Phillips 66 (PSX) — Agentic Tribune

Items 1 and 2. BUSINESS AND PROPERTIES

CORPORATE STRUCTURE

Phillips 66, headquartered in Houston, Texas, was incorporated in Delaware in 2011 in connection with, and in anticipation of, a restructuring of ConocoPhillips that separated its downstream businesses into an independent, publicly traded company named Phillips 66. The two companies were separated by ConocoPhillips distributing to its shareholders all the shares of common stock of Phillips 66 after the market closed on April 30, 2012 (the separation). Phillips 66 stock trades on the New York Stock Exchange under the “PSX” stock symbol.

Operating Segments

Our businesses are organized into five operating segments:

1)Midstream—Provides crude oil and refined petroleum product transportation, terminaling and storage services, as well as natural gas and natural gas liquids (NGL) gathering, processing, transportation, fractionation, storage and marketing services in the United States. In addition, this segment exports liquefied petroleum gas (LPG) to global markets.

2)Chemicals—Consists of our 50% equity investment in Chevron Phillips Chemical Company LLC (CPChem), which manufactures and markets petrochemicals and plastics on a worldwide basis.

3)Refining—Refines crude oil and other feedstocks into petroleum products, such as gasoline and distillates, including aviation fuels. At December 31, 2025, this segment included 10 refineries in the United States and Europe.

4)Marketing and Specialties (M&S)—Purchases for resale and markets refined products, mainly in the United States and Europe. In addition, this segment includes the manufacturing and marketing of base oils and lubricants.

5)Renewable Fuels—Processes renewable feedstocks into renewable products at the Rodeo Renewable Energy Complex (Rodeo Complex) and at our Humber Refinery. In addition, this segment includes the global activities to procure renewable feedstocks, manage certain regulatory credits, and market renewable fuels.

Corporate and Other includes general corporate overhead, interest income, interest expense, our investment in research of new technologies, business transformation restructuring costs, our investment in NOVONIX Limited (NOVONIX), and various other corporate activities. Corporate assets include all cash, cash equivalents, income tax-related assets and enterprise information technology assets. Effective in the first quarter of 2026, activities associated with decommissioning and redeveloping at our idled Los Angeles Refinery will be included in Corporate and Other. See Note 4—Restructuring, in the Notes to Consolidated Financial Statements for additional information.

SEGMENT AND GEOGRAPHIC INFORMATION

MIDSTREAM

The Midstream segment consists of two businesses:

•Transportation—Transports crude oil and other feedstocks to our refineries and other locations, delivers refined petroleum products to market, and provides terminaling and storage services for crude oil and refined petroleum products.

•NGL—Gathers, processes, transports and markets natural gas; transports, fractionates, markets and exports NGL.

At December 31, 2025, our Midstream segment owned or held partial interests in approximately 70,000 miles of crude oil, refined petroleum product, NGL and natural gas pipeline systems; 39 refined petroleum product terminals; 35 natural gas gathering and processing plants; 15 crude oil terminals; 10 NGL fractionation facilities; six NGL terminals; a petroleum coke exporting facility; and various other storage and loading facilities that are located in the United States.

Acquisitions

On April 1, 2025, we acquired all issued and outstanding equity interests in each of EPIC Y-Grade GP, LLC and EPIC Y-Grade, LP, together with their respective subsidiaries (collectively referred to herein as Coastal Bend), which own various long haul NGL pipelines, fractionation facilities and distribution systems.

See Note 5—Business Combinations, in the Notes to Consolidated Financial Statements for additional information regarding the Coastal Bend acquisition.

Investment Disposition

On January 30, 2025, DCP Midstream, LP (DCP LP), a consolidated subsidiary in which we hold an aggregate direct and indirect economic interest of 86.8%, sold its 25% ownership interest in Gulf Coast Express Pipeline LLC.

See Note 9—Investments, Loans and Long-Term Receivables, in the Notes to Consolidated Financial Statements for additional information regarding the above disposition.

Transportation

We own, hold partial interests in, or lease various assets to provide transportation, terminaling and storage services. These assets include crude oil, refined petroleum product, NGL, and natural gas pipeline systems; crude oil, refined petroleum product and NGL terminals; a petroleum coke handling facility; marine vessels; railcars and trucks.

