Phillips 66 Reports Strong Q3 2026 Results with $5.6B Net Income

Overview

On October 28, 2026, Phillips 66 filed a Form 8-K under Item 2.02 (Results of Operations and Financial Condition) announcing its third-quarter 2026 financial and operating performance.

Key Financial Highlights

• Net Earnings: $5,616 million ($14.08 per diluted share), compared to $3,847 million ($9.55 per diluted share) in Q2 2026.
• Adjusted Earnings: $5,619 million ($14.08 per diluted share), compared to $3,788 million ($9.41 per diluted share) in Q2 2026.
• Adjusted EBITDA: $8,068 million, up 37.0% sequentially from $5,891 million in Q2 2026.
• Cash Flow from Operations: $7,281 million; cash flow from operations excluding working capital was $6,185 million.
• Capital Expenditures & Investments: $680 million in Q3 2026.
• Shareholder Returns: Totaled $2,777 million, including $2,273 million of common stock repurchases and $504 million in dividends.
• Balance Sheet & Leverage: Cash and cash equivalents reached $5,848 million. Total debt decreased by $2.03 billion to $18,530 million, reducing net debt to $12,682 million. Net debt-to-capital ratio declined to 26% from 33%.

Segment Performance

• Refining: Delivered pre-tax earnings of $6,031 million ($6,060 million adjusted), up from $3,062 million in Q2 2026. Realized refining margin expanded sharply to $38.00/BBL compared to $24.08/BBL in Q2 2026, supported by 98% crude capacity utilization and record Central Corridor throughput.
• Midstream: Pre-tax income was $702 million (vs. $785 million in Q2 2026), reflecting lower gas transportation margins despite NGL fractionated volumes reaching 1,003 MBD.
• Chemicals: Pre-tax income was $311 million (vs. $404 million in Q2 2026), impacted by lower polyethylene margins partially offset by higher sales volumes.
• Marketing and Specialties: Pre-tax income totaled $245 million (vs. $583 million in Q2 2026).
• Renewable Fuels: Generated pre-tax income of $191 million (vs. $544 million in Q2 2026).

Strategic Updates

• Reached a Final Investment Decision (FID) on the Western Gateway Pipeline system with an anticipated startup date in 2029.
• Progressed Chevron Phillips Chemical joint venture expansion projects in Orange, Texas, and Qatar, with commercial startup targeted for 2027.
• Coastal Bend expansion project is on schedule for initial volumes in Q4 2026 and full ramp-up to 350 MBD in early 2027.
• Achieved over $50 million of near-term synergies following the integration of the remaining 50% interest in WRB Refining LP.