10-KPeriod: FY2015

Phillips 66 Annual Report, Year Ended Dec 31, 2015

Filed February 19, 2016For Securities:PSX

Summary

Phillips 66's 2015 10-K report highlights a strong financial year characterized by robust earnings and significant cash flow generation, driven by its diversified energy manufacturing and logistics portfolio. The company reported earnings of $4.2 billion and generated $5.7 billion in cash from operations, demonstrating resilience in a low commodity price environment. Key strategic priorities for Phillips 66 included maintaining operating excellence through a focus on safety, reliability, and cost efficiency, while also investing in growth initiatives, particularly in the Midstream and Chemicals segments. The company returned significant value to shareholders through capital expenditures, dividend payments, and substantial share repurchases, underscoring a commitment to shareholder returns.

Financial Highlights

46 data points
Beta

Revenue

$98.97B

Net Income

$4.22B

4.3% Net Margin

EPS (Diluted)

$7.73

Total Assets

$48.58B

Cash & Equivalents

$3.07B

Free Cash Flow

$5.71B

Financial Statements
Beta
Revenue$98.97B
R&D Expenses$65.00M
SG&A Expenses$1.67B
Operating Income$4.23B
Net Income$4.22B
EPS (Basic)$7.78
EPS (Diluted)$7.73
Shares Outstanding (Basic)542.36M
Shares Outstanding (Diluted)546.98M

Key Highlights

  • 1Reported earnings of $4.2 billion and generated $5.7 billion in cash from operating activities in 2015.
  • 2Maintained a worldwide refining crude oil capacity utilization rate of 91% in 2015.
  • 3Invested $5.8 billion in capital expenditures and investments, with a focus on Midstream and Chemicals growth.
  • 4Returned $1.2 billion to shareholders through dividends and repurchased $1.5 billion of common stock.
  • 5Increased quarterly dividend rate by 12% during 2015, marking significant growth since its separation from ConocoPhillips in 2012.
  • 6Phillips 66 Partners LP issued $1.1 billion in debt and $384 million in common units to fund growth.
  • 7The company holds $3.1 billion in cash and cash equivalents at year-end 2015.

Frequently Asked Questions

Phillips 66 operated across four main segments: Midstream (gathering, processing, transporting, and marketing natural gas and NGLs, and transportation of crude oil), Chemicals (manufacturing and marketing petrochemicals and plastics through its investment in CPChem), Refining (buying, selling, and refining crude oil at 14 refineries), and Marketing and Specialties (marketing refined products and specialty products).

Phillips 66 demonstrated resilience, reporting earnings of $4.2 billion and generating $5.7 billion in cash from operations. The diversified business model helped mitigate the impact of lower commodity prices, with segments like Refining showing improved margins due to strong gasoline crack spreads.

The company focused on operating excellence, growth (especially in Midstream and Chemicals), shareholder returns through dividends and share repurchases, and developing a high-performing organization. Capital expenditures of $5.8 billion were primarily directed towards growth projects, alongside funding for dividends and share repurchases.

Phillips 66 Partners LP, a master limited partnership, was a key vehicle for funding Midstream growth. In 2015, it issued $1.1 billion in debt and $384 million in common units and contributed significant midstream assets, supporting the company's strategic capital allocation.