Summary
Phillips 66's second quarter 2012 Form 10-Q marks its first independent quarterly report following its separation from ConocoPhillips on April 30, 2012. The company demonstrated strong profitability, with net income attributable to Phillips 66 reaching $1.181 billion for the quarter, an increase from the prior year period. This performance was primarily driven by improved results in the Refining and Marketing (R&M) segment, benefiting from higher refining and marketing margins, as well as a notable gain from the sale of the Trainer Refinery. The Chemicals segment also showed increased profitability, driven by improved margins in olefins and polyolefins. However, the Midstream segment experienced a significant decline, largely due to a substantial impairment charge related to its investment in Rockies Express Pipeline LLC (REX). The company also reported increased selling, general, and administrative expenses and interest expenses, reflecting costs associated with its new standalone status and recent debt issuances. Despite these headwinds, Phillips 66 maintains a strong liquidity position with a substantial revolving credit facility and adequate cash generated from operations, enabling strategic initiatives like share repurchases and capital investments.
Financial Highlights
39 data points| Revenue | $46.75B |
| SG&A Expenses | $480.00M |
| Net Income | $1.18B |
| EPS (Basic) | $1.88 |
| EPS (Diluted) | $1.86 |
| Shares Outstanding (Basic) | 628.51M |
| Shares Outstanding (Diluted) | 635.16M |
Key Highlights
- 1Net income attributable to Phillips 66 was $1.181 billion for the second quarter of 2012, up from $1.039 billion in the same period of 2011, reflecting improved profitability.
- 2The Refining and Marketing (R&M) segment saw a significant earnings increase driven by higher refining and marketing margins and a $106 million after-tax gain from the sale of the Trainer Refinery.
- 3The Chemicals segment reported higher earnings due to improved margins in olefins and polyolefins.
- 4The Midstream segment experienced a decline in earnings, primarily due to a $170 million after-tax impairment charge on the investment in Rockies Express Pipeline LLC (REX).
- 5Selling, general, and administrative expenses increased significantly, attributed to costs related to the separation from ConocoPhillips and incremental standalone company expenses.
- 6Phillips 66 issued approximately $5.8 billion in Senior Notes in March 2012 and closed on a $2.0 billion term loan in April 2012 to finance its operations and strategic initiatives.
- 7The company has a $4.0 billion revolving credit facility and has declared a quarterly dividend of $0.20 per share, demonstrating a commitment to returning value to shareholders.