Phillips 66 is trading lower as the market continues to digest the company’s preliminary first-quarter 2026 guidance released on April 6, 2026, which highlighted a major hit from commodity-derivatives mark-to-market moves. The company said sharp commodity price increases in Q1 drove about $900 million in pre-tax mark-to-market losses, with the biggest estimated impacts in Refining and Marketing & Specialties, alongside an additional headwind from standard pricing lags in clean products.

Beyond earnings optics, the guidance underscored the cash mechanics of hedging volatility: Phillips 66 said Q1 brought roughly $3 billion of net cash-collateral outflows on derivative positions. To manage that, it drew on credit lines, issued and fully drew a new $2.25 billion 364-day term loan, and increased its receivables securitization facility to $1.75 billion; it also reported about $6 billion of liquidity as of March 31, 2026 (including $5 billion of cash).

Attention now shifts to the company’s full first-quarter report and webcast scheduled for April 29, 2026, when investors will look for (1) final reported mark-to-market impacts versus the preliminary ranges, (2) how much of the hedge-related accounting loss is offset by higher physical inventory economics over time, and (3) any changes to capital-return plans given the quarter’s cash collateral demands and the company’s stated debt-reduction target through 2027.