Phillips 66 reports Q1 EPS $4.21, consensus $3.56

Phillips 66 generated $1.2B in cash from operations in the first quarter of 2023. Excluding working capital impacts, operating cash flow was $2.5B. During the first quarter, Phillips 66 funded $800M of share repurchases, $486M in dividends and $378M of capital expenditures and investments. The company ended the quarter with 459M shares outstanding. Also during the quarter, the company issued $1.25B of senior unsecured notes and entered into a $1.5B delayed draw term loan agreement, both in support of the pending buy-in of DCP Midstream, LP’s publicly held common units. As of March 31, 2023, the company had $7B of cash and cash equivalents and $6.2Bof committed capacity available under credit facilities. Additionally, the company has $1.5 billion of capacity available under the delayed draw term agreement conditioned upon closing of the pending buy-in transaction. The company’s consolidated debt-to-capital ratio was 35% and its net debt-to-capital ratio was 25%. "We continued to make progress on our strategic priorities, delivering strong financial and operating results in the quarter," said Mark Lashier, President and CEO of Phillips 66. "In Refining, we ran above industry-average crude utilization, successfully executed major turnarounds and increased market capture to 93%. "We are delivering on our plan to increase shareholder distributions through dividends and share repurchases. During the first quarter we increased our dividend, demonstrating our ongoing commitment to a secure, competitive and growing dividend. We also repurchased $800 million of shares, bringing our total shareholder distributions to $1.3 billion for the quarter. "In Midstream, we are advancing our NGL wellhead-to-market strategy. We recently achieved a significant integration milestone with the transition of DCP Midstream employees into Phillips 66, enabling continued synergy capture. We expect to complete the acquisition of the DCP Midstream, LP public common units by the end of the second quarter."