Phillips 66 stock gains support from record refining quarter

Phillips 66 reported a sharp improvement in third-quarter performance on October 28, 2026, as stronger refining margins and higher volumes lifted earnings. The company said reported earnings reached 5.6 billion US dollars, compared with 3.8 billion US dollars in the second quarter, while adjusted earnings came to 5.6 billion US dollars, up from 3.8 billion US dollars.

The results were driven primarily by Refining. Adjusted pre-tax income in the segment rose to 6.06 billion US dollars from 3.09 billion US dollars, while the realized refining margin increased to 38.00 US dollars per barrel from 24.08 US dollars. Crude capacity utilization reached 98 percent, compared with 96 percent in the previous quarter, and distillate yield reached a quarterly record of 41 percent. The company said higher market crack spreads, realized margins and processed volumes supported the improvement.

Balance Sheet And Capital Returns Improve

Phillips 66 returned 2.777 billion US dollars to shareholders during the quarter, including 2.273 billion US dollars in share repurchases and 504 million US dollars in dividends. Operating cash flow totaled 7.281 billion US dollars, or 6.185 billion US dollars excluding working capital. Management reiterated its target of returning more than 50 percent of net operating cash flow to shareholders across commodity cycles.

The balance sheet also strengthened. Total debt fell to 18.530 billion US dollars at September 30 from 20.565 billion US dollars at June 30, while net debt declined to 12.682 billion US dollars from 16.466 billion US dollars. The net-debt-to-capital ratio improved to 26 percent from 33 percent, allowing the company to reach its 2027 target ahead of schedule. The release identified a 29 million US dollar pre-tax impairment in Refining as a special item in the quarter.

Projects Add Longer-Term Capacity

Phillips 66 reached a final investment decision to proceed with the proposed Western Gateway Pipeline system, which has an expected in-service date in 2029. The company also said the Coastal Bend expansion should deliver initial volumes in the fourth quarter of 2026 and reach 350,000 barrels per day in early 2027. The Golden Triangle Polymers and Ras Laffan Polymers projects remain scheduled for full operations in 2027.

Phillips 66 stock traded at 248.50 euros on Lang & Schwarz at 1:22:56 p.m. CET on Monday, November 2, 2026. See the real-time quote of Phillips 66 stock for the latest trading indication.

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