Summary
Phillips 66's 2017 10-K filing reveals a strong financial performance, largely driven by a significant provisional income tax benefit of $2.7 billion resulting from the U.S. Tax Cuts and Jobs Act enacted in December 2017. Excluding this one-time item, the company demonstrated operational strength across its segments, particularly in Refining, which saw improved margins compared to the previous year. The Midstream segment benefited from increased equity earnings from affiliates, including the Bakken Pipeline's commencement of operations. Strategically, Phillips 66 remains focused on operating excellence, growth through targeted capital expenditures, enhancing shareholder returns via dividends and share repurchases, and fostering a high-performing organization. The company actively manages its portfolio, including its stake in Phillips 66 Partners, and is investing in infrastructure to support its operations and future growth, with a notable emphasis on expanding midstream assets and optimizing refining yields. Despite challenges like Hurricane Harvey's impact on chemical operations, the company maintained strong refining utilization rates and robust cash flow generation.
Financial Highlights
50 data points| Revenue | $102.35B |
| Cost of Revenue | $79.41B |
| Gross Profit | $22.95B |
| R&D Expenses | $60.00M |
| SG&A Expenses | $1.70B |
| Operating Income | $5.11B |
| Net Income | $5.11B |
| EPS (Basic) | $9.90 |
| EPS (Diluted) | $9.85 |
| Shares Outstanding (Basic) | 515.09M |
| Shares Outstanding (Diluted) | 518.51M |
Key Highlights
- 1Reported earnings of $5.1 billion in 2017, boosted by a $2.7 billion provisional tax benefit from the Tax Cuts and Jobs Act.
- 2Achieved a worldwide refining crude oil capacity utilization rate of 95% in 2017.
- 3Returned significant value to shareholders through $1.6 billion in share repurchases and $1.4 billion in dividends.
- 4Invested $1.8 billion in capital expenditures and investments in 2017, with a 2018 budget of $2.3 billion.
- 5Midstream segment saw improved results, partly due to the Bakken Pipeline starting commercial operations in June 2017.
- 6Chemicals segment faced headwinds from Hurricane Harvey impacting operations and costs, but saw progress on its U.S. Gulf Coast Petrochemicals Project.
- 7Demonstrated strong liquidity with $3.1 billion in cash and cash equivalents and approximately $5.8 billion in committed credit capacity at year-end 2017.