- Phillips 66 (NYSE:PSX) beat profit expectations on strong Q2 results from Refining and Chemicals even as it pursues a focus on higher-value Midstream growth. Revenue of $29.08B significantly beat expectations for $25.32B.
- Refining contributed $604M to earnings, up 22% Q/Q on higher gasoline margins. Market capture was 62% based on a heavy weighting toward distillates.
- Chemicals earnings rose 45% to $295M as polyethylene demand was high.
- Midstream earnings of $48M were down $19M Q/Q as seasonal propane volumes and lower margins held down NGL business, and losses widened at the DCP Midstream operations mainly from the loss on selling its interest in the Benedum gas processing plant.
- The company says it's focused on growing higher-valued Midstream and Chemicals businesses and enhancing returns in refining.
- Capex was $2.3B through the end of Q2, on track for a capital budget of $4.6B focused on Midstream growth. Operating cash flow, excluding working capital, was $1.8B.
- Webcast to come at noon ET.
- Press Release