Company Overview

Phillips 66 is a leading American multinational energy company headquartered in Westchase, Houston, Texas. Its name, dating back to 1927 as a trademark of the Phillips Petroleum Company, assisted in establishing the newly reconfigured Phillips 66. The company today was formed ten years after Phillips merged with Conoco to form ConocoPhillips. The merged company spun off its refining, chemical, and retail assets – known in the oil industry as downstream operations – into a new company bearing the Phillips 66 name. It began trading on the New York Stock Exchange on May 1, 2012, under the ticker PSX.

Founded in 1875, Phillips 66 leverages nearly 150 years of experience across its unique value chain, focusing on safely delivering reliable energy now and for the future. Sustainability is integral to its strategy, supporting long-term resilience and competitiveness.

Business Segments

Phillips 66 operates through five main business segments:

Refining

The Refining business is built on operating excellence, margin enhancement, and a commitment to safety and reliability. Phillips 66 owns 13 refineries with a net crude oil capacity of 2.2 million barrels per day, 10,000 branded marketing outlets, and 15,000 miles of pipelines. Its refineries consistently rank among the safest in the industry.

Significant operational changes in 2024 include the conversion of the San Francisco Refinery into the Rodeo Renewable Energy Complex, marking a shift towards renewable fuels. Additionally, Phillips 66 announced plans to cease operations at its Los Angeles-area refinery in the fourth quarter of 2025, while working with California to supply fuel markets.

Midstream

Phillips 66 Midstream manages critical logistics and infrastructure for energy storage and transportation. This segment provides product transportation, terminaling, and processing services, as well as natural gas and NGL transportation, storage, fractionation, gathering, processing, and marketing services, primarily in the United States. The company safely and reliably operates and/or owns more than 72,000 miles of pipeline throughout the United States.

Marketing and Specialties (M&S)

The M&S segment purchases for resale and markets refined petroleum products, including gasolines, distillates, and aviation fuels. It also manufactures and markets specialty products such as automotive, commercial, industrial, and specialty lubricants, as well as base oils. Phillips 66 is the fourth largest finished lubricants supplier in the United States and has stations in 44 U.S. states.

Renewable Fuels

The Renewable Fuels segment processes renewable feedstocks into renewable products. This segment also procures renewable feedstocks, manages certain regulatory credits, and markets renewable diesel, renewable jet fuel, and other renewable fuels.

Chemicals

The chemicals segment includes Phillips 66's 50% investment in Chevron Phillips Chemical Company, which is engaged in manufacturing and marketing plastics and petrochemicals globally. It is also active in the research and development of emerging energy sources.

Financial Performance

Phillips 66 has demonstrated significant financial activity and performance across its operations.

Key Financial Metrics (As of May 21, 2025)

• Market Capitalization: $45.5 billion

• Trailing Twelve Month Revenue: $138 billion

• EPS (12 months): $4.41

2024 Full Year Performance

• Revenue: $143.15 billion (decrease of -2.88% compared to 2023's $147.40 billion)

• Net Income Attributable to Phillips 66: $2,117 million

• Earnings: $2.11 billion (decrease of -69.92%)

Quarterly Performance Highlights

• Q3 2024: Reported third-quarter earnings of $346 million or $0.82 per share; adjusted earnings of $859 million or $2.04 per share. Returned $1.3 billion to shareholders through dividends and share repurchases.

• Q4 2024: Reported earnings of $8 million for the fourth quarter of 2024 versus $346 million in the third quarter. Adjusted losses for the fourth quarter were $61 million versus earnings of $859 million in the third quarter.

Capital Allocation and Shareholder Returns

In 2024, Phillips 66 generated $4.2 billion in cash from operations, funded capital expenditures and investments of $1.9 billion, and completed acquisitions for $625 million. The company repurchased $3.5 billion of common stock and paid $1.9 billion in dividends.

Phillips 66 has returned a significant $12.5 billion to shareholders through share repurchases and dividends since July 2022, nearing its target of $13 billion to $15 billion.

Strategic Achievements and Future Outlook

Business Transformation

The company achieved its $1.4 billion business transformation cost reduction target ahead of schedule, reflecting strong operational efficiency. Phillips 66 successfully delivered on its strategic priorities first announced in October 2022 and remains committed to leveraging its integrated portfolio to enhance long-term shareholder value. It has announced its next phase of priorities through 2027.

Asset Portfolio Optimization

Phillips 66 exceeded its $3 billion asset disposition target, with agreements to generate $2.7 billion in proceeds. The company successfully integrated DCP Midstream, achieving a $400 million synergy target and enhancing its midstream value chain.

2025-2027 Strategic Priorities

The company plans to focus on operational excellence, targeting an annual clean product yield of greater than 86% and crude oil capacity utilization rates higher than the industry average for 2025-2027. The Midstream segment aims to grow its NGL wellhead-to-market platform, with a budget of $975 million for 2025, including $546 million for growth projects.

Market Position and Global Operations

Phillips 66 markets its products through its own brands such as Phillips 66, Conoco, and 76, as well as JET, Kendall, Red Line, and other private label brands. In Europe, Phillips 66 operates Jet filling stations in Austria, Denmark, Germany, Sweden, and the United Kingdom. The company maintains operations across the US, Europe, Asia, the Middle East, and Africa.

Financial Strength

As of December 31, 2024, the company had $1.7 billion of cash and cash equivalents and $4.6 billion of committed capacity available under credit facilities. Phillips 66 is targeting a reduction in total debt to $17 billion, aiming to maintain financial strength and flexibility while optimizing its asset portfolio.

Phillips 66 remains positioned as a leading integrated downstream energy provider, focusing on operational excellence, strategic asset optimization, and sustainable shareholder returns while navigating the evolving energy landscape.