Phillips 66 (PSX) investor relations material

Executive summary

• Reported and adjusted Q2 2026 earnings were $3.8 billion ($9.55 per share reported, $9.41 adjusted), reflecting strong operational performance, disciplined capital allocation, and record NGL fractionation and LPG export volumes.

• Net income attributable to shareholders rose to $3.8B for Q2 2026, up from $0.9B in the prior-year period, driven by higher refining margins and regulatory credits in renewable fuels.

• Achieved 96% refining utilization and 86% clean product yield, with industry-leading safety performance recognized by API and AFPM awards.

• Strategic priorities include operational excellence, disciplined growth in Midstream and Chemicals, financial strength, and enhanced shareholder returns, with a $10B increase in share repurchase authorization.

• Completed major turnarounds at Wood River and Humber refineries, and full production at Dos Picos II gas plant.

Financial highlights

• Operating cash flow (excluding working capital) reached $4.3 billion in Q2 2026; cash flow from operations was $7.3 billion.

• Capital expenditures and investments totaled $726 million; $887 million returned to shareholders via buybacks and $508 million in dividends.

• Net debt reduced by $6.6 billion to $16.5 billion; total debt at $20.6 billion; debt-to-capital ratio improved to 39%, net debt-to-capital ratio at 33%.

• Sales and other operating revenues increased 53% year-over-year in Q2 2026 to $51B, mainly due to higher prices for refined products and crude oil.

• Adjusted EBITDA reached $5.9 billion, up from $1.2 billion in Q1 2026.

Outlook and guidance

• Net debt expected to fall below $16 billion by year-end 2026; targeting total debt reduction to $17B and a debt-to-capital ratio improvement by end of 2027.

• Share repurchases to increase in H2 2026; committed to returning >50% of net operating cash flow to shareholders.

• Q3 2026 guidance: Chemicals O&P utilization in low 90s, Refining crude utilization in mid-90s, turnaround expense $100–$120 million, Corporate & Other costs $325–$350 million.

• Capital expenditures for 2026 are budgeted at $2.4B, with $1.3B allocated to growth, mainly in Midstream.

• Midstream EBITDA run rate target of $4.5 billion by 2027; organic growth projects on track.