Phillips 66(PSX) - 2025 Q4 - Annual Results

Revenue and Income - Total revenues for 2025 YTD reached $136,560 million, a decrease of 4.6% compared to $145,496 million in 2024 YTD[1] - Net income attributable to Phillips 66 for 2025 YTD was $4,403 million, down from $2,117 million in 2024 YTD, reflecting a significant increase of 107.5%[5] - Basic earnings per share for 2025 YTD was $10.82, compared to $5.01 in 2024 YTD, indicating a growth of 116.3%[1] - Total adjusted net income attributable to Phillips 66 for 2025 was $2.632 billion, compared to $2.604 billion in 2024, reflecting a slight increase[8] - Income before income taxes for 2025 YTD reached $4,500 million, a significant increase from $1,011 million in 2024 YTD[45] Expenses and Costs - Operating expenses for 2025 YTD totaled $6,423 million, a slight increase from $5,939 million in 2024 YTD, representing a rise of 8.1%[1] - The company’s total costs and expenses for 2025 YTD were $131,140 million, a decrease of 8.2% from $142,821 million in 2024 YTD[1] - Selling, general and administrative expenses for 2025 amounted to $1.088 billion, a decrease from $1.434 billion in 2024, representing a reduction of approximately 24.1%[65] Taxation - The effective tax rate for 2025 YTD was 16.5%, compared to 18.7% in 2024 YTD, indicating a decrease in the tax burden[3] - The effective tax rate on taxable U.S.-based special items was approximately 24%[15] - Adjusted effective tax rate for 2025 was 22.9%, up from 20.5% in 2024, indicating an increase in the adjusted tax rate[67] Segment Performance - The refining segment reported a loss of $274 million for 2025 YTD, an improvement from a loss of $365 million in 2024 YTD[5] - Marketing and Specialties segment generated $4,500 million in income for 2025 YTD, a substantial increase from $1,011 million in 2024 YTD, reflecting a growth of 344.4%[5] - Adjusted EBITDA for the Midstream segment in 2025 reached $3.773 billion, up from $3.662 billion in 2024, indicating a growth of approximately 3%[11] - The refining segment reported an adjusted EBITDA of $2.338 billion for 2025, a significant increase from $966 million in 2024[11] - The Chemicals segment's adjusted EBITDA for 2025 was $845 million, down from $1.348 billion in 2024, indicating a decline of approximately 37%[11] Cash Flow and Financing - Cash flows from operating activities for Q3 2025 were $187 million, with a year-to-date total of $2.752 billion[19] - The total net cash used in financing activities for Q3 2025 was $2.049 billion, reflecting significant debt repayments[19] - The company reported a cash and cash equivalents balance of $1.489 billion at the end of Q3 2025[20] - Total debt as of the end of 2025 was $19,716 million, a decrease from $21,755 million in 2024, indicating a reduction of approximately 9.5%[51] Asset Dispositions and Impairments - The company reported a net gain on dispositions of $2,984 million for 2025 YTD, compared to $321 million in 2024 YTD, showing a significant increase[1] - The company recorded a net gain on asset dispositions of $(68) million in Q1 2025, compared to a pre-tax impairment of $79 million in Q4 2025[29] - The total impairments recognized in 2025 reached $1.060 billion, with significant impacts in Q2 and Q3[19] - Special items included in income (loss) before income taxes totaled $1.841 billion for 2025, compared to a loss of $710 million in 2024, indicating significant fluctuations in special items[13] Production and Sales - Total refined products sales in the U.S. for Q1 2025 were 1,828 MB/D, up from 1,926 MB/D in Q1 2024, reflecting a 5% increase[45] - Total renewable fuels produced in Q1 2025 was 44 MB/D, a decrease from 63 MB/D in Q1 2024, showing a decline of 30%[48] - The worldwide total production, including proportional share of equity affiliates, was 1,871 MB/D year-to-date[43] Market Conditions - The Henry Hub natural gas price for Q1 2025 was $4.27 per MMBtu, significantly higher than $2.41 per MMBtu in Q1 2024, representing a 77.6% increase[26] - WTI crude oil price averaged $64.89 per barrel for the year-to-date, while Brent averaged $69.06[43] Legal and Regulatory Matters - The company reported a legal accrual of $605 million in Q3 2025, which was a notable increase from $262 million in Q2 2025[46] - The company incurred special items including a legal settlement of $(181) million and pending claims of $(123) million[58]