Exhibit 99.2 | |||||||||||||||
Phillips 66 Earnings Release Supplemental Data | |||||||||||||||
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CONSOLIDATED INCOME STATEMENT | ||||||||||||||||||||||||
Millions of Dollars | ||||||||||||||||||||||||
2018 | 2017 | |||||||||||||||||||||||
1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | |||||||||||||||
Revenues and Other Income | ||||||||||||||||||||||||
Sales and other operating revenues* | 23,595 | 28,980 | 29,788 | 29,098 | 111,461 | 22,894 | 24,087 | 25,627 | 29,746 | 102,354 | ||||||||||||||
Equity in earnings of affiliates | 424 | 743 | 779 | 730 | 2,676 | 365 | 462 | 530 | 375 | 1,732 | ||||||||||||||
Net gain on dispositions | 17 | — | 1 | 1 | 19 | 1 | 14 | — | — | 15 | ||||||||||||||
Other income | 10 | 13 | 24 | 14 | 61 | 452 | 18 | 49 | 2 | 521 | ||||||||||||||
Total Revenues and Other Income | 24,046 | 29,736 | 30,592 | 29,843 | 114,217 | 23,712 | 24,581 | 26,206 | 30,123 | 104,622 | ||||||||||||||
Costs and Expenses | ||||||||||||||||||||||||
Purchased crude oil and products | 21,138 | 25,747 | 26,385 | 24,660 | 97,930 | 17,679 | 18,353 | 19,463 | 23,914 | 79,409 | ||||||||||||||
Operating expenses | 1,246 | 1,143 | 1,206 | 1,285 | 4,880 | 1,270 | 1,137 | 1,134 | 1,158 | 4,699 | ||||||||||||||
Selling, general and administrative expenses | 386 | 432 | 440 | 419 | 1,677 | 384 | 439 | 435 | 437 | 1,695 | ||||||||||||||
Depreciation and amortization | 336 | 337 | 346 | 337 | 1,356 | 315 | 320 | 337 | 346 | 1,318 | ||||||||||||||
Impairments | — | 6 | 1 | 1 | 8 | 2 | 15 | 1 | 6 | 24 | ||||||||||||||
Taxes other than income taxes* | 110 | 109 | 109 | 97 | 425 | 3,156 | 3,356 | 3,456 | 3,494 | 13,462 | ||||||||||||||
Accretion on discounted liabilities | 6 | 6 | 5 | 6 | 23 | 5 | 6 | 5 | 6 | 22 | ||||||||||||||
Interest and debt expense | 123 | 135 | 125 | 121 | 504 | 105 | 107 | 112 | 114 | 438 | ||||||||||||||
Foreign currency transaction (gains) losses | (16 | ) | (14 | ) | — | (1 | ) | (31 | ) | (1 | ) | — | 7 | (6 | ) | — | ||||||||
Total Costs and Expenses | 23,329 | 27,901 | 28,617 | 26,925 | 106,772 | 22,915 | 23,733 | 24,950 | 29,469 | 101,067 | ||||||||||||||
Income before income taxes | 717 | 1,835 | 1,975 | 2,918 | 7,445 | 797 | 848 | 1,256 | 654 | 3,555 | ||||||||||||||
Income tax expense (benefit) | 132 | 431 | 407 | 602 | 1,572 | 234 | 267 | 407 | (2,601 | ) | (1,693 | ) | ||||||||||||
Net Income | 585 | 1,404 | 1,568 | 2,316 | 5,873 | 563 | 581 | 849 | 3,255 | 5,248 | ||||||||||||||
Less: net income attributable to noncontrolling interests | 61 | 65 | 76 | 76 | 278 | 28 | 31 | 26 | 57 | 142 | ||||||||||||||
Net Income Attributable to Phillips 66 | 524 | 1,339 | 1,492 | 2,240 | 5,595 | 535 | 550 | 823 | 3,198 | 5,106 | ||||||||||||||
* Includes excise taxes on sales of refined petroleum products for periods prior to the adoption of Financial Accounting Standards Board (FASB) Accounting Standards Update (ASU) No. 2014-09 on January 1, 2018: | 3,036 | 3,252 | 3,376 | 3,390 | 13,054 | |||||||||||||||||||
Net Income Attributable to Phillips 66 Per Share of Common Stock (dollars) | ||||||||||||||||||||||||
Basic | 1.07 | 2.86 | 3.20 | 4.85 | 11.87 | 1.02 | 1.06 | 1.60 | 6.29 | 9.90 | ||||||||||||||
Diluted | 1.07 | 2.84 | 3.18 | 4.82 | 11.80 | 1.02 | 1.06 | 1.60 | 6.25 | 9.85 | ||||||||||||||
Weighted-Average Common Shares Outstanding (thousands) | ||||||||||||||||||||||||
Basic | 487,065 | 468,331 | 466,109 | 461,651 | 470,708 | 521,647 | 517,785 | 512,923 | 508,148 | 515,090 | ||||||||||||||
Diluted | 489,668 | 471,638 | 469,440 | 464,406 | 474,047 | 524,520 | 520,160 | 515,960 | 511,352 | 518,508 | ||||||||||||||
OTHER INFORMATION | ||||||||||||||||||||||||
2018 | 2017 | |||||||||||||||||||||||
1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | |||||||||||||||
Effective tax rate (%) | 18.4 | % | 23.5 | % | 20.6 | % | 20.6 | % | 21.1 | % | 29.4 | % | 31.5 | % | 32.4 | % | (397.7 | )% | (47.6 | )% | ||||
Foreign Currency Gains (Losses) - After-Tax ($ Millions) | 13 | 13 | — | 1 | 27 | 1 | — | (5 | ) | 4 | — |
Page 1
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RECONCILIATION OF INCOME (LOSS) BEFORE INCOME TAXES BY SEGMENT TO | ||||||||||||||||||||||||
NET INCOME ATTRIBUTABLE TO PHILLIPS 66 | ||||||||||||||||||||||||
Millions of Dollars | ||||||||||||||||||||||||
2018 | 2017 | |||||||||||||||||||||||
1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | |||||||||||||||
Midstream | 280 | 238 | 284 | 379 | 1,181 | 153 | 130 | 166 | 189 | 638 | ||||||||||||||
Chemicals | 286 | 324 | 263 | 152 | 1,025 | 251 | 294 | 163 | 8 | 716 | ||||||||||||||
Refining | 112 | 1,190 | 1,232 | 2,001 | 4,535 | 390 | 307 | 863 | 516 | 2,076 | ||||||||||||||
Marketing and Specialties | 235 | 310 | 423 | 589 | 1,557 | 208 | 328 | 317 | 167 | 1,020 | ||||||||||||||
Corporate and Other | (196 | ) | (227 | ) | (227 | ) | (203 | ) | (853 | ) | (205 | ) | (211 | ) | (253 | ) | (226 | ) | (895 | ) | ||||
Income before income taxes | 717 | 1,835 | 1,975 | 2,918 | 7,445 | 797 | 848 | 1,256 | 654 | 3,555 | ||||||||||||||
Less: income tax expense (benefit) | 132 | 431 | 407 | 602 | 1,572 | 234 | 267 | 407 | (2,601 | ) | (1,693 | ) | ||||||||||||
Net Income | 585 | 1,404 | 1,568 | 2,316 | 5,873 | 563 | 581 | 849 | 3,255 | 5,248 | ||||||||||||||
Less: net income attributable to noncontrolling interests | 61 | 65 | 76 | 76 | 278 | 28 | 31 | 26 | 57 | 142 | ||||||||||||||
Net Income Attributable to Phillips 66 | 524 | 1,339 | 1,492 | 2,240 | 5,595 | 535 | 550 | 823 | 3,198 | 5,106 | ||||||||||||||
RECONCILIATION OF ADJUSTED INCOME (LOSS) BEFORE INCOME TAXES BY SEGMENT TO | ||||||||||||||||||||||||
ADJUSTED NET INCOME ATTRIBUTABLE TO PHILLIPS 66 | ||||||||||||||||||||||||
Millions of Dollars | ||||||||||||||||||||||||
2018 | 2017 | |||||||||||||||||||||||
1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | |||||||||||||||
Midstream | ||||||||||||||||||||||||
Transportation | 163 | 164 | 209 | 234 | 770 | 107 | 102 | 140 | 152 | 501 | ||||||||||||||
NGL and Other | 86 | 53 | 74 | 122 | 335 | 19 | 14 | (5 | ) | 18 | 46 | |||||||||||||
DCP Midstream | 31 | 21 | 29 | 53 | 134 | 27 | 22 | 1 | 26 | 76 | ||||||||||||||
Total Midstream | 280 | 238 | 312 | 409 | 1,239 | 153 | 138 | 136 | 196 | 623 | ||||||||||||||
Chemicals | 286 | 324 | 263 | 152 | 1,025 | 284 | 294 | 216 | 161 | 955 | ||||||||||||||
Refining | ||||||||||||||||||||||||
Atlantic Basin/Europe | (108 | ) | 164 | 216 | 301 | 573 | (98 | ) | 124 | 249 | 157 | 432 | ||||||||||||
Gulf Coast | — | 366 | 221 | 468 | 1,055 | 98 | 91 | 123 | 107 | 419 | ||||||||||||||
Central Corridor | 272 | 521 | 846 | 1,188 | 2,827 | 97 | 45 | 318 | 301 | 761 | ||||||||||||||
West Coast | (54 | ) | 140 | (20 | ) | 51 | 117 | (130 | ) | 61 | 168 | (55 | ) | 44 | ||||||||||
Total Refining | 110 | 1,191 | 1,263 | 2,008 | 4,572 | (33 | ) | 321 | 858 | 510 | 1,656 | |||||||||||||
Marketing and Specialties | ||||||||||||||||||||||||
Marketing and Other | 163 | 188 | 323 | 528 | 1,202 | 181 | 282 | 246 | 111 | 820 | ||||||||||||||
Specialties | 59 | 66 | 62 | 64 | 251 | 27 | 53 | 75 | 57 | 212 | ||||||||||||||
Total Marketing and Specialties | 222 | 254 | 385 | 592 | 1,453 | 208 | 335 | 321 | 168 | 1,032 | ||||||||||||||
Corporate and Other | (212 | ) | (227 | ) | (223 | ) | (201 | ) | (863 | ) | (205 | ) | (209 | ) | (220 | ) | (226 | ) | (860 | ) | ||||
Adjusted income before income taxes | 686 | 1,780 | 2,000 | 2,960 | 7,426 | 407 | 879 | 1,311 | 809 | 3,406 | ||||||||||||||
Less: adjusted income tax expense (benefit) | 120 | 393 | 467 | 624 | 1,604 | 85 | 279 | 427 | 204 | 995 | ||||||||||||||
Adjusted Net Income | 566 | 1,387 | 1,533 | 2,336 | 5,822 | 322 | 600 | 884 | 605 | 2,411 | ||||||||||||||
Less: adjusted net income attributable to noncontrolling interests | 54 | 65 | 77 | 76 | 272 | 28 | 31 | 26 | 57 | 142 | ||||||||||||||
Adjusted Net Income Attributable to Phillips 66 | 512 | 1,322 | 1,456 | 2,260 | 5,550 | 294 | 569 | 858 | 548 | 2,269 |
Page 2
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SPECIAL ITEMS INCLUDED IN INCOME (LOSS) BEFORE INCOME TAXES BY SEGMENT | ||||||||||||||||||||||||
AND NET INCOME ATTRIBUTABLE TO PHILLIPS 66 | ||||||||||||||||||||||||
Millions of Dollars | ||||||||||||||||||||||||
2018 | 2017 | |||||||||||||||||||||||
1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | |||||||||||||||
Midstream | ||||||||||||||||||||||||
Pending claims and settlements | — | — | (21 | ) | — | (21 | ) | — | — | 37 | — | 37 | ||||||||||||
Hurricane-related costs | — | — | — | — | — | — | — | (4 | ) | (6 | ) | (10 | ) | |||||||||||
Impairments by equity affiliates | — | — | — | (28 | ) | (28 | ) | — | — | — | — | — | ||||||||||||
Pension settlement expense | — | — | (7 | ) | (2 | ) | (9 | ) | — | (8 | ) | (3 | ) | (1 | ) | (12 | ) | |||||||
Total Midstream | — | — | (28 | ) | (30 | ) | (58 | ) | — | (8 | ) | 30 | (7 | ) | 15 | |||||||||
Chemicals | ||||||||||||||||||||||||
Impairments by equity affiliates | — | — | — | — | — | (33 | ) | — | — | (31 | ) | (64 | ) | |||||||||||
Hurricane-related costs | — | — | — | — | — | — | — | (53 | ) | (122 | ) | (175 | ) | |||||||||||
Total Chemicals | — | — | — | — | — | (33 | ) | — | (53 | ) | (153 | ) | (239 | ) | ||||||||||
Refining | ||||||||||||||||||||||||
Pending claims and settlements | — | — | — | — | — | — | 21 | 30 | — | 51 | ||||||||||||||
Certain tax impacts | 2 | (1 | ) | 1 | 4 | 6 | — | — | — | 23 | 23 | |||||||||||||
Hurricane-related costs | — | — | — | — | — | — | — | (12 | ) | (12 | ) | (24 | ) | |||||||||||
Gain on consolidation of business | — | — | — | — | — | 423 | — | — | — | 423 | ||||||||||||||
Pension settlement expense | — | — | (32 | ) | (11 | ) | (43 | ) | — | (35 | ) | (13 | ) | (5 | ) | (53 | ) | |||||||
Total Refining | 2 | (1 | ) | (31 | ) | (7 | ) | (37 | ) | 423 | (14 | ) | 5 | 6 | 420 | |||||||||
Marketing and Specialties | ||||||||||||||||||||||||
Certain tax impacts | 13 | 56 | 44 | — | 113 | — | — | — | — | — | ||||||||||||||
Hurricane-related costs | — | — | — | — | — | — | — | (1 | ) | — | (1 | ) | ||||||||||||
Pension settlement expense | — | — | (6 | ) | (3 | ) | (9 | ) | — | (7 | ) | (3 | ) | (1 | ) | (11 | ) | |||||||
