Adjusted earnings of $913 million or $1.63 per share
Highlights
Fourth Quarter
-
Advanced Midstream growth plans with formation of transportation joint
ventures
-
Port Arthur ethylene plant resumed operations
-
Solid operating performance enabled 89 percent market capture in
Refining
-
Strong earnings contribution from Marketing and Specialties
Full-Year 2014
-
Record Chemicals earnings
-
Earnings of $4.8 billion; adjusted earnings of $3.8 billion
-
Return on capital employed (ROCE) of 17 percent, and adjusted ROCE of
14 percent
-
Returned $4.7 billion of capital to shareholders
HOUSTON--(BUSINESS WIRE)--
Phillips 66 (NYSE: PSX), an energy manufacturing and logistics company,
announces fourth-quarter earnings of $1.1 billion, compared with
earnings of $1.2 billion in the third quarter of 2014. Adjusted
earnings, excluding special items of $234 million, were $913 million in
the fourth quarter, compared with adjusted earnings of $1.1 billion in
the third quarter of 2014.
"Our solid fourth quarter was the result of our diversified asset
portfolio and operational excellence, even as commodity prices
declined," said Greg Garland, chairman and CEO of Phillips 66. "During
the quarter, we generated more than $1 billion in cash flow and returned
over $800 million of capital to shareholders, while continuing to fund
value-enhancing growth projects."
"We are making prudent capital allocation decisions to drive Phillips
66's continued success, and the recently announced 2015 capital budget
underscores our commitment to value creation. Investments in Midstream
and Chemicals should result in more consistent earnings and a higher
valuation. Our strong balance sheet and financial flexibility allow us
to maintain a disciplined approach to reinvestment and distributions
throughout the commodity price cycle," said Garland.
Midstream
|
|
|
|
|
|
|
Millions of Dollars
|
|
|
|
|
|
|
|
|
2014 Earnings
|
|
|
2014 Adjusted Earnings
|
|
|
|
|
|
|
|
|
Third
Quarter
|
|
Fourth
Quarter
|
|
|
Third
Quarter
|
|
Fourth
Quarter
|
|
|
|
|
|
Transportation
|
|
|
$
|
58
|
|
53
|
|
|
|
58
|
|
53
|
|
|
|
|
|
|
DCP Midstream
|
|
|
|
31
|
|
(12
|
)
|
|
|
31
|
|
(11
|
)
|
|
|
|
|
|
NGL
|
|
|
|
26
|
|
55
|
|
|
|
26
|
|
55
|
|
|
|
|
|
|
Midstream
|
|
|
$
|
115
|
|
96
|
|
|
|
115
|
|
97
|
|
|
Midstream adjusted earnings were $97 million in the fourth quarter,
compared with earnings of $115 million in the third quarter of 2014.
Phillips 66’s Transportation business generated earnings of $53 million
during the fourth quarter. The $5 million decrease was primarily due to
the write-off of a deferred tax asset, partially offset by improved
throughput volumes in the fourth quarter. Phillips 66 Partners LP
contributed $26 million to Transportation's fourth-quarter earnings, an
increase of $4 million mainly due to increased throughput volumes and
new fees from the recently acquired Bayway and Ferndale rail racks.
During the fourth quarter, the company’s equity investment in DCP
Midstream, LLC had an adjusted loss of $11 million. The $42 million
decrease was largely driven by a decline in natural gas liquids and
crude prices.
Earnings from the NGL business were $55 million during the quarter. The
$29 million increase was related to improved margins on seasonal propane
and butane storage activities, partially offset by Midstream project
development costs.
Chemicals
|
|
|
|
|
|
|
Millions of Dollars
|
|
|
|
|
|
|
|
|
2014 Earnings
|
|
|
2014 Adjusted Earnings
|
|
|
|
|
|
|
|
|
Third
Quarter
|
|
Fourth
Quarter
|
|
|
Third
Quarter
|
|
Fourth
Quarter
|
|
|
|
|
|
Olefins and Polyolefins (O&P)
|
|
|
$
|
254
|
|
|
247
|
|
|
|
259
|
|
|
248
|
|
|
|
|
|
|
Specialties, Aromatics and Styrenics (SA&S)
|
|
|
|
(18
|
)
|
|
25
|
|
|
|
46
|
|
|
27
|
|
|
|
|
|
|
Other
|
|
|
|
(6
|
)
|
|
(5
|
)
|
|
|
(6
|
)
|
|
(5
|
)
|
|
|
|
|
|
Chemicals
|
|
|
$
|
230
|
|
|
267
|
|
|
|
299
|
|
|
270
|
|
|
The Chemicals segment reflects Phillips 66's equity investment in
Chevron Phillips Chemical Company LLC (CPChem). Fourth-quarter Chemicals
adjusted earnings were $270 million, compared with $299 million in the
third quarter of 2014.
