Phillips 66 Logs $900M Q1 Loss and Secures $2.25B Loan
Phillips 66 posted about $900 million in Q1 2026 pre-tax mark-to-market losses on net short crude and products derivatives following the Strait of Hormuz closure, triggering a $3 billion cash collateral outflow. The company secured a $2.25 billion term loan, expanded its securitization program and retains $6 billion liquidity.
1. Q1 Mark-to-Market Losses
Phillips 66 reported approximately $900 million in pre-tax mark-to-market losses for Q1 2026 on net short positions in crude oil, refined products, natural gas liquids and renewables feedstocks derivatives, driven by a sharp oil price surge after the Strait of Hormuz closure.
2. Segment Impact Breakdown
The refining segment is set to absorb $350 million–$450 million of losses, marketing and specialties faces $300 million–$400 million, and renewable fuels anticipates $100 million–$200 million, while midstream generated $550 million–$600 million and chemicals contributed $80 million–$130 million in preliminary income.
3. Cash and Financing Measures
A net $3 billion cash outflow on derivative collateral prompted Phillips 66 to secure a $2.25 billion term loan and expand its securitization program, bolstering its cash position and maintaining $6 billion in liquidity.
4. Operational and Debt Strategy
The company lowered its Gulf Coast clean products pricing lag adjustment and reduced global olefins and polyolefins utilisation guidance, while its debt reduction strategy targets $17 billion of gross debt by end-2027.