Summary
Phillips 66 reported a significant increase in financial performance for the nine months ended September 30, 2022, with net income attributable to Phillips 66 soaring to $9.14 billion from $44 million in the prior year period. This substantial improvement was primarily driven by a large gain recognized from the merger of DCP Midstream and Gray Oak Holdings, significantly higher refining margins due to favorable market crack spreads, and lower impairment charges compared to the prior year. The company also completed the merger with Phillips 66 Partners during this period, consolidating its operations. Liquidity remains strong with $3.7 billion in cash and cash equivalents and substantial committed credit capacity. Phillips 66 continued to return capital to shareholders through dividends and share repurchases, demonstrating a focus on shareholder value. Management is also actively pursuing a multi-year business transformation aimed at reducing costs and improving efficiency, targeting at least $800 million in run-rate cost reductions by the end of 2023.
Financial Highlights
45 data points| Revenue | $44.95B |
| Cost of Revenue | $38.65B |
| Gross Profit | $6.31B |
| SG&A Expenses | $617.00M |
| Operating Income | $9.14B |
| Net Income | $5.39B |
| EPS (Basic) | $11.19 |
| EPS (Diluted) | $11.16 |
| Shares Outstanding (Basic) | 481.39M |
| Shares Outstanding (Diluted) | 483.04M |
Key Highlights
- 1Net income attributable to Phillips 66 surged to $9.14 billion for the nine months ended September 30, 2022, a dramatic increase from $44 million in the same period of 2021.
- 2The company recognized a substantial gain of $3.013 billion in the Midstream segment related to the merger of DCP Midstream and Gray Oak Holdings.
- 3Refining segment performance significantly improved, with worldwide realized refining margins increasing to $21.88 per barrel for the nine months ended September 30, 2022, up from $5.68 per barrel in the prior year, driven by higher market crack spreads.
- 4Phillips 66 completed the merger with Phillips 66 Partners on March 9, 2022, integrating its operations.
- 5The company ended the period with a strong liquidity position, including $3.7 billion in cash and cash equivalents and $6.7 billion in available committed credit capacity.
- 6Phillips 66 is executing a business transformation initiative targeting at least $800 million in sustainable run-rate cost reductions by the end of 2023.
- 7The company returned capital to shareholders through $1.3 billion in dividends and $760 million in share repurchases during the first nine months of 2022.