Adjusted earnings of $548 million or $1.07 per share
Highlights
Fourth Quarter
-
Generated $1.9 billion in cash from operations
-
Returned $816 million to shareholders through dividends and share
repurchases
-
Achieved 100 percent capacity utilization in Refining
-
Reached mechanical completion at CPChem's Cedar Bayou world-scale
ethane cracker
-
Completed $2.4 billion dropdown to Phillips 66 Partners
-
Announced $2.3 billion 2018 capital budget
Full-Year 2017
-
Achieved record-low recordable injury rate
-
Delivered $5.1 billion of earnings and $2.3 billion of adjusted
earnings
-
Generated $3.6 billion of operating cash flow
-
Returned $3.0 billion to shareholders through dividends and share
repurchases
-
Increased quarterly dividend 11 percent to $0.70 per common share
-
Achieved 95 percent capacity utilization in Refining during heavy
turnaround year
-
Started up the Bakken Pipeline and commissioned additional storage at
the Beaumont Terminal
-
Reached commercial operations at CPChem's Old Ocean polyethylene units
HOUSTON--(BUSINESS WIRE)--
Phillips 66 (NYSE: PSX), an energy manufacturing and logistics company,
announces fourth-quarter 2017 earnings of $3.2 billion, compared with
$823 million in the third quarter of 2017. Excluding special items,
primarily a $2.7 billion benefit from U.S. tax reform, adjusted earnings
were $548 million, compared with third-quarter adjusted earnings of $858
million.
“We ended 2017 with a strong quarter, running at record levels and
delivering solid financial results,” said Greg Garland, chairman and CEO
of Phillips 66. “In our Midstream business, we achieved significant
growth at Phillips 66 Partners through our recent dropdown. In Refining,
we ran at 100 percent capacity utilization and continued to operate
safely and reliably. In Chemicals, CPChem has recovered from Hurricane
Harvey at its Cedar Bayou facility and is commissioning its new
world-scale ethane cracker.”
“Our strategy for long-term value creation remains unchanged. This
includes capturing growth opportunities in our Midstream and Chemicals
businesses and enhancing returns in Refining and Marketing. Also
fundamental to our strategy are shareholder distributions consisting of
a competitive, secure and growing dividend complemented with share
repurchases.”
Midstream
|
|
|
Millions of Dollars
|
|
|
|
Net Income
|
|
|
Adjusted Net Income
|
|
|
|
Q4 2017
|
|
Q3 2017
|
|
|
Q4 2017
|
|
Q3 2017
|
Transportation
|
|
|
$
|
105
|
|
119
|
|
|
108
|
|
98
|
NGL and Other
|
|
|
20
|
|
(3)
|
|
|
20
|
|
—
|
DCP Midstream
|
|
|
14
|
|
1
|
|
|
14
|
|
1
|
Midstream
|
|
|
$
|
139
|
|
117
|
|
|
142
|
|
99
|
|
|
|
|
|
|
|
|
|
|
|
|
Midstream's fourth-quarter net income was $139 million, compared with
$117 million in the third quarter of 2017. Midstream net income in the
fourth quarter included hurricane-related costs of $3 million.
Third-quarter results included a favorable legal settlement of $23
million, partially offset by hurricane-related costs of $3 million and
pension settlement expense of $2 million.
Transportation adjusted net income for the fourth quarter of 2017 was
$108 million, an increase of $10 million from the third quarter. The
increase reflects higher terminal and pipeline throughput volumes.
NGL and Other adjusted net income was $20 million in the fourth quarter
compared with break-even results in the third quarter. The increase
primarily reflects the acquisition of Merey Sweeny, L.P. by Phillips 66
Partners (PSXP) during the quarter.
The company’s equity investment in DCP Midstream generated adjusted net
income of $14 million in the fourth quarter, compared with $1 million in
the prior quarter. This increase was primarily due to the absence of
third-quarter asset impairments, as well as higher NGL prices and
improved volumes.
