Core Viewpoint - Phillips 66 has effectively returned value to shareholders since its spinoff from ConocoPhillips in 2012, distributing $43 billion in cash, exceeding 200% of its initial market capitalization [1] Group 1: Cash Flow and Business Model - Phillips 66 operates a diversified business model that includes downstream services, midstream facilities, chemicals, and renewable fuels, allowing for higher returns and lower volatility compared to peers [2] - The company has focused on expanding non-refining operations, aiming to grow annual earnings capacity by $4 billion to $14 billion by 2025, which is expected to increase cash flow from operations by over 50% from $7 billion to over $10 billion [3] Group 2: Shareholder Returns - The company set a target of $13 billion to $15 billion in cumulative cash distributions to shareholders by the end of 2023, which would bring total distributions since 2012 to $43 billion at the low end [4] - Phillips 66 has consistently increased its dividend since 2012, achieving a 16% compound annual growth rate, including a 10% increase earlier this year, and has repurchased 34% of its outstanding shares [5] Group 3: Future Outlook - In 2025, Phillips 66 expects to achieve $14 billion in earnings and over $10 billion in cash flow from operations, with plans to reinvest approximately $2.1 billion into sustaining and growing operations [6][7] - The company anticipates generating more free cash flow in 2024 due to a slightly reduced capital budget and has exceeded its $3 billion target for non-core asset sales, enhancing its balance sheet [8] - With rising cash flow and a strengthened balance sheet, Phillips 66 is positioned to return over $5 billion in cash to shareholders in 2024, aiming to distribute more than 50% of its cash flow from operations [9] Group 4: Investment Appeal - The strategy of diversifying and investing in downstream operations has resulted in significant earnings growth and reduced cash flow volatility, making Phillips 66 an attractive option for investors seeking lower-risk exposure in the energy sector [11]

Core Viewpoint - Phillips 66 has partnered with NextEra Energy to establish a solar facility that will power its Rodeo refinery, significantly enhancing its renewable energy capabilities and reducing carbon emissions [1][3]. Group 1: Overview of the Solar Facility - The new solar facility will have a power generation capacity of 30.2 megawatts (MW) and is expected to be operational by January 2025, gradually increasing its capacity during the first quarter [2]. - The facility will be constructed on 88 acres of land owned by Phillips 66 and will feature over 70,000 solar modules, producing approximately 60,000 megawatt-hours (MWh) of electricity annually [2]. Group 2: Renewable Energy Impact on Refinery Operations - The solar facility is projected to reduce the Rodeo refinery's grid power demand by nearly 50%, decreasing its reliance on external power sources [3]. - It is anticipated that the facility will help cut carbon dioxide emissions by approximately 33,000 metric tons per year starting in the January quarter of 2025 [3]. Group 3: Transition to Renewable Fuels - Earlier this year, Phillips 66 converted its Rodeo refinery into a renewable fuels facility, ceasing crude oil processing and focusing on producing renewable diesel and sustainable aviation fuels (SAF) [4]. - The facility has reached full production capacity, generating nearly 50,000 barrels of renewable diesel and SAF per day [4].

