 |
| 210 |
| | 83 |
| 33 |
| 31 |
| | 147 |
|
NGL | 10 |
| 10 |
| 6 |
| 34 |
| 60 |
| | 43 |
| 15 |
| 26 |
| | 84 |
|
Midstream Net Income Attributable | | | | | | | | | | | |
to Phillips 66 | 111 |
| 90 |
| 147 |
| 121 |
| 469 |
| | 188 |
| 108 |
| 115 |
| | 411 |
|
| | | | | | | | | | | | | | |
Midstream Income before Income Taxes ($ Millions) | | | | | | | | | | | |
Transportation | 75 |
| 80 |
| 87 |
| 83 |
| 325 |
| | 101 |
| 105 |
| 102 |
| | 308 |
|
DCP Midstream | 87 |
| 46 |
| 136 |
| 63 |
| 332 |
| | 130 |
| 52 |
| 50 |
| | 232 |
|
NGL | 15 |
| 15 |
| 16 |
| 47 |
| 93 |
| | 71 |
| 23 |
| 42 |
| | 136 |
|
Midstream Income before Income Taxes | 177 |
| 141 |
| 239 |
| 193 |
| 750 |
| | 302 |
| 180 |
| 194 |
| | 676 |
|
| | | | | | | | | | | | | | |
Midstream Adjusted EBITDA | 244 |
| 213 |
| 322 |
| 288 |
| 1,067 |
| | 384 |
| 256 |
| 273 |
| | 913 |
|
| | | | | | | | | | | | | | |
Depreciation and Amortization ($ Millions) | | | | | | | | | | | |
Transportation | 18 |
| 19 |
| 19 |
| 30 |
| 86 |
| | 19 |
| 20 |
| 23 |
| | 62 |
|
DCP Midstream | — |
| — |
| — |
| — |
| — |
| | — |
| — |
| — |
| | — |
|
NGL | 1 |
| — |
| — |
| 1 |
| 2 |
| | — |
| 1 |
| 1 |
| | 2 |
|
Total | 19 |
| 19 |
| 19 |
| 31 |
| 88 |
| | 19 |
| 21 |
| 24 |
| | 64 |
|
| | | | | | | | | | | | | | |
Operating and SG&A Expense ($ Millions) | | | | | | | | | | | |
Transportation | 93 |
| 102 |
| 110 |
| 103 |
| 408 |
| | 96 |
| 109 |
| 122 |
| | 327 |
|
DCP Midstream | — |
| — |
| — |
| 2 |
| 2 |
| | — |
| — |
| — |
| | — |
|
NGL | 17 |
| 25 |
| 15 |
| 21 |
| 78 |
| | 17 |
| 20 |
| 20 |
| | 57 |
|
Total | 110 |
| 127 |
| 125 |
| 126 |
| 488 |
| | 113 |
| 129 |
| 142 |
| | 384 |
|
| | | | | | | | | | | | | | |
Transportation Volumes (MB/D) | | | | | | | | | | | |
Pipelines* | 3,032 |
| 3,170 |
| 3,222 |
| 3,150 |
| 3,144 |
| | 3,101 |
| 3,243 |
| 3,142 |
| | 3,162 |
|
Terminals | 1,041 |
| 1,194 |
| 1,419 |
| 1,435 |
| 1,274 |
| | 1,477 |
| 1,609 |
| 1,763 |
| | 1,617 |
|
Refining Logistics Assets | — |
| — |
| — |
| — |
| — |
| | — |
| — |
| 17 |
| | 6 |
|
* Pipelines represent the sum of volumes transported through each separately tariffed pipeline segment, including our share of equity volumes in Yellowstone and Lake Charles pipelines. | | | | | | | | | | | |
| | | | | | | | | | | | | | |
PSX Other Volumes | | | | | | | | | | | |
NGL Fractionated (MB/D)* | 117 |
| 113 |
| 123 |
| 109 |
| 115 |
| | 112 |
| 117 |
| 110 |
| | 113 |
|
* Excludes DCP Midstream. | | | | | | | | | | | |
| | | | | | | | | | | | | | |
100% DCP Midstream Results | | | | | | | | | | | |
Net Income Attributable, excludes parent company income tax related to DCP's earnings ($ Millions) | 91 |
| 78 |
| 191 |
| 131 |
| 491 |
| | 165 |
| 89 |
| 81 |
| | 335 |
|
| | | | | | | | | | | | | | |
Depreciation and Amortization ($ Millions) | 69 |
| 76 |
| 82 |
| 87 |
| 314 |
| | 85 |
| 86 |
| 87 |
| | 258 |
|
| | | | | | | | | | | | | | |
Operating and SG&A Expense ($ Millions) | 228 |
| 236 |
| 223 |
| 262 |
| 949 |
| | 243 |
| 283 |
| 264 |
| | 790 |
|
| | | | | | | | | | | | | | |
Net Interest Expense ($ Millions)* | 50 |
| 52 |
| 75 |
| 72 |
| 249 |
| | 72 |
| 74 |
| 71 |
| | 217 |
|
* Net of interest income. | | | | | | | | | | | |
| | | | | | | | | | | |
Capital Expenditures and Investments ($ Millions) | 547 |
| 537 |
| 435 |
| 422 |
| 1,941 |
| | 355 |
| 353 |
| 414 |
| | 1,122 |
|
| | | | | | | | | | | | | | |
Selected DCP Volumes and Gross Margin | | | | | | | | | | | |
by Major Contract Type (excludes current quarter) | | | | | | | | | | | |
Percentage of Proceeds (long NGL / long Gas)* | | | | | | | | | | | |
Volume (TBtu/d) | 4.8 |
| 5.0 |
| 5.3 |
| 5.2 |
| 5.1 |
| | 5.3 |
| 5.6 |
| ** |
| | 5.5 |
|
Gross Margin ($ Millions) | 185 |
| 220 |
| 230 |
| 240 |
| 875 |
| | 265 |
| 265 |
| ** |
| | 530 |
|
| | | | | | | | | | | | | | |
Keep-whole (long NGL / short Gas)* | | | | | | | | | | | |
Volume (TBtu/d) | 0.6 |
| 0.6 |
| 0.6 |
| 0.6 |
| 0.6 |
| | 0.5 |
| 0.4 |
| ** |
| | 0.5 |
|
Gross Margin ($ Millions) | 45 |
| 35 |
| 45 |
| 45 |
| 170 |
| | 35 |
| 20 |
| ** |
| | 55 |
|
| | | | | | | | | | | | | | |
Fee-based Gas (primarily gathering and transport)* | | | | | | | | | | | |
Volume (TBtu/d) | 4.5 |
| 4.7 |
| 4.7 |
| 4.6 |
| 4.6 |
| | 4.6 |
| 4.5 |
| ** |
| | 4.6 |
|
Gross Margin ($ Millions) | 65 |
| 75 |
| 75 |
| 90 |
| 305 |
| | 80 |
| 85 |
| ** |
| | 165 |
|
| | | | | | | | | | | | | | |
Fee-based NGL Transport and Fractionation | | | | | | | | | | | |
Volume (MB/d) | 202 |
| 201 |
| 209 |
| 220 |
| 208 |
| | 242 |
| 281 |
| ** |
| | 262 |
|
Gross Margin ($ Millions) | 19 |
| 19 |
| 25 |
| 23 |
| 86 |
| | 26 |
| 27 |
| ** |
| | 53 |
|
| | | | | | | | | | | | | | |
Other Gross Margin*** | | | | | | | | | | | |
Gross Margin ($ Millions) | 153 |
| 160 |
| 186 |
| 172 |
| 671 |
| | 205 |
| 139 |
| ** |
| | 344 |
|
| | | | | | | | | | | | | | |
Total Throughput (TBtu/d) | 6.9 |
| 7.1 |