Total Marketing and Specialties | 13 | 56 | 38 | (3 | ) | 104 | — | (7 | ) | (4 | ) | (1 | ) | (12 | ) | |||||||||
Corporate and Other | ||||||||||||||||||||||||
Pending claims and settlements | — | — | — | — | — | — | 3 | (31 | ) | — | (28 | ) | ||||||||||||
U.S. tax reform | 16 | — | — | — | 16 | — | — | — | — | — | ||||||||||||||
Pension settlement expense | — | — | (4 | ) | (2 | ) | (6 | ) | — | (5 | ) | (2 | ) | — | (7 | ) | ||||||||
Total Corporate and Other | 16 | — | (4 | ) | (2 | ) | 10 | — | (2 | ) | (33 | ) | — | (35 | ) | |||||||||
Total Special Items (Pre-tax) | 31 | 55 | (25 | ) | (42 | ) | 19 | 390 | (31 | ) | (55 | ) | (155 | ) | 149 | |||||||||
Income Tax Expense (Benefit) | ||||||||||||||||||||||||
Tax impact of pre-tax special items* | 5 | 14 | (6 | ) | (12 | ) | 1 | 149 | (12 | ) | (20 | ) | (70 | ) | 47 | |||||||||
Other tax impacts | — | — | (5 | ) | (65 | ) | (70 | ) | — | — | — | — | — | |||||||||||
U.S. tax reform | 7 | 24 | (49 | ) | 55 | 37 | — | — | — | (2,735 | ) | (2,735 | ) | |||||||||||
Total Income Tax Expense (Benefit) | 12 | 38 | (60 | ) | (22 | ) | (32 | ) | 149 | (12 | ) | (20 | ) | (2,805 | ) | (2,688 | ) | |||||||
Income (Loss) Attributable to Noncontrolling Interests | ||||||||||||||||||||||||
Pending claims and settlements | — | — | (1 | ) | — | (1 | ) | — | — | — | — | — | ||||||||||||
U.S. tax reform | 7 | — | — | — | 7 | — | — | — | — | — | ||||||||||||||
Total Income (Loss) Attributable to Noncontrolling Interests | 7 | — | (1 | ) | — | 6 | — | — | — | — | — | |||||||||||||
Total Phillips 66 Special Items (After-tax) | 12 | 17 | 36 | (20 | ) | 45 | 241 | (19 | ) | (35 | ) | 2,650 | 2,837 | |||||||||||
* We generally tax effect taxable U.S.-based special items using a combined federal and state statutory income tax rate of approximately 25 percent beginning in 2018, and approximately 38 percent for periods prior to 2018. Taxable special items attributable to foreign locations likewise use a local statutory income tax rate. Nontaxable events reflect zero income tax. These events include, but are not limited to, most goodwill impairments, transactions legislatively exempt from income tax, transactions related to entities for which we have made an assertion that the undistributed earnings are permanently reinvested, or transactions occurring in jurisdictions with a valuation allowance. | ||||||||||||||||||||||||
SPECIAL ITEMS INCLUDED IN INCOME (LOSS) BEFORE INCOME TAXES BY BUSINESS LINES/REGIONS | ||||||||||||||||||||||||
Millions of Dollars | ||||||||||||||||||||||||
2018 | 2017 | |||||||||||||||||||||||
1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | |||||||||||||||
Midstream | ||||||||||||||||||||||||
Transportation | — | — | — | — | — | — | — | 34 | (5 | ) | 29 | |||||||||||||
NGL and Other | — | — | (28 | ) | (2 | ) | (30 | ) | — | (8 | ) | (4 | ) | (2 | ) | (14 | ) | |||||||
DCP Midstream | — | — | — | (28 | ) | (28 | ) | — | — | — | — | — | ||||||||||||
Total Midstream | — | — | (28 | ) | (30 | ) | (58 | ) | — | (8 | ) | 30 | (7 | ) | 15 | |||||||||
Refining | ||||||||||||||||||||||||
Atlantic Basin/Europe | — | — | (7 | ) | 1 | (6 | ) | — | (4 | ) | (2 | ) | 22 | 16 | ||||||||||
Gulf Coast | — | — | (11 | ) | (4 | ) | (15 | ) | 423 | (5 | ) | (14 | ) | (14 | ) | 390 | ||||||||
Central Corridor | — | — | (7 | ) | (3 | ) | (10 | ) | — | (3 | ) | (1 | ) | (2 | ) | (6 | ) | |||||||
West Coast | 2 | (1 | ) | (6 | ) | (1 | ) | (6 | ) | — | (2 | ) | 22 | — | 20 | |||||||||
Total Refining | 2 | (1 | ) | (31 | ) | (7 | ) | (37 | ) | 423 | (14 | ) | 5 | 6 | 420 | |||||||||
Marketing and Specialties | ||||||||||||||||||||||||
Marketing and Other | 13 | 56 | 38 | (3 | ) | 104 | — | (7 | ) | (4 | ) | (1 | ) | (12 | ) | |||||||||
Specialties | — | — | — | — | — | — | — | — | — | — | ||||||||||||||
Total Marketing and Specialties | 13 | 56 | 38 | (3 | ) | 104 | — | (7 | ) | (4 | ) | (1 | ) | (12 | ) | |||||||||
Page 3
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CASH FLOW INFORMATION | ||||||||||||||||||||||||
Millions of Dollars | ||||||||||||||||||||||||
2018 | 2017 | |||||||||||||||||||||||
1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | |||||||||||||||
Cash Flows From Operating Activities | ||||||||||||||||||||||||
Net income | 585 | 1,404 | 1,568 | 2,316 | 5,873 | 563 | 581 | 849 | 3,255 | 5,248 | ||||||||||||||
Depreciation and amortization | 336 | 337 | 346 | 337 | 1,356 | 315 | 320 | 337 | 346 | 1,318 | ||||||||||||||
Impairments | — | 6 | 1 | 1 | 8 | 2 | 15 | 1 | 6 | 24 | ||||||||||||||
Accretion on discounted liabilities | 6 | 6 | 5 | 6 | 23 | 5 | 6 | 5 | 6 | 22 | ||||||||||||||
Deferred income taxes | 101 | 28 | 100 | 23 | 252 | 493 | 264 | 27 | (2,670 | ) | (1,886 | ) | ||||||||||||
Undistributed equity earnings | 119 | (133 | ) | 125 | 110 | 221 | (212 | ) | (40 | ) | (291 | ) | 27 | (516 | ) | |||||||||
Net gain on dispositions | (17 | ) | — | (1 | ) | (1 | ) | (19 | ) | (1 | ) | (14 | ) | — | — | (15 | ) | |||||||
Gain on consolidation of business | — | — | — | — | — | (423 | ) | — | — | — | (423 | ) | ||||||||||||
Other | 173 | 24 | (79 | ) | 14 | 132 | 6 | 92 | (332 | ) | 48 | (186 | ) | |||||||||||
Net working capital changes | (815 | ) | 692 | (1,483 | ) | 1,333 | (273 | ) | (1,297 | ) | 641 | (195 | ) | 913 | 62 | |||||||||
Net Cash Provided by (Used in) Operating Activities | 488 | 2,364 | 582 | 4,139 | 7,573 | (549 | ) | 1,865 | 401 | 1,931 | 3,648 | |||||||||||||
Cash Flows From Investing Activities | ||||||||||||||||||||||||
Capital expenditures and investments | (328 | ) | (538 | ) | (779 | ) | (994 | ) | (2,639 | ) | (470 | ) | (458 | ) | (367 | ) | (537 | ) | (1,832 | ) | ||||
Proceeds from asset dispositions* | 17 | 12 | 10 | 18 | 57 | 9 | 42 | 14 | 21 | 86 | ||||||||||||||
Advances/loans—related parties | (1 | ) | — | — | — | (1 | ) | — | — | (9 | ) | (1 | ) | (10 | ) | |||||||||
Collection of advances/loans—related parties | — | — | — | — | — | 325 | — | — | 1 | 326 | ||||||||||||||
Restricted cash received from consolidation of business | — | — | — | — | — | 318 | — | — | — | 318 | ||||||||||||||
Other | (45 | ) | 62 | 50 | 45 | 112 | (24 | ) | (37 | ) | (19 | ) | 46 | (34 | ) | |||||||||
Net Cash Provided by (Used in) Investing Activities | (357 | ) | (464 | ) | (719 | ) | (931 | ) | (2,471 | ) | 158 | (453 | ) | (381 | ) | (470 | ) | (1,146 | ) | |||||
Cash Flows From Financing Activities | ||||||||||||||||||||||||
Issuance of debt | 1,509 | — | 85 | 590 | 2,184 | 712 | 1,891 | 480 | 425 | 3,508 | ||||||||||||||
Repayment of debt | (7 | ) | (253 | ) | (114 | ) | (770 | ) | (1,144 | ) | (773 | ) | (2,137 | ) | (251 | ) | (517 | ) | (3,678 | ) | ||||
Issuance of common stock | 10 | 20 | 9 | — | 39 | 4 | 2 | 17 | 12 | 35 | ||||||||||||||
Repurchase of common stock | (3,513 | ) | (230 | ) | (405 | ) | (497 | ) | (4,645 | ) | (285 | ) | (381 | ) | (461 | ) | (463 | ) | (1,590 | ) | ||||
Dividends paid on common stock | (327 | ) | (372 | ) | (370 | ) | (367 | ) | (1,436 | ) | (326 | ) | (360 | ) | (356 | ) | (353 | ) | (1,395 | ) | ||||
Distributions to noncontrolling interests | (45 | ) | (51 | ) | (50 | ) | (61 | ) | (207 | ) | (24 | ) | (30 | ) | (29 | ) | (37 | ) | (120 | ) | ||||
Net proceeds from issuance of Phillips 66 Partners LP common and preferred units | 9 | 58 | 47 | 14 | 128 | 40 | 131 | — | 1,034 | 1,205 | ||||||||||||||
Other | (45 | ) | (13 | ) | (21 | ) | (7 | ) | (86 | ) | (34 | ) | (20 | ) | (12 | ) | (10 | ) | (76 | ) | ||||
Net Cash Provided by (Used in) Financing Activities | (2,409 | ) | (841 | ) | (819 | ) | (1,098 | ) | (5,167 | ) | (686 | ) | (904 | ) | (612 | ) | 91 | (2,111 | ) | |||||
Effect of Exchange Rate Changes on Cash, Cash Equivalents and Restricted Cash | 1 | (17 | ) | (4 | ) | (15 | ) | (35 | ) | 2 | 17 | (22 | ) | 20 | 17 | |||||||||
Net Change in Cash, Cash Equivalents and Restricted Cash | (2,277 | ) | 1,042 | (960 | ) | 2,095 | (100 | ) | (1,075 | ) | 525 | (614 | ) | 1,572 | 408 | |||||||||
Cash, cash equivalents and restricted cash at beginning of period | 3,119 | 842 | 1,884 | 924 | 3,119 | 2,711 | 1,636 | 2,161 | 1,547 | 2,711 | ||||||||||||||
Cash, Cash Equivalents and Restricted Cash at End of Period | 842 | 1,884 | 924 | 3,019 | 3,019 | 1,636 | 2,161 | 1,547 | 3,119 | 3,119 | ||||||||||||||
* Includes return of investments in equity affiliates. | ||||||||||||||||||||||||
CAPITAL PROGRAM | ||||||||||||||||||||||||
Millions of Dollars | ||||||||||||||||||||||||
2018 | 2017 | |||||||||||||||||||||||
1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | |||||||||||||||
Consolidated Capital Expenditures and Investments | ||||||||||||||||||||||||
Midstream | 136 | 339 | 503 | 570 | 1,548 | 182 | 199 | 178 | 212 | 771 | ||||||||||||||
Chemicals | — | — | — | — | — | — | — | — | — | — | ||||||||||||||
Refining | 172 | 153 | 200 | 301 | 826 | 259 | 216 | 148 | 230 | 853 | ||||||||||||||
Marketing and Specialties | 13 | 15 | 37 | 60 | 125 | 15 | 23 | 27 | 43 | 108 | ||||||||||||||
Corporate and Other | 7 | 31 | 39 | 63 | 140 | 14 | 20 | 14 | 52 | 100 | ||||||||||||||
Total Consolidated | 328 | 538 | 779 | 994 | 2,639 | 470 | 458 | 367 | 537 | 1,832 | ||||||||||||||
Proportional Share of Select Equity Affiliates Capital Expenditures and Investments* | ||||||||||||||||||||||||
DCP Midstream (Midstream) | 95 | 98 | 149 | 142 | 484 | 44 | 60 | 62 | 102 | 268 | ||||||||||||||
CPChem (Chemicals) | 161 | 63 | 60 | 55 | 339 | 256 | 131 | 119 | 270 | 776 | ||||||||||||||
WRB Refining (Refining) | 40 | 35 | 41 | 40 | 156 | 42 | 22 | 27 | 35 | 126 | ||||||||||||||
Select Equity Affiliates | 296 | 196 | 250 | 237 | 979 | 342 | 213 | 208 | 407 | 1,170 | ||||||||||||||
Total Capital Program* | ||||||||||||||||||||||||
Midstream | 231 | 437 | 652 | 712 | 2,032 | 226 | 259 | 240 | 314 | 1,039 | ||||||||||||||
Chemicals | 161 | 63 | 60 | 55 | 339 | 256 | 131 | 119 | 270 | 776 | ||||||||||||||
Refining | 212 | 188 | 241 | 341 | 982 | 301 | 238 | 175 | 265 | 979 | ||||||||||||||
Marketing and Specialties | 13 | 15 | 37 | 60 | 125 | 15 | 23 | 27 | 43 | 108 | ||||||||||||||
Corporate and Other | 7 | 31 | 39 | 63 | 140 | 14 | 20 | 14 | 52 | 100 | ||||||||||||||
Total Capital Program | 624 | 734 | 1,029 | 1,231 | 3,618 | 812 | 671 | 575 | 944 | 3,002 | ||||||||||||||