During the fourth quarter, CPChem's O&P business contributed $248
million to Phillips 66's Chemicals adjusted earnings, a decrease of $11
million from the prior quarter. Domestic O&P chain margins were in line
with the third quarter, despite the lower commodity price environment.
The decrease in adjusted earnings was mainly due to higher planned
maintenance costs, as the operational impacts related to CPChem's Port
Arthur ethylene plant outage were offset by business interruption
insurance recoveries. CPChem's Port Arthur plant resumed normal
operations in November. O&P's global utilization for the quarter and
year was 83 percent and 88 percent, respectively.
CPChem's SA&S business contributed $27 million to fourth-quarter
adjusted earnings. The $19 million decrease was primarily due to lower
realized margins and volumes from CPChem's Middle East joint ventures.
Refining
|
|
|
|
|
|
|
Millions of Dollars
|
|
|
|
|
|
|
|
|
2014 Earnings
|
|
|
2014 Adjusted Earnings
|
|
|
|
|
|
|
|
|
Third
Quarter
|
|
Fourth
Quarter
|
|
|
Third
Quarter
|
|
Fourth
Quarter
|
|
|
|
|
|
Refining
|
|
|
$
|
558
|
|
517
|
|
|
558
|
|
322
|
|
Refining recorded fourth-quarter adjusted earnings of $322 million,
excluding the impacts of an asset sale and impairments. The $236 million
decrease was driven by lower realized margins, partially offset by
improved volumes. Margins were lower due to weaker gasoline crack
spreads and narrowing crude differentials, partially offset by improved
secondary product margins and higher distillate crack spreads.
During the quarter, 95 percent of the company’s U.S. crude slate was
advantaged, in line with the third quarter of 2014. Refining processed a
record 375,000 barrels per day (BPD) of tight oil, 39,000 BPD more than
the previous high. Phillips 66’s refining utilization and clean product
yield were 95 percent and 84 percent, respectively, in the fourth
quarter of 2014.
Marketing and Specialties
|
|
|
|
|
|
|
Millions of Dollars
|
|
|
|
|
|
|
|
|
2014 Earnings
|
|
|
2014 Adjusted Earnings
|
|
|
|
|
|
|
|
|
Third
Quarter
|
|
Fourth
Quarter
|
|
|
Third
Quarter
|
|
Fourth
Quarter
|
|
|
|
|
|
Marketing and Other
|
|
|
$325
|
|
299
|
|
|
216
|
|
256
|
|
|
|
|
|
Specialties
|
|
|
43
|
|
68
|
|
|
43
|
|
68
|
|
|
|
|
|
Marketing and Specialties
|
|
|
$368
|
|
367
|
|
|
259
|
|
324
|
|
Fourth-quarter adjusted earnings for M&S were $324 million, compared
with $259 million in the third quarter of 2014.
Marketing and Other adjusted earnings were $256 million in the fourth
quarter, an increase of $40 million from the prior quarter. While the
increase was mostly related to the reinstatement of biodiesel blending
tax credits, the business continued to benefit from strong margins.
Fourth-quarter refined product exports were 143,000 BPD, an increase of
14,000 BPD from the third quarter of 2014.
Phillips 66’s Specialties businesses reported earnings of $68 million
during the fourth quarter. The $25 million increase was primarily due to
improved lubricant and base oil margins.
Corporate and Other
Corporate and Other costs were $100 million after-tax in the fourth
quarter, compared with $91 million in the third quarter of 2014. The
increased costs were mostly due to higher interest expense related to
debt issued during the quarter.
Financial Position, Liquidity and Return of Capital
During the quarter, Phillips 66 generated $872 million of cash from
operations. Excluding working capital changes, operating cash flow was
$1.1 billion. The company received $581 million in proceeds from asset
dispositions and funded $1.1 billion in capital expenditures and
investments.