Pipelines and Terminals

The following table depicts our ownership interest in major pipeline systems included in our Transportation business at December 31, 2025:

Name	State of Origination/Terminus	Interest		Length (Miles)	Gross Capacity (MB/D)*
Crude Oil
Bakken Pipeline	North Dakota/Texas	25	%	1,918	750
Bayou Bridge	Texas/Louisiana	40		213	480
Clifton Ridge	Louisiana	100		10	260
CushPo	Oklahoma	100		62	130
Glacier	Montana	79		800	124
Gray Oak Pipeline	Texas	7		862	900
Line 100	California	100		79	61
Line 200	California	100		228	100
Line 300	California	100		61	34
Line 400	California	100

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Financial statements

data from SEC XBRL filings. Values are as-reported; restatements supersede originals. Values reported in .

From 10-Q filed 2026-10-28 (period ending 2026-09-30).

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Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Unless otherwise indicated, the “company,” “we,” “our,” “us” and “Phillips 66” are used in this report to refer to the businesses of Phillips 66 and its consolidated subsidiaries.

Management’s Discussion and Analysis is the company’s analysis of its financial performance, financial condition and significant trends that may affect future performance. It should be read in conjunction with the consolidated financial statements and notes included elsewhere in this report. It contains forward-looking statements including, without limitation, statements relating to the company’s plans, strategies, objectives, expectations and intentions that are made pursuant to the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. The words “anticipate,” “estimate,” “believe,” “budget,” “continue,” “could,” “intend,” “may,” “plan,” “potential,” “predict,” “seek,” “should,” “will,” “would,” “expect,” “objective,” “projection,” “forecast,” “goal,” “guidance,” “outlook,” “effort,” “target,” “priorities” and similar expressions often identify forward-looking statements, but the absence of these words does not mean a statement is not forward-looking. The forward-looking statements made in this Quarterly Report on Form 10-Q are based on events or circumstances as of the date on which the statements are made. The company does not undertake to update, revise or correct any of the forward-looking information included in this Quarterly Report on Form 10-Q to reflect events or circumstances after the date of this Quarterly Report on Form 10-Q or to reflect new information or the occurrence of unanticipated events unless required to do so pursuant to applicable law. Readers are cautioned that such forward-looking statements should be read in conjunction with the company’s disclosures under the heading: “CAUTIONARY STATEMENT FOR THE PURPOSES OF THE ‘SAFE HARBOR’ PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995.”

The term “earnings” as used in Management’s Discussion and Analysis refers to net income attributable to Phillips 66. The terms “results,” “before-tax income” or “before-tax loss” as used in Management’s Discussion and Analysis refer to “Income before income taxes” as presented on our consolidated statement of income.

EXECUTIVE OVERVIEW AND BUSINESS ENVIRONMENT

Phillips 66 is uniquely positioned as a leading integrated downstream energy provider operating with Midstream, Chemicals, Refining, Marketing and Specialties (M&S) and Renewable Fuels segments. At September 30, 2026, we had total assets of $86.0 billion. Our common stock trades on the New York Stock Exchange under the symbol PSX.

Executive Overview

In the third quarter of 2026, we reported earnings of $5.6 billion and generated $7.3 billion of cash from operations. We had net debt repayments and repurchases of $2.1 billion, funded capital expenditures and investments of $680 million, paid dividends of $504 million to common stockholders and repurchased $2.3 billion of our common stock. The cash provided by operating activities was due to higher earnings, primarily driven by an increase in realized refining margins. As of September 30, 2026, we had $5.8 billion of cash and cash equivalents and $6.4 billion of total committed capacity available under our credit facilities.

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Strategic Priorities Update

In early 2025, we announced the next phase of the company’s strategic priorities along with financial and operational performance targets through year-end 2027. These targets demonstrate the company’s continued focus on world-class operations; disciplined growth and returns; financial strength and flexibility; and shareholder returns.