* Includes Phillips 66’s portion of self-funded capital spending by DCP Midstream, LLC (DCP Midstream), Chevron Phillips Chemical Company LLC (CPChem) and WRB Refining LP. | ||||||||||||||||||||||||
Page 4
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MIDSTREAM | ||||||||||||||||||||||||
2018 | 2017 | |||||||||||||||||||||||
1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | |||||||||||||||
Income (Loss) before Income Taxes ($ Millions) | ||||||||||||||||||||||||
Transportation | 163 | 164 | 209 | 234 | 770 | 107 | 102 | 174 | 147 | 530 | ||||||||||||||
NGL and Other | 86 | 53 | 46 | 120 | 305 | 19 | 6 | (9 | ) | 16 | 32 | |||||||||||||
DCP Midstream | 31 | 21 | 29 | 25 | 106 | 27 | 22 | 1 | 26 | 76 | ||||||||||||||
Income (Loss) before Income Taxes | 280 | 238 | 284 | 379 | 1,181 | 153 | 130 | 166 | 189 | 638 | ||||||||||||||
Adjusted EBITDA ($ Millions)* | ||||||||||||||||||||||||
PSXP** | 236 | 263 | 297 | 300 | 1,096 | 149 | 157 | 154 | 240 | 700 | ||||||||||||||
Other Midstream | 127 | 79 | 113 | 176 | 495 | 70 | 54 | 107 | 55 | 286 | ||||||||||||||
Transportation and NGL and Other | 363 | 342 | 410 | 476 | 1,591 | 219 | 211 | 261 | 295 | 986 | ||||||||||||||
DCP Midstream | 76 | 62 | 72 | 97 | 307 | 71 | 65 | 42 | 70 | 248 | ||||||||||||||
Adjusted EBITDA | 439 | 404 | 482 | 573 | 1,898 | 290 | 276 | 303 | 365 | 1,234 | ||||||||||||||
* See reconciliation of income before income taxes to Adjusted EBITDA on next page. | ||||||||||||||||||||||||
** Does not include certain PSXP adjustments made for PSXP stand-alone reporting purposes. | ||||||||||||||||||||||||
Equity in Earnings of Affiliates ($ Millions) | ||||||||||||||||||||||||
Transportation | 87 | 91 | 106 | 121 | 405 | 36 | 38 | 113 | 76 | 263 | ||||||||||||||
NGL and Other | 35 | 43 | 48 | 39 | 165 | 26 | 28 | 28 | 34 | 116 | ||||||||||||||
DCP Midstream | 30 | 21 | 29 | 26 | 106 | 27 | 21 | 2 | 25 | 75 | ||||||||||||||
Total | 152 | 155 | 183 | 186 | 676 | 89 | 87 | 143 | 135 | 454 | ||||||||||||||
Depreciation and Amortization ($ Millions)* | ||||||||||||||||||||||||
Transportation | 36 | 44 | 46 | 41 | 167 | 33 | 35 | 46 | 44 | 158 | ||||||||||||||
NGL and Other | 38 | 38 | 40 | 37 | 153 | 35 | 34 | 35 | 37 | 141 | ||||||||||||||
DCP Midstream | — | — | — | — | — | — | — | — | — | — | ||||||||||||||
Total | 74 | 82 | 86 | 78 | 320 | 68 | 69 | 81 | 81 | 299 | ||||||||||||||
* Excludes D&A of all equity affiliates. | ||||||||||||||||||||||||
Operating and SG&A Expense ($ Millions)* | ||||||||||||||||||||||||
Transportation | 178 | 188 | 178 | 185 | 729 | 161 | 177 | 187 | 185 | 710 | ||||||||||||||
NGL and Other | 77 | 78 | 101 | 77 | 333 | 57 | 63 | 65 | 70 | 255 | ||||||||||||||
DCP Midstream | — | — | — | — | — | — | (1 | ) | — | — | (1 | ) | ||||||||||||
Total | 255 | 266 | 279 | 262 | 1,062 | 218 | 239 | 252 | 255 | 964 | ||||||||||||||
* Excludes Operating and SG&A Expense of all equity affiliates. | ||||||||||||||||||||||||
Transportation Volumes (MB/D) | ||||||||||||||||||||||||
Pipelines* | 3,209 | 3,404 | 3,517 | 3,627 | 3,441 | 3,257 | 3,311 | 3,274 | 3,437 | 3,320 | ||||||||||||||
Terminals** | 2,669 | 3,214 | 3,179 | 3,541 | 3,153 | 2,395 | 2,581 | 2,675 | 3,008 | 2,665 | ||||||||||||||
* Pipelines represent the sum of volumes transported through each separately tariffed consolidated pipeline segment. | ||||||||||||||||||||||||
** Terminals include Bayway and Ferndale crude oil rail rack volumes. | ||||||||||||||||||||||||
PSX Other Volumes | ||||||||||||||||||||||||
NGL Fractionated (MB/D)* | 184 | 227 | 227 | 223 | 216 | 175 | 177 | 177 | 215 | 186 | ||||||||||||||
* Excludes DCP Midstream. | ||||||||||||||||||||||||
100% DCP Midstream Results | ||||||||||||||||||||||||
Net Income Attributable, excludes parent company income tax related to DCP's earnings ($ Millions) | 60 | 42 | 57 | 51 | 210 | 53 | 42 | 3 | 49 | 147 | ||||||||||||||
Depreciation and Amortization ($ Millions) | 94 | 97 | 98 | 99 | 388 | 94 | 94 | 94 | 97 | 379 | ||||||||||||||
Operating and SG&A Expense ($ Millions) | 221 | 260 | 275 | 304 | 1,060 | 240 | 254 | 226 | 234 | 954 | ||||||||||||||
Net Interest Expense ($ Millions)* | 70 | 69 | 71 | 69 | 279 | 76 | 73 | 77 | 72 | 298 | ||||||||||||||
* Net of interest income. | ||||||||||||||||||||||||
Capital Expenditures and Investments ($ Millions) | 189 | 196 | 299 | 283 | 967 | 87 | 121 | 124 | 204 | 536 | ||||||||||||||
Selected DCP Operating Statistics | ||||||||||||||||||||||||
Wellhead Volume (Bcf/D) | 4.5 | 4.9 | 4.9 | 5.0 | 4.8 | 4.6 | 4.5 | 4.5 | 4.6 | 4.6 | ||||||||||||||
NGL Production (MB/D) | 380 | 430 | 426 | 415 | 413 | 341 | 367 | 378 | 411 | 374 | ||||||||||||||
Weighted-Average NGL Price* | ||||||||||||||||||||||||
DCP Midstream ($/BBL) | 29.41 | 31.83 | 36.51 | 28.80 | 31.64 | 25.31 | 22.94 | 26.12 | 30.39 | 26.19 | ||||||||||||||
DCP Midstream ($/gal) | 0.70 | 0.76 | 0.87 | 0.69 | 0.75 | 0.60 | 0.55 | 0.62 | 0.72 | 0.62 | ||||||||||||||
* Based on index prices from the Mont Belvieu market hub, which are weighted by NGL component mix. | ||||||||||||||||||||||||
MLP Distributions ($ Millions)* | ||||||||||||||||||||||||
GP Distribution from PSXP to Phillips 66 | 51 | 57 | 61 | 67 | 236 | 32 | 36 | 43 | 47 | 158 | ||||||||||||||
LP Distribution from PSXP to Phillips 66 | 50 | 51 | 55 | 58 | 214 | 37 | 40 | 44 | 46 | 167 | ||||||||||||||
GP Distribution from DCP Midstream, LP to DCP Midstream*** | 43 | 42 | 43 | ** | 128 | 23 | 23 | 43 | 83 | 172 | ||||||||||||||
LP Distribution from DCP Midstream, LP to DCP Midstream*** | 40 | 41 | 41 | ** | 122 | 41 | 40 | 42 | 40 | 163 | ||||||||||||||
* Cash distributions declared attributable to general partner interest, common unit ownership and incentive distribution rights. These distributions are eliminated in the respective sponsors consolidated financial statements. | ||||||||||||||||||||||||
** Pending DCP Midstream release. | ||||||||||||||||||||||||
*** Represents 100 percent of DCP Midstream's distributions from DCP Midstream, LP. |
Page 5
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MIDSTREAM (continued) | ||||||||||||||||||||||||
2018 | 2017 | |||||||||||||||||||||||
1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | |||||||||||||||
Reconciliation of Midstream Income before Income Taxes to Adjusted EBITDA ($ Millions) | ||||||||||||||||||||||||
Income before income taxes | 280 | 238 | 284 | 379 | 1,181 | 153 | 130 | 166 | 189 | 638 | ||||||||||||||
Plus: | ||||||||||||||||||||||||
Interest revenue | — | — | — | — | — | (1 | ) | — | — | — | (1 | ) | ||||||||||||
Depreciation and amortization | 74 | 82 | 86 | 78 | 320 | 68 | 69 | 81 | 81 | 299 | ||||||||||||||
EBITDA | 354 | 320 | 370 | 457 | 1,501 | 220 | 199 | 247 | 270 | 936 | ||||||||||||||
Special Item Adjustments (pre-tax): | ||||||||||||||||||||||||
Pending claims and settlements | — | — | 21 | — | 21 | — | — | (37 | ) | — | (37 | ) | ||||||||||||
Hurricane-related costs | — | — | — | — | — | — | — | 4 | 6 | 10 | ||||||||||||||
Impairments by equity affiliates | — | — | — | 28 | 28 | — | — | — | — | — | ||||||||||||||
Pension settlement expense | — | — | 7 | 2 | 9 | — | 8 | 3 | 1 | 12 | ||||||||||||||
EBITDA, Adjusted for Special Items | 354 | 320 | 398 | 487 | 1,559 | 220 | 207 | 217 | 277 | 921 | ||||||||||||||
Other Adjustments (pre-tax): | ||||||||||||||||||||||||
Proportional share of selected equity affiliates income taxes | — | — | — | 1 | 1 | — | 1 | 1 | (1 | ) | 1 | |||||||||||||
Proportional share of selected equity affiliates net interest | 34 | 33 | 32 | 32 | 131 | 27 | 26 | 31 | 37 | 121 | ||||||||||||||
Proportional share of selected equity affiliates depreciation and amortization | 51 | 51 | 52 | 53 | 207 | 43 | 42 | 54 | 52 | 191 | ||||||||||||||
Adjusted EBITDA | 439 | 404 | 482 | 573 | 1,898 | 290 | 276 | 303 | 365 | 1,234 | ||||||||||||||
Adjusted EBITDA by Business Line | ||||||||||||||||||||||||
100% PSXP Results ($ Millions) | ||||||||||||||||||||||||
Income before income taxes | 174 | 186 | 217 | 223 | 800 | 110 | 120 | 132 | 166 | 528 | ||||||||||||||
Plus: | ||||||||||||||||||||||||
Net interest expense | 29 | 29 | 28 | 28 | 114 | 23 | 23 | 24 | 29 | 99 | ||||||||||||||
Depreciation and amortization | 28 | 29 | 30 | 30 | 117 | 28 | 28 | 32 | 28 | 116 | ||||||||||||||
EBITDA | 231 | 244 | 275 | 281 | 1,031 | 161 | 171 | 188 | 223 | 743 | ||||||||||||||
Adjustments (pre-tax): | ||||||||||||||||||||||||
EBITDA attributable to predecessors | — | — | — | — | — | (14 | ) | (17 | ) | (36 | ) | (2 | ) | (69 | ) | |||||||||
Special item - pending claims and settlements* | — | — | 3 | — | 3 | — | — | — | — | — | ||||||||||||||
Special item - U.S. tax reform* | (10 | ) | — | — | — | (10 | ) | — | — | — | — | — | ||||||||||||
EBITDA, Adjusted for Predecessors and Special Items** | 221 | 244 | 278 | 281 | 1,024 | 147 | 154 | 152 | 221 | 674 | ||||||||||||||
Other Adjustments (pre-tax): | ||||||||||||||||||||||||
Proportional share of selected equity affiliates income taxes | — | — | — | — | — | — | — | — | 1 | 1 | ||||||||||||||
Proportional share of selected equity affiliates net interest | 7 | 8 | 8 | 8 | 31 | — | — | — | 7 | 7 | ||||||||||||||
Proportional share of selected equity affiliates depreciation and amortization | 8 | 11 | 11 | 11 | 41 | 2 | 3 | 2 | 11 | 18 | ||||||||||||||
Adjusted EBITDA** | 236 | 263 | 297 | 300 | 1,096 | 149 | 157 | 154 | 240 | 700 | ||||||||||||||
* Represents a special item adjustment made for PSX reporting purposes only. | ||||||||||||||||||||||||
** Does not include certain PSXP adjustments made for PSXP stand-alone reporting purposes. |
Page 6
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MIDSTREAM (continued) | ||||||||||||||||||||||||
2018 | 2017 | |||||||||||||||||||||||
1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | |||||||||||||||
Total Transportation and NGL and Other ($ Millions) | ||||||||||||||||||||||||
Income before income taxes | 249 | 217 | 255 | 354 | 1,075 | 126 | 108 | 165 | 163 | 562 | ||||||||||||||
Plus: | ||||||||||||||||||||||||
Interest revenue | — | — | — | — | — | (1 | ) | — | — | — | (1 | ) | ||||||||||||
Depreciation and amortization | 74 | 82 | 86 | 78 | 320 | 68 | 69 | 81 | 81 | 299 | ||||||||||||||
