What changed in this filing

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Item 1. Financial Statements

2026-08-05 compared with 2026-04-29 · 264 added, 131 removed, 731 unchanged (35% of the section changed)

2 unchanged sentences

Millions of Dollars

Three Months Ended March 31

Three Months Ended

June 30 Six Months Ended

2026 2025 2026 2025

Revenues and Other Income

1 unchanged sentence

Equity in earnings of affiliates 635 153 887 306

Net gain on dispositions 6 1,087

Net gain (loss) on dispositions 117 ( 93 ) 123 994

Other income 288 139 492 195

25 unchanged sentences

Millions of Dollars

Three Months Ended March 31

Three Months Ended

June 30 Six Months Ended

2026 2025 2026 2025

Net Income $ 3,879 908 4,098 1,434

59 unchanged sentences

Millions of Dollars

Three Months Ended March 31

Six Months Ended

Cash Flows From Operating Activities

8 unchanged sentences

Unrealized investment loss 17 14

Other ( 82 ) ( 6 )

Working capital adjustments

4 unchanged sentences

Taxes and other accruals 1,061 654

Net Cash Provided by (Used in) Operating Activities ( 2,264 ) 187

Net Cash Provided by Operating Activities 4,995 1,032

Cash Flows From Investing Activities

3 unchanged sentences

Proceeds from asset dispositions 71 2,031

Other 9 ( 45 )

Net Cash Provided by (Used in) Investing Activities ( 606 ) 1,591

Net Cash Used in Investing Activities ( 1,344 ) ( 1,143 )

Cash Flows From Financing Activities

7 unchanged sentences

Other ( 56 ) ( 61 )

Net Cash Provided by (Used in) Financing Activities 6,920 ( 2,049 )

Net Cash Used in Financing Activities ( 627 ) ( 523 )

Effect of Exchange Rate Changes on Cash and Cash Equivalents ( 41 ) 40

Net Change in Cash and Cash Equivalents 4,034 ( 249 )

Net Change in Cash and Cash Equivalents, including cash classified within Assets held for sale 2,983 ( 594 )

Cash and cash equivalents at beginning of period 1,116 1,738

Cash and Cash Equivalents at End of Period $ 5,150 1,489

Cash and Cash Equivalents at End of Period, including cash classified within Assets held for sale $ 4,099 1,144

Millions of Dollars

Six Months Ended

Reconciliation of Cash and Cash Equivalents at end of period

Cash and cash equivalents $ 4,099 1,052

Cash and cash equivalents included in Assets held for sale — 92

Cash and cash equivalents at end of period, including cash classified within Assets held for sale $ 4,099 1,144

See Notes to Consolidated Financial Statements.

1 unchanged sentence

Millions of Dollars

Three Months Ended March 31

Three Months Ended June 30

Attributable to Phillips 66

1 unchanged sentence

Other Comprehensive Loss Noncontrolling Interests Total

December 31, 2025 $ 7 19,948 ( 23,934 ) 33,239 ( 167 ) 1,148 30,241

March 31, 2026 $ 7 20,021 ( 24,203 ) 32,934 ( 231 ) 1,153 29,681

Net income — — — 3,847 — 32 3,879

6 unchanged sentences

Benefit plan activity — 42 — ( 3 ) — — 39

June 30, 2026 $ 7 20,063 ( 24,578 ) 36,270 ( 256 ) 1,197 32,703

March 31, 2025 $ 7 19,789 ( 22,995 ) 30,785 ( 313 ) 1,080 28,353

December 31, 2024 $ 7 19,788 ( 22,751 ) 30,771 ( 407 ) 1,055 28,463

Net income — — — 877 — 31 908

4 unchanged sentences

Distributions to noncontrolling interests — — — — — ( 81 ) ( 81 )

Contributions from noncontrolling interests — — — — — 106 106

Benefit plan activity — 31 — ( 3 ) — — 28

June 30, 2025 $ 7 19,820 ( 23,390 ) 31,172 ( 118 ) 1,136 28,627

Three Months Ended June 30

Common Stock Issued Treasury Stock

March 31, 2026 660,921,696 259,986,676

Three Months Ended March 31

Repurchase of common stock — 2,168,180

Shares issued—share-based compensation 254,076 —

June 30, 2026 661,175,772 262,154,856

March 31, 2025 658,173,402 250,591,516

Repurchase of common stock — 3,545,412

Shares issued—share-based compensation 87,791 —

June 30, 2025 658,261,193 254,136,928

See Notes to Consolidated Financial Statements.