Chemicals
|
|
|
Millions of Dollars
|
|
|
|
Net Income
|
|
|
Adjusted Net Income
|
|
|
|
Q4 2017
|
|
Q3 2017
|
|
|
Q4 2017
|
|
Q3 2017
|
Olefins and Polyolefins (O&P)
|
|
|
$
|
1
|
|
105
|
|
|
95 |
|
137 |
Specialties, Aromatics and Styrenics (SA&S)
|
|
|
34 |
|
22
|
|
|
34 |
|
22 |
Other |
|
|
(8) |
|
(6) |
|
|
(8) |
|
(6) |
Chemicals
|
|
|
$
|
27
|
|
121
|
|
|
121
|
|
153
|
|
|
|
|
|
|
|
|
|
|
|
|
The Chemicals segment reflects Phillips 66's equity investment in
Chevron Phillips Chemical Company LLC (CPChem). Chemicals'
fourth-quarter net income was $27 million, compared with $121 million in
the third quarter of 2017. Chemicals net income in the fourth quarter of
2017 included hurricane-related costs of $75 million and an asset
impairment of $19 million, compared with $32 million of
hurricane-related costs in the third quarter.
CPChem's O&P business contributed $95 million of adjusted net income to
the Chemicals segment in the fourth quarter of 2017. The $42 million
decrease from the prior quarter was due primarily to lower sales volumes
and higher depreciation, maintenance and operating costs, partially
offset by improved polyethylene margins. Global O&P utilization was 79
percent for the quarter, reflecting hurricane-related downtime at the
Cedar Bayou facility and an unplanned outage impacting a Q-Chem II
facility.
CPChem's SA&S business contributed $34 million of adjusted net income in
the fourth quarter of 2017, an increase of $12 million from the prior
quarter. The improvement was primarily related to higher margins and
lower operating costs.
Refining
|
|
|
Millions of Dollars
|
|
|
|
Net Income
|
|
|
Adjusted Net Income
|
|
|
|
Q4 2017
|
|
Q3 2017
|
|
|
Q4 2017
|
|
Q3 2017
|
Refining
|
|
|
$
|
371
|
|
550
|
|
|
358
|
|
548
|
|
|
|
|
|
|
|
|
|
|
|
|
Refining's fourth-quarter net income was $371 million, compared with
$550 million in the third quarter of 2017. Refining results in the
fourth quarter included favorable U.K. tax credits of $23 million,
partially offset by hurricane-related costs of $7 million and pension
settlement expense of $3 million. Third-quarter net income included
favorable tax and other settlements of $18 million, mostly offset by
pension settlement expense of $8 million and hurricane-related costs of
$8 million.
Refining's adjusted net income was $358 million in the fourth quarter of
2017, compared with $548 million in the third quarter. The decrease was
primarily due to a 35 percent decline in gasoline market crack spreads
and higher turnaround costs, partially offset by improved clean product
differentials and increased volumes. Realized margins for the quarter
were $8.98 per barrel, compared with $10.49 per barrel in the third
quarter. Phillips 66’s worldwide crude utilization rate was 100 percent.
Pre-tax turnaround costs for the fourth quarter were $99 million,
compared with third-quarter costs of $43 million. Clean product yield
was 87 percent in the fourth quarter, compared with 85 percent in the
third quarter.
Marketing and Specialties
|
|
|
Millions of Dollars
|
|
|
|
Net Income
|
|
|
Adjusted Net Income
|
|
|
|
Q4 2017
|
|
Q3 2017
|
|
|
Q4 2017
|
|
Q3 2017
|
Marketing and Other
|
|
|
$
|
86
|
|
160
|
|
|
87
|
|
163
|
Specialties
|
|
|
37
|
|
48
|
|
|
37
|
|
48
|
Marketing and Specialties
|
|
|
$
|
123
|
|
208
|
|
|
124
|
|
211
|
|
|
|
|
|
|
|
|
|
|
|
|
Marketing and Specialties (M&S) fourth-quarter net income was $123
million, compared with $208 million in the third quarter of 2017. M&S
fourth-quarter net income included pension settlement expense of $1
million. Third-quarter results included a charge of $2 million for
pension settlement expense and hurricane-related costs of $1 million.
Adjusted net income for Marketing and Other was $87 million in the
fourth quarter of 2017, a decrease of $76 million from the prior
quarter. The decrease was largely due to reduced margins as well as
seasonally lower demand for branded volumes. Refined product exports in
the fourth quarter were 236,000 barrels per day (BPD).