| 7.4 |
| 7.2 |
| 7.1 |
| | 7.2 |
| 7.3 |
| 7.5 |
| | 7.3 |
|
NGL Production (MB/d) | 396 |
| 412 |
| 442 |
| 452 |
| 426 |
| | 445 |
| 452 |
| 471 |
| | 456 |
|
* Certain volumes earn duplicate revenue streams (i.e. both fee plus processing economics). | | | | | | | | | | | |
** Pending DCP Midstream release. | | | | | | | | | | | |
*** Includes NGL/Propane Marketing, MTM, Condensate Sales, Gas Marketing activity and other items. | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Weighted Average NGL Price* | | | | | | | | | | | | |
DCP Midstream ($/BBL) |
|
| 37.45 |
| 34.58 |
| 37.84 |
| 41.48 |
| 37.84 |
| | 44.52 |
| 39.06 |
| 37.66 |
| | 40.42 |
|
DCP Midstream ($/gal) |
|
| 0.89 |
| 0.82 |
| 0.90 |
| 0.99 |
| 0.90 |
| | 1.06 |
| 0.93 |
| 0.90 |
| | 0.96 |
|
| | | | | | |
* Based on index prices from the Mont Belvieu and Conway market hubs that are weighted by NGL component and location mix. |
|
| | | | | | | | | | | | | | | | | | | | | | | |
CHEMICALS |
| | | | | | | | | | | | | | |
| | | | 2013 | | 2014 |
| | | | 1st Qtr |
| 2nd Qtr |
| 3rd Qtr |
| 4th Qtr |
| YTD |
| | 1st Qtr |
| 2nd Qtr |
| 3rd Qtr |
| 4th Qtr | YTD |
|
Chemicals Net Income Attributable to Phillips 66 ($ Millions) | 282 |
| 181 |
| 262 |
| 261 |
| 986 |
| | 316 |
| 324 |
| 230 |
| | 870 |
|
| | | | | | | | | | | | | | |
Chemicals Adjusted EBITDA | 482 |
| 320 |
| 454 |
| 454 |
| 1,710 |
| | 534 |
| 557 |
| 517 |
| | 1,608 |
|
| | | | | | | | | | | | | | |
100% CPChem Results | | | | | | | | | | | |
Net Income (Loss), excludes parent company income tax related to CPChem's earnings ($ Millions) |
|
|
|
|
| |
|
| | |
|
Olefins and Polyolefins | 726 |
| 411 |
| 677 |
| 746 |
| 2,560 |
| | 801 |
| 903 |
| 720 |
| | 2,424 |
|
Specialties, Aromatics and Styrenics | 56 |
| 73 |
| 72 |
| — |
| 201 |
| | 97 |
| 52 |
| (45 | ) | | 104 |
|
Corporate and Other | 29 |
| (14 | ) | (11 | ) | (22 | ) | (18 | ) | | (8 | ) | (15 | ) | (13 | ) | | (36 | ) |
Total | | | | 811 |
| 470 |
| 738 |
| 724 |
| 2,743 |
| | 890 |
| 940 |
| 662 |
| | 2,492 |
|
| | | | | | | | | | | | | | |
Income (Loss) before Income Taxes ($ Millions)* |
|
|
|
|
| |
|
| | |
|
Olefins and Polyolefins | 736 |
| 421 |
| 688 |
| 756 |
| 2,601 |
| | 815 |
| 918 |
| 735 |
| | 2,468 |
|
Specialties, Aromatics and Styrenics | 60 |
| 83 |
| 81 |
| 10 |
| 234 |
| | 105 |
| 60 |
| (36 | ) | | 129 |
|
Corporate and Other | 30 |
| (14 | ) | (11 | ) | (22 | ) | (17 | ) | | (8 | ) | (14 | ) | (12 | ) | | (34 | ) |
Total | | | | 826 |
| 490 |
| 758 |
| 744 |
| 2,818 |
| | 912 |
| 964 |
| 687 |
| | 2,563 |
|
* Excludes CPChem discontinued operations. | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Depreciation and Amortization ($ Millions) | 64 |
| 66 |
| 66 |
| 82 |
| 278 |
| | 69 |
| 69 |
| 74 |
| | 212 |
|
| | | | | | | | | | | | | | |
Net Interest Expense ($ Millions)* | (1 | ) | — |
| (1 | ) | (1 | ) | (3 | ) | | — |
| (1 | ) | (1 | ) | | (2 | ) |
* Net of interest income. | | | | | | | | | | | |
| | | | | | | | | | | |
Investing Cash Flows ($ Millions) | | | | | | | | | | | |
Capital Expenditures and Investments | 211 |
| 284 |
| 345 |
| 385 |
| 1,225 |
| | 310 |
| 447 |
| 488 |
| | 1,245 |
|
Advances to Equity Companies | 45 |
| 19 |
| 5 |
| 98 |
| 167 |
| | 5 |
| 21 |
| 18 |
| | 44 |
|
Advance Repayments from Equity Companies | (43 | ) | (12 | ) | — |
| — |
| (55 | ) | | — |
| — |
| — |
| | — |
|
| | | | | | | | | | | | | | |
Externally Marketed Sales Volumes (MM Lbs) | | | | | | | | | | | |
Olefins and Polyolefins | 4,036 |
| 3,862 |
| 3,927 |
| 4,246 |
| 16,071 |
| | 4,302 |
| 4,395 |
| 4,067 |
| | 12,764 |
|
Specialties, Aromatics and Styrenics | 1,496 |
| 1,485 |
| 1,577 |
| 1,672 |
| 6,230 |
| | 1,569 |
| 1,530 |
| 1,571 |
| | 4,670 |
|
Total | | | | 5,532 |
| 5,347 |
| 5,504 |
| 5,918 |
| 22,301 |
| | 5,871 |
| 5,925 |
| 5,638 |
| | 17,434 |
|
* Represents 100 percent of CPChem's outside sales of produced petrochemical products, as well as commission sales from equity affiliates. | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Olefins and Polyolefins Capacity Utilization (%) | 91 | % | 78 | % | 87 | % | 95 | % | 88 | % | | 93 | % | 95 | % | 83 | % | | 90 | % |
| | | | | | | | | | | | | | |
Market Indicators | | | | | | | | | | | |
U.S. Industry Prices* | | | | | | | | | | | |
Ethylene, Net Transaction Price (cents/lb) | 48.00 |
| 46.33 |
| 45.83 |
| 46.50 |
| 46.67 |
| | 48.25 |
| 47.17 |
| 51.83 |
| | 49.08 |
|
HDPE Blow Molding (cents/lb) | 91.67 |
| 93.67 |
| 96.67 |
| 100.00 |
| 95.50 |
| | 102.67 |
| 104.00 |
| 105.00 |
| | 103.89 |
|
| | | | | | | | | | | | | | |
U.S. Industry Costs* | | | | | | | | | | | |
Ethylene, Cash Cost Weighted Average Feed (cents/lb) | 13.80 |
| 15.66 |
| 16.47 |
| 18.60 |
| 16.13 |
| | 19.84 |
| 17.05 |
| 14.47 |
| | 17.12 |
|
HDPE, Total Cash Cost (cents/lb) | 69.26 |
| 65.55 |
| 63.71 |
| 64.52 |
| 65.76 |
| | 67.04 |
| 66.56 |
| 73.51 |
| | 69.04 |
|
