Phillips 66 announced financial results for the third quarter of 2026, reporting earnings of $5.6 billion, a significant increase from the $3.8 billion reported in the second quarter of 2026. The company reported adjusted earnings of $5.6 billion and adjusted earnings per share of $14.08 for the quarter ended September 30, 2026.
Operational metrics for the period were strong, with refining utilization reaching 98% and Central Corridor processed inputs hitting a record 848,000 barrels per day. The company also reported a record distillate yield of 41% and a clean product yield of 86%. In the midstream segment, fractionation volumes reached 1 million barrels per day, wellhead volumes stood at 4.6 billion cubic feet per day, and the Freeport LPG export dock operated at 105% utilization.
Regarding capital allocation, Phillips 66 returned $2.8 billion to shareholders through dividends and share repurchases during the quarter. The company also reduced its total debt by $2.0 billion to $18.5 billion and lowered its net debt by $3.8 billion to $12.7 billion. As of September 30, 2026, the company held $5.8 billion in cash and cash equivalents with $6.4 billion of committed capacity available under credit facilities.
On the project front, Phillips 66 reached a final investment decision to move forward with the Western Gateway Pipeline system, with an expected in-service date in 2029. The company also noted progress on the Coastal Bend expansion project, with initial volumes expected in the fourth quarter of 2026 and full ramp-up to 350,000 barrels per day in early 2027.
