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Dec 31, 2021
Phillips 66 Q4 2021 Earnings Report
Phillips 66 reported strong Q4 2021 earnings driven by improved Refining profitability and record earnings in Midstream, Chemicals, and Marketing and Specialties.
Key Takeaways
Phillips 66 reported fourth-quarter earnings of $1.3 billion, or $2.88 per share. Adjusted earnings were also $1.3 billion, or $2.94 per share. The company generated $1.8 billion of operating cash flow and approved a 2022 capital program of $1.9 billion. They also began operations of the C2G Pipeline and increased the quarterly dividend to 92 cents per share.
Reported fourth-quarter earnings of $1.3 billion or $2.88 per share; adjusted earnings of $1.3 billion or $2.94 per share
Generated $1.8 billion of operating cash flow; $1.4 billion excluding working capital
Approved 2022 capital program of $1.9 billion
Began operations of C2G Pipeline and increased quarterly dividend to 92 cents per share
Revenue by Segment
Forward Guidance
Phillips 66 is optimistic on economic recovery and the outlook for its businesses. The company advanced major projects across its portfolio, including the C2G Pipeline, Frac 4 at the Sweeny Hub, and the Rodeo Renewed project.
Positive Outlook
- Completion of Frac 4 at the Sweeny Hub is expected in the fourth quarter of 2022, adding 150,000 BPD of capacity.
- CPChem is growing its normal alpha olefins business with a second world-scale unit to produce 1-hexene, expected startup in 2023.
- Expanding CPChem’s propylene splitting capacity by 1 billion pounds per year with a new unit, expected startup in 2023.
- Rodeo Renewed refinery conversion project is expected to be finished in early 2024, with over 50,000 BPD of renewable fuel production capacity.
- Phillips 66 is exploring additional opportunities to invest in hydrogen and electric vehicle charging to support European low-carbon goals.
Challenges Ahead
- The continuing effects of the COVID-19 pandemic and its negative impact on commercial activity and demand for refined petroleum products
- The inability to timely obtain or maintain permits necessary for capital projects
Historical Earnings Impact
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Avg. Return Before/After Earnings
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