HOUSTON--(BUSINESS WIRE)--Phillips 66 (NYSE: PSX), a diversified energy manufacturing and
logistics company, announces first-quarter 2019 earnings of $204
million, compared with $2.2 billion in the fourth quarter of 2018.
Excluding special items of $17 million in the first quarter of 2019,
adjusted earnings were $187 million, compared with fourth-quarter 2018
adjusted earnings of $2.3 billion.
“Our first-quarter results reflect the benefit of our diversified
portfolio despite a weak market environment,” said Greg Garland,
chairman and CEO of Phillips 66. “In Chemicals, CPChem operated at 98%
O&P utilization, and in Midstream, we had strong operating performance
across our NGL value chain. We executed major turnaround activities at
several refineries and were impacted by unplanned downtime. We returned
$708 million to shareholders through dividends and share repurchases in
the quarter. We continued to advance our major growth projects,
including the Gray Oak Pipeline and the new Sweeny fractionators.”
“We are dedicated to operating excellence and maintaining safe and
reliable operations. We have a strong portfolio of growth projects and
are focused on executing our capital program. Disciplined capital
allocation is fundamental to our strategy, and we will invest in
opportunities with attractive returns, while returning capital to
shareholders through dividends and share buybacks.”
Midstream
|
|
|
Millions of Dollars
|
|
|
|
Pre-Tax Income
|
|
|
Adjusted Pre-Tax Income
|
|
|
|
Q1 2019
|
|
|
Q4 2018
|
|
|
Q1 2019
|
|
|
Q4 2018
|
Transportation
|
|
|
$
|
203
|
|
|
234
|
|
|
203
|
|
|
234
|
NGL and Other
|
|
|
90
|
|
|
120
|
|
|
90
|
|
|
122
|
DCP Midstream
|
|
|
23
|
|
|
25
|
|
|
23
|
|
|
53
|
Midstream
|
|
|
$
|
316
|
|
|
379
|
|
|
316
|
|
|
409
|
Midstream first-quarter 2019 pre-tax income was $316 million, compared
with $379 million in the fourth quarter of 2018. Midstream results in
the fourth quarter of 2018 included a $28 million impact to equity
earnings from asset impairments at DCP Midstream, as well as $2 million
of pension settlement expense.
Transportation first-quarter 2019 adjusted pre-tax income of $203
million was $31 million lower than fourth-quarter 2018 adjusted pre-tax
income of $234 million, mainly reflecting lower pipeline and terminal
throughput volumes, driven by seasonal refinery turnaround activities,
as well as lower equity affiliate earnings.
NGL and Other adjusted pre-tax income for the first quarter of 2019 was
$90 million, a $32 million decrease from the fourth quarter of 2018,
primarily due to fourth-quarter inventory impacts.
The company’s equity investment in DCP Midstream generated adjusted
pre-tax income of $23 million in the first quarter of 2019, compared
with $53 million in the fourth quarter of 2018. The decrease reflects
higher fourth-quarter hedging results from falling crude and natural gas
liquid (NGL) prices, partially offset by lower operating costs.
Chemicals
|
|
|
Millions of Dollars
|
|
|
|
Pre-Tax Income
|
|
|
Adjusted Pre-Tax Income
|
|
|
|
Q1 2019
|
|
|
Q4 2018
|
|
|
Q1 2019
|
|
|
Q4 2018
|
Olefins and Polyolefins
|
|
|
$
|
219
|
|
|
158
|
|
|
219
|
|
|
158
|
Specialties, Aromatics and Styrenics
|
|
|
26
|
|
|
16
|
|
|
26
|
|
|
16
|
Other
|
|
|
(18)
|
|
|
(22)
|
|
|
(18)
|
|
|
(22)
|
Chemicals
|
|
|
$
|
227
|
|
|
152
|
|
|
227
|
|
|
152
|
The Chemicals segment reflects Phillips 66’s equity investment in
Chevron Phillips Chemical Company LLC (CPChem). Chemicals’ first-quarter
2019 pre-tax income was $227 million, compared with $152 million in the
fourth quarter of 2018.
