The conversion of the San Francisco Refinery into the Rodeo Renewable Energy Complex (RREC) was completed, expanding renewable fuels production and positioning Phillips 66 as a leader in renewable fuels production.

Phillips 66 entered into an agreement to acquire Pinnacle Midland Parent LLC to expand natural gas gathering and processing operations in the Permian Basin, closing on July 1, 2024, for $566 million.

Phillips 66 sold its 25% ownership interest in Rockies Express Pipeline LLC for approximately $685 million, recognizing a before-tax gain of $238 million.

Phillips 66 continues its multi-year business transformation focused on enterprise-wide opportunities to improve its cost structure, incurring restructuring costs of $41 million and $76 million for the three and six months ended June 30, 2023, respectively.

The Refining segment experienced a decrease of $873 million and $2,251 million in income before income taxes in the second quarter and six-month period of 2024, respectively, primarily due to lower realized margins, partially offset by higher volumes.

The Midstream segment experienced a decrease of $115 million and $216 million in income before income taxes in the second quarter and six-month period of 2024, respectively, primarily due to before-tax impairment charges associated with certain gathering and processing assets in Texas.

Phillips 66 is exposed to credit losses primarily through its sales of refined petroleum products, renewable fuels, renewable feedstocks, crude oil, and NGL and natural gas, and assesses each counterparty's ability to pay.

Phillips 66 is subject to various environmental laws and regulations and has recorded accruals for environmental liabilities based on management's best estimates, and these liabilities are subject to change due to various factors.

The USACE is preparing an Environmental Impact Statement (EIS) addressing an easement under Lake Oahe in North Dakota, and new litigation or challenges may be filed after the EIS is completed.

The composite 3:2:1 market crack spread for Phillips 66's business decreased to an average of $18.96 per barrel during the second quarter of 2024, from an average of $28.65 per barrel during the second quarter of 2023, primarily driven by higher crude oil costs and lower global prices for gasoline and diesel.

The benchmark high-density polyethylene chain margin decreased in the second quarter of 2024, compared with the second quarter of 2023, mainly due to lower polyethylene sales prices as a result of industry oversupply driven by recent capacity additions.

The Renewable Fuels segment experienced a decrease in income before income taxes, primarily driven by higher feedstock and other costs related to the ramp-up of the RREC, as well as lower benefits from emissions credits.

The Refining segment experienced a decrease in income before income taxes, primarily due to lower realized margins, partially offset by higher volumes.

The Midstream segment experienced a decrease in income before income taxes, primarily due to before-tax impairment charges associated with certain gathering and processing assets in Texas, partially offset by lower maintenance costs.

Phillips 66 continues its multi-year business transformation focused on enterprise-wide opportunities to improve its cost structure, incurring restructuring costs of $41 million and $76 million for the three and six months ended June 30, 2023, respectively.

The completion of the RREC conversion expands commercial scale production of renewable diesel and positions Phillips 66 as a leader in renewable fuels production.

Capital spending for Corporate and Other during the first six months of 2024 was primarily related to information technology.

Capital spending for the Refining segment during the first six months of 2024 was primarily for projects to enhance the yield of higher-value products and sustain the reliability and safety of our facilities.

Phillips 66 repurchased 13.6 million shares of common stock at an aggregate cost of approximately $2 billion during the first six months of 2024.

The Board of Directors declared a quarterly cash dividend of $1.15 per common share, payable on September 3, 2024.

Capital spending was focused on the RREC, expansion of gathering systems, and projects to enhance reliability and safety.

Phillips 66 announced a target to reduce its Scope 1 and Scope 2 GHG emissions intensity related to its operations by 50% of 2019 levels by the year 2050.

The completion of the RREC conversion expands commercial scale production of renewable diesel and positions Phillips 66 as a leader in renewable fuels production.

Phillips 66 is working to continuously improve operational and energy efficiency through resource and energy conservation efforts throughout its operations.

The NGL composite barrel price increased during the second quarter of 2024, partially due to crude oil prices increasing over the same period.

Natural gas prices decreased over the same period primarily due to increased production, pipeline maintenance and limited growth in export infrastructure.

Phillips 66's short- and long-term operating cash flows are highly dependent upon refining and marketing margins, NGL prices and chemicals margins, which are subject to market volatility.