* Released by IHS. Reflect the IHS analysis of historical market indicators. | | | | | | | |
| | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | | | | | | | | | |
REFINING |
| | | | | | | | | | | | | | |
| | | | 2013 | | 2014 |
| | | | 1st Qtr |
| 2nd Qtr |
| 3rd Qtr |
| 4th Qtr |
| YTD |
| | 1st Qtr |
| 2nd Qtr |
| 3rd Qtr |
| 4th Qtr | YTD |
|
Refining Net Income (Loss) Attributable to Phillips 66 ($ Millions) | | | | | | | | | | | |
Atlantic Basin/Europe | 95 |
| 24 |
| 47 |
| (139 | ) | 27 |
| | 16 |
| (10 | ) | 125 |
| | 131 |
|
Gulf Coast | 35 |
| (82 | ) | (79 | ) | 185 |
| 59 |
| | 77 |
| 118 |
| 43 |
| | 238 |
|
Central Corridor | 588 |
| 395 |
| 119 |
| 379 |
| 1,481 |
| | 222 |
| 229 |
| 300 |
| | 751 |
|
Western/Pacific | 63 |
| 33 |
| (94 | ) | 42 |
| 44 |
| | (47 | ) | 65 |
| (3 | ) | | 15 |
|
Other Refining | 123 |
| 85 |
| (23 | ) | (49 | ) | 136 |
| | 38 |
| (12 | ) | 93 |
| | 119 |
|
Refining Net Income (Loss) Attributable | | | | | | | | | | | |
to Phillips 66 | 904 |
| 455 |
| (30 | ) | 418 |
| 1,747 |
| | 306 |
| 390 |
| 558 |
| | 1,254 |
|
| | | | | | | | | | | | | | |
Refining Income (Loss) before Income Taxes ($ Millions) | | | | | | | | | | |
Atlantic Basin/Europe | 136 |
| 41 |
| 59 |
| (191 | ) | 45 |
| | 34 |
| 5 |
| 184 |
| | 223 |
|
Gulf Coast | 43 |
| (109 | ) | (118 | ) | 282 |
| 98 |
| | 122 |
| 183 |
| 65 |
| | 370 |
|
Central Corridor | 923 |
| 626 |
| 193 |
| 589 |
| 2,331 |
| | 359 |
| 367 |
| 463 |
| | 1,189 |
|
Western/Pacific | 95 |
| 59 |
| (123 | ) | 74 |
| 105 |
| | (63 | ) | 101 |
| 16 |
| | 54 |
|
Other Refining | 174 |
| 118 |
| (19 | ) | (70 | ) | 203 |
| | 56 |
| (9 | ) | 131 |
| | 178 |
|
Refining Income (Loss) before Income Taxes | 1,371 |
| 735 |
| (8 | ) | 684 |
| 2,782 |
| | 508 |
| 647 |
| 859 |
| | 2,014 |
|
| | | | | | | | | | | | | | |
Refining Adjusted EBITDA | 1,560 |
| 937 |
| 199 |
| 887 |
| 3,583 |
| | 722 |
| 883 |
| 1,098 |
| | 2,703 |
|
| | | | | | | | | | | | | | |
Realized Refining Margins ($/BBL)* | | | | | | | | | | | |
Atlantic Basin/Europe | 8.61 |
| 6.83 |
| 6.59 |
| 5.12 |
| 6.87 |
| | 7.46 |
| 6.06 |
| 9.99 |
| | 7.82 |
|
Gulf Coast | 8.08 |
| 3.89 |
| 3.35 |
| 9.12 |
| 6.04 |
| | 8.64 |
| 8.12 |
| 6.80 |
| | 7.81 |
|
Central Corridor | 27.29 |
| 19.45 |
| 9.80 |
| 18.50 |
| 18.62 |
| | 15.21 |
| 14.91 |
| 16.87 |
| | 15.66 |
|
Western/Pacific | 9.64 |
| 8.80 |
| 4.77 |
| 9.51 |
| 8.20 |
| | 7.02 |
| 10.53 |
| 8.71 |
| | 8.79 |
|
Worldwide | 13.78 |
| 9.70 |
| 5.94 |
| 10.50 |
| 9.90 |
| | 9.88 |
| 9.66 |
| 10.89 |
| | 10.15 |
|
* Based on total processed inputs and includes proportional share of refining margins contributed by certain equity affiliates. | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Depreciation and Amortization ($ Millions)* | | | | | | | | | | | |
Atlantic Basin/Europe | 42 |
| 43 |
| 43 |
| 42 |
| 170 |
| | 46 |
| 47 |
| 48 |
| | 141 |
|
Gulf Coast | 52 |
| 54 |
| 50 |
| 50 |
| 206 |
| | 49 |
| 50 |
| 52 |
| | 151 |
|
Central Corridor | 27 |
| 22 |
| 21 |
| 23 |
| 93 |
| | 23 |
| 22 |
| 24 |
| | 69 |
|
Western/Pacific | 53 |
| 50 |
| 51 |
| 52 |
| 206 |
| | 51 |
| 52 |
| 52 |
| | 155 |
|
Other Refining | 3 |
| (1 | ) | 5 |
| 3 |
| 10 |
| | 3 |
| 3 |
| 2 |
| | 8 |
|
Total | 177 |
| 168 |
| 170 |
| 170 |
| 685 |
| | 172 |
| 174 |
| 178 |
| | 524 |
|
* Excludes D&A of all equity affiliates. | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Operating and SG&A Expense ($ Millions)* | | | | | | | | | | | |
Atlantic Basin/Europe | 262 |
| 279 |
| 238 |
| 354 |
| 1,133 |
| | 274 |
| 248 |
| 242 |
| | 764 |
|
Gulf Coast | 330 |
| 297 |
| 309 |
| 326 |
| 1,262 |
| | 363 |
| 329 |
| 363 |
| | 1,055 |
|
Central Corridor | 98 |
| 98 |
| 114 |
| 116 |
| 426 |
| | 113 |
| 123 |
| 114 |
| | 350 |
|
Western/Pacific | 185 |
| 200 |
| 199 |
| 222 |
| 806 |
| | 227 |
| 223 |
| 227 |
| | 677 |
|
Other Refining | 26 |
| 40 |
| 35 |
| 85 |
| 186 |
| | 27 |
| 33 |
| 29 |
| | 89 |
|
Total | 901 |
| 914 |
| 895 |
| 1,103 |
| 3,813 |
| | 1,004 |
| 956 |
| 975 |
| | 2,935 |
|
* Excludes Operating and SG&A Expense of all equity affiliates. | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Turnaround Expense ($ Millions), included in | | | | | | | | | |
Operating and SG&A Expense* | | | | | | | | | |
Atlantic Basin/Europe | 12 |
| 35 |
| 15 |
| 108 |
| 170 |
| | 23 |
| 9 |
| 16 |
| | 48 |
|
Gulf Coast | 64 |
| 12 |
| 18 |
| 28 |
| 122 |
| | 75 |
| 35 |
| 67 |
| | 177 |
|
Central Corridor | 6 |
| 4 |
| 16 |
| 11 |
| 37 |
| | 5 |
| 4 |
| 3 |
| | 12 |
|
Western/Pacific | 4 |
| 11 |
| 7 |
| 12 |
| 34 |
| | 22 |
| 13 |
| 15 |
| | 50 |
|
Total | 86 |
| 62 |
| 56 |
| 159 |
| 363 |
| | 125 |
| 61 |
| 101 |
| | 287 |
|
* Excludes Turnaround Expense of all equity affiliates. | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Taxes Other than Income Taxes, excluding Excise Taxes ($ Millions) | | | | | | | | | | |
Atlantic Basin/Europe | 18 |
| 15 |
| 14 |
| 15 |
| 62 |
| | 17 |