Phillips 66 issued $2.5 billion of notes to support growth initiatives
and repay debt maturing in 2015. The company returned $807 million of
capital to shareholders, paying dividends of $275 million and
repurchasing seven million shares of common stock totaling $532 million.
Full-Year Financial Results
Phillips 66's full-year 2014 earnings were $4.8 billion or $8.33 per
share. This compares with $3.7 billion or $6.02 per share in 2013.
Full-year adjusted earnings were $3.8 billion or $6.62 per share in
2014, compared with $3.6 billion or $5.89 per share in 2013.
The company generated $3.5 billion in cash from operations during 2014.
Excluding changes in working capital, operating cash flow was $4.5
billion. In addition, the company received $1.2 billion in proceeds from
asset dispositions, primarily reflecting the sale of the company's
interest in the Malaysian Refining Company and a special distribution
from WRB Refining. Phillips 66 funded $3.8 billion in capital
expenditures and investments.
Phillips 66 returned $4.7 billion of capital to shareholders in 2014.
The company paid $1.1 billion in dividends and repurchased 29.1 million
shares of common stock totaling $2.3 billion. The exchange of the
company's flow improver business for 17.4 million shares returned $1.35
billion of capital. Since August 2012, the company has repurchased 73.2
million shares for $4.9 billion, as part of $7 billion in share
repurchase authorizations. At the end of 2014, Phillips 66 had 546
million shares outstanding.
Phillips 66 ended the year with $8.7 billion of debt and $5.2 billion of
cash and cash equivalents. The company’s debt-to-capital ratio was 28
percent and net-debt-to-capital ratio was 14 percent.
Strategic Update
In Midstream, the 100,000 BPD Sweeny Fractionator One is more than 50
percent complete, with startup planned in the second half of 2015.
Construction is also progressing on the 4.4 million-barrel-per-month
Freeport LPG Export Terminal, with completion expected in the second
half of 2016. Both projects remain on budget and on schedule.
Phillips 66 is investing in transportation infrastructure to move crude
oil from the Bakken/Three Forks production area of North Dakota to
market centers throughout the United States. During 2014, the company
received 1,200 additional rail cars and expects to have 3,700 cars
dedicated to crude oil service in early 2015. The company also announced
two pipeline joint ventures, the Dakota Access Pipeline and Energy
Transfer Crude Oil Pipeline.
In addition, Phillips 66 Partners formed two joint ventures to develop
the Palermo Rail Terminal and the Sacagawea Pipeline in North Dakota.
The Palermo Rail Terminal is a crude oil rail-loading facility currently
under construction. The terminal is anticipated to include a pipeline
connection to the Sacagawea Pipeline, allowing increased outbound
capacity and market access for oil producers and marketers in the Bakken
region.
In Chemicals, CPChem is investing in domestic growth projects to capture
the benefits of low-cost petrochemical feedstocks on the U.S. Gulf Coast
(USGC). During the quarter, CPChem completed the expansion of ethylene
production at its Sweeny facility with the addition of a tenth furnace,
which is expected to increase its annual production by 200 million
pounds. An expansion project is underway to increase CPChem's normal
alpha olefin capacity by 220 million pounds per year at its Cedar Bayou
facility, with estimated completion in mid-2015. Lastly, construction
continued on its world-scale USGC Petrochemicals Project with startup
anticipated in mid-2017.
Later today, Phillips 66 Chairman and Chief Executive Officer Greg
Garland, President Tim Taylor, and Executive Vice President and Chief
Financial Officer Greg Maxwell will host a webcast at 11 a.m. EST to
discuss the company’s fourth-quarter and full-year performance and
provide an update on strategic growth projects. To listen to the
conference call and view related presentation materials, go to www.phillips66.com/investors
and click on "Events & Presentations." For detailed supplemental
information, go to www.phillips66.com/supplemental.