Millions of Dollars

Six Months Ended June 30

Attributable to Phillips 66

Par Value Capital in Excess of Par Treasury Stock Retained Earnings Accum.

Other Comprehensive Loss Noncontrolling Interests Total

December 31, 2025 $ 7 19,948 ( 23,934 ) 33,239 ( 167 ) 1,148 30,241

Net income — — — 4,054 — 44 4,098

Other comprehensive loss — — — — ( 89 ) — ( 89 )

Dividends paid on common stock ($ 2.54 per share)

— — — ( 1,017 ) — — ( 1,017 )

Repurchase of common stock — — ( 644 ) — — — ( 644 )

Distributions to noncontrolling interests — — — — — ( 46 ) ( 46 )

Contributions from noncontrolling interests — — — — — 51 51

Benefit plan activity — 115 — ( 6 ) — — 109

June 30, 2026 $ 7 20,063 ( 24,578 ) 36,270 ( 256 ) 1,197 32,703

December 31, 2024 $ 7 19,788 ( 22,751 ) 30,771 ( 407 ) 1,055 28,463

Net income — — — 1,364 — 70 1,434

Other comprehensive income — — — — 289 — 289

Dividends paid on common stock ($ 2.35 per share)

— — — ( 956 ) — — ( 956 )

Repurchase of common stock — — ( 639 ) — — — ( 639 )

Distributions to noncontrolling interests — — — — — ( 95 ) ( 95 )

Contributions from noncontrolling interests — — — — — 106 106

Benefit plan activity — 32 — ( 7 ) — — 25

June 30, 2025 $ 7 19,820 ( 23,390 ) 31,172 ( 118 ) 1,136 28,627

Six Months Ended June 30

Common Stock Issued Treasury Stock

2 unchanged sentences

Shares issued—share-based compensation 1,784,288 —

March 31, 2026 660,921,696 259,986,676

June 30, 2026 661,175,772 262,154,856

December 31, 2024 656,987,861 248,594,923

1 unchanged sentence

Shares issued—share-based compensation 1,273,332 —

March 31, 2025 658,173,402 250,591,516

June 30, 2025 658,261,193 254,136,928

See Notes to Consolidated Financial Statements.

5 unchanged sentences

Therefore, these interim financial statements should be read in conjunction with the consolidated financial statements and notes included in our 2025 Annual Report on Form 10-K.

The results of operations for the three months ended March 31, 2026, are not necessarily indicative of the results expected for the full year.

The results of operations for the three and six months ended June 30, 2026, are not necessarily indicative of the results expected for the full year.

Note 2— Business Combinations

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The acquisition date fair value of the previously held equity interest in WRB was determined using a market approach and the valuation resulted in a Level 3 nonrecurring fair value measurement.

We accounted for this acquisition as a business combination and provisionally recorded $ 2,771 million of PP&E;

We accounted for this acquisition as a business combination and provisionally recorded $ 2,771 million of properties, plants, and equipment (PP&E);

$ 1,200 million of inventory;

3 unchanged sentences

$ 87 million of net working capital deficit (excluding inventory and short-term debt);

$ 34 million of AROs and accrued environmental costs;

$ 34 million of asset retirement obligations (AROs) and accrued environmental costs;

$ 21 million of other long-term liabilities;

11 unchanged sentences

and $ 4 million of AROs.

See Note 14—Fair Value Measurements for additional information on the determination of fair value.

Note 3— Sales and Other Operating Revenues

2 unchanged sentences

Millions of Dollars

Three Months Ended March 31

Three Months Ended

June 30 Six Months Ended

2026 2025 2026 2025

Product Line and Services

15 unchanged sentences

Contract-Related Assets and Liabilities

At March 31, 2026, and December 31, 2025, receivables from contracts with customers were $ 9,250 million and $ 7,781 million, respectively.

At June 30, 2026, and December 31, 2025, receivables from contracts with customers were $ 9.7 billion and $ 7.8 billion, respectively.

Significant noncustomer balances, such as buy/sell receivables and excise tax receivables, were excluded from these amounts.

1 unchanged sentence

An incentive payment is initially recognized as an asset and subsequently amortized as a reduction to revenue over the contract term, which generally ranges from 5 to 15 years.

At March 31, 2026, and December 31, 2025, our asset balances related to such payments were $ 852 million and $ 820 million, respectively.

