Tue, Oct 29, 7:47 PM (251 days ago)
For the third quarter of 2024, Phillips 66 (PSX) reported a significant decrease in net income, totaling $346 million compared to $2.1 billion in Q3 2023, primarily due to lower refining margins and a substantial litigation accrual of $605 million related to Propel Fuels. Revenues fell 10% year-over-year to $36.2 billion, driven by reduced prices for crude oil and refined products. The company's refining segment faced challenges, with a drop in the composite 3:2:1 market crack spread to $16.50 from $36.06, reflecting increased global refining capacity and lower product prices. Operating cash flow was $1.1 billion, while capital expenditures reached $358 million. Phillips 66 completed the acquisition of Pinnacle Midstream for $567 million and continued share repurchases, totaling $800 million. The company ended the quarter with $1.6 billion in cash and a total debt of $20 billion, leading to a debt-to-capital ratio of 40%. Future operations may be impacted by ongoing litigation and regulatory compliance, particularly concerning environmental laws and GHG emissions.