|
|
|
|
|
|
|
|
|
|
Earnings
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Millions of Dollars
|
|
|
|
|
|
|
|
|
2014
|
|
|
2013
|
|
|
|
|
|
|
|
|
Third
Quarter
|
|
Fourth
Quarter
|
|
Twelve
Months
|
|
|
Fourth
Quarter
|
|
Twelve
Months
|
|
|
|
|
|
Midstream
|
|
|
$
|
115
|
|
|
96
|
|
|
507
|
|
|
|
121
|
|
|
469
|
|
|
|
|
|
|
Chemicals
|
|
|
|
230
|
|
|
267
|
|
|
1,137
|
|
|
|
261
|
|
|
986
|
|
|
|
|
|
|
Refining
|
|
|
|
558
|
|
|
517
|
|
|
1,771
|
|
|
|
418
|
|
|
1,747
|
|
|
|
|
|
|
Marketing and Specialties
|
|
|
|
368
|
|
|
367
|
|
|
1,034
|
|
|
|
105
|
|
|
894
|
|
|
|
|
|
|
Corporate and Other
|
|
|
|
(91
|
)
|
|
(100
|
)
|
|
(393
|
)
|
|
|
(97
|
)
|
|
(431
|
)
|
|
|
|
|
|
Discontinued Operations
|
|
|
|
—
|
|
|
—
|
|
|
706
|
|
|
|
18
|
|
|
61
|
|
|
|
|
|
|
Phillips 66
|
|
|
$
|
1,180
|
|
|
1,147
|
|
|
4,762
|
|
|
|
826
|
|
|
3,726
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Earnings
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Millions of Dollars
|
|
|
|
|
|
|
|
|
2014
|
|
|
2013
|
|
|
|
|
|
|
|
|
Third
Quarter
|
|
Fourth
Quarter
|
|
Twelve
Months
|
|
|
Fourth
Quarter
|
|
Twelve
Months
|
|
|
|
|
|
Midstream
|
|
|
$
|
115
|
|
|
97
|
|
|
508
|
|
|
|
121
|
|
|
469
|
|
|
|
|
|
|
Chemicals
|
|
|
|
299
|
|
|
270
|
|
|
1,209
|
|
|
|
261
|
|
|
986
|
|
|
|
|
|
|
Refining
|
|
|
|
558
|
|
|
322
|
|
|
1,576
|
|
|
|
418
|
|
|
1,734
|
|
|
|
|
|
|
Marketing and Specialties
|
|
|
|
259
|
|
|
324
|
|
|
882
|
|
|
|
105
|
|
|
885
|
|
|
|
|
|
|
Corporate and Other
|
|
|
|
(91
|
)
|
|
(100
|
)
|
|
(393
|
)
|
|
|
(97
|
)
|
|
(431
|
)
|
|
|
|
|
|
Phillips 66
|
|
|
$
|
1,140
|
|
|
913
|
|
|
3,782
|
|
|
|
808
|
|
|
3,643
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
About Phillips 66
Phillips 66 is a diversified energy manufacturing and logistics company.
With a portfolio of Midstream, Chemicals, Refining, and Marketing and
Specialties businesses, the company processes, transports, stores and
markets fuels and products globally. Phillips 66 Partners, the company's
master limited partnership, is an integral asset in the portfolio.
Headquartered in Houston, the company has 14,000 employees committed to
safety and operating excellence. Phillips 66 had $49 billion in assets
as of Dec. 31, 2014. For more information, visit www.phillips66.com
or follow us on Twitter @Phillips66Co.
CAUTIONARY STATEMENT FOR THE PURPOSES OF THE "SAFE HARBOR" PROVISIONS
OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995
This news release contains certain forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, as amended,
which are intended to be covered by the safe harbors created thereby.
Words and phrases such as “is anticipated,” “is estimated,” “is
expected,” “is planned,” “is scheduled,” “is targeted,” “believes,”
“intends,” “objectives,” “projects,” “strategies” and similar
expressions are used to identify such forward-looking statements.
However, the absence of these words does not mean that a statement is
not forward-looking. Forward-looking statements relating to Phillips
66’s operations (including joint venture operations) are based on
management’s expectations, estimates and projections about the company,
its interests and the energy industry in general on the date this news
release was prepared. These statements are not guarantees of future
performance and involve certain risks, uncertainties and assumptions
that are difficult to predict. Therefore, actual outcomes and results
may differ materially from what is expressed or forecast in such
forward-looking statements. Factors that could cause actual results or
events to differ materially from those described in the forward-looking
statements include fluctuations in crude oil, NGL, and natural gas
prices, and refining and petrochemical margins; unexpected changes in
costs for constructing, modifying or operating our facilities;
unexpected difficulties in manufacturing, refining or transporting our
products; lack of, or disruptions in, adequate and reliable
transportation for our crude oil, natural gas, NGL, and refined
products; potential liability from litigation or for remedial actions,
including removal and reclamation obligations under environmental
regulations; limited access to capital or significantly higher cost of
capital related to illiquidity or uncertainty in the domestic or
international financial markets; and other economic, business,
competitive and/or regulatory factors affecting Phillips 66’s businesses
generally as set forth in our filings with the Securities and Exchange
Commission. Phillips 66 is under no obligation (and expressly disclaims
any such obligation) to update or alter its forward-looking statements,
whether as a result of new information, future events or otherwise.