At June 30, 2026, and December 31, 2025, our asset balances related to such payments were $ 899 million and $ 820 million, respectively.

Our contract liabilities primarily represent advances from our customers prior to product or service delivery.

At March 31, 2026, and December 31, 2025, contract liabilities were $ 210 million and $ 198 million, respectively.

At June 30, 2026, and December 31, 2025, contract liabilities were $ 174 million and $ 198 million, respectively.

Remaining Performance Obligations

2 unchanged sentences

We also have certain contracts in our Midstream segment that include minimum volume commitments with fixed pricing.

At March 31, 2026, the remaining performance obligations related to these minimum volume commitment contracts amounted to $ 819 million.

This amount excludes variable consideration and estimates of variable rate escalation clauses in our contracts with customers and is expected to be recognized through 2036, with a weighted average remaining life of four years as of March 31, 2026.

At June 30, 2026, the remaining performance obligations related to these minimum volume commitment contracts amounted to $ 761 million.

Note 4— Credit Losses

9 unchanged sentences

In addition, when events and circumstances arise that may affect certain counterparties’ abilities to fulfill their obligations, we enhance our credit monitoring, and we may seek collateral to support some transactions or require prepayments from higher-risk counterparties.

At March 31, 2026, and December 31, 2025, we reported $ 11,910 million and $ 9,771 million of accounts and notes receivable, respectively, net of allowances of $ 66 million and $ 68 million, respectively.

Based on an aging analysis at March 31, 2026, more than 95 % of our accounts receivable were outstanding less than 60 days.

At June 30, 2026, and December 31, 2025, we reported $ 11,717 million and $ 9,771 million of accounts and notes receivable, respectively, net of allowances of $ 66 million and $ 68 million, respectively.

Based on an aging analysis at June 30, 2026, more than 95 % of our accounts receivable were outstanding less than 60 days.

We are also exposed to credit losses from off-balance sheet exposures, such as guarantees of joint venture debt and accounts receivable sold under a securitization facility, as well as standby letters of credit.

7 unchanged sentences

$ 5,922 5,097

Inventories valued on the last-in, first-out (LIFO) basis totaled $ 6,078 million and $ 4,461 million at March 31, 2026, and December 31, 2025, respectively.

The estimated excess of current replacement cost over LIFO cost of inventories amounted to approximately $ 10.5 billion and $ 3.6 billion at March 31, 2026, and December 31, 2025, respectively.

Inventories valued on the last-in, first-out (LIFO) basis totaled $ 5,237 million and $ 4,461 million at June 30, 2026, and December 31, 2025, respectively.

The estimated excess of current replacement cost over LIFO cost of inventories amounted to approximately $ 6.2 billion and $ 3.6 billion at June 30, 2026, and December 31, 2025, respectively.

Certain planned reductions in inventory that are not expected to be replaced by the end of the year cause liquidations of LIFO inventory values.

LIFO liquidations did not have a material impact on net income for the three months ended March 31, 2026 and 2025.

LIFO liquidations did not have a material impact on net income for the three and six months ended June 30, 2026 and 2025.

Note 6— Investments, Loans and Long-Term Receivables

2 unchanged sentences

In 2020, the trial court presiding over litigation brought by the Standing Rock Sioux Tribe (the Tribe) ordered the U.S.

Army Corps of Engineers (USACE) to prepare an Environmental Impact Statement (EIS) addressing environmental impacts from an easement allowing the passage of the Dakota Access Pipeline (DAPL) under Lake Oahe in North Dakota.

Later in 2020, the trial court vacated the easement, but operations have been allowed to continue while the USACE proceeds with the EIS as ordered.

The Tribe’s requests for a shutdown have been denied.

In March 2025, the trial court dismissed a second lawsuit filed by the Tribe, again challenging USACE’s allowance of pipeline operations while the EIS process proceeds.

The Tribe’s lawsuit was premature, and the trial court held that it cannot be refiled until after a final EIS is issued.

In December 2025, the USACE published its final EIS, completing its analysis of alternatives.

The final EIS evaluates five alternatives:

two no-action alternatives (denial with restoration or abandonment) and three action alternatives, with one marked as USACE’s preferred alternative, that would grant the easement under varying conditions.

The preferred alternative would grant the easement subject to the same conditions as the 2017 easement but would authorize an increased throughput volume of 1.1 million barrels per day (bpd), up from the previous 570,000 bpd under the original authorization.