•World-Class Operations – We are focused on operational and cost reduction targets driving world-class operations across our portfolio. Optimizing utilization rates and product yield at our refineries through reliable and safe operations will enable us to capture the value available in the market in terms of prices and margins. We remain focused on a competitive cost structure and plan to enhance Refining segment returns and increase our utilization rates by focusing on low-capital, higher-return projects that increase asset reliability and improve market capture.

•We continue to focus on Refining performance, targeting an annual clean product yield of greater than 86%, crude oil capacity utilization rates higher than industry average and continuing to improve our competitive cost structure.

•Disciplined Growth and Returns – A disciplined capital allocation process ensures we make investments that are expected to generate competitive returns. Our strategy remains focused on growing our Midstream and Chemicals businesses. Within our Midstream segment, we are primarily focused on maximizing the value of our fully integrated natural gas liquids (NGL) wellhead-to-market value chain.

•We budgeted $2.4 billion for 2026 capital expenditures and investments, exclusive of acquisitions and our share of capital spending by equity affiliates. This includes $1.3 billion of growth capital, primarily in our Midstream segment.

•During the third quarter of 2026, we executed a joint venture agreement and made a final investment decision on the proposed Western Gateway Pipeline system. This is a proposed 1,300-mile refined products pipeline system that will connect our Central Corridor and Gulf Coast refining assets to our West Coast and Southwest Marketing assets. Under the agreement, Phillips 66 owns 49.9% of the system.

•Our financial targets through 2027 reflect our plans to organically grow our Midstream and Chemicals businesses and invest in low-capital, high-return projects in Refining. Following the Western Gateway final investment decision and other recent project approvals, we expect 2027 annual capital expenditures and investments to exceed our previously communicated target of approximately $2.5 billion. The amount and timing of the increase remain subject to finalizing the 2027 capital budget.

•Financial Strength and Flexibility – We use a variety of funding sources to support our liquidity requirements, including cash from operations, debt and proceeds from dispositions. Our focus remains on protecting the stable cash generation from the Midstream and M&S businesses while evaluating future opportunities to optimize our portfolio.

•We are targeting reductions of total debt to $17 billion and reductions of our debt-to-capital ratio by the end of 2027.

•Shareholder Returns – We believe shareholder value is enhanced through, among other things, a secure, competitive and growing dividend, complemented by share repurchases. Our financial target aims to return greater than 50% of net cash provided by operating activities, excluding working capital, to shareholders through share repurchases and dividends. The amount and timing of future dividend payments and the level and timing of future share repurchases is subject to the discretion of, and approval by, our Board of Directors and will depend on various factors including our share price, results of operations, financial condition and cash required for future business plans.

•In October 2026, our Board of Directors declared a quarterly cash dividend of $1.33 per common share, representing a $0.06 increase, reflecting our commitment to a secure, competitive and growing dividend.

•In July 2026, our Board of Directors approved a $10 billion increase to our share repurchase authorization. Since July 2012, our Board of Directors has authorized an aggregate of $35 billion of repurchases of our outstanding common stock under our share repurchase program.

•During the nine months ended September 30, 2026, our net cash provided by operating activities was $12.3 billion and we returned $4.4 billion to shareholders through share repurchases and dividends.

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Business Environment

We continue to see significant movements in commodity prices as a result of geopolitical events, and due to the uncertainty regarding their duration, continued disruptions could materially impact our future results. Below is a discussion of additional factors impacting our environment during the three months ended September 30, 2026, as compared to the same period of 2025.

Our Midstream segment includes our Transportation and NGL businesses. Our Transportation business contains fee-based operations not directly exposed to commodity price risk. Our NGL business contains both fee-based operations and operations directly impacted by NGL and natural gas prices. The weighted-average NGL price was $0.74 per gallon during the third quarter of 2026, compared with $0.60 per gallon during the third quarter of 2025. The Henry Hub natural gas price was $2.88 per million British thermal units (MMBtu) during the third quarter of 2026, compared with $3.03 per MMBtu during the third quarter of 2025. The increase in NGL prices was primarily due to a tight supply market with fewer cargos from the Middle East, while the decrease in natural gas prices was due to increased natural gas supply.