Phillips 66’s Specialties businesses generated adjusted net income of
$37 million during the fourth quarter. The $11 million decrease from the
prior quarter was mainly due to lower base oil and finished lubricant
margins.
Corporate and Other
|
|
|
Millions of Dollars
|
|
|
|
|
Net Income
|
|
|
|
Adjusted Net Income
|
|
|
|
|
Q4 2017
|
|
Q3 2017
|
|
|
|
Q4 2017
|
|
Q3 2017
|
|
Corporate and Other
|
|
|
$
|
2,595
|
|
(147)
|
|
|
|
(140)
|
|
(127)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate and Other’s fourth-quarter net income was $2.6 billion,
compared with net costs of $147 million in the third quarter of 2017.
Corporate and Other fourth-quarter net income included a $2.7 billion
benefit from U.S. tax reform, primarily associated with the revaluation
of the company's net deferred tax liabilities. Third-quarter results
included $20 million in charges for legal and pension settlement
expenses.
The $13 million increase in adjusted net costs in the fourth quarter was
primarily due to tax adjustments in the third quarter.
Financial Position, Liquidity and Return of Capital
During the fourth quarter, Phillips 66 generated $1.9 billion in cash
from operations. Excluding working capital impacts, operating cash flow
was $1.0 billion. In addition, PSXP raised $1.0 billion through equity
issuances to partially fund the acquisition of assets from Phillips 66.
Phillips 66 funded $537 million of capital expenditures and investments,
$463 million in share repurchases and $353 million in dividends during
the quarter. The company ended the quarter with 502 million shares
outstanding.
As of Dec. 31, 2017, cash and cash equivalents were $3.1 billion, and
consolidated debt was $10.1 billion, including $2.9 billion at PSXP. The
company's consolidated debt-to-capital ratio and net-debt-to-capital
ratio were 27 percent and 20 percent, respectively. Excluding PSXP, the
debt-to-capital ratio was 22 percent and net-debt-to-capital ratio was
14 percent.
Strategic Update
Phillips 66 continues to execute its plan to selectively grow
higher-valued businesses. Capital spending for 2017 was $1.8 billion,
including $352 million at PSXP. Capital expenditures funded growth
projects in Midstream, return-enhancing investments in Refining, and
sustaining capital to maintain asset integrity and ensure safe, reliable
and environmentally responsible operations. Phillips 66's proportionate
share of capital spending by joint ventures CPChem, DCP Midstream and
WRB Refining in 2017 was $1.2 billion.
In Midstream, the company completed expansion of the Beaumont Terminal’s
export facilities from 400,000 BPD to 600,000 BPD in the fourth quarter.
An additional 3.5 million barrels of crude storage is expected to be in
service by the end of 2018, bringing the terminal's total crude and
products storage capacity to 14.6 million barrels.
In December 2017, Phillips 66 and Enbridge Inc. announced an open season
for the Gray Oak Pipeline project to transport crude oil from the
Permian Basin to markets along the Texas Gulf Coast. Depending on
shipper interest, the pipeline is expected to have initial throughput
capacity of 385,000 BPD and be placed in service during the second half
of 2019.
The Bayou Bridge Pipeline, in which PSXP holds a 40 percent interest,
currently operates from the Phillips 66 Beaumont Terminal to Lake
Charles, Louisiana. The segment from Lake Charles to St. James,
Louisiana, has received all permits and construction is underway.
Commercial operations on the St. James segment are expected to begin in
the second half of 2018.
PSXP is proceeding with the construction of a new 25,000 BPD
isomerization unit at the Lake Charles Refinery. The unit will increase
production of higher octane gasoline blend components, with completion
anticipated by the end of 2019.
DCP Midstream’s expansion of the Sand Hills NGL Pipeline capacity from
280,000 BPD to 365,000 BPD is expected to be complete in the first
quarter of 2018. In addition, further expansion of the line to 450,000
BPD is expected in the second half of 2018. Sand Hills is owned
two-thirds by DCP and one-third by Phillips 66 Partners. DCP continues
construction of two additional gas processing plants in the high-growth
DJ basin. The Mewbourn 3 plant is anticipated to be complete in the
third quarter of 2018, and the O’Connor 2 plant is scheduled for
completion in mid-2019.