The remaining action alternatives would impose either additional operational conditions or require an alternate pipeline route, both of which may entail substantial implementation costs and could have a material impact on our financial statements.

We are still awaiting a Record of Decision (ROD), which will provide a definitive statement of the selected alternative and any related conditions.

The Tribe and affiliated parties may file a new lawsuit in Washington, D.C., challenging the ROD shortly after it is issued.

Most recently, the Tribe has appealed the dismissal, but the issuance of the ROD will supersede and effectively moot the appeal.

Army Corps of Engineers (USACE) to prepare an Environmental Impact Statement (EIS) addressing environmental impacts from the Dakota Access Pipeline (DAPL) easement under Lake Oahe;

although the easement was later vacated, operations have continued while USACE completed the EIS process, and the Tribe’s shutdown requests were denied.

The final EIS, published in December 2025, laid out multiple alternatives, including denial, abandonment, continued operation under the 2017 conditions, continued operation with additional conditions and a reroute.

In May 2026, the USACE issued the signed Record of Decision (ROD), which authorizes continued operation under a new easement with enhanced safety and environmental conditions.

More specifically, the ROD requires mitigation measures beyond the 2017 easement, including alternative water supply planning, groundwater monitoring, biannual Lake Oahe surveillance, fish tissue sampling after a release, eagle-protection measures, periodic independent expert review of leak detection technologies, emergency food distribution planning for affected Tribal communities and continued Tribal engagement on subsistence-use studies.

The costs to comply with these additional mitigation measures are minimal and are not expected to have a material impact on our financial statements.

During the final EIS process, the Tribe flagged ETCO’s potential future Canadian crude shipments through DAPL, but ETCO told USACE there are no confirmed plans and none would occur before late 2028 or early 2029 without regulatory and shipper approvals.

USACE found the issue did not require supplemental environmental review or alter its selected alternative, but added a condition requiring ETCO to submit updated reports and oil-consumption documentation for USACE review before transporting materially different crude through Lake Oahe.

Because the ROD has been issued, challenges to USACE’s final decision and environmental analysis may now be brought forward.

The Tribe and potentially affiliated environmental groups could file a new challenge in federal district court in Washington, D.C.

Dakota Access and ETCO have guaranteed repayment of senior unsecured notes issued by a wholly owned subsidiary of Dakota Access.

At March 31, 2026, the aggregate principal amount outstanding of Dakota Access’ senior unsecured notes was $ 850 million.

At June 30, 2026, the aggregate principal amount outstanding of Dakota Access’ senior unsecured notes was $ 850 million.

In addition, Phillips 66 Partners LP (Phillips 66 Partners), a wholly owned subsidiary of Phillips 66, and its co-venturers in Dakota Access also provided a Contingent Equity Contribution Undertaking (CECU) in conjunction with the notes offering.

Under the CECU, the co-venturers may be severally required to make proportionate equity contributions to Dakota Access if there is an unfavorable final judgment in the above-mentioned ongoing litigation.

At March 31, 2026, our 25 % share of the maximum potential equity contributions under the CECU was approximately $ 215 million.

At June 30, 2026, our 25 % share of the maximum potential equity contributions under the CECU was approximately $ 215 million.

If the pipeline is required to cease operations, it may have a material adverse effect on our results of operations and cash flows.

Should operations cease and Dakota Access and ETCO not have sufficient funds to pay its expenses, we also could be required to support our 25 % share of the ongoing expenses, including scheduled interest payments on the notes of approximately $ 10 million annually, in addition to the potential obligations under the CECU at March 31, 2026.

At March 31, 2026, the aggregate book value of our investments in Dakota Access and ETCO was $ 842 million.

At June 30, 2026, the aggregate book value of our investments in Dakota Access and ETCO was $ 836 million.

OnCue Holdings, LLC (OnCue)

3 unchanged sentences

We have determined that we are not the primary beneficiary because we do not have the power to direct the activities that most significantly impact economic performance.

At March 31, 2026, our maximum exposure to loss was $ 271 million, which represented the book value of our investment in OnCue of $ 218 million and guaranteed debt obligations of $ 53 million.

At June 30, 2026, our maximum exposure to loss was $ 276 million, which represented the book value of our investment in OnCue of $ 224 million and guaranteed debt obligations of $ 52 million.

Investment Dispositions

On December 1, 2025, we divested 65 % of our interest in Germany and Austria retail marketing business (Germany and Austria Marketing) and retained a 35 % non-operating equity interest in the newly formed entity, JET Management Holding GmbH & Co.

