Phillips 66 Reports Third- Quarter 2021 Financial Results

Phillips 66 Reports Third- Quarter 2021 Financial Results

Phillips 66 (NYSE PSX), a diversified energy manufacturing and logistics company, announces third- quarter 2021 earnings of$ 402 million, compared with earnings of$ 296 million in the alternate quarter of 2021. Banning special particulars of$1.0 billion, primarily an impairment of the Alliance Refinery following Hurricane Ida, the company had acclimated earnings of$1.4 billion in the third quarter, compared with alternate- quarter acclimated earnings of$ 329 million.

“ In the third quarter, we delivered a significant enhancement in earnings and cash generation,” said Greg Garland, Chairman and CEO of Phillips 66. “ Our Midstream, Chemicals, and Marketing and Specialties businesses continued to deliver strong results. In Refining, we saw a notable enhancement in realized perimeters, operated well and navigated hurricane- related challenges.

“ So far this time we’ve reduced debt by$ 1 billion, further strengthening our balance distance. We lately increased the tip, reflecting our confidence in the company’s strategy and cash inflow recovery, as well as our commitment to a secure, competitive and growing tip. We’ll continue to concentrate on debt prepayment, chastened capital allocation, and delivering seductive shareholder returns.

“ Before this week we blazoned an agreement to buy-in Phillips 66 Mates. The sale simplifies our structure and asset power across our intertwined portfolio. We believe both PSX shareholders and PSXP unitholders will profit from the combination.

“ In addition, we lately blazoned our hothouse gas emigrations intensity reduction targets, demonstrating our commitment to sustainably furnishing energy moment and in the future. Our targets are measurable, attainable and meaningful. We believe achieving the targets will drive value for shareholders and other stakeholders. We’re expanding our presence in the battery force chain through our investment in NOVONIX and blazoned a collaboration with Plug Power to identify and advance green hydrogen openings. We’ll continue to concentrate on lower- carbon enterprise that induce strong returns.”

Midstream

Millions of Bones

Pre-Tax Income

AcclimatedPre-Tax Income

Q3 2021

Q2 2021

Q3 2021

Q2 2021

Transportation

$

244

224

254

224

NGL and Other

354

79

357

83

DCP Midstream

31

9

31

9

Midstream

$

629

312

642

316

Midstream third- quarter 2021pre-tax income was$ 629 million, compared with$ 312 million in the alternate quarter of 2021. Midstream results in the third quarter included a$ 10 million impairment and$ 3 million of pension agreement expenditure. Alternate- quarter results included$ 4 million of pension agreement expenditure.

Transportation third- quarter acclimatedpre-tax income of$ 254 million was$ 30 million advanced than the alternate quarter, primarily due to advanced equity earnings from the Bakken and Gray Oak channels.

NGL and Other acclimatedpre-tax income was$ 357 million in the third quarter, compared with$ 83 million in the alternate quarter. The increase was primarily due to a$ 224 million unrealized investment gain related to NOVONIX, as well as force impacts.

The company’s equity investment in DCP Midstream, LLC generated third- quarter acclimatedpre-tax income of$ 31 million, a$ 22 million increase from the previous quarter. The increase was substantially driven by bettered perimeters and hedging impacts.

Chemicals

Millions of Bones

Pre-Tax Income ( Loss)

AcclimatedPre-Tax Income
( Loss)

Q3 2021

Q2 2021

Q3 2021

Q2 2021
Olefins and Polyolefins

$

611

562

613

593

Specialties, Aromatics and Styrenics
.
36

79

37

82

Other

(16)

(18)

(16)

(18)

Chemicals

$

631

623

634

657

The Chemicals member reflects Phillips 66’s equity investment in Chevron Phillips Chemical Company LLC (CPChem). Chemicals third- quarter 2021pre-tax income was$ 631 million, compared with$ 623 million in the alternate quarter of 2021. Chemicals results in the third quarter included a$ 2 million reduction to equity earnings for pension agreement expenditure and$ 1 million of conservation and form costs related to Hurricane Ida. Alternate- quarter results included an$ 18 million reduction to equity earnings for pension agreement expenditure and$ 16 million of downtime- storm- related conservation and form costs.

CPChem’s Olefins and Polyolefins ( O&P) business contributed$ 613 million of acclimatedpre-tax income in the third quarter, compared with$ 593 million in the alternate quarter. The$ 20 million increase was primarily due to advanced polyethylene deals volumes driven by continued strong demand, incompletely neutralize by advanced mileage costs. Global O&P application was 102 for the quarter.

CPChem’s Specialties, Aromatics and Styrenics ( SA&S) business contributed third- quarter acclimatedpre-tax income of$ 37 million, compared with$ 82 million in the alternate quarter. The drop was driven by lower perimeters.

Refining

Millions of Bones

Pre-Tax ( Loss)

AcclimatedPre-Tax Income
( Loss)

Q3 2021

Q2 2021

Q3 2021

Q2 2021

Refining

$

()
.
(729)

184

(706)

Refining had a third- quarter 2021pre-tax loss of$1.1 billion, compared with apre-tax loss of$ 729 million in the alternate quarter of 2021. Refining results in the third quarter included a$1.3 billion impairment of the Alliance Refinery, as well as$ 12 million of pension agreement expenditure and$ 10 million of hurricane- related costs. Alternate- quarter results included$ 20 million of pension agreement expenditure and$ 3 million of downtime- storm- related costs.

Refining had acclimatedpre-tax income of$ 184 million in the third quarter, compared with an acclimatedpre-tax loss of$ 706 million in the alternate quarter. The enhancement was primarily due to advanced realized perimeters. Third- quarter realized perimeters were$8.57 per barrel, over from$3.92 per barrel substantially due to advanced request crack spreads, lower RIN costs and bettered product differentials.

Pre-tax reversal costs for the third quarter were$ 81 million, compared with alternate- quarter costs of$ 118 million. Crude application rate was 86 in the third quarter, down from 88 in the alternate quarter due to hurricane impacts. Clean product yield was 84 in the third quarter, over 2 from the alternate quarter.

Marketing and Specialties

Millions of Bones

Pre-Tax Income

AcclimatedPre-Tax Income

Q3 2021

Q2 2021

Q3 2021

Q2 2021

Marketing and Other

$

452

389

454

392

Specialties

93

87

93

87

Marketing and Specialties

$

545

476

547

479