Our Chemicals segment consists of our 50% equity investment in Chevron Phillips Chemical Company LLC (CPChem). The chemicals and plastics industry is mainly a commodity-based industry where the margins for key products are based on supply and demand, as well as cost factors. The benchmark high-density polyethylene chain margin was 18.8 cents per pound in the third quarter of 2026, compared with 7.6 cents per pound in the third quarter of 2025. The increase was mainly due to lower plant utilizations in Asia driven by lower Middle East supply and higher feedstock costs.

Our Refining segment results are driven by several factors, including market crack spreads, refinery throughput, feedstock costs, product yields, turnaround activity and other operating costs. Market crack spreads are used as indicators of refining margins and measure the difference between market prices for refined petroleum products and crude oil. The composite 3:2:1 market crack spread for our business increased to an average of $60.17 per barrel during the third quarter of 2026, from an average of $23.64 per barrel during the third quarter of 2025. The increase in the composite market crack spread was primarily driven by low seasonal global product inventories, particularly diesel, and geopolitical events reducing global product supply. The price of U.S. benchmark crude oil, West Texas Intermediate (WTI) at Cushing, Oklahoma, increased to an average of $86.19 per barrel during the third quarter of 2026, from an average of $65.03 per barrel during the third quarter of 2025. The increase in crude oil prices was primarily driven by geopolitical events in the Middle East restricting global crude supply and changing trade flows.

Results for our M&S segment depend largely on marketing fuel and lubricant margins and sales volumes of our refined products. While marketing fuel and lubricant margins are primarily driven by market factors, largely determined by the relationship between supply and demand, marketing fuel margins, in particular, are influenced by trends in spot prices and, where applicable, retail prices for refined products in the regions and countries where we operate.

Our Renewable Fuels segment processes renewable feedstocks into renewable products at the Rodeo Renewable Energy Complex (Rodeo Complex) and at our Humber Refinery. In addition, this segment includes global activities to procure renewable feedstocks, manage certain regulatory credits, and market renewable fuels. Results for our Renewable Fuels segment are impacted by several factors, including the market price of renewable fuels, feedstock costs, throughput, logistics, operating costs and the value of certain regulatory credits, as well as other market factors, largely determined by the relationship between supply and demand.

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RESULTS OF OPERATIONS

Unless otherwise indicated, discussion of results for the three and nine months ended September 30, 2026, is based on a comparison with the corresponding period of 2025.

Consolidated Results

A summary of income (loss) before income taxes by business segment with a reconciliation to net income attributable to Phillips 66 follows:

	Millions of Dollars
	Three Months Ended September 30			Nine Months Ended September 30
	2026		2025		2026	2025
Midstream	$	702	697		2,078	2,179
Chemicals	311		176		829	309
Refining	6,031		(518)		9,301	(1,096)
Marketing and Specialties	245		251		667	2,104
Renewable Fuels	191		(43)		694	(361)
Corporate and Other	(372)		(364)		(1,230)	(1,168)
Income before income taxes	7,108		199		12,339	1,967
Income tax expense	1,469		32		2,602	366
Net income	5,639		167		9,737	1,601
Less: net income attributable to noncontrolling interests	23		34		67	104
Net income attributable to Phillips 66	$	5,616	133		9,670	1,497

Net income attributable to Phillips 66 in the third quarter of 2026 was $5.6 billion, compared with $133 million in the third quarter of 2025. Net income attributable to Phillips 66 for the nine months ended September 30, 2026, was $9.7 billion, compared with $1.5 billion for the nine months ended September 30, 2025.

The increase in net income attributable to Phillips 66 in the third quarter of 2026 was primarily due to improved realized margins for our Refining segment and a before-tax impairment of $948 million recorded in the third quarter of 2025 related to our equity investment in WRB Refining LP (WRB).

The increase in net income attributable to Phillips 66 for the nine months ended September 30, 2026, was primarily due to improved realized margins for our Refining segment, higher values of regulatory credits in the Renewable Fuels segment, and a before-tax impairment of $948 million recorded in the third quarter of 2025 related to our equity investment in WRB. These increases were partially offset by a before-tax gain of $1 billion associated with the sale of our investment in Coop Mineraloel AG (Coop) recognized in January 2025 in the M&S segment and lower U.S. and international marketing fuel margins, mainly driven by commodity derivative activity.