Use of Non-GAAP Financial Information -- This news release
includes the terms adjusted earnings, adjusted earnings per share,
operating cash flow excluding working capital, and adjusted ROCE. These
are non-GAAP financial measures that are included to help facilitate
comparisons of company operating performance across periods.
References in the release to earnings refer to net income
attributable to Phillips 66.
Prior period results have been recast to reflect realignment of
certain businesses between segments and business lines. Within the
Midstream segment, certain NGL pipelines were moved from the
Transportation business to the NGL business. Sales commissions for
specialty coke, polypropylene and solvents businesses are recorded in
the M&S segment. Certain joint ventures, such as a base oil business,
were moved from the Refining segment to the M&S segment.
|
|
|
|
Millions of Dollars
|
|
|
|
|
Except as Indicated
|
|
|
|
|
2014
|
|
2013
|
|
|
|
|
3Q
|
|
4Q
|
|
Year
|
|
4Q
|
|
Year
|
|
Reconciliation of Earnings to Adjusted Earnings
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings
|
|
|
$
|
1,180
|
|
|
1,147
|
|
|
4,762
|
|
|
826
|
|
|
3,726
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset dispositions
|
|
|
|
(109
|
)
|
|
(385
|
)
|
|
(494
|
)
|
|
—
|
|
|
(23
|
)
|
|
Impairments
|
|
|
|
69
|
|
|
131
|
|
|
200
|
|
|
—
|
|
|
—
|
|
|
Pending claims and settlements
|
|
|
|
—
|
|
|
(10
|
)
|
|
(10
|
)
|
|
—
|
|
|
(16
|
)
|
|
Exit of business line
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
34
|
|
|
Tax law impacts
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(17
|
)
|
|
Lower-of-cost-or-market inventory adjustments
|
|
|
|
—
|
|
|
30
|
|
|
30
|
|
|
—
|
|
|
—
|
|
|
Discontinued operations
|
|
|
|
—
|
|
|
—
|
|
|
(706
|
)
|
|
(18
|
)
|
|
(61
|
)
|
|
Adjusted earnings
|
|
|
$
|
1,140
|
|
|
913
|
|
|
3,782
|
|
|
808
|
|
|
3,643
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share of common stock (dollars)
|
|
|
$
|
2.09
|
|
|
2.05
|
|
|
8.33
|
|
|
1.37
|
|
|
6.02
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted earnings per share of common stock (dollars)
|
|
|
$
|
2.02
|
|
|
1.63
|
|
|
6.62
|
|
|
1.34
|
|
|
5.89
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Midstream
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings
|
|
|
$
|
115
|
|
|
96
|
|
|
507
|
|
|
121
|
|
|
469
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
Lower-of-cost-or-market inventory adjustments
|
|
|
|
—
|
|
|
1
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
Adjusted earnings
|
|
|
$
|
115
|
|
|
97
|
|
|
508
|
|
|
121
|
|
|
469
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Chemicals
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings
|
|
|
$
|
230
|
|
|
267
|
|
|
1,137
|
|
|
261
|
|
|
986
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
Impairments
|
|
|
|
69
|
|
|
—
|
|
|
69
|
|
|
—
|
|
|
—
|
|
|
Lower-of-cost-or-market inventory adjustments
|
|
|
|
—
|
|
|
3
|
|
|
3
|
|
|
—
|
|
|
—
|
|
|
Adjusted earnings
|
|
|
$
|
299
|
|
|
270
|
|
|
1,209
|
|
|
261
|
|
|
986
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Refining
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings
|
|
|
$
|
558
|
|
|
517
|
|
|
1,771
|
|
|
418
|
|
|
1,747
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset dispositions
|
|
|
|
—
|
|
|
(369
|
)
|
|
(369
|
)
|
|
—
|
|
|
—
|
|
|
Impairments
|
|
|
|
—
|
|
|
131
|
|
|
131
|
|
|
—
|
|
|
—
|
|
|
Pending claims and settlements
|
|
|
|
—
|
|
|
17
|
|
|
17
|
|
|
—
|
|
|
—
|
|
|
Tax law impacts
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(13
