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Sep 30, 2020
Phillips 66 Q3 2020 Earnings Report
Reported a loss due to weak refining margins, but benefited from improved market conditions in Midstream, Chemicals and Marketing & Specialties.
Key Takeaways
Phillips 66 reported a third-quarter 2020 loss of $799 million, or $1.82 per share. Excluding special items, the company had an adjusted loss of $1 million, or $0.01 per share. The company generated operating cash flow of $491 million, or $795 million excluding working capital impacts. Improved market conditions in Midstream, Chemicals and Marketing & Specialties were captured.
Reported a third-quarter loss of $799 million or $1.82 per share; adjusted loss of $1 million or $0.01 per share
Generated operating cash flow of $491 million; $795 million excluding working capital
Captured improved market conditions in Midstream, Chemicals and Marketing & Specialties
Recently started operations of Sweeny Fracs 2 and 3
Forward Guidance
Phillips 66 expects 2020 consolidated capital expenditures and investments to be $3 billion, and adjusted capital spending to be $2.9 billion, net of cash capital contributions from joint venture partners.
Positive Outlook
- Completion of the two new 150,000 BPD fractionators at its Sweeny Hub, bringing the site’s total fractionation capacity to 400,000 BPD.
- Phillips 66 Partners continued construction of the C2G Pipeline, a 16 inch ethane pipeline that will connect its Clemens Caverns storage facility to petrochemical facilities in Gregory, Texas, near Corpus Christi, Texas. The project is backed by long-term commitments and is expected to be completed in mid-2021.
- At the South Texas Gateway Terminal, which is being constructed by Buckeye Partners, L.P., the first dock and 5.1 million barrels of storage capacity have been commissioned.
- The company is adding a 200,000 BPD dock at its Beaumont Terminal, bringing the terminal’s total dock capacity to 800,000 BPD. The new dock is expected to be completed in the fourth quarter of 2020.
- CPChem announced its first U.S. commercial-scale production of polyethylene from recycled mixed-waste plastics.
Challenges Ahead
- CPChem is closely monitoring economic developments and has deferred final investment decision for its U.S. Gulf Coast project.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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