CPChem’s Olefins and Polyolefins (O&P) business contributed $219 million
of adjusted pre-tax income in the first quarter of 2019, compared with
$158 million in the fourth quarter of 2018. The increase mainly reflects
lower turnaround and maintenance costs and higher polyethylene sales
volumes, partially offset by lower margins. Global O&P utilization was
98%.
CPChem’s Specialties, Aromatics and Styrenics (SA&S) business
contributed $26 million of adjusted pre-tax income in the first quarter
of 2019, an increase of $10 million from the prior quarter. The increase
primarily reflects higher earnings from international equity affiliates
due to improved volumes and margins.
Refining
|
|
|
|
Millions of Dollars
|
|
|
|
|
Pre-Tax Income (Loss)
|
|
|
Adjusted Pre-Tax Income (Loss)
|
|
|
|
|
Q1 2019
|
|
|
|
Q4 2018
|
|
|
Q1 2019
|
|
|
Q4 2018
|
Refining
|
|
|
|
$
|
(198)
|
|
|
|
2,001
|
|
|
(219)
|
|
|
2,008
|
Refining had a first-quarter 2019 pre-tax loss of $198 million, compared
with pre-tax income of $2 billion in the fourth quarter of 2018.
Refining results in the first quarter of 2019 included $21 million of
claim settlements. Fourth-quarter 2018 results included pension
settlement expense of $11 million, as well as $4 million of favorable
U.K. R&D expenditure credits.
Refining had an adjusted pre-tax loss of $219 million in the first
quarter of 2019, compared with adjusted pre-tax income of $2 billion in
the fourth quarter of 2018. The decrease was a result of a decline in
realized margins, as well as lower volumes due to maintenance activity
and unplanned downtime. Realized margins were down 56% to $7.23 per
barrel in the first quarter, driven by narrowing of inland crude
differentials, primarily Canadian crude, and lower clean product
realizations.
Phillips 66’s worldwide crude utilization rate was 84%, down from 99% in
the fourth quarter of 2018. Pre-tax turnaround costs for the first
quarter of 2019 were $148 million, compared with fourth-quarter 2018
costs of $130 million. Clean product yield was 85% in the first quarter.
Marketing and Specialties
|
|
|
Millions of Dollars
|
|
|
|
Pre-Tax Income
|
|
|
|
Adjusted Pre-Tax Income
|
|
|
|
Q1 2019
|
|
|
Q4 2018
|
|
|
|
Q1 2019
|
|
|
Q4 2018
|
Marketing and Other
|
|
|
$
|
138
|
|
|
525
|
|
|
|
138
|
|
|
528
|
Specialties
|
|
|
67
|
|
|
64
|
|
|
|
67
|
|
|
64
|
Marketing and Specialties
|
|
|
$
|
205
|
|
|
589
|
|
|
|
205
|
|
|
592
|
Marketing and Specialties (M&S) first-quarter 2019 pre-tax income was
$205 million, compared with $589 million in the fourth quarter of 2018.
M&S results in the fourth quarter of 2018 included pension settlement
expense of $3 million.
Adjusted pre-tax income for Marketing and Other was $138 million in the
first quarter of 2019, a decrease of $390 million from the fourth
quarter of 2018. The decrease was mainly due to lower domestic and
international marketing margins driven by less favorable market
conditions. Refined product exports in the first quarter were 200,000
barrels per day (BPD).
Specialties generated adjusted pre-tax income of $67 million during the
first quarter, up from $64 million.
Corporate and Other
|
|
|
|
Millions of Dollars
|
|
|
|
|
Pre-Tax Loss
|
|
|
|
Adjusted Pre-Tax Loss
|
|
|
|
|
Q1 2019
|
|
|
|
Q4 2018
|
|
|
|
Q1 2019
|
|
|
|
Q4 2018
|
Corporate and Other
|
|
|
|
$
|
(210)
|
|
|
|
(203)
|
|
|
|
(210)
|
|
|
|
(201)
|
Corporate and Other first-quarter 2019 pre-tax costs were $210 million,
compared with pre-tax costs of $203 million in the fourth quarter of
2018. Corporate and Other pre-tax costs in the fourth quarter of 2018
included pension settlement expense of $2 million.