| 15 |
| 15 |
| | 47 |
|
Gulf Coast | 22 |
| 19 |
| 14 |
| 14 |
| 69 |
| | 23 |
| 21 |
| 19 |
| | 63 |
|
Central Corridor | 9 |
| 9 |
| 8 |
| 8 |
| 34 |
| | 10 |
| 7 |
| 9 |
| | 26 |
|
Western/Pacific | 27 |
| 26 |
| 26 |
| 26 |
| 105 |
| | 29 |
| 26 |
| 25 |
| | 80 |
|
Other Refining | (3 | ) | (4 | ) | (3 | ) | 1 |
| (9 | ) | | 3 |
| — |
| 2 |
| | 5 |
|
Total | 73 |
| 65 |
| 59 |
| 64 |
| 261 |
| | 82 |
| 69 |
| 70 |
| | 221 |
|
| | | | | | | | | | | | | | |
Foreign Currency Gains (Losses) After-Tax ($ Millions) | 16 |
| 9 |
| (2 | ) | 18 |
| 41 |
| | 14 |
| (18 | ) | (6 | ) | | (10 | ) |
| | | | | | | | | | | | | | |
Refining—Equity Affiliate Information ($ Millions) | | | | | | | | | | | |
Equity in earnings of affiliates | 503 |
| 274 |
| 69 |
| 261 |
| 1,107 |
| | 150 |
| 173 |
| 55 |
| | 378 |
|
Less: Share of equity affiliate gross margin included in Realized Refining Margin and other equity affiliate-related costs* | (691 | ) | (428 | ) | (221 | ) | (387 | ) | (1,727 | ) | | (352 | ) | (364 | ) | (248 | ) | | (964 | ) |
Equity-affiliate-related expenses not included in Realized Refining Margins | (188 | ) | (154 | ) | (152 | ) | (126 | ) | (620 | ) | | (202 | ) | (191 | ) | (193 | ) | | (586 | ) |
Regional Totals | | | | | | | | | | | |
Gulf Coast | (21 | ) | 1 |
| 19 |
| 34 |
| 33 |
| | 11 |
| 13 |
| 3 |
| | 27 |
|
Central Corridor | (121 | ) | (112 | ) | (110 | ) | (115 | ) | (458 | ) | | (167 | ) | (156 | ) | (159 | ) | | (482 | ) |
Other Regions** | (46 | ) | (43 | ) | (61 | ) | (45 | ) | (195 | ) | | (46 | ) | (48 | ) | (37 | ) | | (131 | ) |
Total | (188 | ) | (154 | ) | (152 | ) | (126 | ) | (620 | ) | | (202 | ) | (191 | ) | (193 | ) | | (586 | ) |
* Other costs associated with equity affiliates which do not flow through equity earnings. | | | | | | |
** Combined equity affiliates reported in Atlantic Basin/Europe and Western/Pacific. | | | | | | |
|
| | | | | | | | | | | | | | | | | | | | | | | |
REFINING (continued) |
| | | | | | | | | | | | | | |
| | | | 2013 | | 2014 |
| | | | 1st Qtr |
| 2nd Qtr |
| 3rd Qtr |
| 4th Qtr |
| YTD |
| | 1st Qtr |
| 2nd Qtr |
| 3rd Qtr |
| 4th Qtr | YTD |
|
Atlantic Basin/Europe* | | | | | | | | | | | |
Crude Oil Charge Input (MB/D) | 571 |
| 555 |
| 574 |
| 483 |
| 546 |
| | 551 |
| 562 |
| 538 |
| | 550 |
|
Total Charge Input (MB/D) | 614 |
| 597 |
| 606 |
| 489 |
| 576 |
| | 585 |
| 612 |
| 588 |
| | 595 |
|
Crude Oil Capacity Utilization (%) | 97 | % | 94 | % | 98 | % | 82 | % | 93 | % | | 94 | % | 96 | % | 92 | % | | 94 | % |
Clean Product Yield (%) | 85 | % | 84 | % | 84 | % | 79 | % | 83 | % | | 84 | % | 83 | % | 86 | % | | 84 | % |
* Includes our proportionate share of a refinery complex in Karlsruhe, Germany. | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Gulf Coast | | | | | | | | | | | |
Crude Oil Charge Input (MB/D) | 584 |
| 664 |
| 671 |
| 682 |
| 651 |
| | 613 |
| 673 |
| 710 |
| | 666 |
|
Total Charge Input (MB/D) | 643 |
| 741 |
| 767 |
| 762 |
| 729 |
| | 705 |
| 771 |
| 794 |
| | 757 |
|
Crude Oil Capacity Utilization (%) | 80 | % | 91 | % | 92 | % | 93 | % | 89 | % | | 84 | % | 92 | % | 97 | % | | 91 | % |
Clean Product Yield (%) | 81 | % | 83 | % | 82 | % | 82 | % | 82 | % | | 81 | % | 79 | % | 79 | % | | 80 | % |
| | | | | | | | | | | | | | |
Central Corridor* | | | | | | | | | | | |
Crude Oil Charge Input (MB/D) | 457 |
| 474 |
| 480 |
| 479 |
| 472 |
| | 466 |
| 493 |
| 476 |
| | 478 |
|
Total Charge Input (MB/D) | 473 |
| 488 |
| 495 |
| 494 |
| 488 |
| | 481 |
| 511 |
| 492 |
| | 495 |
|
Crude Oil Capacity Utilization (%) | 96 | % | 100 | % | 101 | % | 100 | % | 99 | % | | 96 | % | 102 | % | 98 | % | | 99 | % |
Clean Product Yield (%) | 87 | % | 86 | % | 88 | % | 88 | % | 87 | % | | 88 | % | 88 | % | 90 | % | | 89 | % |
* Includes our proportionate share of the Borger Refinery and Wood River Refinery. | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Western/Pacific* | | | | | | | | | | | |
Crude Oil Charge Input (MB/D) | 401 |
| 417 |
| 403 |
| 419 |
| 410 |
| | 395 |
| 424 |
| 390 |
| | 403 |
|
Total Charge Input (MB/D) | 441 |
| 448 |
| 430 |
| 450 |
| 442 |
| | 427 |
| 450 |
| 423 |
| | 433 |
|
Crude Oil Capacity Utilization (%) | 91 | % | 95 | % | 91 | % | 95 | % | 93 | % | | 90 | % | 96 | % | 89 | % | | 92 | % |
Clean Product Yield (%) | 83 | % | 86 | % | 84 | % | 85 | % | 85 | % | | 84 | % | 85 | % | 83 | % | | 84 | % |
* Includes our proportionate share of a refinery in Melaka, Malaysia. | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Worldwide—Including Proportionate Share of Equity Affiliates | | | | | | | | | | |
Crude Oil Charge Input (MB/D) | 2,013 |
| 2,110 |
| 2,128 |
| 2,063 |
| 2,079 |
| | 2,025 |
| 2,152 |
| 2,114 |
| | 2,097 |
|
Total Charge Input (MB/D) | 2,171 |
| 2,274 |
| 2,298 |
| 2,195 |
| 2,235 |
| | 2,198 |
| 2,344 |
| 2,297 |
| | 2,280 |
|
Crude Oil Capacity Utilization (%) | 90 | % | 94 | % | 95 | % | 92 | % | 93 | % | | 90 | % | 96 | % | 94 | % | | 93 | % |