In the Notes to Consolidated Financial Statements, see Note 6—Investments, Loans and Long-Term Receivables for additional information regarding the impairment of our equity investment in WRB and sale of our investment in Coop, and Note 13—Derivatives and Financial Instruments for additional information. Additionally, see the “Segment Results” section for additional information on our segment results.

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Statement of Income Analysis

Sales and other operating revenues increased 46% and 36% for the three and nine months ended September 30, 2026, respectively. Purchased crude oil and products increased 35% and 31% for the three and nine months ended September 30, 2026, respectively. The increases in both line items for the three and nine months ended September 30, 2026, were primarily due to higher prices for refined petroleum products, crude oil, and NGL, partially offset by impacts associated with the sale of 65% of our interest in the Germany and Austria retail marketing business (Germany and Austria Marketing) in December 2025 and losses from commodity derivative activity. In the Notes to Consolidated Financial Statements, see Note 6—Investments, Loans and Long-Term Receivables, for additional information regarding the partial sale of Germany and Austria Marketing and Note 13—Derivatives and Financial Instruments for additional information.

Equity in earnings of affiliates increased $224 million and $805 million for the three and nine months ended September 30, 2026, respectively. The increases for both periods of 2026 were primarily due to higher equity earnings from CPChem and Excel Paralubes LLC (Excel Paralubes). The increase in equity earnings from Excel Paralubes was primarily due to higher margins resulting from increased prices, partially offset by higher feedstock costs. See the Chemicals segment analysis in the “Segment Results” section for additional information regarding CPChem.

Net gain on dispositions decreased 88% for the nine months ended September 30, 2026, primarily due to a before-tax gain of $1 billion associated with the sale of our investment in Coop recognized in January 2025 in the M&S segment. See Note 6—Investments, Loans and Long-Term Receivables, in the Notes to Consolidated Financial Statements for additional information regarding the disposition.

Other income increased $288 million and $585 million for the three and nine months ended September 30, 2026, respectively. The increases for both periods were primarily attributable to higher results from trading activities and Clean Fuel Production credits.

Operating expenses increased 25% and 22% for the three and nine months ended September 30, 2026, respectively. The increases for both periods were primarily driven by our acquisition of WRB in October 2025 and higher employee-related expenses. The increase for the nine months ended September 30, 2026, was partially offset by lower costs following the cessation of operations at the Los Angeles Refinery. In the Notes to Consolidated Financial Statements, see Note 2—Business Combinations for additional information on the WRB acquisition and Note 7—Properties, Plants and Equipment for additional information on the idled Los Angeles Refinery.

Selling, general and administrative expenses decreased 21% and 10% for the three and nine months ended September 30, 2026, respectively, primarily due to lower legal accruals related to litigation with Propel Fuels, Inc. (Propel Fuels), partially offset by higher employee-related expenses. Additionally, the nine months ended September 30, 2026, was impacted by lower costs from the partial sale of Germany and Austria Marketing. In the Notes to Consolidated Financial Statements, see Note 6—Investments, Loans and Long-Term Receivables, for additional information regarding the partial sale of Germany and Austria Marketing and Note 12—Contingencies and Commitments, for additional information on ongoing litigation with Propel Fuels.

Depreciation and amortization decreased 28% and 29% for the three and nine months ended September 30, 2026, respectively. These decreases were primarily due to depreciation recorded in 2025 prior to cessation of operations at the Los Angeles Refinery in the fourth quarter of 2025. See Note 7—Properties, Plants and Equipment, in the Notes to Consolidated Financial Statements for additional information.

Impairments decreased $919 million and $932 million for the three and nine months ended September 30, 2026, respectively. The decreases for both periods of 2026 were primarily due to a before-tax impairment of $948 million recognized in the third quarter of 2025 related to our equity investment in WRB. See Note 6—Investments, Loans and Long-Term Receivables, in the Notes to Consolidated Financial Statements for additional information.

Taxes other than income taxes decreased $20 million and $110 million for the three and nine months ended September 30, 2026, respectively. The decreases for both periods were primarily driven by lower customs duties.

Interest and debt expense increased 13% for the nine months ended September 30, 2026, primarily due to higher average debt balances. See Note 9—Debt, in the Notes to Consolidated Financial Statements for additional information.

