Phillips 66(US:PSX)2024-10-29 19:45Financial 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]