Financial Position, Liquidity and Return of Capital
Cash used in operations was $478 million in the first quarter. Operating
cash flow was $923 million excluding $1.4 billion of working capital
impacts mainly due to inventory builds. Cash distributions from equity
affiliates totaled $632 million, including CPChem and WRB Refining
distributions to Phillips 66 of $200 million and $138 million,
respectively.
Capital expenditures and investments in the first quarter were $1.1
billion. Excluding $422 million of capital spending funded by Gray Oak
joint venture partners, adjusted capital spending was $675 million.
Phillips 66 funded $364 million of dividends and $344 million of share
repurchases in the quarter. The company ended the quarter with 454
million shares outstanding.
As of March 31, 2019, cash and cash equivalents were $1.3 billion, and
consolidated debt was $11.3 billion, including $3.2 billion at Phillips
66 Partners (PSXP). The company’s consolidated debt-to-capital ratio was
30% and its net debt-to-capital ratio was 27%. Excluding PSXP, the
debt-to-capital ratio was 25% and the net debt-to-capital ratio was 22%.
Strategic Update
Phillips 66 Partners is constructing the 900,000 BPD Gray Oak Pipeline,
which is anticipated to be in service by the end of 2019. The pipeline
will provide crude oil transportation from the Permian and Eagle Ford to
destinations in Corpus Christi, Texas, and the Sweeny, Texas, area,
including the company's Sweeny Refinery. Phillips 66 Partners has a
42.25% ownership in the pipeline.
The Gray Oak Pipeline will connect to multiple terminals in Corpus
Christi, including the South Texas Gateway Terminal currently being
constructed by Buckeye Partners, L.P. The marine export terminal will
have two deepwater docks, with initial storage capacity of 7 million
barrels and up to 800,000 BPD of throughput capacity. Phillips 66
Partners owns a 25% interest in the terminal, which is expected to start
up by mid-2020.
At the Sweeny Hub, the company is constructing two 150,000 BPD NGL
fractionators and associated pipeline infrastructure, and Phillips 66
Partners is adding 6 million barrels of storage capacity at Clemens
Caverns. Upon completion of the expansion, expected in the fourth
quarter of 2020, the Sweeny Hub will have 400,000 BPD of fractionation
capacity and 15 million barrels of storage at Clemens Caverns.
The company is constructing 2.2 million barrels of additional crude oil
storage at its Beaumont Terminal. Upon completion in the first quarter
of 2020, the terminal will have 16.8 million barrels of total crude and
product storage capacity.
During the quarter, the Bayou Bridge Pipeline segment from Lake Charles,
Louisiana, to St. James, Louisiana, was completed. The pipeline now
transports crude oil from Nederland, Texas, to St. James. Phillips 66
Partners owns a 40% interest in the pipeline joint venture. In addition,
Phillips 66 Partners continues to advance the ACE Pipeline System, which
would provide crude oil transportation from St. James to destinations in
Southeast Louisiana, including the company's Alliance Refinery.
DCP Midstream has a 25% interest in the Gulf Coast Express Pipeline
project to transport approximately 2 billion cubic feet per day of
natural gas from the Permian to Gulf Coast markets. The project is
anticipated to be completed in the fourth quarter of 2019. DCP Midstream
is adding gas processing capacity in the DJ Basin with the construction
of the O’Connor 2 plant, which is expected to be completed at the end of
the second quarter of 2019.
In Chemicals, CPChem’s new ethane cracker at Cedar Bayou continues to
operate above original design capacity. Effective January 1, 2019, the
capacity was increased to 1.7 million metric tons per year, 15% above
original design. CPChem is developing a second U.S. Gulf Coast project
that would add world-scale ethylene and derivative capacity. CPChem also
continues to evaluate additional low-cost, high-return debottleneck
opportunities.
CPChem has a study underway to add a world-scale 1-Hexene unit, which
would expand production of normal alpha olefins (NAO). 1-Hexene is a
critical component used to produce high-strength polyethylene products.
In Refining, Phillips 66 is upgrading the fluid catalytic cracking unit
(FCC) at the Sweeny Refinery to increase production of higher-value
petrochemical products and higher-octane gasoline. The project is
anticipated to be completed in the second quarter of 2020. Phillips 66
Partners is constructing a 25,000 BPD isomerization unit at the Lake
Charles Refinery to increase production of higher-octane gasoline blend
components. The project is expected to be completed in the third quarter
of 2019.