Income tax expense increased $1.4 billion and $2.2 billion for the three and nine months ended September 30, 2026, respectively, primarily due to higher income before income taxes. See Note 20—Income Taxes, in the Notes to Consolidated Financial Statements for information regarding our effective income tax rates.

Net income attributable to noncontrolling interests decreased 32% and 36% for the three and nine months ended September 30, 2026, respectively. The decreases for both periods of 2026 were due to lower results from DCP Midstream, LP (DCP LP), driven by higher fees associated with the early retirement of debt in 2026. Additionally, the nine months ended September 30, 2026, was impacted by lower earnings from DCP LP following the sale of its equity investment in Gulf Coast Express Pipeline LLC (GCX) in the first quarter of 2025. In the Notes to Consolidated Financial Statements, see Note 6—Investments, Loans and Long-Term Receivables, for additional information regarding the sale of GCX and Note 9—Debt for additional information.

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Segment Results

Midstream

	Three Months Ended September 30			Nine Months Ended September 30
	2026		2025		2026	2025
	Millions of Dollars
Income Before Income Taxes
Transportation	$	217	194		714	679
NGL	485		503		1,364	1,500
Total Midstream	$	702	697		2,078	2,179

	Thousands of Barrels Daily
Transportation Volumes
Pipelines*	2,920	3,111	2,998	3,033
Terminals	3,598	3,127	3,405	3,047
Operating Statistics
Wellhead Volume (billion cubic feet per day)**	4.6	4.3	4.5	4.2
NGL production**	471	483	461	459
Pipeline Throughput–Y-Grade to Market***†	982	999	952	887
NGL fractionated†	1,003	930	1,001	854

* Pipelines represent the sum of volumes transported through each separately tariffed consolidated pipeline segment, excluding NGL’s pipelines.

** Includes 100% of DCP Midstream Class A Segment.

*** Represents volumes delivered to fractionation market hubs, including Mont Belvieu, Sweeny and Conway. Includes 100% of DCP Midstream Class A Segment and Phillips 66’s direct interest in DCP Sand Hills and DCP Southern Hills.

† Includes volumes from the Coastal Bend acquisition, effective April 1, 2025. See Note 2—Business Combinations, in the Notes to Consolidated Financial Statements for additional information.

The Midstream segment provides crude oil and refined petroleum product transportation, terminaling and storage services; as well as natural gas and NGL gathering, processing, transportation, fractionation, storage and marketing services. In addition, this segment exports liquefied petroleum gas to global markets.

Results from our Midstream segment increased $5 million and decreased $101 million for the three and nine months ended September 30, 2026, respectively.

Results from our Transportation business increased $23 million and $35 million for the three and nine months ended September 30, 2026, respectively. The increase for the three months ended September 30, 2026, primarily reflected the 2025 retirement of a rail rack at the Los Angeles Refinery and results from the recently acquired Lindsey Oil Refinery logistics assets, partially offset by higher employee-related expenses. The increase for the nine months ended September 30, 2026, was primarily due to increased volumes supporting Refining and results from the Lindsey Oil Refinery logistics assets, partially offset by lower activity associated with our crude processing and logistics assets in California following the idling of the Los Angeles Refinery.

Results from our NGL business decreased $18 million and $136 million for the three and nine months ended September 30, 2026, respectively. The decreases for the three and nine months ended September 30, 2026, were primarily driven by the effects of customer recontracting, partially offset by widening natural gas transportation differentials out of the Permian Basin. Additionally, the decrease for the nine months ended September 30, 2026, was due to a before-tax gain of $68 million recognized in the first quarter of 2025 on the sale of DCP LP’s ownership interest in GCX and accelerated depreciation recorded in 2026 related to a Permian Basin gas plant.

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See the “Executive Overview and Business Environment” section for information on market factors impacting this quarter’s results. See Note 6—Investments, Loans and Long-Term Receivables, in the Notes to Consolidated Financial Statements for additional information regarding the sale of DCP LP’s ownership interest in GCX in 2025. See Note 7—Properties, Plants and Equipment, in the Notes to Consolidated Financial Statements for additional information regarding the acquired assets and infrastructure of the Lindsey Oil Refinery in April 2026 and on the idled Los Angeles Refinery.

