Phillips 66 has ceased operations at its sole remaining California refinery, filing with the state’s employment regulator to lay off approximately 50% of the facility’s workforce. The closure follows an accelerated depreciation charge of $239 million pre-tax taken in the fourth quarter associated with the Los Angeles refinery. The company has initiated severance and outplacement support for impacted employees and is evaluating options for the idle site, while reallocating feedstock and distribution logistics to its Wood River and Borger refineries in the Midwest.

In Q4 2025, Phillips 66 delivered adjusted earnings of $2.47 per share, topping consensus forecasts by $0.31, on revenues of $36.3 billion—exceeding expectations by over $4 billion. GAAP net income reached $2.9 billion, or $7.17 per share, driven by realized refining margins of $12.48 per barrel and a 99% crude throughput utilization rate. The company generated $2.8 billion in net operating cash flow ($2.0 billion excluding working capital), bolstered by higher midstream volumes and an 88% clean product yield. As of December 31, 2025, cash and equivalents stood at $1.1 billion, supported by a $5.7 billion committed credit facility.

During 2025, Phillips 66 acquired the remaining 50% interest in WRB Refining LP, consolidating full ownership of the Wood River and Borger refineries, and divested a 65% stake in its Germany and Austria retail marketing business. In January 2026, the company announced an agreement to acquire Lindsey Oil Refinery and associated logistics assets to bolster its U.K. operations. The 2026 capital budget is set at $2.4 billion, split between sustaining and organic growth projects, with an emphasis on debt reduction, disciplined capital allocation and returning cash to shareholders. For Q1 2026, Phillips 66 expects midstream olefins and polyolefins utilization in the mid-90% range and refinery crude utilization in the low 90% range.