EBITDA* | 323 | 299 | 341 | 432 | 1,395 | 193 | 177 | 246 | 244 | 860 | ||||||||||||||
Special Item Adjustments (pre-tax): | ||||||||||||||||||||||||
Pending claims and settlements | — | — | 21 | — | 21 | — | — | (37 | ) | — | (37 | ) | ||||||||||||
Hurricane-related costs | — | — | — | — | — | — | — | 4 | 6 | 10 | ||||||||||||||
Pension settlement expense | — | — | 7 | 2 | 9 | — | 8 | 3 | 1 | 12 | ||||||||||||||
EBITDA, Adjusted for Special Items* | 323 | 299 | 369 | 434 | 1,425 | 193 | 185 | 216 | 251 | 845 | ||||||||||||||
Other Adjustments (pre-tax): | ||||||||||||||||||||||||
Proportional share of selected equity affiliates income taxes | — | — | — | 1 | 1 | — | — | — | 1 | 1 | ||||||||||||||
Proportional share of selected equity affiliates net interest | 18 | 18 | 17 | 16 | 69 | 10 | 10 | 18 | 18 | 56 | ||||||||||||||
Proportional share of selected equity affiliates depreciation and amortization | 22 | 25 | 24 | 25 | 96 | 16 | 16 | 27 | 25 | 84 | ||||||||||||||
Adjusted EBITDA* | 363 | 342 | 410 | 476 | 1,591 | 219 | 211 | 261 | 295 | 986 | ||||||||||||||
* Includes PSXP results above. Does not include certain PSXP adjustments made for PSXP stand-alone reporting purposes. | ||||||||||||||||||||||||
DCP Midstream ($ Millions) | ||||||||||||||||||||||||
Income before income taxes | 31 | 21 | 29 | 25 | 106 | 27 | 22 | 1 | 26 | 76 | ||||||||||||||
Plus: | ||||||||||||||||||||||||
None | — | — | — | — | — | — | — | — | — | — | ||||||||||||||
EBITDA | 31 | 21 | 29 | 25 | 106 | 27 | 22 | 1 | 26 | 76 | ||||||||||||||
Special Item Adjustments (pre-tax): | ||||||||||||||||||||||||
Impairments by equity affiliates | — | — | — | 28 | 28 | — | — | — | — | — | ||||||||||||||
EBITDA, Adjusted for Special Items | 31 | 21 | 29 | 53 | 134 | 27 | 22 | 1 | 26 | 76 | ||||||||||||||
Other Adjustments (pre-tax): | ||||||||||||||||||||||||
Proportional share of selected equity affiliates income taxes | — | — | — | — | — | — | 1 | 1 | (2 | ) | — | |||||||||||||
Proportional share of selected equity affiliates net interest | 16 | 15 | 15 | 16 | 62 | 17 | 16 | 13 | 19 | 65 | ||||||||||||||
Proportional share of selected equity affiliates depreciation and amortization | 29 | 26 | 28 | 28 | 111 | 27 | 26 | 27 | 27 | 107 | ||||||||||||||
Adjusted EBITDA* | 76 | 62 | 72 | 97 | 307 | 71 | 65 | 42 | 70 | 248 | ||||||||||||||
* Proportional share of selected equity affiliates is net of noncontrolling interests. |
Page 7
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CHEMICALS | ||||||||||||||||||||||||
2018 | 2017 | |||||||||||||||||||||||
1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | |||||||||||||||
Income before Income Taxes ($ Millions) | 286 | 324 | 263 | 152 | 1,025 | 251 | 294 | 163 | 8 | 716 | ||||||||||||||
Equity in Earnings of Affiliate ($ Millions) | 288 | 325 | 261 | 151 | 1,025 | 250 | 292 | 163 | 8 | 713 | ||||||||||||||
100% CPChem Results | ||||||||||||||||||||||||
Net Income (Loss), excludes parent company income tax related to CPChem's earnings ($ Millions) | ||||||||||||||||||||||||
Olefins and Polyolefins | 535 | 609 | 443 | 315 | 1,902 | 461 | 537 | 295 | 27 | 1,320 | ||||||||||||||
Specialties, Aromatics and Styrenics | 57 | 76 | 108 | 28 | 269 | 53 | 61 | 46 | 9 | 169 | ||||||||||||||
Corporate and Other | (7 | ) | (35 | ) | (20 | ) | (40 | ) | (102 | ) | (11 | ) | (8 | ) | (10 | ) | (14 | ) | (43 | ) | ||||
Total | 585 | 650 | 531 | 303 | 2,069 | 503 | 590 | 331 | 22 | 1,446 | ||||||||||||||
Income (Loss) before Income Taxes ($ Millions) | ||||||||||||||||||||||||
Olefins and Polyolefins | 546 | 618 | 457 | 325 | 1,946 | 470 | 546 | 304 | 35 | 1,355 | ||||||||||||||
Specialties, Aromatics and Styrenics | 61 | 83 | 116 | 33 | 293 | 62 | 65 | 51 | 13 | 191 | ||||||||||||||
Corporate and Other | (7 | ) | (34 | ) | (20 | ) | (41 | ) | (102 | ) | (11 | ) | (8 | ) | (10 | ) | (13 | ) | (42 | ) | ||||
Total | 600 | 667 | 553 | 317 | 2,137 | 521 | 603 | 345 | 35 | 1,504 | ||||||||||||||
Depreciation and Amortization ($ Millions) | 116 | 153 | 159 | 167 | 595 | 73 | 75 | 85 | 118 | 351 | ||||||||||||||
Net Interest (Income) Expense ($ Millions)* | (3 | ) | 19 | 18 | 17 | 51 | (1 | ) | (1 | ) | (3 | ) | (3 | ) | (8 | ) | ||||||||
* Net of interest income. | ||||||||||||||||||||||||
Investing Cash Flows ($ Millions) | ||||||||||||||||||||||||
Capital Expenditures and Investments | 322 | 126 | 119 | 111 | 678 | 512 | 262 | 238 | 540 | 1,552 | ||||||||||||||
Advances to Equity Companies | — | — | — | — | — | 6 | 2 | 3 | — | 11 | ||||||||||||||
Advance Repayments from Equity Companies | (33 | ) | (35 | ) | (12 | ) | (39 | ) | (119 | ) | (7 | ) | — | — | (52 | ) | (59 | ) | ||||||
Olefins and Polyolefins Capacity Utilization (%) | 96 | % | 95 | % | 91 | % | 95 | % | 94 | % | 89 | % | 98 | % | 83 | % | 79 | % | 87 | % | ||||
Market Indicators* | ||||||||||||||||||||||||
U.S. Industry Prices | ||||||||||||||||||||||||
Ethylene, Average Acquisition Contract (cents/lb) | 26.80 | 20.60 | 23.61 | 25.18 | 24.05 | 31.87 | 29.61 | 28.21 | 30.84 | 30.13 | ||||||||||||||
HDPE Blow Molding, Domestic Spot (cents/lb) | 60.00 | 61.00 | 59.58 | 56.00 | 59.15 | 55.83 | 58.00 | 58.67 | 60.75 | 58.31 | ||||||||||||||
U.S. Industry Costs | ||||||||||||||||||||||||
Ethylene, Cash Cost Weighted Average Feed (cents/lb) | 14.81 | 15.47 | 20.68 | 17.27 | 17.06 | 11.80 | 12.54 | 16.14 | 16.22 | 14.18 | ||||||||||||||
HDPE Blow Molding, Total Cash Cost (cents/lb) | 39.81 | 33.47 | 36.57 | 38.30 | 37.04 | 44.90 | 42.59 | 41.13 | 43.78 | 43.10 | ||||||||||||||
Ethylene to High-Density Polyethylene Chain Cash Margin (cents/lb) | 32.18 | 32.66 | 25.94 | 25.60 | 29.10 | 31.00 | 32.48 | 29.61 | 31.59 | 31.17 | ||||||||||||||
* Source: IHS, Inc. | ||||||||||||||||||||||||
Reconciliation of Chemicals Income before Income Taxes to Adjusted EBITDA ($ Millions) | ||||||||||||||||||||||||
Income before income taxes | 286 | 324 | 263 | 152 | 1,025 | 251 | 294 | 163 | 8 | 716 | ||||||||||||||
Plus: | ||||||||||||||||||||||||
None | — | — | — | — | — | — | — | — | — | — | ||||||||||||||
EBITDA | 286 | 324 | 263 | 152 | 1,025 | 251 | 294 | 163 | 8 | 716 | ||||||||||||||
Special Item Adjustments (pre-tax): | ||||||||||||||||||||||||
Impairments by equity affiliates | — | — | — | — | — | 33 | — | — | 31 | 64 | ||||||||||||||
Hurricane-related costs | — | — | — | — | — | — | — | 53 | 122 | 175 | ||||||||||||||
EBITDA, Adjusted for Special Items | 286 | 324 | 263 | 152 | 1,025 | 284 | 294 | 216 | 161 | 955 | ||||||||||||||
Other Adjustments (pre-tax): | ||||||||||||||||||||||||
Proportional share of selected equity affiliates income taxes | 23 | 30 | 30 | 17 | 100 | 20 | 14 | 18 | 16 | 68 | ||||||||||||||
Proportional share of selected equity affiliates net interest | 3 | 13 | 11 | 11 | 38 | 1 | 2 | 1 | — | 4 | ||||||||||||||
Proportional share of selected equity affiliates depreciation and amortization | 92 | 108 | 110 | 112 | 422 | 69 | 70 | 76 | 92 | 307 | ||||||||||||||
Adjusted EBITDA | 404 | 475 | 414 | 292 | 1,585 | 374 | 380 | 311 | 269 | 1,334 |
Page 8
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REFINING | ||||||||||||||||||||||||
2018 | 2017 | |||||||||||||||||||||||
1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | |||||||||||||||
Income (Loss) before Income Taxes ($ Millions) | ||||||||||||||||||||||||
Atlantic Basin/Europe | (108 | ) | 164 | 209 | 302 | 567 | (98 | ) | 120 | 247 | 179 | 448 | ||||||||||||
Gulf Coast | — | 366 | 210 | 464 | 1,040 | 521 | 86 | 109 | 93 | 809 | ||||||||||||||
Central Corridor | 272 | 521 | 839 | 1,185 | 2,817 | 97 | 42 | 317 | 299 | 755 | ||||||||||||||
West Coast | (52 | ) | 139 | (26 | ) | 50 | 111 | (130 | ) | 59 | 190 | (55 | ) | 64 | ||||||||||
Income (Loss) before Income Taxes | 112 | 1,190 | 1,232 | 2,001 | 4,535 | 390 | 307 | 863 | 516 | 2,076 | ||||||||||||||
Income (Loss) before Income Taxes ($/BBL) | ||||||||||||||||||||||||
Atlantic Basin/Europe | (2.75 | ) | 3.42 | 4.62 | 5.63 | 3.05 | (2.44 | ) | 2.32 | 4.72 | 3.26 | 2.25 | ||||||||||||
Gulf Coast | — | 4.76 | 3.01 | 6.04 | 3.55 | 7.79 | 1.19 | 1.55 | 1.22 | 2.83 | ||||||||||||||
Central Corridor | 10.37 | 19.88 | 31.33 | 43.77 | 26.50 | 3.94 | 1.88 | 13.48 | 13.82 | 8.19 | ||||||||||||||
West Coast | (1.57 | ) | 3.95 | (0.74 | ) | 1.52 | 0.81 | (4.74 | ) | 1.67 | 5.19 | (1.58 | ) | 0.48 | ||||||||||
Worldwide | 0.67 | 6.39 | 6.96 | 10.50 | 6.29 | 2.45 | 1.69 | 4.72 | 2.75 | 2.92 | ||||||||||||||
Realized Refining Margins ($/BBL)* | ||||||||||||||||||||||||
Atlantic Basin/Europe | 7.17 | 10.42 | 11.48 | 11.54 | 10.32 | 6.29 | 7.90 | 10.02 | 8.32 | 8.25 | ||||||||||||||
Gulf Coast | 6.75 | 9.93 | 9.09 | 11.84 | 9.48 | 8.03 | 6.74 | 7.26 | 6.38 | 7.07 | ||||||||||||||
Central Corridor | 16.11 | 17.51 | 23.61 | 30.60 | 22.22 | 10.54 | 9.96 | 14.04 | 15.16 | 12.44 | ||||||||||||||
West Coast | 8.32 | 12.77 | 9.53 | 14.18 | 11.20 | 9.95 | 10.83 | 12.95 | 7.96 | 10.49 | ||||||||||||||
Worldwide | 9.29 | 12.28 | 13.36 | 16.53 | 12.99 | 8.55 | 8.44 | 10.49 | 8.98 | 9.13 | ||||||||||||||
* See note on the use of non-GAAP measures below. Also, reconciliations of income (loss) before income taxes to realized refining margin for each period and by region are included in the "Realized Margin Non-GAAP Reconciliations" section below. | ||||||||||||||||||||||||
Equity in Earnings (Losses) of Affiliates ($ Millions) | ||||||||||||||||||||||||
Atlantic Basin/Europe | (2 | ) | (3 | ) | (2 | ) | (3 | ) | (10 | ) | (4 | ) | (2 | ) | (3 | ) | (2 | ) | (11 | ) | ||||
Gulf Coast | (1 | ) | (3 | ) | (1 | ) | (1 | ) | (6 | ) | 7 | (2 | ) | 1 | (2 | ) | 4 | |||||||
Central Corridor | (61 | ) | 220 | 300 | 353 | 812 | (9 | ) | 26 | 146 | 166 | 329 | ||||||||||||
West Coast | — | — | — | — | — | — | — | — | — | — | ||||||||||||||
Total | (64 | ) | 214 | 297 | 349 | 796 | (6 | ) | 22 | 144 | 162 | 322 | ||||||||||||
Depreciation and Amortization ($ Millions)* | ||||||||||||||||||||||||
Atlantic Basin/Europe | 52 | 50 | 50 | 49 | 201 | 49 | 47 | 47 | 49 | 192 | ||||||||||||||
Gulf Coast | 66 | 64 | 69 | 69 | 268 | 65 | 68 | 68 | 70 | 271 | ||||||||||||||
Central Corridor | 35 | 32 | 34 | 34 | 135 | 27 | 27 | 32 | 33 | 119 | ||||||||||||||