DCP Midstream announced a final investment decision to proceed with
joint development of the Gulf Coast Express Pipeline project, which will
provide an outlet for natural gas production in the Permian Basin to
markets along the Texas Gulf Coast. DCP holds a 25 percent equity
interest in the project, which is expected to be complete in the fourth
quarter of 2019.
In Chemicals, CPChem is nearing completion of its U.S. Gulf Coast
Petrochemicals Project with the commissioning of its new world-scale
ethane cracker at Cedar Bayou. The startup of the cracker is expected in
the first quarter, with ramp up to full production in the second
quarter. The Project will increase CPChem’s global ethylene and
polyethylene capacity by approximately one-third.
In Refining, the company continues to focus on high-return, quick-payout
projects. Refining has multiple yield enhancing projects that are
expected to deliver 25,000 BPD of additional clean products by the end
of 2018. This includes the diesel recovery project at the Ponca City
Refinery, which was completed in the fourth quarter. In addition, the
company is modernizing fluid catalytic cracking (FCC) units at both the
Bayway and Wood River refineries with anticipated completion during the
second quarter of 2018. Refining also has projects to reduce feedstock
costs, such as at the Lake Charles Refinery where efforts are underway
to increase advantaged North American crude processing capability.
In December 2017, Phillips 66 announced a 2018 capital budget of $2.3
billion, which includes $595 million at PSXP. Phillips 66's
proportionate share of capital spending by joint ventures CPChem, DCP
Midstream and WRB Refining is expected to be $946 million.
Investor Webcast
Later today, members of Phillips 66 executive management will host a
webcast at noon EST to discuss the company’s fourth-quarter performance
and provide an update on strategic initiatives. To access the webcast
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
|
|
|
|
|
2017
|
|
|
2016
|
|
|
|
|
Q4
|
|
Q3
|
|
|
Year
|
|
|
Q4
|
|
|
Year
|
|
Midstream
|
|
|
$
|
139
|
|
117
|
|
|
464
|
|
|
35
|
|
|
280
|
|
Chemicals
|
|
|
27
|
|
121
|
|
|
525
|
|
|
136
|
|
|
583
|
|
Refining
|
|
|
371
|
|
550
|
|
|
1,404
|
|
|
(38)
|
|
|
374
|
|
Marketing and Specialties
|
|
|
123
|
|
208
|
|
|
686
|
|
|
190
|
|
|
891
|
|
Corporate and Other
|
|
|
2,595
|
|
(147)
|
|
|
2,169
|
|
|
(129)
|
|
|
(484)
|
|
Net Income
|
|
|
3,255
|
|
849
|
|
|
5,248
|
|
|
194
|
|
|
1,644
|
|
Less: Noncontrolling interests
|
|
|
57
|
|
26
|
|
|
142
|
|
|
31
|
|
|
89
|
|
Phillips 66
|
|
|
$
|
3,198
|
|
823
|
|
|
5,106
|
|
|
163
|
|
|
1,555
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Earnings
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Millions of Dollars
|
|
|
|
|
2017
|
|
|
2016
|
|
|
|
|
Q4
|
|
Q3
|
|
|
Year
|
|
|
Q4
|
|
|
Year
|
|
Midstream
|
|
|
$
|
142
|
|
99
|
|
|
454
|
|
|
69
|
|
|
289
|
|
Chemicals
|
|
|
121
|
|
153
|
|
|
671
|
|
|
124
|
|
|
660
|
|
Refining
|
|
|
358
|
|
548
|
|
|
1,137
|
|
|
(95)
|
|
|
277
|
|
Marketing and Specialties
|
|
|
124
|
|
211
|
|
|
694
|
|
|
140
|
|
|
841
|
|
Corporate and Other
|
|
|
(140)
|
|
(127)
|
|
|
(545)
|
|
|
(124)
|
|
|
(480)
|
|
Net Income
|
|
|
605
|
|
884
|
|
|
2,411
|
|
|
114
|
|
|
1,587
|
|
Less: Noncontrolling interests
|
|
|
57
|
|
26
|
|
|
142
|
|
|
31
|
|
|
89
|
|
Phillips 66
|
|
|
$
|
548
|
|
858
|
|
|
2,269
|
|
|
83
|
|
|
1,498
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 14,600 employees committed to
safety and operating excellence. Phillips 66 had $54 billion of assets
as of Dec. 31, 2017. 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,”
“continues,” “intends,” “will,” “would,” “objectives,” “goals,”
“projects,” “efforts,” “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 NGL, crude oil, and natural gas prices, and
petrochemical and refining 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
NGL, crude oil, natural gas, 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, and adjusted net income. These are non-GAAP financial measures
that are included to help facilitate comparisons of company operating
performance across periods and with peer companies, by excluding items
that don't reflect the core operating results of our businesses in the
current period. This release includes realized refining margin, a
non-GAAP financial measure that demonstrates how well we performed
relative to benchmark industry margins. This release also includes a
debt-to-capital ratio excluding PSXP. This non-GAAP measure is
provided to differentiate the capital structure of Phillips 66 compared
with that of Phillips 66 Partners.
