Phillips 66 (PSX) Bundle
A Brief History of Phillips 66
As of 2024, Phillips 66 (NYSE: PSX) is a leading integrated downstream energy company with a diverse portfolio that spans refining, marketing, and midstream operations. Established in 2012 as a spinoff from ConocoPhillips, the company has since grown to become a significant player in the energy sector.
Financial Performance Overview
In the third quarter of 2024, Phillips 66 reported a net income of $346 million, reflecting a decline from $2.1 billion in the same quarter of the previous year. For the nine months ending September 30, 2024, the net income attributable to Phillips 66 was $2.15 billion, a notable decrease from $5.95 billion in the prior year.
| Financial Metrics | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Net Income (Million $) | 346 | 2,097 | 2,150 | 5,954 |
| Earnings Per Share (EPS) | $0.82 | $4.72 | $4.97 | $12.65 |
| Total Revenue (Million $) | 12,557 | 16,793 | 37,720 | 52,237 |
Capital Expenditures and Investments
For the first nine months of 2024, Phillips 66 reported cash flows from operating activities of $2.99 billion, a decrease from $4.84 billion in the previous year. Capital expenditures were approximately $1.35 billion, including significant investments in refining and midstream operations.
Debt and Financial Structure
As of September 30, 2024, Phillips 66's total debt stood at $20 billion, with a total debt-to-capital ratio of 40%, up from 38% in December 2023. The company has been active in managing its debt, issuing $1.8 billion in senior unsecured notes in September 2024 and $1.5 billion in February 2024.
| Debt Metrics | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Total Debt (Million $) | 20,000 | 19,400 |
| Debt-to-Capital Ratio | 40% | 38% |
Shareholder Returns
Phillips 66 has maintained a robust shareholder return strategy, distributing $12.5 billion through share repurchases and dividends since July 2022. The quarterly cash dividend declared on July 10, 2024, was $1.15 per share, reflecting the company's commitment to returning value to shareholders.
Recent Acquisitions and Strategic Moves
In July 2024, Phillips 66 acquired Pinnacle Midstream for $567 million, enhancing its natural gas gathering and processing capabilities in the Permian Basin. This acquisition aligns with the company's strategy to expand its midstream operations and improve efficiency.
Market Environment and Challenges
The energy sector remains volatile, with fluctuations in refining margins and commodity prices significantly impacting Phillips 66's financial performance. The average NGL price was $0.64 per gallon during Q3 2024, compared to $0.67 per gallon in Q3 2023.
| Market Indicators | Q3 2024 | Q3 2023 |
|---|---|---|
| NGL Price (per gallon) | $0.64 | $0.67 |
| Henry Hub Natural Gas Price (per MMBtu) | $2.09 | $2.58 |
As of September 30, 2024, Phillips 66's total assets were valued at $75.1 billion, showcasing its substantial presence in the global energy market.
A Who Owns Phillips 66 (PSX)
Shareholder Composition
As of September 30, 2024, Phillips 66 (PSX) had the following notable shareholders:
| Shareholder Type | Percentage of Ownership | Number of Shares |
|---|---|---|
| Institutional Investors | 75.2% | 493,126,000 |
| Individual Investors | 11.5% | 75,600,000 |
| Insider Ownership | 1.5% | 9,800,000 |
| Treasury Stock | 12.0% | 78,500,000 |
Top Institutional Shareholders
The largest institutional shareholders of Phillips 66 as of 2024 include:
| Institution | Percentage of Ownership | Number of Shares |
|---|---|---|
| The Vanguard Group, Inc. | 8.5% | 56,000,000 |
| BlackRock, Inc. | 7.9% | 52,000,000 |
| State Street Corporation | 5.6% | 37,000,000 |
| Wellington Management Group LLP | 4.3% | 28,000,000 |
| Fidelity Investments | 3.7% | 24,000,000 |
Insider Ownership
Insider ownership is a critical factor in understanding the governance of Phillips 66. As of 2024, the following executives held significant shares:
| Name | Position | Number of Shares Owned |
|---|---|---|
| Gregory C. Garland | Chairman & CEO | 2,500,000 |
| Kevin L. Mitchell | CFO | 1,200,000 |
| Julia E. McCarthy | SVP, General Counsel | 800,000 |
Recent Stock Performance
As of September 30, 2024, Phillips 66's stock performance reflects its shareholder value initiatives:
| Metric | Value |
|---|---|
| Current Stock Price | $45.50 |
| Market Capitalization | $29.9 billion |
| Dividend Per Share (Annual) | $4.60 |
| P/E Ratio | 10.5 |
| Shares Outstanding | 656,887,405 |
Recent Shareholder Actions
In 2024, Phillips 66 announced several shareholder-friendly actions:
- Share Repurchase Program: Authorized up to $25 billion since July 2012, with $20.9 billion utilized as of September 2024.
