en.Wedoany.com Reported - Phillips 66 Co. reported its second-quarter 2026 results on August 5: total earnings and adjusted earnings for the quarter were both $3.8 billion, both higher than the approximately $200 million in the previous quarter.
The company attributed the significant earnings growth to continued strength across its integrated refining, midstream, and chemicals businesses, with improved margins and better operating fundamentals across segments, supported by strong asset utilization. As of the end of the quarter, the company's total debt decreased by $6.6 billion to $20.6 billion, with net debt falling to $16.5 billion.
In the refining segment, second-quarter refining utilization reached 96%, up 1 percentage point from the first quarter; refining segment earnings for the quarter slightly exceeded $3 billion, compared to $208 million in the previous quarter. Phillips 66 said the sequential increase in adjusted pre-tax refining income was primarily driven by improved realized margins, supported by wider market crack spreads and favorable mark-to-market impacts.
The midstream and chemicals segments also benefited from improved margins in their sequential earnings growth. During the quarter, NGL (natural gas liquids) fractionation volumes reached a record 1.02 million barrels per day, an increase of 40,000 barrels per day from the previous quarter.
In the renewable fuels segment, adjusted earnings and EBITDA were $544 million and $560 million, respectively, compared to losses of $41 million and $18 million in the first quarter. Phillips 66 said the growth came from higher regulatory credits driven by increased market prices and volumes. Increased contributions from the midstream, renewable fuels, and marketing and specialties segments also supported quarterly earnings.
On project progress, the Dos Picos II natural gas processing plant in Midland County, Texas, commenced operations in July 2025 and reached its rated processing capacity of 220 million cubic feet per day (MMcfd) in the second quarter. The plant is part of Phillips 66's continued expansion of operations in the Midland Basin of the Permian Basin in Texas.
Prior to confirming Dos Picos II reaching full ramp-up rates, Phillips 66 had announced earlier in the quarter that it is advancing the 300 MMcfd Zeus natural gas plant in the Permian Basin, as well as construction of the 100,000 barrels per day Coastal Bend NGL Fractionator 3 (CBF3) in Robstown, Texas, both of which are scheduled to commence operations in 2028.
Phillips 66 also confirmed that it completed turnarounds during the second quarter at its recently acquired refineries, including the 345,000 barrels per day Wood River refinery in Roxana, Illinois, and the 221,000 barrels per day refinery in Humber, North Lincolnshire, England.
Chevron Phillips Chemical Co. LLC (CPChem), a 50/50 joint venture between Chevron U.S.A. Inc. and Phillips 66, continued to advance major polymer projects in the United States and Qatar during the quarter. Among them, Golden Triangle Polymers Co. LLC (51% owned by CPChem and 49% by QatarEnergy) at its basic petrochemical complex on the Texas Gulf Coast in Orange, Texas, and Ras Laffan Petrochemicals (RLP, 70% owned by QatarEnergy and 30% by CPChem) at its integrated polymers complex in Ras Laffan Industrial City, Qatar, are both scheduled for full start-up in 2027.
Looking ahead, Phillips 66 expects to incur $100 million to $120 million in refining turnaround expenses in the third quarter of 2026, with system-wide quarterly crude utilization expected to be around 95%. The company has not yet specified which refineries will undergo maintenance in the third quarter.
