Phillips 66 Q3 profit beats estimates on higher refining margins
PSX•Phillips 66 reported third-quarter adjusted EPS of $14.08 and adjusted net income of $5.62 billion, beating analyst estimates of $11.73 and $4.61 billion, respectively. Refining utilization was 98%, and the company returned $2.8 billion to shareholders.
1. Quarterly results
Phillips 66’s third-quarter adjusted EPS was $14.08, compared with the $11.73 analyst estimate, while adjusted net income of $5.62 billion beat the $4.61 billion estimate. Higher realized refining margins and volumes drove an increase in refining adjusted pre-tax income.
2. Refining operations
The company reported 98% refining utilization and record Central Corridor processed inputs of 848,000 barrels per day. Third-quarter distillate yield reached a record 41%, while clean product yield was 86%.
3. Capital and outlook
Phillips 66 returned $2.8 billion to shareholders and reduced net debt by $3.8 billion. It targets returning more than 50% of net operating cash flow to shareholders and expects initial volumes from its Coastal Bend expansion project in the fourth quarter of 2026, with full ramp-up in early 2027.