Clean Product Yield (%) | 84 | % | 85 | % | 84 | % | 84 | % | 84 | % | | 84 | % | 83 | % | 84 | % | | 84 | % |
| | | | | | | | | | | | | | |
Refined Products Production (MB/D) | | | | | | | | | | | |
Atlantic Basin/Europe* | | | | | | | | | | | |
Gasoline | 240 |
| 239 |
| 241 |
| 175 |
| 224 |
| | 231 |
| 244 |
| 247 |
| | 241 |
|
Distillates | 264 |
| 249 |
| 252 |
| 204 |
| 242 |
| | 245 |
| 248 |
| 240 |
| | 244 |
|
Other | 114 |
| 110 |
| 116 |
| 107 |
| 112 |
| | 112 |
| 123 |
| 106 |
| | 114 |
|
Total | 618 |
| 598 |
| 609 |
| 486 |
| 578 |
| | 588 |
| 615 |
| 593 |
| | 599 |
|
* Includes our proportionate share of a refinery complex in Karlsruhe, Germany. | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Gulf Coast | | | | | | | | | | | |
Gasoline | 252 |
| 292 |
| 304 |
| 293 |
| 285 |
| | 276 |
| 300 |
| 296 |
| | 291 |
|
Distillates | 247 |
| 292 |
| 295 |
| 297 |
| 283 |
| | 270 |
| 286 |
| 299 |
| | 285 |
|
Other | 147 |
| 164 |
| 175 |
| 184 |
| 168 |
| | 171 |
| 197 |
| 203 |
| | 190 |
|
Total | 646 |
| 748 |
| 774 |
| 774 |
| 736 |
| | 717 |
| 783 |
| 798 |
| | 766 |
|
| | | | | | | | | | | | | | |
Central Corridor* | | | | | | | | | | | |
Gasoline | 242 |
| 242 |
| 257 |
| 254 |
| 249 |
| | 247 |
| 262 |
| 256 |
| | 255 |
|
Distillates | 168 |
| 175 |
| 174 |
| 179 |
| 174 |
| | 173 |
| 187 |
| 181 |
| | 181 |
|
Other | 65 |
| 71 |
| 66 |
| 63 |
| 66 |
| | 63 |
| 64 |
| 57 |
| | 61 |
|
Total | 475 |
| 488 |
| 497 |
| 496 |
| 489 |
| | 483 |
| 513 |
| 494 |
| | 497 |
|
* Includes our proportionate share of the Borger Refinery and Wood River Refinery. | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Western/Pacific* | | | | | | | | | | | |
Gasoline | 188 |
| 198 |
| 188 |
| 191 |
| 191 |
| | 181 |
| 198 |
| 182 |
| | 187 |
|
Distillates | 177 |
| 189 |
| 173 |
| 193 |
| 183 |
| | 179 |
| 186 |
| 167 |
| | 177 |
|
Other | 80 |
| 65 |
| 71 |
| 69 |
| 71 |
| | 69 |
| 70 |
| 76 |
| | 72 |
|
Total | 445 |
| 452 |
| 432 |
| 453 |
| 445 |
| | 429 |
| 454 |
| 425 |
| | 436 |
|
* Includes our proportionate share of a refinery in Melaka, Malaysia. | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Worldwide—Including Proportionate Share of Equity Affiliates | | | | | | | | | | |
Gasoline | | | | 922 |
| 971 |
| 990 |
| 913 |
| 949 |
| | 935 |
| 1,004 |
| 981 |
| | 974 |
|
Distillates | | | | 856 |
| 905 |
| 894 |
| 873 |
| 882 |
| | 867 |
| 907 |
| 887 |
| | 887 |
|
Other | | | | 406 |
| 410 |
| 428 |
| 423 |
| 417 |
| | 415 |
| 454 |
| 442 |
| | 437 |
|
Total | | | | 2,184 |
| 2,286 |
| 2,312 |
| 2,209 |
| 2,248 |
| | 2,217 |
| 2,365 |
| 2,310 |
| | 2,298 |
|
| | | | | | | | | | | | | | |
Market Indicators | | | | | | | | | | | |
Crude and Crude Differentials ($/BBL) | | | | | | | | | | | |
WTI | 94.29 |
| 94.12 |
| 105.80 |
| 97.38 |
| 97.90 |
| | 98.75 |
| 103.05 |
| 97.48 |
| | 99.76 |
|
Brent | 112.55 |
| 102.44 |
| 110.36 |
| 109.27 |
| 108.66 |
| | 108.22 |
| 109.63 |
| 101.85 |
| | 106.57 |
|
LLS | 113.92 |
| 104.63 |
| 109.89 |
| 100.94 |
| 107.34 |
| | 104.43 |
| 105.55 |
| 100.95 |
| | 103.64 |
|
ANS | 111.02 |
| 104.52 |
| 110.52 |
| 104.67 |
| 107.68 |
| | 105.74 |
| 109.23 |
| 101.51 |
| | 105.49 |
|
WTI less Maya | (8.54 | ) | (3.55 | ) | 6.47 |
| 8.12 |
| 0.63 |
| | 9.41 |
| 7.27 |
| 6.64 |
| | 7.77 |
|
WTI less WCS | 27.02 |
| 16.71 |
| 23.07 |
| 31.23 |
| 24.51 |
| | 20.83 |
| 19.15 |
| 18.22 |
| | 19.40 |
|
| | | | | | | | | | | | | | |
Natural Gas ($/MCF) | | | | | | | | | | | | | |
Henry Hub | | | | 3.48 |
| 4.01 |
| 3.55 |
| 3.84 |
| 3.72 |
| | 5.08 |
| 4.58 |
| 3.94 |
| | 4.53 |
|
| | | | | | | | | | | | | | |
Product Margins ($/BBL) | | | | | | | | | | | |
Atlantic Basin/Europe | | | | | | | | | | | |
East Coast Gasoline less Brent | 9.70 |
| 14.83 |
| 13.05 |
| 2.95 |
| 10.13 |
| | 5.12 |
| 15.23 |
| 15.44 |
| | 11.93 |
|
East Coast Distillate less Brent | 18.78 |
| 19.09 |
| 17.43 |
| 16.35 |
| 17.91 |
| | 22.28 |
| 14.30 |
| 16.63 |
| | 17.74 |
|
Gulf Coast | | | | | | | | | | | |
Gulf Coast Gasoline less LLS | 3.41 |
| 9.14 |
| 5.86 |
| 2.89 |
| 5.33 |
| | 5.25 |
| 11.53 |
| 8.54 |
| | 8.44 |
|
Gulf Coast Distillate less LLS | 15.67 |
| 15.52 |
| 16.66 |
| 21.48 |
| 17.33 |
| | 18.63 |
| 17.00 |
| 16.26 |
| | 17.30 |
|
Central Corridor | | | | | | | | | | | |
Central Gasoline less WTI | 24.04 |
| 26.18 |
| 14.55 |
| 3.23 |
| 17.00 |
| | 13.15 |
| 16.09 |
| 14.05 |
| | 14.43 |
|
Central Distillate less WTI | 35.72 |
| 29.35 |
| 22.95 |
| 25.52 |
| 28.39 |
| | 25.94 |
| 21.07 |
| 21.85 |
| | 22.95 |
|
Western/Pacific | | | | | | | | | | | |
West Coast Gasoline less ANS | 18.34 |
| 20.59 |
| 12.39 |
| 8.71 |
| 15.01 |
| | 11.75 |
| 20.88 |
| 16.59 |
| | 16.41 |
|
West Coast Distillate less ANS | 20.67 |
| 16.84 |
| 18.42 |
| 19.60 |
| 18.89 |
| | 17.55 |
| 17.16 |
| 20.19 |
| | 18.30 |
|
| | | | | | | | | | | | | | |
Worldwide Market Crack Spread ($/BBL)* | 15.50 |
