Phillips 66 Stock Earnings Reports

Phillips 66 reported Q1 2026 adjusted earnings of $200 million ($0.49/share) and reported earnings of $207 million ($0.51/share). The quarter was dominated by unprecedented commodity volatility tied to geopolitical events in the Middle East, which produced an $839 million mark-to-market loss tied to hedges and drove a $3.2 billion cash margin requirement (down to $2.1 billion by late April). Operating cash flow excluding working capital was roughly $700 million; capital spending was $582 million. The company returned $778 million to shareholders (dividends and $269 million of buybacks) and increased the quarterly dividend by 7% annualized. Segment highlights: Chemicals benefited from stronger polyethylene margins and CPChem’s advantaged Gulf Coast ethane position, while Midstream impacted by lower volumes and recontracting; Refining, Marketing & Specialties and Renewables were pressured by mark-to-market impacts but commercial activity drove strong market capture (worldwide market capture ~138%). Management reiterated disciplined capital allocation: target total debt of $17 billion by YE 2027, and a policy to return >50% of net operating cash flow to shareholders. They expect mid-90s refinery utilization into Q2, global petrochemical utilization in the low-80s (CPChem exposure/uncertainty from Middle East JV operations), Q2 turnaround expense of $120–$150 million, and corporate costs of $430–$450 million. Management emphasized their U.S.-weighted asset footprint, commercial optionality (shipping/time charters, global origination), and projects such as Western Gateway (target FID mid–late summer) as positioning the company to capture sustained favorable market fundamentals.