West Coast | 58 | 59 | 60 | 59 | 236 | 58 | 62 | 58 | 61 | 239 | ||||||||||||||
Total | 211 | 205 | 213 | 211 | 840 | 199 | 204 | 205 | 213 | 821 | ||||||||||||||
* Excludes D&A of all equity affiliates. | ||||||||||||||||||||||||
Operating and SG&A Expense ($ Millions)* | ||||||||||||||||||||||||
Atlantic Basin/Europe | 298 | 240 | 233 | 242 | 1,013 | 271 | 213 | 201 | 223 | 908 | ||||||||||||||
Gulf Coast | 376 | 305 | 330 | 358 | 1,369 | 350 | 308 | 312 | 297 | 1,267 | ||||||||||||||
Central Corridor | 115 | 131 | 131 | 145 | 522 | 144 | 191 | 131 | 161 | 627 | ||||||||||||||
West Coast | 241 | 240 | 275 | 334 | 1,090 | 324 | 234 | 224 | 248 | 1,030 | ||||||||||||||
Total | 1,030 | 916 | 969 | 1,079 | 3,994 | 1,089 | 946 | 868 | 929 | 3,832 | ||||||||||||||
* Excludes Operating and SG&A Expense of all equity affiliates. | ||||||||||||||||||||||||
Turnaround Expense ($ Millions), included in Operating and SG&A Expense* | ||||||||||||||||||||||||
Atlantic Basin/Europe | 98 | 21 | 4 | 10 | 133 | 83 | 19 | 7 | 16 | 125 | ||||||||||||||
Gulf Coast | 105 | 10 | 24 | 44 | 183 | 72 | 23 | 11 | 19 | 125 | ||||||||||||||
Central Corridor | 2 | 4 | 7 | 7 | 20 | 27 | 79 | 14 | 47 | 167 | ||||||||||||||
West Coast | 40 | 25 | 20 | 69 | 154 | 117 | 33 | 11 | 17 | 178 | ||||||||||||||
Total | 245 | 60 | 55 | 130 | 490 | 299 | 154 | 43 | 99 | 595 | ||||||||||||||
* Excludes Turnaround Expense of all equity affiliates. | ||||||||||||||||||||||||
Taxes Other than Income Taxes, excluding Excise Taxes ($ Millions) | ||||||||||||||||||||||||
Atlantic Basin/Europe | 15 | 15 | 13 | 13 | 56 | 16 | 13 | 14 | 13 | 56 | ||||||||||||||
Gulf Coast | 25 | 23 | 23 | 17 | 88 | 27 | 23 | 23 | 23 | 96 | ||||||||||||||
Central Corridor | 12 | 9 | 10 | 12 | 43 | 14 | 13 | 9 | 10 | 46 | ||||||||||||||
West Coast | 27 | 25 | 26 | 24 | 102 | 20 | 21 | — | 23 | 64 | ||||||||||||||
Total | 79 | 72 | 72 | 66 | 289 | 77 | 70 | 46 | 69 | 262 | ||||||||||||||
Foreign Currency Gains (Losses) Pre-Tax ($ Millions) | 11 | 7 | (1 | ) | 7 | 24 | — | 1 | (6 | ) | 7 | 2 | ||||||||||||
Refining—Equity Affiliate Information ($ Millions) | ||||||||||||||||||||||||
Equity in earnings (losses) of affiliates | (64 | ) | 214 | 297 | 349 | 796 | (6 | ) | 22 | 144 | 162 | 322 | ||||||||||||
Less: Share of equity affiliate gross margin included in Realized Refining Margin and other equity-affiliate-related costs* | (239 | ) | (397 | ) | (469 | ) | (507 | ) | (1,612 | ) | 239 | (191 | ) | (262 | ) | (306 | ) | (520 | ) | |||||
Equity-affiliate-related expenses not included in Realized Refining Margins | (303 | ) | (183 | ) | (172 | ) | (158 | ) | (816 | ) | 233 | (169 | ) | (118 | ) | (144 | ) | (198 | ) | |||||
Regional Totals | ||||||||||||||||||||||||
Atlantic Basin/Europe | (43 | ) | (18 | ) | — | 5 | (56 | ) | (17 | ) | (18 | ) | 25 | 17 | 7 | |||||||||
Gulf Coast | (1 | ) | (3 | ) | (1 | ) | (1 | ) | (6 | ) | 428 | (2 | ) | 1 | (1 | ) | 426 | |||||||
Central Corridor | (259 | ) | (162 | ) | (171 | ) | (162 | ) | (754 | ) | (178 | ) | (149 | ) | (144 | ) | (160 | ) | (631 | ) | ||||
Total | (303 | ) | (183 | ) | (172 | ) | (158 | ) | (816 | ) | 233 | (169 | ) | (118 | ) | (144 | ) | (198 | ) | |||||
* Other costs associated with equity affiliates which do not flow through equity earnings. |
Page 9
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REFINING (continued) | ||||||||||||||||||||||||
2018 | 2017 | |||||||||||||||||||||||
1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | |||||||||||||||
Reconciliation of Refining Income before Income Taxes to Adjusted EBITDA ($ Millions) | ||||||||||||||||||||||||
Income before income taxes | 112 | 1,190 | 1,232 | 2,001 | 4,535 | 390 | 307 | 863 | 516 | 2,076 | ||||||||||||||
Plus: | ||||||||||||||||||||||||
Depreciation and amortization | 211 | 205 | 213 | 211 | 840 | 199 | 204 | 205 | 213 | 821 | ||||||||||||||
EBITDA | 323 | 1,395 | 1,445 | 2,212 | 5,375 | 589 | 511 | 1,068 | 729 | 2,897 | ||||||||||||||
Special Item Adjustments (pre-tax): | ||||||||||||||||||||||||
Pending claims and settlements | — | — | — | — | — | — | (21 | ) | (30 | ) | — | (51 | ) | |||||||||||
Certain tax impacts | (2 | ) | 1 | (1 | ) | (4 | ) | (6 | ) | — | — | — | (23 | ) | (23 | ) | ||||||||
Hurricane-related costs | — | — | — | — | — | — | — | 12 | 12 | 24 | ||||||||||||||
Gain on consolidation of business | — | — | — | — | — | (423 | ) | — | — | — | (423 | ) | ||||||||||||
Pension settlement expense | — | — | 32 | 11 | 43 | — | 35 | 13 | 5 | 53 | ||||||||||||||
EBITDA, Adjusted for Special Items | 321 | 1,396 | 1,476 | 2,219 | 5,412 | 166 | 525 | 1,063 | 723 | 2,477 | ||||||||||||||
Other Adjustments (pre-tax): | ||||||||||||||||||||||||
Proportional share of selected equity affiliates income taxes | — | — | 1 | — | 1 | — | — | — | 1 | 1 | ||||||||||||||
Proportional share of selected equity affiliates net interest | (2 | ) | (1 | ) | (2 | ) | (1 | ) | (6 | ) | — | (1 | ) | (1 | ) | (1 | ) | (3 | ) | |||||
Proportional share of selected equity affiliates depreciation and amortization | 68 | 68 | 68 | 68 | 272 | 65 | 65 | 68 | 70 | 268 | ||||||||||||||
Adjusted EBITDA | 387 | 1,463 | 1,543 | 2,286 | 5,679 | 231 | 589 | 1,130 | 793 | 2,743 | ||||||||||||||
Operating Statistics | ||||||||||||||||||||||||
Atlantic Basin/Europe* | ||||||||||||||||||||||||
Crude Oil Charge Input (MB/D) | 419 | 495 | 465 | 526 | 477 | 366 | 533 | 536 | 543 | 494 | ||||||||||||||
Total Processed Inputs (MB/D) | 436 | 527 | 492 | 583 | 510 | 446 | 569 | 569 | 597 | 546 | ||||||||||||||
Crude Oil Capacity Utilization (%) | 78 | % | 92 | % | 87 | % | 98 | % | 89 | % | 70 | % | 103 | % | 103 | % | 104 | % | 95 | % | ||||
Clean Product Yield (%) | 84 | % | 86 | % | 85 | % | 90 | % | 86 | % | 88 | % | 87 | % | 88 | % | 89 | % | 88 | % | ||||
* Includes our proportionate share of a refinery complex in Karlsruhe, Germany. | ||||||||||||||||||||||||
Gulf Coast | ||||||||||||||||||||||||
Crude Oil Charge Input (MB/D) | 696 | 767 | 656 | 751 | 717 | 668 | 715 | 694 | 758 | 709 | ||||||||||||||
Total Processed Inputs (MB/D) | 769 | 845 | 759 | 835 | 802 | 743 | 795 | 767 | 828 | 784 | ||||||||||||||
Crude Oil Capacity Utilization (%) | 93 | % | 102 | % | 87 | % | 100 | % | 95 | % | 90 | % | 96 | % | 93 | % | 102 | % | 95 | % | ||||
Clean Product Yield (%) | 76 | % | 80 | % | 79 | % | 81 | % | 79 | % | 80 | % | 81 | % | 80 | % | 81 | % | 81 | % | ||||
Central Corridor* | ||||||||||||||||||||||||
Crude Oil Charge Input (MB/D) | 458 | 513 | 531 | 524 | 507 | 470 | 465 | 480 | 452 | 467 | ||||||||||||||
Total Processed Inputs (MB/D) | 475 | 531 | 548 | 544 | 525 | 488 | 480 | 497 | 472 | 484 | ||||||||||||||
Crude Oil Capacity Utilization (%) | 93 | % | 104 | % | 108 | % | 106 | % | 103 | % | 95 | % | 94 | % | 97 | % | 92 | % | 95 | % | ||||
Clean Product Yield (%) | 90 | % | 88 | % | 88 | % | 91 | % | 89 | % | 90 | % | 88 | % | 88 | % | 91 | % | 89 | % | ||||
* Includes our proportionate share of the Borger Refinery and Wood River Refinery. | ||||||||||||||||||||||||
West Coast | ||||||||||||||||||||||||
Crude Oil Charge Input (MB/D) | 340 | 362 | 354 | 316 | 343 | 279 | 366 | 368 | 353 | 342 | ||||||||||||||
Total Processed Inputs (MB/D) | 367 | 387 | 382 | 358 | 373 | 304 | 388 | 398 | 378 | 367 | ||||||||||||||
Crude Oil Capacity Utilization (%) | 93 | % | 100 | % | 97 | % | 87 | % | 94 | % | 78 | % | 102 | % | 102 | % | 98 | % | 95 | % | ||||
Clean Product Yield (%) | 86 | % | 86 | % | 87 | % | 88 | % | 87 | % | 87 | % | 87 | % | 86 | % | 89 | % | 87 | % | ||||
Worldwide—Including Proportionate Share of Equity Affiliates | ||||||||||||||||||||||||
Crude Oil Charge Input (MB/D) | 1,913 | 2,137 | 2,006 | 2,117 | 2,044 | 1,783 | 2,079 | 2,078 | 2,106 | 2,012 | ||||||||||||||
Total Processed Inputs (MB/D) | 2,047 | 2,290 | 2,181 | 2,320 | 2,210 | 1,981 | 2,232 | 2,231 | 2,275 | 2,181 | ||||||||||||||
Crude Oil Capacity Utilization (%) | 89 | % | 100 | % | 93 | % | 99 | % | 95 | % | 84 | % | 98 | % | 98 | % | 100 | % | 95 | % | ||||
Clean Product Yield (%) | 83 | % | 84 | % | 84 | % | 86 | % | 84 | % | 85 | % | 85 | % | 85 | % | 87 | % | 86 | % |
Page 10
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REFINING (continued) | ||||||||||||||||||||||||
2018 | 2017 | |||||||||||||||||||||||
1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | |||||||||||||||
Refined Petroleum Products Production (MB/D) | ||||||||||||||||||||||||
Atlantic Basin/Europe* | ||||||||||||||||||||||||
Gasoline | 172 | 222 | 203 | 258 | 213 | 213 | 252 | 252 | 260 | 244 | ||||||||||||||
Distillates | 185 | 218 | 202 | 248 | 214 | 163 | 228 | 230 | 254 | 219 | ||||||||||||||
Other | 81 | 92 | 89 | 85 | 87 | 81 | 95 | 92 | 90 | 90 | ||||||||||||||
Total | 438 | 532 | 494 | 591 | 514 | 457 | 575 | 574 | 604 | 553 | ||||||||||||||
* Includes our proportionate share of a refinery complex in Karlsruhe, Germany. | ||||||||||||||||||||||||
Gulf Coast | ||||||||||||||||||||||||
Gasoline | 303 | 337 | 307 | 344 | 323 | 296 | 324 | 310 | 333 | 316 | ||||||||||||||
Distillates | 260 | 315 | 266 | 300 | 285 | 275 | 292 | 286 | 311 | 291 | ||||||||||||||
Other | 212 | 198 | 192 | 195 | 200 | 178 | 185 | 175 | 191 | 182 | ||||||||||||||
Total | 775 | 850 | 765 | 839 | 808 | 749 | 801 | 771 | 835 | 789 | ||||||||||||||
Central Corridor* | ||||||||||||||||||||||||
Gasoline | 242 | 263 | 269 | 280 | 264 | 253 | 241 | 253 | 251 | 249 | ||||||||||||||
Distillates | 181 | 201 | 210 | 212 | 201 | 181 | 180 | 182 | 178 | 180 | ||||||||||||||
Other | 56 | 73 | 74 | 57 | 65 | 59 | 64 | 68 | 48 | 60 | ||||||||||||||
Total | 479 | 537 | 553 | 549 | 530 | 493 | 485 | 503 | 477 | 489 | ||||||||||||||
* Includes our proportionate share of the Borger Refinery and Wood River Refinery. | ||||||||||||||||||||||||
West Coast | ||||||||||||||||||||||||
Gasoline | 180 | 190 | 180 | 168 | 179 | 154 | 197 | 198 | 189 | 185 | ||||||||||||||
Distillates | 136 | 143 | 150 | 147 | 144 | 110 | 141 | 142 | 144 | 135 | ||||||||||||||
Other | 53 | 54 | 51 | 44 | 50 | 41 | 50 | 58 | 44 | 48 | ||||||||||||||
Total | 369 | 387 | 381 | 359 | 373 | 305 | 388 | 398 | 377 | 368 | ||||||||||||||
Worldwide—Including Proportionate Share of Equity Affiliates | ||||||||||||||||||||||||