References in the release to earnings refer to net income
attributable to Phillips 66. References to adjusted earnings refer to
earnings excluding special items, as detailed in the tables to this
release. References to net income are inclusive of noncontrolling
interests.
|
|
|
Millions of Dollars
|
|
|
|
Except as Indicated
|
|
|
|
2017
|
|
|
2016
|
|
|
|
Q4
|
|
Q3
|
|
Year
|
|
|
Q4
|
|
Year
|
Reconciliation of Earnings to Adjusted Earnings
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Earnings
|
|
|
$
|
3,198
|
|
|
823
|
|
|
5,106
|
|
|
|
163
|
|
|
1,555
|
|
Pre-tax adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pending claims and settlements
|
|
|
—
|
|
|
(36)
|
|
|
(60)
|
|
|
|
—
|
|
|
(117)
|
|
Pension settlement expense
|
|
|
7
|
|
|
21
|
|
|
83
|
|
|
|
—
|
|
|
—
|
|
Equity affiliate ownership restructuring
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
33
|
|
|
33
|
|
Impairments by equity affiliates
|
|
|
31
|
|
|
—
|
|
|
64
|
|
|
|
—
|
|
|
95
|
|
Certain tax impacts
|
|
|
(23)
|
|
|
—
|
|
|
(23)
|
|
|
|
(32)
|
|
|
(32)
|
|
Recognition of deferred logistics commitments
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
—
|
|
|
30
|
|
Gain on consolidation of business
|
|
|
—
|
|
|
—
|
|
|
(423)
|
|
|
|
—
|
|
|
—
|
|
Railcar lease residual value deficiencies and related costs
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
40
|
|
|
40
|
|
Hurricane-related costs
|
|
|
140
|
|
|
70
|
|
|
210
|
|
|
|
—
|
|
|
—
|
|
Tax impact of adjustments*
|
|
|
(70)
|
|
|
(20)
|
|
|
47
|
|
|
|
(27)
|
|
|
4
|
|
U.S. tax reform
|
|
|
(2,735)
|
|
|
—
|
|
|
(2,735)
|
|
|
|
—
|
|
|
—
|
|
Other tax impacts
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
(94)
|
|
|
(110)
|
|
Adjusted earnings
|
|
|
$
|
548
|
|
|
858
|
|
|
2,269
|
|
|
|
83
|
|
|
1,498
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share of common stock (dollars)
|
|
|
$
|
6.25
|
|
|
1.60
|
|
|
9.85
|
|
|
|
0.31
|
|
|
2.92
|
|
Adjusted earnings per share of common stock (dollars)†
|
|
|
$
|
1.07
|
|
|
1.66
|
|
|
4.38
|
|
|
|
0.16
|
|
|
2.82
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Net Income to Adjusted Net Income by Segment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Midstream Net Income
|
|
|
$
|
139
|
|
|
117
|
|
|
464
|
|
|
|
35
|
|
|
280
|
|
Pre-tax adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pending claims and settlements
|
|
|
—
|
|
|
(37)
|
|
|
(37)
|
|
|
|
—
|
|
|
(45)
|
|
Equity affiliate ownership restructuring
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
33
|
|
|
33
|
|
Impairments by equity affiliates
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
—
|
|
|
6
|
|
Pension settlement expense
|
|
|
1
|
|
|
3
|
|
|
12
|
|
|
|
—
|
|
|
—
|
|
Hurricane-related costs
|
|
|
6
|
|
|
4
|
|
|
10
|
|
|
|
—
|
|
|
—
|
|
Tax impact of adjustments*
|
|
|
(4)
|
|
|
12
|
|
|
5
|
|
|
|
(12)
|
|
|
2
|
|
Other tax impacts
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
13
|
|
|
13
|
|
Adjusted net income
|
|
|
$
|
142
|
|
|
99
|
|
|
454
|
|
|
|
69
|
|
|
289
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Chemicals Net Income
|
|
|
$
|
27
|
|
|
121
|
|
|
525