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Chemicals

	Three Months Ended September 30			Nine Months Ended September 30
	2026		2025		2026	2025
	Millions of Dollars
Income Before Income Taxes	$	311	176		829	309

	Millions of Pounds
CPChem Externally Marketed Sales Volumes*	5,609	6,572	16,323	18,831
* Represents 100% of CPChem’s outside sales of produced petrochemical products, as well as commission sales from equity affiliates.

Global Olefins and Polyolefins Capacity Utilization (percent)

104

The Chemicals segment consists of our 50% equity investment in CPChem, which we account for under the equity method. CPChem uses NGL and other feedstocks to produce petrochemicals. These products are then marketed and sold or used as feedstocks to produce plastics and other chemicals. CPChem produces and markets ethylene and other olefin products. Ethylene produced is primarily consumed within CPChem for the production of polyethylene, normal alpha olefins and polyethylene pipe. CPChem manufactures and/or markets aromatics and styrenics products, such as benzene, cyclohexane, styrene and polystyrene, as well as manufactures and/or markets a variety of specialty chemical products. Unless otherwise noted, amounts referenced below reflect our net 50% interest in CPChem.

Results from the Chemicals segment increased $135 million and $520 million for the three and nine months ended September 30, 2026, respectively, primarily due to improved margins driven by higher sales prices, mainly for polyethylene.

See the “Executive Overview and Business Environment” section for information on market factors impacting CPChem’s results.

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Refining

	Three Months Ended September 30			Nine Months Ended September 30
	2026		2025		2026	2025
	Millions of Dollars
Income (Loss) Before Income Taxes
Atlantic Basin/Europe	$	1,474	250		2,193	100
Gulf Coast	1,702		119		2,859	(113)
Central Corridor*	2,568		(580)		3,749	(238)
West Coast	287		(307)		500	(845)
Worldwide	$	6,031	(518)		9,301	(1,096)

	Dollars Per Barrel
Income (Loss) Before Income Taxes
Atlantic Basin/Europe	$	27.59	4.94	14.31	0.72
Gulf Coast	31.11		2.19	17.75	(0.79)
Central Corridor*	32.90		(20.61)	16.86	(2.82)
West Coast	28.91		(15.06)	18.52	(13.28)
Worldwide	30.76		(3.38)	16.50	(2.55)
Realized Refining Margins**
Atlantic Basin/Europe	$	33.34	11.94	21.42	9.24
Gulf Coast	38.83		8.74	24.96	7.61
Central Corridor*	40.70		15.82	25.79	13.35
West Coast	37.30		12.31	27.18	11.17
Worldwide	38.00		12.15	24.44	10.27

* Includes our proportional share of our equity method investment in WRB through September 30, 2025. Beginning on October 1, 2025, 100% of Borger Refinery and Wood River Refinery are included in consolidated results. See Note 2—Business Combinations, in the Notes to Consolidated Financial Statements for additional information.

** See the “Non-GAAP Reconciliations” section for a reconciliation of this non-GAAP measure to the most directly comparable measure under generally accepted accounting principles in the United States (GAAP), income (loss) before income taxes per barrel.

The Refining segment refines crude oil and other feedstocks into petroleum products, such as gasoline and distillates, including aviation fuels, at 10 refineries in the United States and Europe.

On October 1, 2025, we acquired the remaining 50% ownership interest in WRB from subsidiaries of Cenovus Energy Inc. (Cenovus). In the fourth quarter of 2025, we ceased fuel production at our Los Angeles Refinery and effective in the first quarter of 2026, activities associated with the decommissioning and redevelopment of our idled Los Angeles Refinery site are included in Corporate and Other. In the Notes to Consolidated Financial Statements, see Note 2—Business Combinations and Note 7—Properties, Plants and Equipment, for additional information.

