Phillips 66(US:PSX) Zacks Investment Research·2024-01-31 17:30Core Insights - Phillips 66 reported fourth-quarter 2023 adjusted earnings of $3.09 per share, exceeding the Zacks Consensus Estimate of $2.37, but lower than the $4 from the same quarter last year [1] - Total quarterly revenues reached $38.74 billion, surpassing the Zacks Consensus Estimate of $34.3 billion, yet declining from $40.91 billion in the prior year [1] - The better-than-expected results were mainly due to decreased costs and expenses, although this was partially offset by lower refining margins globally [1] Segmental Results - Midstream: Adjusted pre-tax earnings were $754 million, an increase from $674 million in the year-ago quarter, and exceeded the estimate of $410 million [2] - Chemicals: Adjusted pre-tax earnings rose to $106 million from $52 million in the prior-year quarter, surpassing the estimate of $88.8 million [3] - Refining: Adjusted pre-tax earnings fell to $797 million from $1,626 million in the year-ago quarter, missing the projection of $977.4 million. Realized refining margins worldwide decreased to $14.41 per barrel from $19.73 a year ago [4] - Marketing and Specialties: Pre-tax earnings declined to $432 million from $539 million in the year-ago quarter, with realized marketing fuel margins in the U.S. dropping to $1.62 per barrel from $2.05 [5] Costs and Expenses - Total costs and expenses in the fourth quarter decreased to $37 billion from $38.36 billion in the previous year, exceeding the projection of $31.84 billion [6] Financial Condition - Phillips 66 generated $2.19 billion of net cash from operations, down from $4.75 billion a year ago. Capital expenditures totaled $634 million, with dividends paid out amounting to $457 million [7] - As of December 31, 2023, cash and cash equivalents were $3.3 billion, and total debt stood at $19.4 billion, reflecting a net debt to capitalization of 34% [7]