Phillips 66 (PSX) Q2 2024 earnings summary

Executive summary

• Second-quarter 2024 adjusted earnings were $984 million ($2.31 per share), with net income of $1.0 billion ($2.38 per share), reflecting strong operational execution and cost reductions.

• Returned $1.3 billion to shareholders in Q2, totaling $11.2 billion since July 2022, progressing toward a $13–$15 billion target by year-end through share repurchases and dividends.

• Achieved highest crude utilization in over five years at 98%, with Rodeo Renewable Energy Complex reaching full processing rates of 50,000 barrels/day.

• Closed acquisition of Pinnacle Midstream, expanding Permian Basin operations and fee-based, long-term contract earnings.

• $1.3 billion run-rate business transformation savings and over $300 million DCP synergies as of June 30.

Financial highlights

• Adjusted EBITDA was $2.2 billion in Q2 2024; cash flow from operations was $2.1 billion.

• Net income attributable to shareholders was $1.0 billion for Q2 2024; diluted EPS was $2.38.

• Net debt-to-capital ratio improved to 36% as of June 30, 2024; total debt-to-capital ratio was 40%.

• Capital expenditures and investments totaled $367 million in Q2 2024.

• $1.1 billion generated from asset dispositions toward a $3 billion target.

Outlook and guidance

• Expect global O&P utilization in chemicals to be in the mid-90s for Q3.

• Anticipate worldwide crude utilization in refining to be in the low 90s for Q3, with turnaround expense of $140–$160 million.

• Full-year refining turnaround expense guidance reduced to $500–$530 million.

• RREC is expected to begin producing sustainable aviation fuel in Q3 2024, with flexibility for up to 10,000 barrels/day.

• Confident in achieving $14 billion mid-cycle EBITDA by 2025, assuming mid-cycle conditions.