- Quarterly Dividend: Declared a quarterly cash dividend of $1.15 per share paid on September 3, 2024.
- Share Repurchases: Repurchased approximately 19.5 million shares at a cost of $2.8 billion in the nine months ended September 30, 2024.
Phillips 66 (PSX) Mission Statement
Mission Statement Overview
Phillips 66 is committed to providing energy and improving lives through innovative solutions and sustainable practices. The company emphasizes operational excellence, safety, and environmental stewardship while delivering value to its stakeholders.
Financial Performance and Metrics
As of September 30, 2024, Phillips 66 reported a net income of $2.15 billion for the nine months ended in 2024, compared to $5.95 billion for the same period in 2023. The company generated $2.99 billion in cash from operating activities during the first nine months of 2024, down from $4.84 billion in 2023.
| Metric | Q3 2024 | Q3 2023 | 9 Months 2024 | 9 Months 2023 |
|---|---|---|---|---|
| Net Income (Millions) | 346 | 2,097 | 2,150 | 5,954 |
| Cash from Operating Activities (Millions) | 1,100 | 1,200 | 2,993 | 4,839 |
| Total Assets (Millions) | 75,080 | 75,501 | ||
| Total Debt (Millions) | 20,000 | 19,400 |
Strategic Initiatives
In 2024, Phillips 66 aims to enhance long-term shareholder value through strategic priorities including:
- Distribution of $12.5 billion through share repurchases and dividends since July 2022.
- Achieving $1.4 billion in run-rate business transformation savings.
- Expanding Midstream operations with the acquisition of Pinnacle Midstream for $567 million.
- Targeting $3 billion in asset dispositions with $1.3 billion already achieved since 2022.
Dividend and Share Repurchase Programs
Phillips 66 declared a quarterly cash dividend of $1.15 per share, paid on September 3, 2024. The company has authorized $25 billion in share repurchases since July 2012, repurchasing approximately 19.5 million shares for about $2.8 billion in the nine months ended September 30, 2024.
| Year | Dividend per Share | Shares Repurchased (Millions) | Repurchase Amount (Millions) |
|---|---|---|---|
| 2024 | $1.15 | 19.5 | 2,800 |
| 2023 | $3.15 | 28.1 | 2,879 |
Market Position and Industry Context
As of Q3 2024, Phillips 66's refining margins were impacted by market conditions, with the composite 3:2:1 market crack spread averaging $16.50 per barrel, down from $36.06 per barrel in Q3 2023. The average price of West Texas Intermediate (WTI) crude oil was $75.19 per barrel, compared to $82.49 per barrel in the same quarter of 2023.
| Market Indicator | Q3 2024 | Q3 2023 |
|---|---|---|
| Composite Market Crack Spread ($/barrel) | $16.50 | $36.06 |
| WTI Crude Oil Price ($/barrel) | $75.19 | $82.49 |
How Phillips 66 (PSX) Works
Business Segments
Phillips 66 operates through several key segments:
- Midstream
- Chemicals
- Refining
- Marketing and Specialties
- Renewable Fuels
Financial Performance
In the third quarter of 2024, Phillips 66 reported:
| Metric | Q3 2024 (Millions) | Q3 2023 (Millions) |
|---|---|---|
| Net Income | 346 | 2,097 |
| Income Before Income Taxes | 413 | 2,813 |
| Cash Provided by Operating Activities | 1,100 | 1,400 |
| Capital Expenditures | 358 | 540 |
| Dividends Paid | 477 | 465 |
| Share Repurchases | 800 | 733 |
Segment Results
For the nine months ended September 30, 2024, income before income taxes by segment was as follows:
| Segment | Income (Millions) |
|---|---|
| Midstream | 1,965 |
| Chemicals | 769 |
| Refining | 410 |
| Marketing and Specialties | 759 |
| Renewable Fuels | (226) |
Refining Operations
Refining metrics for the nine months ended September 30, 2024:
| Region | Income (Millions) | Realized Margins ($/Barrel) |
|---|---|---|
| Atlantic Basin/Europe | 32 | 7.88 |
| Gulf Coast | 60 | 8.38 |
| Central Corridor | 764 | 13.18 |
| West Coast | (446) | 9.34 |
Cash Flow and Liquidity
Cash flow details for the nine months ended September 30, 2024:
| Cash Flow Type | Amount (Millions) |
|---|---|
| Net Cash Provided by Operating Activities | 2,993 |
| Net Cash Used in Investing Activities | (2,118) |
| Net Cash Used in Financing Activities | (2,581) |
Debt and Equity Structure
As of September 30, 2024, Phillips 66's financial position included:
| Metric | Amount (Millions) |
|---|---|
| Total Assets | 75,080 |
| Total Liabilities | 45,296 |
| Total Equity | 29,784 |
| Total Debt | 19,998 |
| Cash and Cash Equivalents | 1,637 |
Recent Developments
Recent financing activities include:
- Issued $1.8 billion in senior unsecured notes on September 9, 2024.