|
|
|
|
136
|
|
|
583
|
|
Pre-tax adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impairments by equity affiliates
|
|
|
31
|
|
|
—
|
|
|
64
|
|
|
|
—
|
|
|
89
|
|
Hurricane-related costs
|
|
|
122
|
|
|
53
|
|
|
175
|
|
|
|
—
|
|
|
—
|
|
Tax impact of adjustments*
|
|
|
(59)
|
|
|
(21)
|
|
|
(93)
|
|
|
|
—
|
|
|
—
|
|
Other tax impacts
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
(12)
|
|
|
(12)
|
|
Adjusted net income
|
|
|
$
|
121
|
|
|
153
|
|
|
671
|
|
|
|
124
|
|
|
660
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Refining Net Income
|
|
|
$
|
371
|
|
|
550
|
|
|
1,404
|
|
|
|
(38)
|
|
|
374
|
|
Pre-tax adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pending claims and settlements
|
|
|
—
|
|
|
(30)
|
|
|
(51)
|
|
|
|
—
|
|
|
(70)
|
|
Gain on consolidation of business
|
|
|
—
|
|
|
—
|
|
|
(423)
|
|
|
|
—
|
|
|
—
|
|
Recognition of deferred logistics commitments
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
—
|
|
|
30
|
|
Certain tax impacts
|
|
|
(23)
|
|
|
—
|
|
|
(23)
|
|
|
|
(32)
|
|
|
(32)
|
|
Railcar lease residual value deficiencies and related costs
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
40
|
|
|
40
|
|
Pension settlement expense
|
|
|
5
|
|
|
13
|
|
|
53
|
|
|
|
—
|
|
|
—
|
|
Hurricane-related costs
|
|
|
12
|
|
|
12
|
|
|
24
|
|
|
|
—
|
|
|
—
|
|
Tax impact of adjustments*
|
|
|
(7)
|
|
|
3
|
|
|
153
|
|
|
|
(15)
|
|
|
1
|
|
Other tax impacts
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
(50)
|
)
|
|
(66)
|
|
Adjusted net income
|
|
|
$
|
358
|
|
|
548
|
|
|
1,137
|
|
|
|
(95)
|
|
|
277
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Marketing and Specialties Net Income
|
|
|
$
|
123
|
|
|
208
|
|
|
686
|
|
|
|
190
|
|
|
891
|
|
Pre-tax adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pension settlement expense
|
|
|
1
|
|
|
3
|
|
|
11
|
|
|
|
—
|
|
|
—
|
|
Hurricane-related costs
|
|
|
—
|
|
|
1
|
|
|
1
|
|
|
|
—
|
|
|
—
|
|
Tax impact of adjustments*
|
|
|
—
|
|
|
(1)
|
|
|
(4)
|
|
|
|
—
|
|
|
—
|
|
Other tax impacts
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
(50)
|
|
|
(50)
|
|
Adjusted net income
|
|
|
$
|
124
|
|
|
211
|
|
|
694
|
|
|
|
140
|
|
|
841
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate and Other Net Income (Loss)
|
|
|
$
|
2,595
|
|
|
(147)
|
|
|
2,169
|
|
|
|
(129)
|
|
|
(484)
|
|
Pre-tax adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pending claims and settlements
|
|
|
—
|
|
|
31
|
|
|
28
|
|
|
|
—
|
|
|
(2)
|
|
Pension settlement expense
|
|
|
—
|
|
|
2
|
|
|
7
|
|
|
|
—
|
|
|
—
|
|
Tax impact of adjustments*
|
|
|
—
|
|
|
(13)
|
|
|
(14)
|
|
|
|
—
|
|
|
1
|
|
U.S. tax reform
|
|
|
(2,735)
|
|
|
—
|
|
|
(2,735)
|
|
|
|
—
|
|
|
—
|
|
Other tax impacts
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
5
|
|
|
5
|
|
Adjusted net income (loss)
|
|
|
$
|
(140)
|
|
|
(127)
|
|
|
(545)
|
|
|
|
(124)
|
|
|
(480)
|
|
*We generally tax effect taxable U.S.-based special items
using a combined federal and state statutory income tax rate of
approximately 38 percent. Taxable special items attributable to
foreign locations likewise use a local statutory income tax rate.
