Phillips 66 Earns $14.08 a Share as Refining Profit Nearly Doubles From Prior Quarter

Phillips 66 earned $5.6 billion, or $14.08 per share, in the third quarter as higher refining margins and near-full plant utilization drove its refining profit to roughly double the prior quarter's level.

The Houston-based refiner and pipeline operator reported both reported and adjusted earnings of $14.08 per share, up from $9.55 reported and $9.41 adjusted in the second quarter, according to its earnings release filed with an 8-K on Wednesday. A year earlier, the company earned $133 million, or 32 cents per diluted share, according to supplemental data furnished with the release.

Refining carries the quarter

Refining pre-tax income rose to $6,031 million from $3,062 million in the second quarter, mainly on higher realized margins and volumes, the company said. It attributed the margin gain primarily to an increase in market crack spreads.

Realized refining margin climbed to $38.00 a barrel from $24.08. Crude capacity utilization reached 98%, Central Corridor processed inputs hit a record 848,000 barrels a day, and distillate yield reached a third-quarter record of 41%.

Adjusted EBITDA rose to $8,068 million from $5,891 million.

Other segments cooled

The rest of the portfolio earned less than in the second quarter. Midstream pre-tax income slipped to $702 million on lower gas transportation margins, and Chemicals fell to $311 million on lower polyethylene margins.

Marketing and Specialties dropped to $245 million as global marketing fuel margins narrowed, which the company said was primarily driven by a rising price environment. Renewable Fuels fell to $191 million on lower margins, inventory impacts and higher costs.

Cash to shareholders, debt down

Phillips 66 returned $2.8 billion to shareholders during the quarter, including $2,273 million of share repurchases and $504 million of dividends. It cut total debt by $2.0 billion to $18.5 billion and net debt by $3.8 billion to $12.7 billion. Cash flow from operations was $7,281 million.

"We target returning more than 50% of net operating cash flow to shareholders and delivering attractive, sustainable dividend growth across commodity cycles," Chairman and CEO Mark Lashier said. He pointed to the company's "recently announced second dividend increase of 2026" as evidence of that commitment.

Projects in motion

The company said it reached a final investment decision on the proposed Western Gateway Pipeline system, with service expected in 2029. Its Coastal Bend expansion is expected to deliver initial volumes in the fourth quarter of 2026 and ramp to 350,000 barrels a day in early 2027.

Chevron Phillips Chemical progressed polymers projects in Orange, Texas, and in Qatar, with full operations for both expected in 2027. Phillips 66 also said it delivered more than $50 million of near-term synergies after acquiring the remaining 50% of WRB Refining LP on Oct. 1, 2025.

The company ended the quarter with $5.8 billion of cash and $6.4 billion of committed capacity under credit facilities.

By the numbers

• Earnings: $5,616 million, or $14.08 per share
• Refining pre-tax income: $6,031 million, up from $3,062 million in Q2
• Realized refining margin: $38.00 a barrel
• Crude utilization: 98%
• Shareholder returns: $2.8 billion
• Total debt: $18.5 billion, down $2.0 billion

Sources

1. Phillips 66 Form 8-K with third-quarter 2026 earnings release and supplemental data (Exhibits 99.1 and 99.2), filed Oct. 28, 2026 (accession 0001534701-26-000035)

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