Gasoline | 897 | 1,012 | 959 | 1,050 | 979 | 916 | 1,014 | 1,013 | 1,033 | 994 | ||||||||||||||
Distillates | 762 | 877 | 828 | 907 | 844 | 729 | 841 | 840 | 887 | 825 | ||||||||||||||
Other | 402 | 417 | 406 | 381 | 402 | 359 | 394 | 393 | 373 | 380 | ||||||||||||||
Total | 2,061 | 2,306 | 2,193 | 2,338 | 2,225 | 2,004 | 2,249 | 2,246 | 2,293 | 2,199 | ||||||||||||||
Market Indicators | ||||||||||||||||||||||||
Crude and Crude Differentials ($/BBL) | ||||||||||||||||||||||||
WTI | 62.88 | 67.99 | 69.71 | 59.09 | 64.92 | 51.83 | 48.24 | 48.16 | 55.35 | 50.90 | ||||||||||||||
Brent | 66.76 | 74.35 | 75.27 | 67.76 | 71.04 | 53.78 | 49.83 | 52.08 | 61.39 | 54.27 | ||||||||||||||
LLS | 65.79 | 73.11 | 74.31 | 66.55 | 69.94 | 53.51 | 50.31 | 51.65 | 61.05 | 54.13 | ||||||||||||||
ANS | 66.96 | 74.10 | 75.55 | 68.65 | 71.31 | 53.83 | 50.68 | 52.20 | 61.52 | 54.56 | ||||||||||||||
WTI less Maya | 5.16 | 5.83 | 3.57 | (4.73 | ) | 2.46 | 7.10 | 4.29 | 1.62 | 2.21 | 3.80 | |||||||||||||
WTI less WCS | 25.78 | 18.04 | 27.88 | 33.25 | 26.23 | 13.79 | 9.99 | 10.49 | 16.82 | 12.77 | ||||||||||||||
Natural Gas ($/MMBtu) | ||||||||||||||||||||||||
Henry Hub | 3.01 | 2.82 | 2.90 | 3.74 | 3.12 | 3.00 | 3.05 | 2.93 | 2.86 | 2.96 | ||||||||||||||
Product Margins ($/BBL) | ||||||||||||||||||||||||
Atlantic Basin/Europe | ||||||||||||||||||||||||
East Coast Gasoline less Brent | 9.23 | 13.36 | 12.73 | 1.32 | 9.16 | 9.46 | 15.53 | 19.17 | 11.26 | 13.85 | ||||||||||||||
East Coast Distillate less Brent | 16.35 | 15.83 | 16.20 | 19.13 | 16.88 | 12.93 | 13.29 | 17.18 | 17.77 | 15.29 | ||||||||||||||
Gulf Coast | ||||||||||||||||||||||||
Gulf Coast Gasoline less LLS | 8.65 | 9.44 | 8.63 | (0.70 | ) | 6.51 | 9.92 | 10.86 | 14.90 | 8.95 | 11.16 | |||||||||||||
Gulf Coast Distillate less LLS | 15.15 | 15.28 | 15.54 | 16.82 | 15.70 | 12.26 | 11.59 | 16.44 | 15.48 | 13.94 | ||||||||||||||
Central Corridor | ||||||||||||||||||||||||
Central Gasoline less WTI | 13.57 | 16.04 | 16.68 | 8.53 | 13.71 | 12.77 | 14.11 | 19.32 | 16.43 | 15.66 | ||||||||||||||
Central Distillate less WTI | 19.85 | 22.03 | 22.77 | 26.64 | 22.82 | 14.00 | 14.59 | 21.98 | 23.43 | 18.50 | ||||||||||||||
West Coast | ||||||||||||||||||||||||
West Coast Gasoline less ANS | 16.40 | 18.76 | 14.13 | 9.69 | 14.74 | 17.28 | 21.08 | 20.83 | 11.76 | 17.74 | ||||||||||||||
West Coast Distillate less ANS | 17.28 | 18.69 | 17.85 | 18.60 | 18.11 | 14.84 | 14.32 | 20.45 | 18.81 | 17.10 | ||||||||||||||
Worldwide Market Crack Spread ($/BBL)* | 13.12 | 14.86 | 14.21 | 9.11 | 12.83 | 12.24 | 14.06 | 18.19 | 13.98 | 14.62 | ||||||||||||||
* Weighted average based on Phillips 66 crude capacity. |
Page 11
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MARKETING AND SPECIALTIES | ||||||||||||||||||||||||
2018 | 2017 | |||||||||||||||||||||||
1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | |||||||||||||||
Income before Income Taxes ($ Millions) | ||||||||||||||||||||||||
Marketing and Other | 176 | 244 | 361 | 525 | 1,306 | 181 | 275 | 242 | 110 | 808 | ||||||||||||||
Specialties | 59 | 66 | 62 | 64 | 251 | 27 | 53 | 75 | 57 | 212 | ||||||||||||||
Income before Income Taxes | 235 | 310 | 423 | 589 | 1,557 | 208 | 328 | 317 | 167 | 1,020 | ||||||||||||||
Income before Income Taxes ($/BBL) | ||||||||||||||||||||||||
U.S. | 0.85 | 1.05 | 1.48 | 1.40 | 1.21 | 0.82 | 1.20 | 1.05 | 0.51 | 0.89 | ||||||||||||||
International | 1.51 | 3.32 | 4.80 | 10.05 | 5.00 | 2.01 | 3.10 | 2.36 | 1.46 | 2.23 | ||||||||||||||
Realized Marketing Fuel Margins ($/BBL)* | ||||||||||||||||||||||||
U.S.** | 1.39 | 1.30 | 1.80 | 1.95 | 1.62 | 1.47 | 1.74 | 1.63 | 1.09 | 1.48 | ||||||||||||||
International | 3.32 | 5.25 | 6.58 | 11.99 | 6.87 | 3.70 | 4.95 | 4.45 | 3.72 | 4.21 | ||||||||||||||
* See note on the use of non-GAAP measures below. Also, reconciliations of income before income taxes to realized marketing fuel margin for each period and by region are included in the "Realized Margin Non-GAAP Reconciliations" section below. | ||||||||||||||||||||||||
** U.S. realized marketing fuel margins for Q2 and Q3 2018 have been revised to exclude the effects of special items on fuel margins. | ||||||||||||||||||||||||
Other Realized Margins and Revenues not included in Marketing Fuel Margins ($ Millions)* | ||||||||||||||||||||||||
Marketing and Other | 127 | 183 | 185 | 143 | 638 | 115 | 117 | 136 | 109 | 477 | ||||||||||||||
Specialties | 82 | 86 | 89 | 90 | 347 | 58 | 61 | 64 | 54 | 237 | ||||||||||||||
Total | 209 | 269 | 274 | 233 | 985 | 173 | 178 | 200 | 163 | 714 | ||||||||||||||
* Excludes gain on dispositions and excise taxes on sales of refined petroleum products. | ||||||||||||||||||||||||
Equity in Earnings of Affiliates ($ Millions) | ||||||||||||||||||||||||
Marketing and Other | 20 | 27 | 25 | 27 | 99 | 18 | 25 | 24 | 21 | 88 | ||||||||||||||
Specialties | 12 | 22 | 14 | 17 | 65 | 14 | 36 | 56 | 49 | 155 | ||||||||||||||
Total | 32 | 49 | 39 | 44 | 164 | 32 | 61 | 80 | 70 | 243 | ||||||||||||||
Depreciation and Amortization ($ Millions)* | ||||||||||||||||||||||||
Marketing and Other | 24 | 24 | 22 | 24 | 94 | 22 | 21 | 24 | 25 | 92 | ||||||||||||||
Specialties | 5 | 5 | 5 | 5 | 20 | 5 | 5 | 5 | 5 | 20 | ||||||||||||||
Total | 29 | 29 | 27 | 29 | 114 | 27 | 26 | 29 | 30 | 112 | ||||||||||||||
* Excludes D&A of all equity affiliates. | ||||||||||||||||||||||||
Operating and SG&A Expense ($ Millions)* | ||||||||||||||||||||||||
Marketing and Other | 266 | 294 | 303 | 298 | 1,161 | 245 | 283 | 292 | 284 | 1,104 | ||||||||||||||
Specialties | 36 | 36 | 34 | 37 | 143 | 38 | 37 | 39 | 39 | 153 | ||||||||||||||
Total | 302 | 330 | 337 | 335 | 1,304 | 283 | 320 | 331 | 323 | 1,257 | ||||||||||||||
* Excludes Operating and SG&A Expense of all equity affiliates. | ||||||||||||||||||||||||
Refined Petroleum Products Sales (MB/D) | ||||||||||||||||||||||||
U.S. Marketing | ||||||||||||||||||||||||
Gasoline | 1,024 | 1,110 | 1,102 | 1,204 | 1,111 | 1,073 | 1,188 | 1,188 | 1,197 | 1,162 | ||||||||||||||
Distillates | 706 | 843 | 780 | 873 | 801 | 667 | 751 | 780 | 866 | 766 | ||||||||||||||
Other | 1 | — | — | — | — | — | — | 1 | 1 | 1 | ||||||||||||||
Total | 1,731 | 1,953 | 1,882 | 2,077 | 1,912 | 1,740 | 1,939 | 1,969 | 2,064 | 1,929 | ||||||||||||||
International Marketing | ||||||||||||||||||||||||
Gasoline | 81 | 86 | 85 | 87 | 84 | 82 | 87 | 84 | 83 | 84 | ||||||||||||||
Distillates | 173 | 169 | 175 | 179 | 174 | 168 | 161 | 166 | 165 | 165 | ||||||||||||||
Other | 19 | 17 | 17 | 20 | 18 | 15 | 18 | 17 | 20 | 17 | ||||||||||||||
Total | 273 | 272 | 277 | 286 | 276 | 265 | 266 | 267 | 268 | 266 | ||||||||||||||
Worldwide Marketing | ||||||||||||||||||||||||
Gasoline | 1,105 | 1,196 | 1,187 | 1,291 | 1,195 | 1,155 | 1,275 | 1,272 | 1,280 | 1,246 | ||||||||||||||
Distillates | 879 | 1,012 | 955 | 1,052 | 975 | 835 | 912 | 946 | 1,031 | 931 | ||||||||||||||
Other | 20 | 17 | 17 | 20 | 18 | 15 | 18 | 18 | 21 | 18 | ||||||||||||||
Total | 2,004 | 2,225 | 2,159 | 2,363 | 2,188 | 2,005 | 2,205 | 2,236 | 2,332 | 2,195 | ||||||||||||||
Foreign Currency Gains (Losses) Pre-Tax ($ Millions) | 4 | — | 1 | (6 | ) | (1 | ) | 1 | — | 1 | (3 | ) | (1 | ) | ||||||||||
Reconciliation of Marketing and Specialties Income before Income Taxes to Adjusted EBITDA ($ Millions) | ||||||||||||||||||||||||
Income before income taxes | 235 | 310 | 423 | 589 | 1,557 | 208 | 328 | 317 | 167 | 1,020 | ||||||||||||||
Plus: | ||||||||||||||||||||||||
Depreciation and amortization | 29 | 29 | 27 | 29 | 114 | 27 | 26 | 29 | 30 | 112 | ||||||||||||||
EBITDA | 264 | 339 | 450 | 618 | 1,671 | 235 | 354 | 346 | 197 | 1,132 | ||||||||||||||
Special Item Adjustments (pre-tax): | ||||||||||||||||||||||||
Certain tax impacts | (13 | ) | (56 | ) | (44 | ) | — | (113 | ) | — | — | — | — | — | ||||||||||
Hurricane-related costs | — | — | — | — | — | — | — | 1 | — | 1 | ||||||||||||||
Pension settlement expense | — | — | 6 | 3 | 9 | — | 7 | 3 | 1 | 11 | ||||||||||||||
EBITDA, Adjusted for Special Items | 251 | 283 | 412 | 621 | 1,567 | 235 | 361 | 350 | 198 | 1,144 | ||||||||||||||
Other Adjustments (pre-tax): | ||||||||||||||||||||||||
Proportional share of selected equity affiliates income taxes | — | — | — | — | — | — | — | — | — | — | ||||||||||||||
Proportional share of selected equity affiliates net interest | — | 2 | 1 | 1 | 4 | — | — | 1 | — | 1 | ||||||||||||||
Proportional share of selected equity affiliates depreciation and amortization | 3 | 2 | 3 | 3 | 11 | 3 | 3 | 2 | 3 | 11 | ||||||||||||||
Adjusted EBITDA | 254 | 287 | 416 | 625 | 1,582 | 238 | 364 | 353 | 201 | 1,156 |
Page 12
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CORPORATE AND OTHER | ||||||||||||||||||||||||
2018 | 2017 | |||||||||||||||||||||||
1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | |||||||||||||||
Loss before Income Taxes ($ Millions) | (196 | ) | (227 | ) | (227 | ) | (203 | ) | (853 | ) | (205 | ) | (211 | ) | (253 | ) | (226 | ) | (895 | ) | ||||
Detail of Loss before Income Taxes ($ Millions) | ||||||||||||||||||||||||
Net interest expense | (112 | ) | (128 | ) | (114 | ) | (105 | ) | (459 | ) | (100 | ) | (100 | ) | (104 | ) | (104 | ) | (408 | ) | ||||
Corporate overhead | (59 | ) | (74 | ) | (83 | ) | (41 | ) | (257 | ) | (60 | ) | (73 | ) | (68 | ) | (67 | ) | (268 | ) | ||||
Technology | (22 | ) | (22 | ) | (21 | ) | (23 | ) | (88 | ) | (23 | ) | (21 | ) | (24 | ) | (26 | ) | (94 | ) | ||||
Other* | (3 | ) | (3 | ) | (9 | ) | (34 | ) | (49 | ) | (22 | ) | (17 | ) | (57 | ) | (29 | ) | (125 | ) | ||||
Total | (196 | ) | (227 | ) | (227 | ) | (203 | ) | (853 | ) | (205 | ) | (211 | ) | (253 | ) | (226 | ) | (895 | ) | ||||
* First-quarter 2018 equity earnings reflect a tax benefit from an equity affiliate as a result of U.S. tax reform. | ||||||||||||||||||||||||
Net Interest Expense ($ Millions) | ||||||||||||||||||||||||
Interest expense | (123 | ) | (136 | ) | (131 | ) | (131 | ) | (521 | ) | (114 | ) | (113 | ) | (112 | ) | (114 | ) | (453 | ) | ||||
Capitalized interest | — | 1 | 6 | 10 | 17 | 9 | 6 | — | — | 15 | ||||||||||||||
Interest income | 11 | 7 | 11 | 16 | 45 | 5 | 7 | 8 | 10 | 30 | ||||||||||||||
