Phillips 66 (PSX) investor relations material

Executive summary

• Second-quarter 2025 earnings were $877 million ($2.15/share); adjusted earnings reached $973 million ($2.38/share), reflecting strong operational execution and strategic investments.

• Refining operated at 98% utilization, with a record 86–87% clean product yield, the highest since 2018.

• Midstream and Marketing & Specialties delivered strong contributions, supporting consistent shareholder returns of $906 million in Q2 2025.

• Major transactions included the $2.2B Coastal Bend acquisition and the announced sale of a 65% interest in Germany and Austria retail marketing.

• Added three new Board members, enhancing governance and strategic oversight.

Financial highlights

• Q2 2025 net income was $877 million; adjusted earnings were $973 million, both including $239 million pre-tax accelerated depreciation for the planned Los Angeles Refinery closure.

• Operating cash flow was $845 million; $1.9 billion excluding working capital.

• Shareholder distributions totaled $906 million, including $419 million in share repurchases and $487 million in dividends.

• Net debt-to-capital ratio stood at 41–42% at quarter-end.

• Capital expenditures and investments totaled $587 million in Q2 2025.

Outlook and guidance

• Targeting $4.5 billion annual EBITDA in Midstream by 2027 and >$1 billion mid-cycle adjusted EBITDA growth in Midstream and Chemicals.

• 3Q 2025 guidance: global O&P utilization in mid-90s, refining crude utilization in low to mid-90s, and turnaround expense of $50–$60 million.

• Reduced full-year turnaround guidance by $100 million to $400–$450 million.

• Anticipate $1.5–$1.6 billion in cash proceeds from Germany/Austria retail marketing sale in Q4 2025.

• Plans to reduce total debt to $17 billion and maintain a competitive, growing dividend.