Core Viewpoint - Phillips 66 reported mixed results in its Q3 2024 earnings, with adjusted earnings per share beating estimates but total revenues declining year-over-year. The company faces challenges in its refining segment due to lower realized margins, while other segments showed improvement in earnings [2][3]. Financial Performance - Adjusted earnings for Q3 2024 were $2.04 per share, exceeding the Zacks Consensus Estimate of $1.63, but down from $4.63 in the same quarter last year [2]. - Total revenues for the quarter were $36.4 billion, surpassing the Zacks Consensus Estimate of $32 billion, but down from $40.3 billion year-over-year [2]. Segmental Results - **Midstream**: Adjusted pre-tax earnings increased to $672 million from $581 million year-over-year, driven by higher export margins [4]. - **Chemicals**: Adjusted pre-tax earnings rose to $342 million from $104 million in the prior-year quarter, attributed to increased margins and lower costs [5]. - **Refining**: Reported an adjusted pre-tax loss of $67 million, a significant decline from earnings of $1.74 billion in the year-ago quarter, primarily due to lower realized margins [6]. - **Marketing & Specialties**: Pre-tax earnings decreased to $583 million from $605 million year-over-year, with U.S. marketing fuel margins declining [8]. - **Renewable Fuels**: Adjusted pre-tax loss widened to $116 million from earnings of $22 million in the prior-year quarter, mainly due to lower realized margins [9]. Costs and Expenses - Total costs and expenses decreased to $35.75 billion from $37.51 billion in the year-ago period, indicating effective cost management [10]. Financial Condition - The company generated $1.13 billion in net cash from operations, down from $2.69 billion a year ago. Capital expenditures totaled $358 million, and dividends paid were $477 million [11]. - As of September 30, 2024, cash and cash equivalents stood at $1.6 billion, with total debt at $19.9 billion, resulting in a debt-to-capitalization ratio of 39.6% [11]. Market Outlook - Estimates for Phillips 66 have trended downward, with a consensus estimate shift of -34.05% [12][13]. - The company holds a Zacks Rank 3 (Hold), indicating expectations for an in-line return in the coming months [15]. Industry Comparison - Phillips 66 is part of the Zacks Oil and Gas - Refining and Marketing industry, where competitor Valero Energy reported a revenue decline of 14.4% year-over-year [16].

PHILLIPS 66 THIRD-QUARTER CONFERENCE CALL OCTOBER 29, 2024 Bayway Refinery LINDEN, NJ Cautionary Statement This news release contains forward-looking statements within the meaning of the federal securities laws relating to Phillips 66's operations, strategy and performance. Words such as "anticipated," "estimated," "expected," "planned," "scheduled," "targeted," "believe," "continue," "intend," "will," "would," "objective," "goal," "project," "efforts," "strategies" and similar expressions that convey the p ...

Financial Data and Key Metrics Changes - Earnings for Q3 2024 were reported at $346 million, with adjusted earnings of $859 million or $2.04 per share, reflecting a decrease of $125 million compared to the prior quarter [18] - Operating cash flow generated was $1.1 billion, with $1.3 billion returned to shareholders [18] - Cost reductions of approximately $700 million were realized through the first nine months of the year, including $200 million in logistics spend [16][17] Business Line Data and Key Metrics Changes - Midstream adjusted EBITDA increased to $3.7 billion from $2.1 billion three years ago, exceeding 2024 guidance despite weaker natural gas and NGL prices [12] - Chemicals results improved due to higher polyethylene chain margins and lower costs, while refining results decreased primarily due to weaker crack spreads [20] - Marketing and specialties saw higher results due to seasonally stronger margins, while renewable fuels experienced a decrease in realized margins [22] Market Data and Key Metrics Changes - The Central Corridor operation reported a $65 million increase quarter-over-quarter, attributed to higher margins and favorable inventory hedges [58] - The West Coast refining market faced challenges with a capture rate falling to 63%, driven by weaker market cracks and feedstock advantages [66] Company Strategy and Development Direction - The company is focused on ongoing portfolio optimization, with asset dispositions expected to exceed the $3 billion target, using proceeds for shareholder returns and debt reduction [7] - Plans to cease operations at the Los Angeles refinery by Q4 2025 were announced, influenced by declining crude production and market dynamics [13][14] - The company aims to achieve a mid-cycle earnings capacity of $14 billion by the end of 2025, with a focus on enhancing refining profitability through small capital projects [81][85] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenging refining market and emphasized a long-term analysis behind the decision to idle the Los Angeles refinery [26][28] - The outlook for chemicals remains positive, with expectations of continued demand growth and improved margins [44] - Management expressed confidence in achieving a stronger balance sheet and cash return objectives despite current market pressures [78] Other Important Information - The company achieved its $1.4 billion business transformation cost reduction target ahead of schedule, reflecting a permanent shift in operations [8] - The Rodeo Renewable Energy Complex produced 44,000 barrels per day of renewable fuels during Q3 [22] Q&A Session Summary Question: Decision to shutter the Los Angeles refinery - Management stated that the decision was based on long-term market pressures and regulatory changes, not a knee-jerk reaction [26][28] Question: Outlook for the balance sheet - Management expects to finish the year with a stronger cash or net debt position, aided by asset dispositions [30][32] Question: Impact of inflation on cost reductions - Management highlighted that while inflation has been a headwind, they expect lesser pressures going forward [38] Question: Refining earnings outlook - Management acknowledged ongoing efforts to enhance refining profitability and capture value from the market [48][49] Question: Renewable diesel margins outlook - Management anticipates strengthening margins due to lower feedstock prices and market dynamics [56] Question: Performance in the Central Corridor - Management attributed strong performance to higher margins and favorable inventory hedges [59] Question: Cash return strategy - Management reiterated a commitment to returning 50% or more of operating cash flow to shareholders [96][100]