Total | (112 | ) | (128 | ) | (114 | ) | (105 | ) | (459 | ) | (100 | ) | (100 | ) | (104 | ) | (104 | ) | (408 | ) | ||||
Reconciliation of Corporate and Other Loss before Income Taxes to Adjusted EBITDA ($ Millions) | ||||||||||||||||||||||||
Loss before income taxes | (196 | ) | (227 | ) | (227 | ) | (203 | ) | (853 | ) | (205 | ) | (211 | ) | (253 | ) | (226 | ) | (895 | ) | ||||
Plus: | ||||||||||||||||||||||||
Net interest expense | 112 | 128 | 114 | 105 | 459 | 100 | 100 | 104 | 104 | 408 | ||||||||||||||
Depreciation and amortization | 22 | 21 | 20 | 19 | 82 | 21 | 21 | 22 | 22 | 86 | ||||||||||||||
EBITDA | (62 | ) | (78 | ) | (93 | ) | (79 | ) | (312 | ) | (84 | ) | (90 | ) | (127 | ) | (100 | ) | (401 | ) | ||||
Special Item Adjustments (pre-tax): | ||||||||||||||||||||||||
Pending claims and settlements | — | — | — | — | — | — | — | 31 | — | 31 | ||||||||||||||
U.S. tax reform | (16 | ) | — | — | — | (16 | ) | — | — | — | — | — | ||||||||||||
Pension settlement expense | — | — | 4 | 2 | 6 | — | 5 | 2 | — | 7 | ||||||||||||||
EBITDA, Adjusted for Special Items | (78 | ) | (78 | ) | (89 | ) | (77 | ) | (322 | ) | (84 | ) | (85 | ) | (94 | ) | (100 | ) | (363 | ) | ||||
Other Adjustments (pre-tax): | ||||||||||||||||||||||||
None | — | — | — | — | — | — | — | — | — | — | ||||||||||||||
Adjusted EBITDA | (78 | ) | (78 | ) | (89 | ) | (77 | ) | (322 | ) | (84 | ) | (85 | ) | (94 | ) | (100 | ) | (363 | ) | ||||
Foreign Currency Gains (Losses) Pre-Tax ($ Millions) | — | 8 | — | — | 8 | — | (1 | ) | (2 | ) | 2 | (1 | ) | |||||||||||
Phillips 66 Total Company Debt | ||||||||||||||||||||||||
Total Debt ($ Millions) | 11,621 | 11,364 | 11,337 | 11,160 | 11,160 | 10,210 | 9,965 | 10,201 | 10,110 | 10,110 | ||||||||||||||
Debt-to-Capital Ratio (%) | 32 | % | 31 | % | 31 | % | 29 | % | 29 | % | 30 | % | 30 | % | 30 | % | 27 | % | 27 | % | ||||
Total Equity ($ Millions) | 24,300 | 24,960 | 25,795 | 27,153 | 27,153 | 23,725 | 23,806 | 23,959 | 27,428 | 27,428 | ||||||||||||||
RECONCILIATION OF CONSOLIDATED INCOME BEFORE INCOME TAXES TO ADJUSTED EBITDA ATTRIBUTABLE TO PHILLIPS 66 | ||||||||||||||||||||||||
Millions of Dollars | ||||||||||||||||||||||||
2018 | 2017 | |||||||||||||||||||||||
1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | |||||||||||||||
Income before income taxes | 717 | 1,835 | 1,975 | 2,918 | 7,445 | 797 | 848 | 1,256 | 654 | 3,555 | ||||||||||||||
Plus: | ||||||||||||||||||||||||
Net interest expense | 112 | 128 | 114 | 105 | 459 | 99 | 100 | 104 | 104 | 407 | ||||||||||||||
Depreciation and amortization | 336 | 337 | 346 | 337 | 1,356 | 315 | 320 | 337 | 346 | 1,318 | ||||||||||||||
Phillips 66 EBITDA | 1,165 | 2,300 | 2,435 | 3,360 | 9,260 | 1,211 | 1,268 | 1,697 | 1,104 | 5,280 | ||||||||||||||
Special Item Adjustments (pre-tax): | ||||||||||||||||||||||||
Impairments by equity affiliates | — | — | — | 28 | 28 | 33 | — | — | 31 | 64 | ||||||||||||||
Pending claims and settlements | — | — | 21 | — | 21 | — | (21 | ) | (36 | ) | — | (57 | ) | |||||||||||
Certain tax impacts | (15 | ) | (55 | ) | (45 | ) | (4 | ) | (119 | ) | — | — | — | (23 | ) | (23 | ) | |||||||
Gain on consolidation of business | — | — | — | — | — | (423 | ) | — | — | — | (423 | ) | ||||||||||||
Pension settlement expense | — | — | 49 | 18 | 67 | — | 55 | 21 | 7 | 83 | ||||||||||||||
Hurricane-related costs | — | — | — | — | — | — | — | 70 | 140 | 210 | ||||||||||||||
U.S. tax reform | (16 | ) | — | — | — | (16 | ) | — | — | — | — | — | ||||||||||||
Phillips 66 EBITDA, Adjusted for Special Items | 1,134 | 2,245 | 2,460 | 3,402 | 9,241 | 821 | 1,302 | 1,752 | 1,259 | 5,134 | ||||||||||||||
Other Adjustments (pre-tax): | ||||||||||||||||||||||||
Proportional share of selected equity affiliates income taxes | 23 | 30 | 31 | 18 | 102 | 20 | 15 | 19 | 16 | 70 | ||||||||||||||
Proportional share of selected equity affiliates net interest | 35 | 47 | 42 | 43 | 167 | 28 | 27 | 32 | 36 | 123 | ||||||||||||||
Proportional share of selected equity affiliates depreciation and amortization | 214 | 229 | 233 | 236 | 912 | 180 | 180 | 200 | 217 | 777 | ||||||||||||||
EBITDA attributable to Phillips 66 noncontrolling interests | (80 | ) | (87 | ) | (97 | ) | (97 | ) | (361 | ) | (46 | ) | (47 | ) | (49 | ) | (87 | ) | (229 | ) | ||||
Phillips 66 Adjusted EBITDA | 1,326 | 2,464 | 2,669 | 3,602 | 10,061 | 1,003 | 1,477 | 1,954 | 1,441 | 5,875 | ||||||||||||||
Recast of Financial Information—Effective in Q4 2018, we changed our segment performance measure to income before income taxes from net income. The supplemental data by segment and other information included herein has been recast for all periods presented to conform with this change. In addition, other information included herein has been recast (e.g., pipeline volumes) and certain information presented historically has been removed (e.g., CPChem externally marketed sales volumes) to conform to current period presentation. | ||||||||||||||||||||||||
Use of Non-GAAP Financial Information—This earnings release supplemental data includes the terms EBITDA and Adjusted EBITDA and Realized refining margins per barrel and Realized marketing fuel margins per barrel. These are non-GAAP financial measures. EBITDA and Adjusted EBITDA are included to help facilitate comparisons of operating performance across periods, to help facilitate comparisons with other companies in our industry and to help facilitate determination of enterprise value. The GAAP measure most directly comparable to EBITDA and Adjusted EBITDA is income before income taxes. Realized refining margin per barrel is calculated on a similar basis as industry crack spreads and we believe it provides a useful measure of how well we performed relative to benchmark industry margins. Realized marketing fuel margin per barrel demonstrates the value uplift our marketing operations provide by optimizing the placement and ultimate sale of our refineries' fuel production. The most directly comparable GAAP measure to both realized margin per barrel measures is income before income taxes per barrel. Reconciliations of income before income taxes to realized refining margin and realized marketing fuel margin for each period and by region are included in the "Realized Margin Non-GAAP Reconciliations" section below. | ||||||||||||||||||||||||
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REALIZED MARGIN NON-GAAP RECONCILIATIONS | ||||||||||||||||||||||||
RECONCILIATION OF INCOME (LOSS) BEFORE INCOME TAXES TO REALIZED REFINING MARGINS | ||||||||||||||||||||||||
Millions of Dollars, Except as Indicated | ||||||||||||||||||||||||
2018 | 2017 | |||||||||||||||||||||||
1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | |||||||||||||||
ATLANTIC BASIN/EUROPE | ||||||||||||||||||||||||
Income (loss) before income taxes | (108 | ) | 164 | 209 | 302 | 567 | (98 | ) | 120 | 247 | 179 | 448 | ||||||||||||
Plus: | ||||||||||||||||||||||||
Taxes other than income taxes | 15 | 15 | 13 | 13 | 56 | 16 | 13 | 14 | 13 | 56 | ||||||||||||||
Depreciation, amortization and impairments | 52 | 50 | 50 | 49 | 201 | 49 | 47 | 47 | 49 | 192 | ||||||||||||||
Selling, general and administrative expenses | 13 | 15 | 16 | 19 | 63 | 14 | 15 | 16 | 16 | 61 | ||||||||||||||
Operating expenses | 285 | 225 | 217 | 223 | 950 | 257 | 198 | 185 | 207 | 847 | ||||||||||||||
Equity in losses of affiliates | 2 | 3 | 2 | 3 | 10 | 4 | 2 | 3 | 2 | 11 | ||||||||||||||
Other segment income | (7 | ) | — | (3 | ) | (1 | ) | (11 | ) | (3 | ) | (3 | ) | (2 | ) | (2 | ) | (10 | ) | |||||
Proportional share of refining gross margins contributed by equity affiliates | 29 | 28 | 16 | 14 | 87 | 14 | 16 | 15 | 14 | 59 | ||||||||||||||
Special items: | ||||||||||||||||||||||||
Certain tax impacts | — | — | (1 | ) | (4 | ) | (5 | ) | — | — | — | (23 | ) | (23 | ) | |||||||||
Realized refining margins | 281 | 500 | 519 | 618 | 1,918 | 253 | 408 | 525 | 455 | 1,641 | ||||||||||||||
Total processed inputs (thousands of barrels) | 39,218 | 47,978 | 45,233 | 53,613 | 186,042 | 40,116 | 51,749 | 52,306 | 54,897 | 199,068 | ||||||||||||||
Adjusted total processed inputs (thousands of barrels) | 39,218 | 47,978 | 45,233 | 53,613 | 186,042 | 40,116 | 51,749 | 52,306 | 54,897 | 199,068 | ||||||||||||||
Income (loss) before income taxes (dollars per barrel)** | (2.75 | ) | 3.42 | 4.62 | 5.63 | 3.05 | (2.44 | ) | 2.32 | 4.72 | 3.26 | 2.25 | ||||||||||||
Realized refining margins (dollars per barrel)*** | 7.17 | 10.42 | 11.48 | 11.54 | 10.32 | 6.29 | 7.90 | 10.02 | 8.32 | 8.25 | ||||||||||||||
GULF COAST | ||||||||||||||||||||||||
Income before income taxes | — | 366 | 210 | 464 | 1,040 | 521 | 86 | 109 | 93 | 809 | ||||||||||||||
Plus: | ||||||||||||||||||||||||
Taxes other than income taxes | 25 | 23 | 23 | 17 | 88 | 27 | 23 | 24 | 23 | 97 | ||||||||||||||
Depreciation, amortization and impairments | 66 | 64 | 69 | 69 | 268 | 67 | 68 | 68 | 70 | 273 | ||||||||||||||
Selling, general and administrative expenses | 10 | 13 | 13 | 21 | 57 | 12 | 14 | 14 | 15 | 55 | ||||||||||||||
Operating expenses | 366 | 292 | 317 | 337 | 1,312 | 338 | 294 | 298 | 282 | 1,212 | ||||||||||||||
Equity in (earnings) losses of affiliates | 1 | 3 | 1 | 1 | 6 | (7 | ) | 2 | (1 | ) | 2 | (4 | ) | |||||||||||
Other segment (income) expense, net | (1 | ) | 3 | 1 | — | 3 | (422 | ) | 1 | — | — | (421 | ) | |||||||||||
Proportional share of refining gross margins contributed by equity affiliates | — | — | — | — | — | 1 | — | — | — | 1 | ||||||||||||||
Realized refining margins | 467 | 764 | 634 | 909 | 2,774 | 537 | 488 | 512 | 485 | 2,022 | ||||||||||||||
Total processed inputs (thousands of barrels) | 69,207 | 76,875 | 69,745 | 76,838 | 292,665 | 66,848 | 72,346 | 70,544 | 76,213 | 285,951 | ||||||||||||||
Adjusted total processed inputs (thousands of barrels) | 69,207 | 76,875 | 69,745 | 76,838 | 292,665 | 66,848 | 72,346 | 70,544 | 76,213 | 285,951 | ||||||||||||||
Income before income taxes (dollars per barrel)** | — | 4.76 | 3.01 | 6.04 | 3.55 | 7.79 | 1.19 | 1.55 | 1.22 | 2.83 | ||||||||||||||
Realized refining margins (dollars per barrel)*** | 6.75 | 9.93 | 9.09 | 11.84 | 9.48 | 8.03 | 6.74 | 7.26 | 6.38 | 7.07 | ||||||||||||||
CENTRAL CORRIDOR | ||||||||||||||||||||||||