| 17.56 |
| 13.44 |
| 9.62 |
| 14.03 |
| | 12.44 |
| 15.94 |
| 14.85 |
| | 14.41 |
|
* Weighted average based on Phillips 66 crude capacity. | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | | | | | | | | | |
MARKETING AND SPECIALTIES |
| | | | | | | | | | | | | | |
| | | | 2013 | | 2014 |
| | | | 1st Qtr |
| 2nd Qtr |
| 3rd Qtr |
| 4th Qtr |
| YTD |
| | 1st Qtr |
| 2nd Qtr |
| 3rd Qtr |
| 4th Qtr | YTD |
|
Marketing and Specialties Net Income Attributable to Phillips 66 ($ Millions) | | | | | | | | | | | |
Marketing and Other | 177 |
| 258 |
| 199 |
| 54 |
| 688 |
| | 93 |
| 119 |
| 325 |
| | 537 |
|
Specialties | 13 |
| 86 |
| 56 |
| 51 |
| 206 |
| | 44 |
| 43 |
| 43 |
| | 130 |
|
Marketing and Specialties Net Income Attributable | | | | | | | | | | | |
to Phillips 66 | 190 |
| 344 |
| 255 |
| 105 |
| 894 |
| | 137 |
| 162 |
| 368 |
| | 667 |
|
| | | | | | | | | | | | | | |
Marketing and Specialties Income before Income Taxes ($ Millions) | | | | | | | | | | | |
Marketing and Other | 259 |
| 391 |
| 273 |
| 71 |
| 994 |
| | 135 |
| 179 |
| 425 |
| | 739 |
|
Specialties | 23 |
| 140 |
| 89 |
| 81 |
| 333 |
| | 70 |
| 69 |
| 70 |
| | 209 |
|
Marketing and Specialties Income before |
|
|
|
|
| |
|
| | |
|
Income Taxes | 282 |
| 531 |
| 362 |
| 152 |
| 1,327 |
| | 205 |
| 248 |
| 495 |
| | 948 |
|
| | | | | | | | | | | | | | |
Marketing and Specialties Adjusted EBITDA | 338 |
| 516 |
| 384 |
| 175 |
| 1,413 |
| | 226 |
| 271 |
| 410 |
| | 907 |
|
| | | | | | | | | | | | | | |
Realized Marketing Fuel Margin ($/BBL)* | | | | | | | | | | | |
U.S. | 1.02 |
| 1.77 |
| 1.25 |
| 0.74 |
| 1.21 |
| | 1.19 |
| 1.17 |
| 1.78 |
| | 1.38 |
|
International | 3.16 |
| 4.93 |
| 5.55 |
| 3.76 |
| 4.36 |
| | 3.72 |
| 4.52 |
| 6.10 |
| | 4.79 |
|
* On third-party petroleum products sales. | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Realized Margins not included in Marketing Fuel Margin | | | | | | | | | | |
($ Millions)* | | | | | | | | | | | |
Marketing and Other | 210 |
| 184 |
| 141 |
| 121 |
| 656 |
| | 139 |
| 160 |
| 169 |
| | 468 |
|
Specialties | 83 |
| 135 |
| 112 |
| 113 |
| 443 |
| | 106 |
| 102 |
| 108 |
| | 316 |
|
Total | 293 |
| 319 |
| 253 |
| 234 |
| 1,099 |
| | 245 |
| 262 |
| 277 |
| | 784 |
|
* Excludes Gain on Dispositions and Excise Tax Income. | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Depreciation and Amortization ($ Millions) | | | | | | | | | | | |
Marketing and Other | 30 |
| 23 |
| 21 |
| 21 |
| 95 |
| | 20 |
| 21 |
| 21 |
| | 62 |
|
Specialties | 3 |
| 2 |
| 1 |
| 2 |
| 8 |
| | 1 |
| 2 |
| 3 |
| | 6 |
|
Total | 33 |
| 25 |
| 22 |
| 23 |
| 103 |
| | 21 |
| 23 |
| 24 |
| | 68 |
|
| | | | | | | | | | | | | | |
Operating and SG&A Expense ($ Millions) | | | | | | | | | | | |
Marketing and Other | 189 |
| 231 |
| 220 |
| 271 |
| 911 |
| | 274 |
| 284 |
| 295 |
| | 853 |
|
Specialties | 35 |
| 32 |
| 29 |
| 31 |
| 127 |
| | 32 |
| 30 |
| 35 |
| | 97 |
|
Total | 224 |
| 263 |
| 249 |
| 302 |
| 1,038 |
| | 306 |
| 314 |
| 330 |
| | 950 |
|
| | | | | | | | | | | | | | |
Marketing Petroleum Products Sales (MB/D) | | | | | | | | | | | |
U.S. Marketing | | | | | | | | | | | |
Gasoline | 1,016 |
| 1,138 |
| 1,111 |
| 1,059 |
| 1,081 |
| | 1,030 |
| 1,142 |
| 1,093 |
| | 1,088 |
|
Distillates | | | | 763 |
| 817 |
| 761 |
| 759 |
| 775 |
| | 748 |
| 784 |
| 750 |
| | 761 |
|
Other | | | | — |
| — |
| — |
| — |
| — |
| | — |
| — |
| — |
| | — |
|
Total | | | | 1,779 |
| 1,955 |
| 1,872 |
| 1,818 |
| 1,856 |
| | 1,778 |
| 1,926 |
| 1,843 |
| | 1,849 |
|
| | | | | | | | | | | | | | |
International Marketing | | | | | | | | | | | |
Gasoline | | | | 89 |
| 95 |
| 95 |
| 92 |
| 93 |
| | 89 |
| 95 |
| 95 |
| | 93 |
|
Distillates | | | | 193 |
| 190 |
| 190 |
| 192 |
| 192 |
| | 196 |
| 186 |
| 190 |
| | 191 |
|
Other | | | | 16 |
| 18 |
| 18 |
| 17 |
| 17 |
| | 16 |
| 19 |
| 17 |
| | 17 |
|
Total | | | | 298 |
| 303 |
| 303 |
| 301 |
| 302 |
| | 301 |
| 300 |
| 302 |
| | 301 |
|
| | | | | | | | | | | | | | |
Worldwide Marketing | | | | | | | | | | | |
Gasoline | | | | 1,105 |
| 1,233 |
| 1,206 |
| 1,151 |
| 1,174 |
| | 1,119 |
| 1,237 |
| 1,188 |
| | 1,181 |
|
Distillates | | | | 956 |
| 1,007 |
| 951 |
| 951 |
| 967 |
| | 944 |
| 970 |
| 940 |
| | 952 |
|
Other | | | | 16 |
| 18 |
| 18 |
| 17 |
| 17 |
| | 16 |
| 19 |
| 17 |
| | 17 |
|
Total | | | | 2,077 |
| 2,258 |
| 2,175 |
| 2,119 |
| 2,158 |
| | 2,079 |
| 2,226 |
| 2,145 |
| | 2,150 |
|
| | | | | | | | | | | | | | |
Foreign Currency Gains (Losses) After-Tax ($ Millions) | 3 |
| 1 |
| 1 |
| — |
| 5 |
| | — |
| (3 | ) | (3 | ) | | (6 | ) |
| | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | | | | | | | | | |
CORPORATE AND OTHER |
| | | | | | | | | | | | | | |
| | | | 2013 | | 2014 |
| | | | 1st Qtr |
| 2nd Qtr |
| 3rd Qtr |
| 4th Qtr |
| YTD |
| | 1st Qtr |
| 2nd Qtr |
| 3rd Qtr |
| 4th Qtr | YTD |
|
Corporate and Other Net Income (Loss) Attributable | | | | | | | | | | | |