Results from our Refining segment increased $6.5 billion and $10.4 billion for the three and nine months ended September 30, 2026, respectively. The increase for the three and nine months ended September 30, 2026, was primarily due to higher realized margins, a before-tax impairment of $948 million recorded in the third quarter of 2025 related to our equity investment in WRB, and depreciation recorded in 2025 for the Los Angeles Refinery. The increase in realized margins in the three and nine months ended September 30, 2026, was due to improved market crack spreads, partially offset by increased feedstock costs. See the “Executive Overview and Business Environment” section for information on industry crack spreads and other market factors impacting this quarter’s results. See Note 6—Investments, Loans and Long-Term Receivables, in the Notes to Consolidated Financial Statements for additional information regarding the WRB equity investment impairment in 2025.

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	Thousands of Barrels Daily, Except as Indicated
	Three Months Ended September 30			Nine Months Ended September 30
Operating Statistics	2026		2025		2026	2025
Refining operations*
Atlantic Basin/Europe
Crude oil capacity	554		537		554	537
Crude oil processed	547		534		529	471
Capacity utilization (percent)†	99	%	99		96	88
Refinery production	582		552		564	511
Gulf Coast
Crude oil capacity	541		529		541	529
Crude oil processed	495		528		515	469
Capacity utilization (percent)†	91	%	100		95	89
Refinery production	601		597		597	529
Central Corridor**
Crude oil capacity	793		531		793	531
Crude oil processed	817		549		784	540
Capacity utilization (percent)†	103	%	103		99	102
Refinery production	851		571		817	561
West Coast***
Crude oil capacity	105		244		105	244
Crude oil processed	102		214		94	225
Capacity utilization (percent)†	97	%	88		89

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Held by

holders ( registered funds via N-PORT, institutional investors via 13F). Showing top by dollar value.

Holder	Type	ETF	MF	Position ($)	% of holder	Δ % of holder	Holder AUM

Recent insider activity

Last 90 days. Open-market trades (purchases & sales) by directors, officers, and 10%+ owners. 7 transactions across 4 insiders. Net: -118,149 shares, -$26,982,715.

Date	Insider	Role	Action	Shares	Price	Value
2026-09-16	Mandell Brian	Executive Vice President	Sell	-23,400	$265.06	-$6,202,381
2026-08-12	Harbison Richard G	EVP, Refining	Sell	-52,100	$223.76	-$11,658,120
2026-08-11	Mandell Brian	Executive Vice President	Sell	-30,000	$215.00	-$6,450,000
2026-08-10	Mandell Brian	Executive Vice President	Sell	-3,300	$214.02	-$706,266
2026-08-10	Davis Lisa Ann indirect	Director	Sell	-1,515 ×3	$207.73	-$314,713
2026-08-10	Kluppel Ann M	SVP and Controller	Sell	-6,034 ×3	$212.50	-$1,282,236
2026-08-07	Kluppel Ann M	SVP and Controller	Sell	-1,800	$205.00	-$369,000

Source: SEC Form 4 filings.

Next expected filings

~2027-02-19 10-K expected by 2027-02-27 (in 113 days)
~2027-04-26 10-Q expected by 2027-05-07 (in 179 days)
~2027-08-02 10-Q expected by 2027-08-13 (in 277 days)
~2027-10-25 10-Q expected by 2027-11-05 (in 361 days)

Predicted from historical filing cadence; not an SEC commitment.

Recent SEC filings

2026-10-28 8-K Earnings Release; Financial Statements and Exhibits
2026-10-28 10-Q Quarterly Report
2026-10-05 8-K Officer/Director Change
2026-08-21 8-K Material Agreement Entered; Material Financial Obligation; Financial Statements and Exhibits
2026-08-05 8-K Earnings Release; Financial Statements and Exhibits
2026-08-05 10-Q Quarterly Report
2026-04-29 8-K Earnings Release; Financial Statements and Exhibits
2026-04-29 10-Q Quarterly Report
2026-04-06 8-K Earnings Release; Financial Statements and Exhibits
2026-03-18 8-K Material Agreement Entered; Material Financial Obligation; Financial Statements and Exhibits
2026-03-09 8-K Officer/Director Change
2026-02-20 10-K Annual Report
2026-02-04 8-K Earnings Release; Financial Statements and Exhibits
2025-10-29 10-Q Quarterly Report
2025-10-29 8-K Earnings Release; Financial Statements and Exhibits

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