The company has a portfolio of renewable fuel projects under development
that leverage existing infrastructure. Waste fats, recycled cooking oils
and other renewable feedstocks will be used for diesel production. The
company has projects at the Humber and Ferndale refineries, as well as
supply and offtake agreements with third-party facilities in
Nevada. Renewable fuel opportunities are also being evaluated at the
company’s California refineries.
In Marketing, the company continues its program to roll out updated
signature image designs for Phillips 66, 76 and Conoco branded sites.
During the first quarter, over 300 domestic sites were re-imaged. Since
the program’s inception in 2015, approximately 2,900 U.S. sites have
been re-imaged.
Six Phillips 66 refineries were recognized by the American Fuel and
Petrochemical Manufacturers (AFPM) for exemplary safety performance in
2018. The Ponca City Refinery received the Distinguished Safety Award.
This is the highest annual safety award the industry recognizes, and the
third year in a row that one of the company's refineries has received
this recognition. The Ferndale and Los Angeles refineries received the
second-highest recognition, the Elite Gold Award. The Billings and
Borger refineries, as well as the San Francisco Refinery’s Santa Maria
site, were selected as recipients of the Elite Silver Award, which
recognizes the industry's top 5% for safety performance.
In Chemicals, the AFPM selected five CPChem facilities as recipients of
their Elite Silver Award. The facilities recognized were Cedar Bayou,
Conroe, Pasadena, Port Arthur and Sweeny. In Midstream, Phillips 66 and
DCP Midstream received first place company awards in their respective
divisions from the Gas Processors Association for outstanding safety
performance in 2018.
Investor Webcast
Later today, members of Phillips 66 executive management will host a
webcast at noon EDT to discuss the company’s first-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
|
|
|
|
|
2019
|
|
|
2018
|
|
|
|
|
Q1
|
|
|
Q4
|
|
|
Q1
|
Midstream
|
|
|
|
$
|
316
|
|
|
|
379
|
|
|
|
280
|
|
Chemicals
|
|
|
|
227
|
|
|
|
152
|
|
|
|
286
|
|
Refining
|
|
|
|
(198
|
)
|
|
|
2,001
|
|
|
|
112
|
|
Marketing and Specialties
|
|
|
|
205
|
|
|
|
589
|
|
|
|
235
|
|
Corporate and Other
|
|
|
|
(210
|
)
|
|
|
(203
|
)
|
|
|
(196
|
)
|
Pre-Tax Income
|
|
|
|
340
|
|
|
|
2,918
|
|
|
|
717
|
|
Less: Income tax expense
|
|
|
|
70
|
|
|
|
602
|
|
|
|
132
|
|
Less: Noncontrolling interests
|
|
|
|
66
|
|
|
|
76
|
|
|
|
61
|
|
Phillips 66
|
|
|
|
$
|
204
|
|
|
|
2,240
|
|
|
|
524
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Earnings
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Millions of Dollars
|
|
|
|
|
2019
|
|
|
2018
|
|
|
|
|
Q1
|
|
|
Q4
|
|
|
Q1
|
Midstream
|
|
|
|
$
|
316
|
|
|
|
409
|
|
|
|
280
|
|
Chemicals
|
|
|
|
227
|
|
|
|
152
|
|
|
|
286
|
|
Refining
|
|
|
|
(219
|
)
|
|
|
2,008
|
|
|
|
110
|
|
Marketing and Specialties
|
|
|
|
205
|
|
|
|
592
|
|
|
|
222
|
|
Corporate and Other
|
|
|
|
(210
|
)
|
|
|
(201
|
)
|
|
|
(212
|
)
|
Pre-Tax Income
|
|
|
|
319
|
|
|
|
2,960
|
|
|
|
686
|
|
Less: Income tax expense
|
|
|
|
66
|
|
|
|
624
|
|
|
|
120
|
|
Less: Noncontrolling interests
|
|
|
|
66
|
|
|
|
76
|
|
|
|
54
|
|
Phillips 66
|
|
|
|
$
|
187
|
|
|
|
2,260
|
|
|
|
512
|
|
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 integral to the portfolio. Headquartered
in Houston, the company has 14,300 employees committed to safety and
operating excellence. Phillips 66 had $58 billion of assets as of March
31, 2019. 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; the impact of adverse market conditions or other similar risks
to those identified herein affecting PSXP, as well as the ability of
PSXP to successfully execute its growth plans; 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 pre-tax 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 do not 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. Additionally, this release
includes adjusted capital spending, a non-GAAP financial measure that
demonstrates Phillips 66's net share of capital spending.