to Phillips 66 ($ Millions) | (95 | ) | (126 | ) | (113 | ) | (97 | ) | (431 | ) | | (81 | ) | (121 | ) | (91 | ) | | (293 | ) |
| | | | | | | | | | | | | | |
Detail of Net Income (Loss) Attributable | | | | | | | | | | | |
to Phillips 66 ($ Millions) | | | | | | | | | | | |
Net interest expense | (43 | ) | (42 | ) | (41 | ) | (40 | ) | (166 | ) | | (41 | ) | (39 | ) | (36 | ) | | (116 | ) |
Corporate overhead | (34 | ) | (36 | ) | (32 | ) | (43 | ) | (145 | ) | | (40 | ) | (44 | ) | (32 | ) | | (116 | ) |
Technology | (12 | ) | (12 | ) | (12 | ) | (14 | ) | (50 | ) | | (13 | ) | (14 | ) | (14 | ) | | (41 | ) |
Other | (6 | ) | (36 | ) | (28 | ) | — |
| (70 | ) | | 13 |
| (24 | ) | (9 | ) | | (20 | ) |
Total | (95 | ) | (126 | ) | (113 | ) | (97 | ) | (431 | ) | | (81 | ) | (121 | ) | (91 | ) | | (293 | ) |
| | | | | | | | | | | | | | |
Before-Tax Net Interest Expense ($ Millions) | | | | | | | | | | | |
Interest expense | (70 | ) | (69 | ) | (68 | ) | (68 | ) | (275 | ) | | (69 | ) | (69 | ) | (66 | ) | | (204 | ) |
Capitalized interest | — |
| — |
| — |
| — |
| — |
| | 1 |
| 3 |
| 6 |
| | 10 |
|
Interest revenue | 5 |
| 4 |
| 5 |
| 6 |
| 20 |
| | 5 |
| 6 |
| 5 |
| | 16 |
|
Premium on early debt retirement | — |
| (1 | ) | (2 | ) | — |
| (3 | ) | | — |
| — |
| — |
| | — |
|
Total | (65 | ) | (66 | ) | (65 | ) | (62 | ) | (258 | ) | | (63 | ) | (60 | ) | (55 | ) | | (178 | ) |
| | | | | | | | | | | | | | |
Foreign Currency Gains (Losses) After-Tax ($ Millions) | (1 | ) | — |
| (1 | ) | — |
| (2 | ) | | — |
| — |
| — |
| | — |
|
| | | | | | | | | | | | | | |
Phillips 66 Total Company Debt | | | | | | | | | | | |
Total Debt ($ Millions) | 6,971 |
| 6,469 |
| 6,156 |
| 6,155 |
| 6,155 |
| | 6,217 |
| 6,212 |
| 6,213 |
| | 6,213 |
|
Debt-to-Capital Ratio (%) | 25 | % | 23 | % | 22 | % | 22 | % | 22 | % | | 22 | % | 22 | % | 22 | % | | 22 | % |
| | | | | | | | | | | | | | |
Total Equity ($ Millions) | 21,378 |
| 21,690 |
| 21,994 |
| 22,392 |
| 22,392 |
| | 21,829 |
| 21,955 |
| 22,194 |
| | 22,194 |
|
| | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | | | | | | | | | |
NON-GAAP FINANCIAL MEASURES RECONCILIATION |
| | | | |
| | | | Millions of Dollars |
| | | | 2013 | | 2014 |
| 1st Qtr |
| 2nd Qtr |
| 3rd Qtr |
| 4th Qtr |
| YTD |
| | 1st Qtr |
| 2nd Qtr |
| 3rd Qtr |
| 4th Qtr | YTD |
|
Reconciliation of Midstream Net Income to Adjusted EBITDA | | | | | | | | | | | |
Midstream net income | 114 |
| 92 |
| 152 |
| 128 |
| 486 |
| | 194 |
| 117 |
| 124 |
| | 435 |
|
Plus: | | | | | | | | | |
|
|
|
| | |
|
|
Provision for income taxes | 63 |
| 49 |
| 87 |
| 65 |
| 264 |
| | 108 |
| 63 |
| 70 |
| | 241 |
|
Depreciation and amortization | 19 |
| 19 |
| 19 |
| 31 |
| 88 |
| | 19 |
| 21 |
| 24 |
| | 64 |
|
Midstream EBITDA | 196 |
| 160 |
| 258 |
| 224 |
| 838 |
| | 321 |
| 201 |
| 218 |
| | 740 |
|
| | | | | | | | | | | |
Adjustments (pretax): | | | | | | | | | | | |
EBITDA attributable to Phillips 66 noncontrolling interests | (5 | ) | (4 | ) | (7 | ) | (8 | ) | (24 | ) | | (8 | ) | (12 | ) | (13 | ) | | (33 | ) |
Proportional share of selected equity affiliates income taxes | — |
| 2 |
| 1 |
| 1 |
| 4 |
| | 2 |
| — |
| 2 |
| | 4 |
|
Proportional share of selected equity affiliates net interest | 22 |
| 22 |
| 33 |
| 33 |
| 110 |
| | 30 |
| 31 |
| 29 |
| | 90 |
|
Proportional share of selected equity affiliates depreciation and amortization | 31 |
| 33 |
| 37 |
| 38 |
| 139 |
| | 39 |
| 36 |
| 37 |
| | 112 |
|
Midstream Adjusted EBITDA* | 244 |
| 213 |
| 322 |
| 288 |
| 1,067 |
| | 384 |
| 256 |
| 273 |
| | 913 |
|
* Proportional share of selected equity affiliates is net of noncontrolling interests. | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Reconciliation of Chemicals Net Income to Adjusted EBITDA | | | | | | | | | | | |
Chemicals net income | 282 |
| 181 |
| 262 |
| 261 |
| 986 |
| | 316 |
| 324 |
| 230 |
| | 870 |
|
Plus: | | | | | | | | | | | | | | |
Provision for income taxes | 121 |
| 51 |
| 105 |
| 98 |
| 375 |
| | 126 |
| 142 |
| 98 |
| | 366 |
|
Chemicals EBITDA | 403 |
| 232 |
| 367 |
| 359 |
| 1,361 |
| | 442 |
| 466 |
| 328 |
| | 1,236 |
|
| | | | | | | | | | | |
Adjustments (pretax): | | | | | | | | | | | |
Proportional share of selected equity affiliates income taxes | 19 |
| 25 |
| 25 |
| 24 |
| 93 |
| | 27 |
| 28 |
| 35 |
| | 90 |
|
Proportional share of selected equity affiliates net interest | 2 |
| 3 |
| 2 |
| 3 |
| 10 |
| | 3 |
| 1 |
| 2 |
| | 6 |
|
Proportional share of selected equity affiliates depreciation and amortization | 58 |
| 60 |
| 60 |
| 68 |
| 246 |
| | 62 |
| 62 |
| 64 |
| | 188 |
|
Impairments | — |
| — |
| — |
| — |
| — |
| | — |
| — |
| 88 |
| | 88 |
|
Chemicals Adjusted EBITDA | 482 |
| 320 |
| 454 |
| 454 |
| 1,710 |
| | 534 |
| 557 |
| 517 |
| | 1,608 |
|
| | | | | | | | | | | | | | |
Reconciliation of Refining Net Income to Adjusted EBITDA | | | | | | | | | | | |
