Phillips 66 Q3 2025 Earnings Call Summary

The following is excerpted from the question-and-answer section of the transcript.

Question: Stephen Richardson - Evercore Inc - Analyst : Great, thank you. Regarding WRB, interested if we could just dig a little further there. Very clear, what looks to be a really attractive acquisition price, and you've got a clear synergy target out there. But could we talk a little bit about beyond this inside and outside the fence line, some of the other benefits and just address what 100% ownership of these facilities opens up in terms of some of the organic growth that Rich mentioned.

Question: Stephen Richardson - Evercore Inc - Analyst : Appreciate the additional color there, particularly on the CapEx. If I could just quickly follow up and the fear of sounding like I'm leaving the witness, but fair to assume that a lot of these benefits we just talked about, both on the refining side and the marketing side, are capital efficient and we're going to see some of those benefits relatively nearer term? I mean is the 1 point we'd like to probably bring is when do we start seeing some of those things?

Question: Theresa Chen - Barclays Bank - Analyst : Hello, thank you for taking my questions. I want to dig deeper into Western Gateway. Now that we are we can change into the binding open season, can you talk about the rationale behind this project? And why it's important for Phillips 66, how does it stack up versus ONEOK's competing pipeline project and it built how do you think this pipeline will change (inaudible) flows as well as margin capture for your central corridor assets?

Question: Theresa Chen - Barclays Bank - Analyst : Thank you for that comprehensive answer. And as a follow-up, from a cost perspective, what kind of CapEx should we anticipate for Western Gateway given the substantial re-yield component? And how will the coffee split between the partners since Kinder is contributing its existing pipeline infrastructure. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. OCTOBER 29, 2025 / 4:00PM, PSX.N - Q3 2025 Phillips 66 Earnings Call

Question: Neil Mehta - Goldman Sachs Group Inc - Analyst : Yeah, good morning, Mark and team. I wanted to keep on pushing on the Midstream point and you've talked about $4.5 billion in EBITDA by year-end 2027 as the run rate. You annualize Q3, you're close to $4 billion. And so maybe you could just talk about bridging that $500 million and if oil prices languish, how sensitive is the EBITDA to that? And so giving us confidence around that incremental $500 million would be great.

Question: Neil Mehta - Goldman Sachs Group Inc - Analyst : Thank you, Don. Thank you, Mark. So the follow-up is just crude in transit. A lot has been made of the $1.4 billion barrels that appear to be on the water. But today's DOEs reinforce the view that they aren't finding their way into US shores or into a lot of OECD pricing nodes. And I want to make -- get your perspective of -- do you guys have visibility to that crude actually manifesting its way over here. And if not, what do you think is driving that? Do you think it's the sanctions, whether it's Iran, Venezuela and now Russia contributing to that that difference between what appears to be a visible build in inventory on the water but not on land.

Question: Manav Gupta - UBS AG - Analyst : I want to really thank Jeff Dietert over the years, I've thrown a lot of stupid questions at him, and he's been very patient in answering all of those. So thank you, Jeff. You will be missed a lot. My first question here, sir, is on the chemical side. The indicator, and I understand it's an industry indicator, seemed relatively flat. The earnings jumped materially. Now I think some part of it was the Port Arthur non downtime. But was it also a function of you using a higher ethane blend than what probably the indicator is showing. That's what I concluded, but I wanted your opinion on it. And if you could also talk about when can we get back to like mid-cycle chemical margins.

Question: Manav Gupta - UBS AG - Analyst : Thank you for a detailed response. My quick follow-up is here, sir. Initially, when you did the EPIC deal, I think now you call it coastal bend, there was a little bit of a pushback, but now things are really coming together. The line has already had on expansion. And I think one more phase is planned. So help us understand where is the EPIC acquired assets EBITDA at this point on a quarterly basis? And then what would it become once the whole expansion happens? If you could just run us through that much. Thank you.

Question: Jason Gabelman - TD Cowen - Analyst : Yeah, hey, thanks for taking my questions. The first question is a portfolio one. You've obviously concentrated your footprint in Central Corridor talking a lot about synergies with your midstream footprint. As you think about your East Coast and West Coast refining footprints, do you still view those as core? I mean, there are some good assets there but obviously not as well integrated with what you're doing in Midstream and Chems. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. OCTOBER 29, 2025 / 4:00PM, PSX.N - Q3 2025 Phillips 66 Earnings Call So how do you think about the importance of those regions within the overall business?

Question: Jason Gabelman - TD Cowen - Analyst : Okay. Great. That's very clear. My follow-up is on the renewable fuel segment and obviously, results saw a meaningful improvement quarter-over-quarter. You mentioned some impact from selling credits and I think there was something about selling product out of inventory in there. So wondering if you could just elaborate on what drove the increase quarter-over-quarter. How much of that is kind of underlying versus some timing impacts. Thanks.

Question: Ryan Todd - Piper Sandler - Analyst : Yeah. Thanks. Maybe a couple back on refining. Throughput was obviously much higher than anticipated in the quarter. But margin capture that still probably still a few headwinds that we see that existed in the third quarter. Can you talk about maybe some of the headwinds in the third quarter and how those might be trending or improving into the fourth quarter? And then maybe as a follow-up, a few years ago, as part of your strategic priorities, you talked about a goal of driving margin capture improvement of 5%. Can you talk about where you are on that project? You've clearly made improvements on clean product yield. But where do you think you are on that journey? And what are some of the things that you may be working on over the next couple of years that we should keep an eye on that front?

Question: Phillip Jungwirth - BMO Capital Markets - Analyst : Thanks for taking the question. On Western Gateway, how important is Phillips integration between Midstream and refining and designing and executing this project? And then separately, what's your level of confidence around regulatory permitting risk? And any different dynamics here to keep in mind between the greenfield pipe and the reversal in the California.

Question: Phillip Jungwirth - BMO Capital Markets - Analyst : Okay. Great. And recognizing Chemicals ran really well in the quarter. Just going back to industry capacity rationalization. I wanted to get your sense on the China anti evolution policies? And just how meaningful do you think this could be to help bring balance back into the market?