Income before income taxes | 272 | 521 | 839 | 1,185 | 2,817 | 97 | 42 | 317 | 299 | 755 | ||||||||||||||
Plus: | ||||||||||||||||||||||||
Taxes other than income taxes | 12 | 9 | 10 | 12 | 43 | 14 | 13 | 9 | 10 | 46 | ||||||||||||||
Depreciation, amortization and impairments | 35 | 32 | 34 | 34 | 135 | 27 | 37 | 32 | 33 | 129 | ||||||||||||||
Selling, general and administrative expenses | 7 | 7 | 7 | 13 | 34 | 8 | 8 | 8 | 10 | 34 | ||||||||||||||
Operating expenses | 108 | 124 | 124 | 132 | 488 | 136 | 183 | 123 | 151 | 593 | ||||||||||||||
Equity in (earnings) losses of affiliates | 61 | (220 | ) | (300 | ) | (353 | ) | (812 | ) | 9 | (26 | ) | (146 | ) | (166 | ) | (329 | ) | ||||||
Other segment (income) expense, net | (4 | ) | (8 | ) | 4 | (5 | ) | (13 | ) | 2 | 4 | 8 | (1 | ) | 13 | |||||||||
Proportional share of refining gross margins contributed by equity affiliates | 198 | 381 | 472 | 514 | 1,565 | 169 | 175 | 290 | 325 | 959 | ||||||||||||||
Realized refining margins | 689 | 846 | 1,190 | 1,532 | 4,257 | 462 | 436 | 641 | 661 | 2,200 | ||||||||||||||
Total processed inputs (thousands of barrels) | 26,236 | 26,209 | 26,778 | 27,076 | 106,299 | 24,647 | 22,331 | 23,525 | 21,643 | 92,146 | ||||||||||||||
Adjusted total processed inputs (thousands of barrels)* | 42,765 | 48,347 | 50,410 | 50,039 | 191,561 | 43,921 | 43,718 | 45,733 | 43,451 | 176,823 | ||||||||||||||
Income before income taxes (dollars per barrel)** | 10.37 | 19.88 | 31.33 | 43.77 | 26.50 | 3.94 | 1.88 | 13.48 | 13.82 | 8.19 | ||||||||||||||
Realized refining margins (dollars per barrel)*** | 16.11 | 17.51 | 23.61 | 30.60 | 22.22 | 10.54 | 9.96 | 14.04 | 15.16 | 12.44 | ||||||||||||||
Page 14
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RECONCILIATION OF INCOME (LOSS) BEFORE INCOME TAXES TO REALIZED REFINING MARGINS (continued) | ||||||||||||||||||||||||
Millions of Dollars, Except as Indicated | ||||||||||||||||||||||||
2018 | 2017 | |||||||||||||||||||||||
1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | |||||||||||||||
WEST COAST | ||||||||||||||||||||||||
Income (loss) before income taxes | (52 | ) | 139 | (26 | ) | 50 | 111 | (130 | ) | 59 | 190 | (55 | ) | 64 | ||||||||||
Plus: | ||||||||||||||||||||||||
Taxes other than income taxes | 25 | 25 | 26 | 24 | 100 | 20 | 21 | — | 23 | 64 | ||||||||||||||
Depreciation, amortization and impairments | 58 | 60 | 60 | 59 | 237 | 58 | 67 | 58 | 61 | 244 | ||||||||||||||
Selling, general and administrative expenses | 11 | 12 | 11 | 16 | 50 | 11 | 12 | 12 | 13 | 48 | ||||||||||||||
Operating expenses | 230 | 228 | 264 | 318 | 1,040 | 313 | 222 | 212 | 235 | 982 | ||||||||||||||
Other segment (income) expense | 3 | (14 | ) | — | 2 | (9 | ) | 1 | 1 | 2 | 1 | 5 | ||||||||||||
Realized refining margins | 275 | 450 | 335 | 469 | 1,529 | 273 | 382 | 474 | 278 | 1,407 | ||||||||||||||
Total processed inputs (thousands of barrels) | 33,051 | 35,195 | 35,132 | 32,954 | 136,332 | 27,414 | 35,304 | 36,635 | 34,736 | 134,089 | ||||||||||||||
Adjusted total processed inputs (thousands of barrels) | 33,051 | 35,195 | 35,132 | 32,954 | 136,332 | 27,414 | 35,304 | 36,635 | 34,736 | 134,089 | ||||||||||||||
Income (loss) before income taxes (dollars per barrel)** | (1.57 | ) | 3.95 | (0.74 | ) | 1.52 | 0.81 | (4.74 | ) | 1.67 | 5.19 | (1.58 | ) | 0.48 | ||||||||||
Realized refining margins (dollars per barrel)*** | 8.32 | 12.77 | 9.53 | 14.18 | 11.20 | 9.95 | 10.83 | 12.95 | 7.96 | 10.49 | ||||||||||||||
WORLDWIDE | ||||||||||||||||||||||||
Income before income taxes | 112 | 1,190 | 1,232 | 2,001 | 4,535 | 390 | 307 | 863 | 516 | 2,076 | ||||||||||||||
Plus: | ||||||||||||||||||||||||
Taxes other than income taxes | 77 | 72 | 72 | 66 | 287 | 77 | 70 | 47 | 69 | 263 | ||||||||||||||
Depreciation, amortization and impairments | 211 | 206 | 213 | 211 | 841 | 201 | 219 | 205 | 213 | 838 | ||||||||||||||
Selling, general and administrative expenses | 41 | 47 | 47 | 69 | 204 | 45 | 49 | 50 | 54 | 198 | ||||||||||||||
Operating expenses | 989 | 869 | 922 | 1,010 | 3,790 | 1,044 | 897 | 818 | 875 | 3,634 | ||||||||||||||
Equity in (earnings) losses of affiliates | 64 | (214 | ) | (297 | ) | (349 | ) | (796 | ) | 6 | (22 | ) | (144 | ) | (162 | ) | (322 | ) | ||||||
Other segment (income) expense, net | (9 | ) | (19 | ) | 2 | (4 | ) | (30 | ) | (422 | ) | 3 | 8 | (2 | ) | (413 | ) | |||||||
Proportional share of refining gross margins contributed by equity affiliates | 227 | 409 | 488 | 528 | 1,652 | 184 | 191 | 305 | 339 | 1,019 | ||||||||||||||
Special items: | ||||||||||||||||||||||||
Certain tax impacts | — | — | (1 | ) | (4 | ) | (5 | ) | — | — | — | (23 | ) | (23 | ) | |||||||||
Realized refining margins | 1,712 | 2,560 | 2,678 | 3,528 | 10,478 | 1,525 | 1,714 | 2,152 | 1,879 | 7,270 | ||||||||||||||
Total processed inputs (thousands of barrels) | 167,712 | 186,257 | 176,888 | 190,481 | 721,338 | 159,025 | 181,730 | 183,010 | 187,489 | 711,254 | ||||||||||||||
Adjusted total processed inputs (thousands of barrels)* | 184,241 | 208,395 | 200,520 | 213,444 | 806,600 | 178,299 | 203,117 | 205,218 | 209,297 | 795,931 | ||||||||||||||
Income before income taxes (dollars per barrel)** | 0.67 | 6.39 | 6.96 | 10.50 | 6.29 | 2.45 | 1.69 | 4.72 | 2.75 | 2.92 | ||||||||||||||
Realized refining margins (dollars per barrel)*** | 9.29 | 12.28 | 13.36 | 16.53 | 12.99 | 8.55 | 8.44 | 10.49 | 8.98 | 9.13 | ||||||||||||||
* Adjusted total processed inputs include our proportional share of processed inputs of an equity affiliate. | ||||||||||||||||||||||||
** Income (loss) before income taxes divided by total processed inputs. | ||||||||||||||||||||||||
*** Realized refining margins per barrel, as presented, are calculated using the underlying realized refining margin amounts, in dollars, divided by adjusted total processed inputs, in barrels. As such, recalculated per barrel amounts using the rounded margins and barrels presented may differ from the presented per barrel amounts due to rounding. | ||||||||||||||||||||||||
Page 15
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RECONCILIATION OF INCOME BEFORE INCOME TAXES TO REALIZED MARKETING FUEL MARGINS | ||||||||||||||||||||||||
Millions of Dollars, Except as Indicated | ||||||||||||||||||||||||
2018 | 2017 | |||||||||||||||||||||||
1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | |||||||||||||||
UNITED STATES | ||||||||||||||||||||||||
Income before income taxes | 132 | 187 | 256 | 268 | 843 | 129 | 211 | 191 | 97 | 628 | ||||||||||||||
Plus: | ||||||||||||||||||||||||
Taxes other than income taxes* | (10 | ) | 3 | 3 | 2 | (2 | ) | 1,278 | 1,375 | 1,409 | 1,419 | 5,481 | ||||||||||||
Depreciation and amortization | 4 | 3 | 3 | 3 | 13 | 4 | 3 | 3 | 4 | 14 | ||||||||||||||
Selling, general and administrative expenses | 176 | 193 | 201 | 193 | 763 | 174 | 193 | 193 | 191 | 751 | ||||||||||||||
Equity in earnings of affiliates | (2 | ) | (2 | ) | (3 | ) | (1 | ) | (8 | ) | — | (2 | ) | (2 | ) | (1 | ) | (5 | ) | |||||
Other operating revenues* | (84 | ) | (98 | ) | (104 | ) | (93 | ) | (379 | ) | (1,354 | ) | (1,459 | ) | (1,499 | ) | (1,503 | ) | (5,815 | ) | ||||
Other segment income | — | — | — | — | — | (1 | ) | (14 | ) | — | — | (15 | ) | |||||||||||
Special items: | ||||||||||||||||||||||||
Certain tax impacts | — | (56 | ) | (44 | ) | — | (100 | ) | — | — | — | — | — | |||||||||||
Realized marketing fuel margins | 216 | 230 | 312 | 372 | 1,130 | 230 | 307 | 295 | 207 | 1,039 | ||||||||||||||
Total fuel sales volumes (thousands of barrels) | 155,780 | 177,725 | 173,072 | 191,119 | 697,696 | 156,548 | 176,419 | 181,110 | 189,851 | 703,928 | ||||||||||||||
Income before income taxes (dollars per barrel) | 0.85 | 1.05 | 1.48 | 1.40 | 1.21 | 0.82 | 1.20 | 1.05 | 0.51 | 0.89 | ||||||||||||||
Realized marketing fuel margins (dollars per barrel)** | 1.39 | 1.30 | 1.80 | 1.95 | 1.62 | 1.47 | 1.74 | 1.63 | 1.09 | 1.48 | ||||||||||||||
INTERNATIONAL | ||||||||||||||||||||||||
Income before income taxes | 37 | 82 | 122 | 264 | 505 | 48 | 75 | 58 | 36 | 217 | ||||||||||||||
Plus: | ||||||||||||||||||||||||
Taxes other than income taxes* | (2 | ) | 2 | 1 | 1 | 2 | 1,756 | 1,881 | 1,970 | 1,972 | 7,579 | |||||||||||||
Depreciation and amortization | 18 | 18 | 17 | 18 | 71 | 15 | 16 | 17 | 19 | 67 | ||||||||||||||
Selling, general and administrative expenses | 70 | 71 | 66 | 73 | 280 | 60 | 63 | 70 | 71 | 264 | ||||||||||||||
Equity in earnings of affiliates | (18 | ) | (25 | ) | (22 | ) | (26 | ) | (91 | ) | (19 | ) | (22 | ) | (22 | ) | (20 | ) | (83 | ) | ||||
Other operating revenues* | (7 | ) | (6 | ) | (7 | ) | (12 | ) | (32 | ) | (1,760 | ) | (1,883 | ) | (1,973 | ) | (1,978 | ) | (7,594 | ) | ||||
Other segment (income) expense, net | (5 | ) | 2 | — | 5 | 2 | (1 | ) | 1 | (1 | ) | 3 | 2 | |||||||||||
Marketing margins | 93 | 144 | 177 | 323 | 737 | 99 | 131 | 119 | 103 | 452 | ||||||||||||||
Less: Margin for non-fuel related sales | 12 | 14 | 10 | 8 | 44 | 11 | 11 | 10 | 10 | 42 | ||||||||||||||
Realized marketing fuel margins | 81 | 130 | 167 | 315 | 693 | 88 | 120 | 109 | 93 | 410 | ||||||||||||||
Total fuel sales volumes (thousands of barrels) | 24,534 | 24,717 | 25,441 | 26,257 | 100,949 | 23,885 | 24,229 | 24,596 | 24,636 | 97,346 | ||||||||||||||
Income before income taxes (dollars per barrel) | 1.51 | 3.32 | 4.80 | 10.05 | 5.00 | 2.01 | 3.10 | 2.36 | 1.46 | 2.23 | ||||||||||||||
Realized marketing fuel margins (dollars per barrel)** | 3.32 | 5.25 | 6.58 | 11.99 | 6.87 | 3.70 | 4.95 | 4.45 | 3.72 | 4.21 | ||||||||||||||
* Includes excise taxes on sales of petroleum products for periods prior to the adoption of FASB ASU No. 2014-09 on January 1, 2018. Other operating revenues also includes other non-fuel revenues. | ||||||||||||||||||||||||
** Realized marketing fuel margins per barrel, as presented, are calculated using the underlying realized marketing fuel margin amounts, in dollars, divided by sales volumes, in barrels. As such, recalculated per barrel amounts using the rounded margins and barrels presented may differ from the presented per barrel amounts due to rounding. | ||||||||||||||||||||||||
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