Phillips 66 (PSX) Q2 Earnings Beat, Revenues Increase Y/Y

Core Insights - Phillips 66 reported second-quarter 2024 adjusted earnings of $2.31 per share, exceeding the Zacks Consensus Estimate of $2.12, but lower than the previous year's $3.87 [1] - Total revenues for the quarter reached $38.9 billion, surpassing the Zacks Consensus Estimate of $32 billion and improving from $35.7 billion in the same quarter last year [1] Segmental Results - Midstream: Adjusted pre-tax earnings increased to $753 million from $642 million year-over-year, exceeding the estimate of $604.6 million, driven by higher NGL volumes and margins [2] - Chemicals: Adjusted pre-tax earnings rose to $222 million from $192 million in the prior-year quarter, surpassing the estimate of $155.5 million, mainly due to increased margins [3] - Refining: Adjusted pre-tax earnings fell to $302 million from $1.19 billion year-over-year, missing the projection of $744.1 million, primarily due to lower market crack spreads [4] - Marketing & Specialties: Pre-tax earnings decreased to $415 million from $533 million in the previous year, falling short of the estimate of $492.1 million [5] Costs & Expenses - Total costs and expenses increased to $37.6 billion from $33.5 billion in the year-ago period, exceeding the projected $30 billion [6] Financial Condition - The company generated $2.1 billion in net cash from operations, significantly higher than $955 million a year ago, with capital expenditures totaling $367 million and dividends paid out amounting to $485 million [7] - As of June 30, 2024, cash and cash equivalents stood at $2.4 billion, with total debt at $19.9 billion, resulting in a debt-to-capitalization ratio of 43.4% [7]