- Repurchased $800 million in common stock in Q3 2024.
- Paid dividends totaling $477 million in Q3 2024.
How Phillips 66 (PSX) Makes Money
Business Segments Overview
Phillips 66 operates through several key segments: Refining, Midstream, Chemicals, Marketing and Specialties, and Renewable Fuels. Each segment contributes uniquely to the overall revenue and profitability of the company.
Refining Segment
The Refining segment is the largest contributor to Phillips 66's revenue. In the third quarter of 2024, the Refining segment reported an income before income taxes of $-108 million, a significant decrease from $1.712 billion in the same period of 2023. The realized refining margins for this segment averaged $9.77 per barrel for the first nine months of 2024, down from $19.06 per barrel in the previous year.
| Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Income Before Income Taxes | $-108 million | $1.712 billion | $410 million | $4.481 billion |
| Realized Refining Margins | $9.77 per barrel | $19.06 per barrel | $11.00 per barrel | $15.14 per barrel |
Midstream Segment
In the Midstream segment, Phillips 66 reported an income before income taxes of $644 million in Q3 2024, down from $724 million in Q3 2023. This segment includes transportation and storage of crude oil and natural gas liquids (NGLs), which are critical for maintaining steady cash flows.
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Income Before Income Taxes | $644 million | $724 million |
Chemicals Segment
The Chemicals segment has also performed robustly, with an income before income taxes of $342 million in Q3 2024, compared to $104 million in Q3 2023. This increase reflects higher margins and improved operational efficiency.
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Income Before Income Taxes | $342 million | $104 million |
Marketing and Specialties Segment
The Marketing and Specialties segment generated an income before income taxes of $-22 million in Q3 2024, down from $605 million in Q3 2023. The decline reflects lower marketing margins and reduced sales volumes.
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Income Before Income Taxes | $-22 million | $605 million |
Renewable Fuels Segment
The Renewable Fuels segment reported an income before income taxes of $-116 million for Q3 2024, compared to a profit of $22 million in Q3 2023. This reflects challenges in feedstock costs and regulatory compliance.
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Income Before Income Taxes | $-116 million | $22 million |
Equity Affiliates
Phillips 66's equity affiliates, particularly in the Chemicals sector, contributed significantly to earnings. The company reported aggregate distributions of $1.045 billion from equity affiliates in the first nine months of 2024.
Cash Flow and Capital Expenditures
For the first nine months of 2024, Phillips 66 generated cash from operating activities of $3 billion, down from $4.8 billion in the same period of 2023. Capital expenditures totaled $1.353 billion.
| Metric | 9M 2024 | 9M 2023 |
|---|---|---|
| Cash from Operating Activities | $3 billion | $4.8 billion |
| Capital Expenditures | $1.353 billion | $1.521 billion |
Debt Structure
As of September 30, 2024, Phillips 66's total debt stood at $20 billion, with a total debt-to-capital ratio of 40%. This reflects an increase from $19.4 billion and a 38% ratio at the end of 2023.
| Metric | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Total Debt | $20 billion | $19.4 billion |
| Debt-to-Capital Ratio | 40% | 38% |
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Article updated on 8 Nov 2024
Resources:
- Phillips 66 (PSX) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Phillips 66 (PSX)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Phillips 66 (PSX)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.