Summary
Phillips 66 (PSX) reported strong financial performance in 2023, generating $7 billion in net income attributable to Phillips 66 and $7 billion in cash from operating activities. The company highlighted its commitment to shareholder returns, increasing its target for returns through share repurchases and dividends to a range of $13 billion to $15 billion for the period July 2022 through year-end 2024. This included a significant $5 billion increase to its share repurchase authorization during the year. Key strategic priorities for Phillips 66 included improving refining performance by optimizing utilization rates and product yields, with a 92% worldwide refining crude oil capacity utilization rate achieved in 2023. The company also advanced its Midstream segment strategy by increasing its economic interest in DCP LP to 86.8% and continued its business transformation, targeting $1.1 billion in annual run-rate cost reductions by the end of 2024.
Financial Highlights
48 data points| Revenue | $147.40B |
| Cost of Revenue | $128.09B |
| Gross Profit | $19.31B |
| R&D Expenses | $27.00M |
| SG&A Expenses | $2.52B |
| Operating Income | $7.01B |
| Interest Expense | $842.00M |
| Net Income | $7.01B |
| EPS (Basic) | $15.56 |
| EPS (Diluted) | $15.48 |
| Shares Outstanding (Basic) | 450.14M |
| Shares Outstanding (Diluted) | 453.21M |
Key Highlights
- 1Phillips 66 generated $7.015 billion in net income attributable to Phillips 66 in 2023, compared to $11.024 billion in 2022, a decrease primarily due to lower realized refining margins and a large gain recognized in the Midstream segment in 2022 from the DCP Midstream Merger.
- 2The company's Midstream segment saw a decrease in income before income taxes from $4.734 billion in 2022 to $2.774 billion in 2023, mainly due to significant gains recognized in 2022 related to the DCP Midstream Merger.
- 3The Refining segment's income before income taxes decreased from $7.816 billion in 2022 to $5.266 billion in 2023, primarily driven by lower realized refining margins.
- 4Marketing and Specialties segment's income before income taxes decreased from $2.402 billion in 2022 to $2.135 billion in 2023, attributed to lower international marketing fuel margins.
- 5Phillips 66 completed the acquisition of all publicly held common units of DCP LP, increasing its aggregate direct and indirect economic interest to 86.8%.
- 6The company plans to return significant capital to shareholders, increasing its target for returns (dividends and share repurchases) to $13-$15 billion from July 2022 through year-end 2024.
- 7Phillips 66 is converting its San Francisco Refinery into a renewable fuels facility, with operations expected to begin in Q1 2024, and is investing in other capital-efficient renewable fuels projects.