|
)
|
|
Lower-of-cost-or-market inventory adjustments
|
|
|
|
—
|
|
|
26
|
|
|
26
|
|
|
—
|
|
|
—
|
|
|
Adjusted earnings
|
|
|
$
|
558
|
|
|
322
|
|
|
1,576
|
|
|
418
|
|
|
1,734
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Marketing and Specialties
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings
|
|
|
$
|
368
|
|
|
367
|
|
|
1,034
|
|
|
105
|
|
|
894
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset dispositions
|
|
|
|
(109
|
)
|
|
(16
|
)
|
|
(125
|
)
|
|
—
|
|
|
(23
|
)
|
|
Pending claims and settlements
|
|
|
|
—
|
|
|
(27
|
)
|
|
(27
|
)
|
|
—
|
|
|
(16
|
)
|
|
Exit of business line
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
34
|
|
|
Tax law impacts
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4
|
)
|
|
Adjusted earnings
|
|
|
$
|
259
|
|
|
324
|
|
|
882
|
|
|
105
|
|
|
885
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Millions of Dollars
|
|
|
|
|
2014
|
|
2013
|
|
|
|
|
3Q
|
|
4Q
|
|
Year
|
|
4Q
|
|
Year
|
|
Reconciliation of Earnings to Adjusted Earnings
|
|
|
|
|
|
|
|
|
|
|
|
|
Marketing and Other
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings
|
|
|
$
|
325
|
|
|
299
|
|
|
836
|
|
|
54
|
|
|
688
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset dispositions
|
|
|
|
(109
|
)
|
|
(16
|
)
|
|
(125
|
)
|
|
—
|
|
|
—
|
|
|
Pending claims and settlements
|
|
|
|
—
|
|
|
(27
|
)
|
|
(27
|
)
|
|
—
|
|
|
(16
|
)
|
|
Tax law impacts
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4
|
)
|
|
Adjusted earnings
|
|
|
$
|
216
|
|
|
256
|
|
|
684
|
|
|
54
|
|
|
668
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Specialties
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings
|
|
|
$
|
43
|
|
|
68
|
|
|
198
|
|
|
51
|
|
|
206
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset dispositions
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(23
|
)
|
|
Exit of business line
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
34
|
|
|
Adjusted earnings
|
|
|
$
|
43
|
|
|
68
|
|
|
198
|
|
|
51
|
|
|
217
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Millions of Dollars
|
|
|
|
|
|
|
|
|
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
4Q
|
|
Year
|
|
Cash Flows from Operating Activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Cash Provided by Operating Activities, excluding working
capital
|
|
|
|
|
|
|
|
|
$
|
1,080
|
|
|
4,549
|
|
|
Changes in working capital
|
|
|
|
|
|
|
|
|
|
(208
|
)
|
|
(1,020
|
)
|
|
Net Cash Provided by Operating Activities
|
|
|
|
|
|
|
|
|
$
|
872
|
|
|
3,529
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Millions of
Dollars
|
|
|
|
|
|
|
|
|
|
|
|
|
2014
|
|
Phillips 66 - ROCE
|
|
|
|
|
|
|
|
|
|
|
|
|
Numerator
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income
|
|
|
|
|
|
|
|
|
|
|
$
|
|
|
4,797
|
|
|
After-tax interest expense
|
|
|
|
|
|
|
|
|
|
|
173
|
|
|
GAAP ROCE earnings
|
|
|
|
|
|
|
|
|
|
|
4,970
|
|
|
Special items
|
|
|
|
|
|
|
|
|
|
|
(980
|
)
|
|
Adjusted ROCE earnings
|
|
|
|
|
|
|
|
|
|
|
$
|
|
|
3,990
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Denominator
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP average capital employed*
|
|
|
|
|
|
|
|
|
|
|
$
|
|
|
29,634
|
|
|
Discontinued operations
|
|
|
|
|
|
|
|
|
|
|
(96
|
)
|
|
Adjusted average capital employed
|
|
|
|
|
|
|
|
|
|
|
$
|
|
|
29,538
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted ROCE (percent)
|
|
|
|
|
|
|
|
|
|
|
14
|
%
|
|
GAAP ROCE (percent)
|
|
|
|
|
|
|
|
|
|
|
17
|
%
|
|
* Total equity plus total debt.
|
Source: Phillips 66