Nontaxable events reflect zero income tax. These events include,
but are not limited to, most goodwill impairments, transactions
legislatively exempt from income tax, transactions related to
entities for which we have made an assertion that the
undistributed earnings are permanently reinvested, or transactions
occurring in jurisdictions with a valuation allowance.
|
†Weighted-average diluted shares outstanding and income
allocated to participating securities, if applicable, in the
adjusted earnings per share calculation are the same as those used
in the GAAP diluted earnings per share calculation.
|
|
|
|
Millions of Dollars
|
|
|
|
|
Except as Indicated
|
|
|
|
|
2017
|
|
|
|
|
Q4
|
|
Q3
|
|
Realized Refining Margins
|
|
|
|
|
|
|
Net income
|
|
|
$
|
371
|
|
550
|
|
Plus:
|
|
|
|
|
|
|
Income tax expense
|
|
|
145
|
|
313
|
|
Taxes other than income taxes
|
|
|
69
|
|
47
|
|
Depreciation, amortization and impairments
|
|
|
213
|
|
205
|
|
Selling, general and administrative expenses
|
|
|
54
|
|
50
|
|
Operating expenses
|
|
|
875
|
|
818
|
|
Equity in earnings of affiliates
|
|
|
(162)
|
|
(144)
|
|
Other segment (income) expense, net
|
|
|
(2)
|
|
8
|
|
Proportional share of refining gross margins contributed by equity
affiliates
|
|
|
339
|
|
305
|
|
Special items:
|
|
|
|
|
|
|
Certain tax impacts
|
|
|
(23)
|
|
—
|
|
Realized refining margins
|
|
|
$
|
1,879
|
|
2,152
|
|
|
|
|
|
|
|
|
Total processed inputs (thousands of barrels)
|
|
|
187,489
|
|
183,010
|
|
Adjusted total processed inputs (thousands of barrels)*
|
|
|
209,297
|
|
205,218
|
|
|
|
|
|
|
|
|
Net income (dollars per barrel)**
|
|
|
$
|
1.98
|
|
3.01
|
|
Realized refining margins (dollars per barrel)***
|
|
|
8.98
|
|
10.49
|
|
* Adjusted total processed inputs include our proportional
share of processed inputs of equity affiliates.
|
** Net income divided by total processed inputs.
|
*** Realized refining margins per barrel, as presented,
are calculated using the underlying realized refining margin
amounts, in dollars, divided by adjusted total processed inputs,
in barrels. As such, recalculated per barrel amounts using the
rounded margins and barrels presented may differ from the
presented per barrel amounts due to rounding.
|
|
|
|
|
|
|
|
|
Millions of Dollars
|
|
|
|
|
December 31, 2017
|
|
Debt-to-Capital Ratio
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Phillips 66
Consolidated
|
|
|
PSXP*
|
|
|
Phillips 66
Excluding PSXP
|
|
Total Debt
|
|
|
$
|
10,110
|
|
|
2,945
|
|
|
7,165
|
|
Total Equity
|
|
|
27,428
|
|
|
2,314
|
|
|
25,114
|
|
Debt-to-Capital Ratio
|
|
|
27%
|
|
|
|
|
|
22%
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Cash
|
|
|
$
|
3,119
|
|
|
185
|
|
|
2,934
|
|
Net-Debt-to-Capital Ratio
|
|
|
20%
|
|
|
|
|
|
14%
|
|
*PSXP's third-party debt and Phillips 66's noncontrolling
interests attributable to PSXP.
|

View source version on businesswire.com: http://www.businesswire.com/news/home/20180202005134/en/
Source: Phillips 66