References in the release to earnings refer to net income
attributable to Phillips 66. References to net income are inclusive of
noncontrolling interests.
|
|
|
Millions of Dollars
|
|
|
|
Except as Indicated
|
|
|
|
2019
|
|
|
2018
|
|
|
|
Q1
|
|
|
Q4
|
|
|
Q1
|
Reconciliation of Consolidated Earnings to Adjusted Earnings
|
|
|
|
|
|
|
|
|
|
Consolidated Earnings
|
|
|
$
|
204
|
|
|
|
2,240
|
|
|
|
524
|
|
Pre-tax adjustments:
|
|
|
|
|
|
|
|
|
|
Pending claims and settlements
|
|
|
(21
|
)
|
|
|
—
|
|
|
|
—
|
|
Pension settlement expense
|
|
|
—
|
|
|
|
18
|
|
|
|
—
|
|
Impairments by equity affiliates
|
|
|
—
|
|
|
|
28
|
|
|
|
—
|
|
Certain tax impacts
|
|
|
—
|
|
|
|
(4
|
)
|
|
|
(15
|
)
|
Tax impact of adjustments*
|
|
|
4
|
|
|
|
(12
|
)
|
|
|
3
|
|
U.S. tax reform
|
|
|
—
|
|
|
|
55
|
|
|
|
(7
|
)
|
Other tax impacts
|
|
|
—
|
|
|
|
(65
|
)
|
|
|
—
|
|
Noncontrolling interests
|
|
|
—
|
|
|
|
—
|
|
|
|
7
|
|
Adjusted earnings
|
|
|
$
|
187
|
|
|
|
2,260
|
|
|
|
512
|
|
Earnings per share of common stock (dollars)
|
|
|
$
|
0.44
|
|
|
|
4.82
|
|
|
|
1.07
|
|
Adjusted earnings per share of common stock (dollars)†
|
|
|
$
|
0.40
|
|
|
|
4.87
|
|
|
|
1.04
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Segment Pre-Tax Income (Loss) to Adjusted
Pre-Tax Income (Loss)
|
|
|
|
|
|
|
|
|
|
Midstream Pre-Tax Income
|
|
|
$
|
316
|
|
|
|
379
|
|
|
|
280
|
|
Pre-tax adjustments:
|
|
|
|
|
|
|
|
|
|
Pension settlement expense
|
|
|
—
|
|
|
|
2
|
|
|
|
—
|
|
Impairments by equity affiliates
|
|
|
—
|
|
|
|
28
|
|
|
|
—
|
|
Adjusted pre-tax income
|
|
|
$
|
316
|
|
|
|
409
|
|
|
|
280
|
|
Chemicals Pre-Tax Income
|
|
|
$
|
227
|
|
|
|
152
|
|
|
|
286
|
|
Pre-tax adjustments:
|
|
|
|
|
|
|
|
|
|
None
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
Adjusted pre-tax income
|
|
|
$
|
227
|
|
|
|
152
|
|
|
|
286
|
|
Refining Pre-Tax Income (Loss)
|
|
|
$
|
(198
|
)
|
|
|
2,001
|
|
|
|
112
|
|
Pre-tax adjustments:
|
|
|
|
|
|
|
|
|
|
Pending claims and settlements
|
|
|
(21
|
)
|
|
|
—
|
|
|
|
—
|
|
Certain tax impacts
|
|
|
—
|
|
|
|
(4
|
)
|
|
|
(2
|
)
|
Pension settlement expense
|
|
|
—
|
|
|
|
11
|
|
|
|
—
|
|
Adjusted pre-tax income (loss)
|
|
|
$
|
(219
|
)
|
|
|
2,008
|
|
|
|
110
|
|
Marketing and Specialties Pre-Tax Income
|
|
|
$
|
205
|
|
|
|
589
|
|
|
|
235
|
|
Pre-tax adjustments:
|
|
|
|
|
|
|
|
|
|
Pension settlement expense
|
|
|
—
|
|
|
|
3
|
|
|
|
—
|
|
Certain tax impacts
|
|
|
—
|
|
|
|
—
|
|
|
|
(13
|
)
|
Adjusted pre-tax income
|
|
|
$
|
205
|
|
|
|
592
