Phillips 66 posted second-quarter net earnings of $3.8bn for the period ended 30 June 2026, up 339% from $877m in the comparable quarter of the previous year. The petroleum refineries company’s diluted earnings per share climbed 344% year-over-year to $9.55 from $2.15. Sales reached $51bn, a 53% increase from $33.3bn, while revenue grew 55% to $52bn from $33.5bn in the prior-year period.
The company attributed its performance to higher margins and improved operational efficiency across its business segments. Refining operations benefitted from elevated margins and improved crack spreads. The midstream business saw gains from stronger margins and volumes, while chemical results improved on higher polyethylene prices. Marketing and Specialties reported increased global marketing margins. Adjusted net earnings totaled $3.8bn, up 289% from $973m year-over-year, and adjusted diluted earnings per share rose 295% to $9.41 from $2.38.
Operational cash flow increased substantially to $7.3bn compared with $845m in the prior-year period. Adjusted earnings before interest, taxes, depreciation and amortisation reached $5.9bn, up 136% from $2.5bn. The company reported record volumes in natural gas liquids fractionation and liquefied petroleum gas exports. Refining utilisation for the quarter stood at 96% with a clean product yield of 86%.
Phillips 66 reduced its total debt to $20.6bn from $20.9bn and decreased net debt to $16.5bn from $20.9bn. The debt-to-capital ratio improved to 39% from 42%, while net debt-to-capital decreased to 33% from 41%. Cash and cash equivalents rose to $4.1bn from $1.1bn. The company returned $887m to shareholders through $379m in share repurchases and $508m in dividend payments.
During the quarter, Phillips 66 achieved full production at its Dos Picos II gas plant in the Permian Basin and announced new projects including the Zeus Gas Plant and Coastal Bend NGL Fractionator. The company completed scheduled maintenance at its Wood River and Humber refineries. Major chemical joint ventures including the Golden Triangle Polymers Project in Texas and Ras Laffan Polymers Project in Qatar remain on schedule for full operations in 2027.
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