Financial Performance - In Q3 2024, Phillips 66 reported earnings of $346 million, a significant decrease from $2.1 billion in Q3 2023[165] - Cash generated from operating activities was $3 billion for the first nine months of 2024, down from $4.8 billion in the same period of 2023, primarily due to lower earnings[230] - The company reported an income before income taxes of $410 million for the nine months ended September 30, 2024[305] - For the three months ended September 30, 2024, the U.S. income (loss) before income taxes was $(262) million, compared to $435 million for the same period in 2023[310] - For the nine months ended September 30, 2024, the U.S. income before income taxes was $203 million, a decrease from $978 million in the same period in 2023[312] - Net income for the Obligor Group for the nine months ended September 30, 2024, was $189 million[297] Segment Performance - The Midstream segment reported income before income taxes of $644 million, down from $724 million in Q3 2023[181] - The Chemicals segment saw a substantial increase in income before income taxes to $342 million, compared to $104 million in Q3 2023[181] - The Refining segment experienced a loss of $108 million, a decline from a profit of $1.7 billion in Q3 2023, primarily due to lower market crack spreads[181] - Transportation business results decreased by $132 million (38.5%) for the three months ended September 30, 2024, but increased by $69 million (5.5%) for the nine months ended September 30, 2024[198] - NGL business results increased by $52 million (8.5%) for the three months ended September 30, 2024, but decreased by $164 million (17.8%) for the nine months ended September 30, 2024[200] - Chemicals segment results increased by $238 million (12.5%) and $275 million (10.5%) for the three and nine months ended September 30, 2024, respectively, due to improved margins and increased volumes[205] - Refining segment results decreased by $1,820 million (106.3%) and $4,071 million (91%) for the three and nine months ended September 30, 2024, respectively, primarily due to lower realized margins[211] Market Conditions - The composite 3:2:1 market crack spread averaged $16.50 per barrel in Q3 2024, down from $36.06 per barrel in Q3 2023[176] - The average U.S. wholesale price for gasoline was $2.69 per gallon for the three months ended September 30, 2024, compared to $3.25 in 2023[215] - The company anticipates potential fluctuations in market conditions and demand impacting prices and margins in the future[315] Capital Expenditures and Investments - Cash provided by operating activities was $1.1 billion, with capital expenditures and investments totaling $358 million[165] - Total capital expenditures and investments for the first nine months of 2024 amounted to $1.353 billion, a decrease from $1.521 billion in the same period of 2023[272] - Capital spending in the Midstream segment included funding for natural gas gathering and processing operations in the Permian Basin and expansion of gathering systems in the DJ Basin and Permian Basin[273] - CPChem's capital expenditures and investments were $1.2 billion for the first nine months of 2024, primarily for petrochemical projects on the U.S. Gulf Coast and in the Middle East[274] - Capital spending for the Refining segment focused on enhancing the yield of higher-value products and sustaining facility reliability, including installation of facilities to improve market capture[275] - Renewable Fuels segment capital spending was related to constructing facilities for renewable fuel production[278] Debt and Financial Position - Total debt increased to $19.998 billion as of September 30, 2024, compared to $19.359 billion at the end of 2023[229] - Cash and cash equivalents decreased to $1.637 billion as of September 30, 2024, from $3.323 billion at the end of 2023[229] - At September 30, 2024, total debt was $20 billion, with a total debt-to-capital ratio of 40%[265] - The company issued $1.8 billion in senior unsecured notes on September 9, 2024, with various maturities and interest rates[234] - Long-term debt rose from $13,459 million to $14,960 million, reflecting an increase of approximately 11.1%[298] - Total equity shifted from $2,874 million to a negative $3,362 million, indicating a significant decline in equity position[298] Shareholder Returns - The company completed the acquisition of Pinnacle Midstream for $567 million and repurchased $800 million of common stock[165] - Phillips 66 has distributed $12.5 billion through share repurchases and dividends since July 2022, on track to reach a target of $13 billion to $15 billion by year-end 2024[167] - The company repurchased $2.8 billion of its common stock and paid $1.4 billion in dividends during the first nine months of 2024[229] - A quarterly cash dividend of $1.15 per common share was declared on July 10, 2024, and again on October 11, 2024[269] Operational Statistics - Worldwide refining crude oil capacity utilization rate was 94% and 95% for the three and nine months ended September 30, 2024, compared to 95% and 93% for the same periods in 2023[212] - Operating statistics for the Central Corridor showed a capacity utilization of 100% for the three months ended September 30, 2024[210] - Total fuel sales volumes for the U.S. reached 182,823 thousand barrels, an increase from 179,432 thousand barrels in the previous year[310] - Total fuel sales volumes for the U.S. in the nine months reached 550,490 thousand barrels, compared to 508,443 thousand barrels in the previous year[312] Legal and Regulatory Matters - M&S segment sales decreased by $627 million and $742 million for the three and nine months ended September 30, 2024, primarily due to a $605 million litigation accrual related to Propel Fuels[217] - The company reported a legal settlement expense of $(59) million for the nine months ended September 30, 2024[312]