Refining net income (loss) | 904 |
| 455 |
| (30 | ) | 418 |
| 1,747 |
| | 306 |
| 390 |
| 558 |
| | 1,254 |
|
Plus: | | | | | | | | | | | | | |
|
|
Provision for income taxes | 467 |
| 280 |
| 22 |
| 266 |
| 1,035 |
| | 202 |
| 257 |
| 301 |
| | 760 |
|
Depreciation and amortization | 177 |
| 168 |
| 170 |
| 170 |
| 685 |
| | 172 |
| 174 |
| 178 |
| | 524 |
|
Refining EBITDA | 1,548 |
| 903 |
| 162 |
| 854 |
| 3,467 |
| | 680 |
| 821 |
| 1,037 |
| | 2,538 |
|
| | | | | | | | | | | | | | |
Adjustments (pretax): | | | | | | | | | | | |
Proportional share of selected equity affiliates income taxes | 2 |
| 1 |
| — |
| (7 | ) | (4 | ) | | — |
| 1 |
| — |
| | 1 |
|
Proportional share of selected equity affiliates net interest | (26 | ) | (24 | ) | (23 | ) | (22 | ) | (95 | ) | | (19 | ) | — |
| — |
| | (19 | ) |
Proportional share of selected equity affiliates depreciation and amortization | 58 |
| 57 |
| 60 |
| 62 |
| 237 |
| | 61 |
| 61 |
| 61 |
| | 183 |
|
Tax law impacts | (22 | ) | — |
| — |
| — |
| (22 | ) | | — |
| — |
| — |
| | — |
|
Refining Adjusted EBITDA | 1,560 |
| 937 |
| 199 |
| 887 |
| 3,583 |
| | 722 |
| 883 |
| 1,098 |
| | 2,703 |
|
| | | | | | | | | | | | | | |
Reconciliation of Marketing and Specialties Net Income to Adjusted EBITDA | | | | | | | | | | | |
Marketing and Specialties net income | 190 |
| 344 |
| 255 |
| 105 |
| 894 |
| | 137 |
| 162 |
| 368 |
| | 667 |
|
Plus: | | | | | | | | | | | | | | |
Provision for income taxes | 92 |
| 187 |
| 107 |
| 47 |
| 433 |
| | 68 |
| 86 |
| 127 |
| | 281 |
|
Depreciation and amortization | 33 |
| 25 |
| 22 |
| 23 |
| 103 |
| | 21 |
| 23 |
| 24 |
| | 68 |
|
Marketing and Specialties EBITDA | 315 |
| 556 |
| 384 |
| 175 |
| 1,430 |
| | 226 |
| 271 |
| 519 |
| | 1,016 |
|
| | | | | | | | | | | | | | |
Adjustments (pretax): | | | | | | | | | | | |
Gain on asset dispositions | — |
| (40 | ) | — |
| — |
| (40 | ) | | — |
| — |
| (109 | ) | | (109 | ) |
Pending claims and settlements | (25 | ) | — |
| — |
| — |
| (25 | ) | | — |
| — |
| — |
| | — |
|
Exit of a business line | 54 |
| — |
| — |
| — |
| 54 |
| | — |
| — |
| — |
| | — |
|
Tax law impacts | (6 | ) | — |
| — |
| — |
| (6 | ) | | — |
| — |
| — |
| | — |
|
Marketing and Specialties Adjusted EBITDA | 338 |
| 516 |
| 384 |
| 175 |
| 1,413 |
| | 226 |
| 271 |
| 410 |
| | 907 |
|
| | | | | | | | | | | | | | |
Reconciliation of Phillips 66 Net Income to Adjusted EBITDA | | | | | | | | | | | |
Net income | 1,410 |
| 960 |
| 540 |
| 833 |
| 3,743 |
| | 1,578 |
| 872 |
| 1,189 |
| | 3,639 |
|
Less: | | | | | | | | | | | | | | |
Income from discontinued operations | 15 |
| 14 |
| 14 |
| 18 |
| 61 |
| | 706 |
| — |
| — |
| | 706 |
|
Plus: | | | | | | | | | | | | | | |
Provision for income taxes | 663 |
| 507 |
| 278 |
| 396 |
| 1,844 |
| | 426 |
| 487 |
| 538 |
| | 1,451 |
|
Net interest expense | 65 |
| 66 |
| 65 |
| 62 |
| 258 |
| | 63 |
| 60 |
| 55 |
| | 178 |
|
Depreciation and amortization | 242 |
| 229 |
| 233 |
| 243 |
| 947 |
| | 234 |
| 239 |
| 249 |
| | 722 |
|
Phillips 66 EBITDA | 2,365 |
| 1,748 |
| 1,102 |
| 1,516 |
| 6,731 |
| | 1,595 |
| 1,658 |
| 2,031 |
| | 5,284 |
|
| | | | | | | | | | | | | | |
Adjustments (pretax): | | | | | | | | | | | |
EBITDA attributable to Phillips 66 noncontrolling interests | (5 | ) | (4 | ) | (7 | ) | (8 | ) | (24 | ) | | (8 | ) | (12 | ) | (13 | ) | | (33 | ) |
Proportional share of selected equity affiliates income taxes | 21 |
| 28 |
| 26 |
| 18 |
| 93 |
| | 29 |
| 29 |
| 37 |
| | 95 |
|
Proportional share of selected equity affiliates net interest | (2 | ) | 1 |
| 12 |
| 14 |
| 25 |
| | 14 |
| 32 |
| 31 |
| | 77 |
|
Proportional share of selected equity affiliates depreciation and amortization | 147 |
| 150 |
| 157 |
| 168 |
| 622 |
| | 162 |
| 159 |
| 162 |
| | 483 |
|
Gain on asset dispositions | — |
| (40 | ) | — |
| — |
| (40 | ) | | — |
| — |
| (109 | ) | | (109 | ) |
Impairments | — |
| — |
| — |
| — |
| — |
| | — |
| — |
| 88 |
| | 88 |
|
Exit of a business line | 54 |
| — |
| — |
| — |
| 54 |
| | — |
| — |
| — |
| | — |
|
Tax law impacts | (28 | ) | — |
| — |
| — |
| (28 | ) | | — |
| — |
| — |
| | — |
|
Pending claims and settlements | (25 | ) | — |
| — |
| — |
| (25 | ) | | — |
| — |
| — |
| | — |
|
Phillips 66 Adjusted EBITDA | 2,527 |
| 1,883 |
| 1,290 |
| 1,708 |
| 7,408 |
| | 1,792 |
| 1,866 |
| 2,227 |
| | 5,885 |
|
| | | | | | | | | | | | | | |
Use of Non-GAAP Financial Information—This earnings release supplemental data includes the terms EBITDA and adjusted EBITDA. These are non-GAAP financial measures. EBITDA and adjusted EBITDA are included to help facilitate comparisons of operating performance across periods, to help facilitate comparisons with other companies in our industry and to help facilitate determination of enterprise value. The GAAP measure most directly comparable to EBITDA and adjusted EBITDA is net income. |
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