Phillips 66

Earnings Performance and Adjustments: In Q1 2025, Phillips 66 reported earnings of $487 million ($1.18 per share), but an adjusted loss of $368 million ($0.90 per share), primarily driven by a $246 million pre-tax impact from accelerated depreciation due to plans to cease operations at the Los Angeles Refinery in 2025. This reflects a challenging environment for refining, renewables, and chemicals, as operational performance and asset management strategies continue to evolve.

Refining Operations Outlook: Management anticipates a return to mid-90% utilization rates in refining as turnaround activities are winding down. Significant projects to enhance feedstock flexibility and yield were completed, including a 40,000 barrels per day increase in crude switching capability at the Sweeny Refinery. This positions the company to capture market upside in the remaining quarters, though it will face challenges from fluctuating WCS pricing.

Midstream Growth and Asset Acquisitions: Phillips 66's acquisition of EPIC NGL on April 1st is expected to be accretive and strengthens its integrated wellhead-to-market strategy. New projects like Iron Mesa in the Permian are planned, aiming to increase Midstream run-rate adjusted EBITDA to $4.5 billion by 2027. This integration emphasizes stable revenues despite broader market fluctuations.