Phillips 66 reports 3Q22 financial results

“Third-quarter results reflect a continued favourable market environment, as well as strong operating performance and improved market capture,” said Mark Lashier, President and CEO of Phillips 66. “Our focus remains on operating safely and reliably producing critical energy products.

“In midstream, we increased our economic interest in DCP Midstream to capture the value of a fully integrated NGL business from wellhead to market. Our Sweeny Frac 4 started up on time and under budget. With this latest expansion, we are now processing over 550 000 bpd of natural gas liquids at our Sweeny Hub. We demonstrated our commitment to shareholder distributions, returning US$1.2 billion through share repurchases and dividends during the quarter. We look forward to providing an update on our strategic initiatives and how we will continue to deliver shareholder value at our upcoming investor day.”

On 17 August 2022, Phillips 66 announced a realignment of its economic and governance interests in DCP Midstream, LP and Gray Oak Pipeline, LLC resulting from the merger of DCP Midstream, LLC and Gray Oak Holdings, LLC. In connection with the merger, Phillips 66 was delegated DCP Midstream, LLC’s governance rights over DCP Midstream, LP and its general partner entities. As a result, starting on18 August 2022, the company’s financial results reflect the consolidation of DCP Midstream, LP and its general partner entities (collectively referred to as DCP Midstream), as well as DCP Sand Hills Pipeline, LLC and DCP Southern Hills Pipeline, LLC. The results of these entities after the merger and Phillips’ share of DCP Midstream, LLC’s results prior to the merger are reported in the NGL and other amounts. Additionally, Phillips’ economic interest in Gray Oak Pipeline decreased to 6.5%.

Midstream 3Q22 pre-tax income was US$3.6 billion, compared with US$292 million in 2Q22. Midstream results in 3Q22 include a net gain of US$3.0 billion related to the consolidation of DCP Midstream, Sand Hills Pipeline and Southern Hills Pipeline and the transfer of interest in Gray Oak Pipeline.

Transportation 3Q22 adjusted pre-tax income was US$229 million, compared with adjusted pre-tax income of US$250 million in 2Q22. The decrease was mainly due to lower equity earnings from the Gray Oak Pipeline resulting from the merger.

NGL and other adjusted pre-tax income was US$449 million in 3Q22, compared with adjusted pre-tax income of US$282 million in 2Q22. The increase was mainly driven by the consolidation of DCP Midstream, Sand Hills Pipeline and Southern Hills Pipeline as a result of the merger.

In 3Q22, the fair value of the company’s investment in NOVONIX, Ltd., decreased by US$33 million compared with a US$240 million decrease in 2Q22.

Read the article online at: https://www.worldpipelines.com/business-news/02112022/phillips-66-reports-3q22-financial-results/