Phillips 66 has initiated a phased closure of its sole remaining California refinery, ceasing fuel production at the Wilmington complex in Los Angeles. A regulatory filing with California’s Employment Development Department indicates the company will lay off approximately 1,200 hourly and salaried employees, representing nearly half of the facility’s workforce. The shutdown follows an accelerated depreciation charge of $239 million recorded in Q4 2025 and is part of Phillips 66’s broader effort to optimize its refining footprint and improve overall operating margins.

For the fourth quarter of 2025, Phillips 66 reported adjusted earnings of $2.47 per share, surpassing analyst expectations of $2.16. Revenue climbed to $36.3 billion, topping the consensus estimate of $32.06 billion, driven by a 99% refining utilization rate and an 88% clean product yield. The company generated $2.8 billion in net operating cash flow ($2.0 billion excluding working capital movements). Midstream segment adjusted pre-tax income rose sequentially to $717 million on higher throughput, while renewable fuels margins improved despite reduced credits. Chemicals saw a sequential margin decline, and Marketing & Specialties results were affected by the partial sale of the Germany and Austria business.

In 2025, Phillips 66 completed the sale of a 65% stake in its Germany and Austria retail marketing operations and acquired the remaining 50% interest in WRB Refining LP, consolidating ownership of the Wood River and Borger refineries. Early 2026 moves include an agreement to purchase Lindsey Oil Refinery and associated logistics assets in the U.K. The company set a 2026 capital budget of $2.4 billion—$1.1 billion for sustaining expenditures and $1.3 billion for organic growth—while targeting mid-90% utilization for olefins & polyolefins and low-90% crude utilization in refining for Q1. Phillips 66 also plans to continue disciplined capital allocation, aiming to reduce net debt from 38% of capital and sustain shareholder returns through dividends and share repurchases.