Phillips 66 Q3 Earnings Beat, Record Refining Utilization At 99%

Phillips 66 (NYSE:PSX) shares traded higher premarket on Wednesday after the company delivered a strong third-quarter performance, surpassing Wall Street forecasts.

Earnings Details

The integrated energy company reported adjusted earnings of $2.52 per share, comfortably topping the consensus estimate of $2.17 per share.

GAAP earnings were $133 million, or $0.32 per share, in the quarter.

Earnings include a $241 million pre-tax charge tied to accelerated depreciation at the Los Angeles Refinery.

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Quarterly revenue reached $34.98 billion, coming above the consensus of $32.35 billion.

The company generated $1.2 billion in net operating cash flow and $1.9 billion excluding working capital.

Other Key Metrics

Refining utilization climbed to 99%, the highest since 2018, and clean product yield reached 87%.

The company stated that progress continued on the Golden Triangle Polymers Project in Texas (startup late 2026) and the Ras Laffan Polymers Project in Qatar (startup early 2027).

Also, crude oil processing at the Los Angeles Refinery ceased on October 16, with full idling by year-end.

As of September 30, cash and cash equivalents stood at $2.0 billion, with $5.2 billion in committed credit facility capacity.

Segment Performance

In the third quarter of 2025, pre-tax income in Midstream fell due to lower margins, while Marketing and Specialties declined on weaker margins.

Meanwhile, the Refining segment’s pre-tax income benefited from stronger crack spreads, and in Chemicals, pre-tax income rose on higher margins and lower turnaround costs.

Also, Renewable Fuels improved from higher margins, inventory effects, and increased international credits.

Management Commentary

"Our third quarter results reflect our continued commitment to world-class operations,” Mark Lashier, chairman and CEO said. “Our Refining and Midstream businesses both set records with year-to-date clean product yield and fractionation volumes, respectively. Additionally, our Chemicals business operated at over 100% utilization and generated solid returns in a challenging market." 

Cenovus Energy Acquisition

In September, Phillips 66 announced that it would acquire the remaining 50% stake in WRB Refining LP from Cenovus Energy Inc. (NYSE:CVE) for $1.4 billion in cash, giving it full ownership of two U.S. refineries it has operated since 2007.

Price Action: PSX shares are up 0.07% at $133.75 at the last check on Wednesday.

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