|
|
|
|
222
|
|
Corporate and Other Pre-Tax Loss
|
|
|
$
|
(210
|
)
|
|
|
(203
|
)
|
|
|
(196
|
)
|
Pre-tax adjustments:
|
|
|
|
|
|
|
|
|
|
Pension settlement expense
|
|
|
—
|
|
|
|
2
|
|
|
|
—
|
|
U.S. tax reform
|
|
|
—
|
|
|
|
—
|
|
|
|
(16
|
)
|
Adjusted pre-tax loss
|
|
|
$
|
(210
|
)
|
|
|
(201
|
)
|
|
|
(212
|
)
|
*We generally tax effect taxable U.S.-based special items
using a combined federal and state statutory income tax rate of
approximately 25%. 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
|
|
|
|
|
Q1 2019
|
|
|
|
Q4 2018
|
Realized Refining Margins
|
|
|
|
|
|
|
|
|
Income (loss) before income taxes
|
|
|
|
$
|
(198
|
)
|
|
|
|
2,001
|
|
Plus:
|
|
|
|
|
|
|
|
|
Taxes other than income taxes
|
|
|
|
75
|
|
|
|
|
66
|
|
Depreciation, amortization and impairments
|
|
|
|
212
|
|
|
|
|
211
|
|
Selling, general and administrative expenses
|
|
|
|
11
|
|
|
|
|
69
|
|
Operating expenses
|
|
|
|
1,011
|
|
|
|
|
1,010
|
|
Equity in earnings of affiliates
|
|
|
|
(81
|
)
|
|
|
|
(349
|
)
|
Other segment (income) expense, net
|
|
|
|
7
|
|
|
|
|
(4
|
)
|
Proportional share of refining gross margins contributed by equity
affiliates
|
|
|
|
284
|
|
|
|
|
528
|
|
Special items:
|
|
|
|
|
|
|
|
|
Pending claims and settlements
|
|
|
|
(21
|
)
|
|
|
|
—
|
|
Certain tax impacts
|
|
|
|
—
|
|
|
|
|
(4
|
)
|
Realized refining margins
|
|
|
|
$
|
1,300
|
|
|
|
|
3,528
|
|
Total processed inputs (thousands of barrels)
|
|
|
|
161,712
|
|
|
|
|
190,481
|
|
Adjusted total processed inputs (thousands of barrels)*
|
|
|
|
179,715
|
|
|
|
|
213,444
|
|
Income (loss) before income taxes (dollars per barrel)**
|
|
|
|
$
|
(1.22
|
)
|
|
|
|
10.50
|
|
Realized refining margins (dollars per barrel)***
|
|
|
|
$
|
7.23
|
|
|
|
|
16.53
|
|
*Adjusted total processed inputs include our proportional
share of processed inputs of an equity affiliate.
|
**Income (loss) before income taxes 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
|
|
|
|
Except as Indicated
|
|
|
|
March 31, 2019
|
Debt-to-Capital Ratio
|
|
|
|
|
|
|
|
|
|
|
|
|
Phillips 66
Consolidated
|
|
|
PSXP*
|
|
|
Phillips 66
Excluding PSXP
|
Total Debt
|
|
|
$
|
11,298
|
|
|
|
3,188
|
|
|
|
8,110
|
|
Total Equity
|
|
|
26,745
|
|
|
|
2,494
|
|
|
|
24,251
|
|
Debt-to-Capital Ratio
|
|
|
30
|
%
|
|
|
|
|
|
25
|
%
|
Total Cash
|
|
|
$
|
1,253
|
|
|
|
2
|
|
|
|
1,251
|
|
Net Debt-to-Capital Ratio
|
|
|
27
|
%
|
|
|
|
|
|
22
|
%
|
*PSXP’s third-party debt and Phillips 66’s noncontrolling
interests attributable to PSXP.
|