Phillips 66 records lowest cost per barrel since 2021 in Q2, according to CEO's statement
Phillips 66 Reports Strong Q2 Earnings and Revenues
Phillips 66 (NYSE: PSX) has announced better-than-expected Q2 earnings and revenues, leading to a 0.5% increase in the company's stock performance on Friday.
The Houston-based energy company reported adjusted earnings of $2.38 per share and total revenues of $33.5 billion for Q2 2025. These figures represent a significant improvement over the Q1 adjusted earnings of $736 million and revenues of $17.3 billion.
The increase in earnings and revenues was attributed to higher refining margins. The refining segment achieved 98% capacity utilization, the highest since 2018, with a record clean product yield of 86%. Refining margins reached $11.25 per barrel, up $4.44 sequentially, driving the strong operational performance in refining.
The midstream segment also posted positive results, with adjusted pre-tax earnings of $731 million. This figure was slightly down from $753 million year-over-year but above estimates. The growth was supported by the acquisition of Coastal Bend and the commissioning of the Dos Picos II gas processing plant, which expanded NGL (natural gas liquids) capacity to 225 thousand barrels per day (MBD).
However, the chemicals segment saw a significant drop in earnings, falling from $222 million year-over-year to $20 million. This decline was due to lower margins and decreased sales prices, missing estimates.
Despite a slight production decline in the Renewable Fuels segment, pre-tax income improved due to higher margins and carbon credit incentives. This improvement was supported by regulatory tailwinds such as California’s Sustainable Aviation Fuel (SAF) targets.
The company's Q2 net income increased to $877 million, or $2.15 per share, up significantly from $487 million, or $1.18 per share, in Q1 2025. However, the cash flow for Q2 was not specified in the announcement.
These details illustrate Phillips 66’s balanced performance, with strong refining and midstream operations counterbalanced by weaker chemicals results, and advances in renewables enhancing sustainability and future growth prospects. The company's stock symbol is NYSE: PSX.
This marks a positive turnaround for Phillips 66, which has been navigating challenging market conditions in recent years. The company's strong Q2 performance suggests a promising outlook for the rest of 2025.
- The strong refining and midstream operational performance, as well as the growth in the Renewable Fuels segment, indicate a potential increase in the flow of finance for Phillips 66 from the energy industry.
- The energy industry might observe a growing interest from financial investors in Phillips 66, given the company's balanced performance and the positive outlook for the rest of 2025.
