| Fourth Quarter |
- Reported fourth-quarter earnings of $8 million or $0.01 per share; adjusted loss of $61 million or $0.15 per share
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- Earnings impacted by $230 million pre-tax of accelerated depreciation related to Los Angeles Refinery
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- Returned $1.1 billion to shareholders through dividends and share repurchases
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- Record NGL fractionation and LPG export volumes in Midstream
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- Record clean product yield in Refining
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- Surpassed targeted $3 billion in announced asset dispositions
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| Full-Year 2024 |
- Earnings of $2.1 billion or $4.99 per share and adjusted earnings of $2.6 billion or $6.15 per share
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- $4.2 billion of operating cash flow, $4.8 billion excluding working capital
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- $5.3 billion returned to shareholders through dividends and share repurchases
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- Second consecutive year above industry-average crude utilization
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- Achieved $1.5 billion in run-rate business transformation savings and $500 million in synergy capture from successful DCP integration
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| Phillips 66 (NYSE: PSX), a leading integrated downstream energy provider, announced fourth-quarter earnings. |
| “During the fourth quarter, we achieved our strategic priority targets for shareholder distributions and asset dispositions,” said Mark Lashier, chairman and CEO. “We also delivered on our goal of improving Refining performance by continuing to run above industry-average crude utilization, setting record clean product yields and achieving our targeted cost reductions of $1 per barrel. |
| “In support of our Midstream wellhead-to-market strategy, we recently announced an agreement to acquire EPIC’s NGL business, bolstering our Permian and Gulf Coast footprint,” said Lashier. “Upon closing, these assets will be accretive to earnings and highly integrated with our existing infrastructure, providing additional opportunities to enhance returns and shareholder value.” |
| Lashier added, “Building on our successes, I am pleased to announce that we have set new financial and operational targets that prioritize debt reduction, a lowered cost structure and EBITDA growth. Supported by world-class operations, we are committed to returning over 50% of operating cash flow to shareholders.” |
| On behalf of the Board of Directors, Glenn Tilton, lead independent director, remarked, “2024 was a pivotal year for Phillips 66. The team executed well on an ambitious set of strategic priorities, substantially improving the company’s competitiveness, and is well positioned to successfully deliver on a new set of targets through 2027.” |
| Fourth-Quarter 2024 Financial Results |
| Reported earnings were $8 million for the fourth quarter of 2024 versus $346 million in the third quarter. Fourth-quarter earnings included pre-tax special item adjustments of $67 million in the Marketing and Specialties segment, $35 million in the Chemicals segment, $(35) million in the Midstream segment, $(16) million in the Refining segment, and $(4) million impacting the Corporate and Other segment. Adjusted losses for the fourth quarter were $61 million versus earnings of $859 million in the third quarter. |
- Midstream fourth-quarter 2024 adjusted pre-tax income increased compared with the third quarter mainly due to higher NGL margins and volumes.
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- Chemicals adjusted pre-tax income decreased mainly due to lower margins, as well as higher turnaround and maintenance costs.
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- Refining adjusted pre-tax loss increased primarily due to a decline in realized margins largely driven by lower market crack spreads and accelerated depreciation associated with the planned ceasing of operations at the Los Angeles Refinery, partially offset by a higher clean product yield.
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- Marketing and Specialties adjusted pre-tax income decreased primarily due to seasonally lower margins.
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- Renewable Fuel's pre-tax results increased primarily due to higher margins at the Rodeo Complex and stronger international results.
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- Corporate and Other adjusted pre-tax loss decreased mainly due to lower net interest expense and employee-related costs, partially offset by depreciation expense.
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| As of Dec. 31, 2024, the company had $1.7 billion of cash and cash equivalents and $4.6 billion of committed capacity available under credit facilities. |
| Strategic Priorities Update |
| Phillips 66 successfully delivered on its strategic priorities first announced in October 2022. The company remains committed to leveraging its integrated portfolio to enhance long-term shareholder value and is announcing its next phase of priorities through 2027. Highlights include: |
- Delivering shareholder returns by returning greater than 50% of operating cash flow to shareholders;
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- Executing world-class operations by achieving 2% higher than industry-average crude utilization and targeting annual adjusted controllable costs of $5.50 per barrel in Refining, excluding adjusted turnaround expense;
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- Delivering disciplined growth and returns by growing Midstream and Chemicals mid-cycle adjusted EBITDA $1 billion in total by 2027; and
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- Maintaining financial strength and flexibility by reducing total debt to $17 billion.
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| Additional details will be covered in our investor webcast. |
| For the full document click the link below: |
| Phillips 66 |
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