U.S. stocks traded mostly higher toward the end of trading, with the Nasdaq Composite gaining more than 150 points on Tuesday. The Dow traded down 0.11% to 42,341.64 while the NASDAQ rose 0.85% to 18,724.32. The S&P 500 also rose, gaining, 0.35% to 5,843.93. Check This Out: Jim Cramer: 'Avoid' This Consumer Cyclical Stock, Buy Lam Research Leading and Lagging Sectors Communication services shares rose by 1.5% on Tuesday. In trading on Tuesday, utilities shares fell by 1.8%. Top Headline Phillips 66 PSX shar ...

Phillips 66 (PSX) reported third-quarter 2024 adjusted earnings of $2.04 per share, which beat the Zacks Consensus Estimate of $1.63. However, the bottom line was lower than the year-ago quarter's level of $4.63. Total quarterly revenues of $36.4 billion beat the Zacks Consensus Estimate of $32 billion. However, the top line declined from the year-ago level of $40.3 billion. The better-than-expected quarterly results can be primarily attributed to cost reduction and the achievement of Midstream synergy targ ...

Exhibit 99.2 | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |------------------------------------------------------|-----------|-------------|------------------------------|----------------------------------------|--------------------------------------|------------------------------------------------|--------------------------|-------------|-------------|-------------| | https://fi | 1st | 2nd | Phillips 66 \n2024 \n3rd | Earnings CONSOLIDATED \nMillions \n4th | Release INCOME \n of Dol ...

Phillips 66 (PSX) is set to report third-quarter 2024 earnings on Oct. 29, before the opening bell.Let us delve into the factors that are likely to have affected this diversified energy player’s quarterly performance. However, before that, it would be worth reviewing PSX’s performance in the previous quarter.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.Highlights of Q2 Earnings & Surprise HistoryIn the last reported quarter, the company’s earnings of $2.31 per share beat the Zacks ...