KG (JET Management Holding).

During the second quarter of 2026, we recognized a before-tax gain of $ 110 million related to post-closing adjustments for the divestiture, which is presented within the “Net gain (loss) on dispositions” line item on our consolidated statement of income for the three and six months ended June 30, 2026, and is reported in our Marketing and Specialties (M&S) segment.

In connection with the disposition of Germany and Austria Marketing, on May 15, 2025, we entered into foreign currency forward contracts and recognized a before-tax aggregate unrealized loss of $ 89 million on these foreign currency forward contracts in the “Net gain (loss) on dispositions” line item on our consolidated statement of income for the three and six months ended June 30, 2025, which is reported in our M&S segment.

On January 31, 2025, we sold our 49 % ownership interest in Coop Mineraloel AG (Coop) and settled the foreign currency forward contracts entered into in connection with the asset sale.

We received cash proceeds of $ 1.2 billion, consisting of a sales price of $ 1.15 billion and a final dividend relating to financial year 2024 of $ 92 million from Coop that was paid on January 30, 2025.

We recognized a before-tax gain of $ 1 billion associated with the sale, which is included within the “Net gain on dispositions” line item on our consolidated statement of income for the three months ended March 31, 2025, and is reported in our M&S segment.

We recognized a before-tax gain of $ 1 billion associated with the sale, which is included within the “Net gain (loss) on dispositions” line item on our consolidated statement of income for the six months ended June 30, 2025, and is reported in our M&S segment.

The final dividend of $ 92 million is included within the “Cash Flows from Operating Activities” section on our consolidated statement of cash flows.

On January 30, 2025, DCP Midstream, LP (DCP LP) sold its 25 % ownership interest in Gulf Coast Express Pipeline LLC for cash proceeds of $ 853 million.

We recognized a before-tax gain of $ 68 million, which is included within the “Net gain on dispositions” line item on our consolidated statement of income for the three months ended March 31, 2025, and is reported in our Midstream segment.

We recognized a before-tax gain of $ 68 million, which is included within the “Net gain (loss) on dispositions” line item on our consolidated statement of income for the six months ended June 30, 2025, and is reported in our Midstream segment.

Note 7— Properties, Plants and Equipment

2 unchanged sentences

Millions of Dollars

March 31, 2026 December 31, 2025

June 30, 2026 December 31, 2025

Midstream $ 30,851 6,391 24,460 29,558 5,771 23,787

5 unchanged sentences

$ 63,159 23,510 39,649 61,791 22,694 39,097

In the fourth quarter of 2025, we began idling facilities at our Los Angeles Refinery and ceased fuel production.

We have submitted redevelopment project applications for the facilities, initiating the review process and allowing us to continue pursuing the redevelopment of the property for future uses.

As a result of the decision to cease operations and begin idling the facilities, the carrying values of the associated net properties, plants and equipment (PP&E) and intangible assets were depreciated to the estimated salvage value of $ 241 million at December 31, 2025.

Total depreciation related to the Los Angeles Refinery assets for the three months ended March 31, 2025, was $ 270 million, including $ 246 million of accelerated depreciation, and was included within the “Depreciation and amortization” line item on our consolidated statement of income reported in our Refining segment.

In the fourth quarter of 2025, we ceased fuel production and began idling facilities at our Los Angeles Refinery.

The process of fully idling these facilities is ongoing while the redevelopment project plans continue through the review processes of the relevant state and local agencies.

As a result, the carrying values of the associated net PP&E and intangible assets were depreciated to the estimated salvage value of $ 241 million at December 31, 2025.

Total depreciation related to the Los Angeles Refinery assets for the three and six months ended June 30, 2025, was $ 265 million and $ 535 million, respectively, including $ 239 million and $ 485 million of accelerated depreciation, respectively.

This depreciation was included within the “Depreciation and amortization” line item on our consolidated statement of income reported in our Refining segment.

In the first quarter of 2026, we transferred $ 2,965 million in gross PP&E and $ 2,699 million of accumulated depreciation and amortization associated with the idled Los Angeles Refinery from our Refining segment to Corporate and Other.

On April 28, 2026, we acquired the assets and associated infrastructure of the Lindsey Oil Refinery for a purchase price of $ 115 million.

We accounted for this acquisition as an asset acquisition and recorded $ 202 million of PP&E and $ 87 million of AROs, of which $ 171 million, inclusive of AROs, is reported in our Refining segment and $ 31 million is reported in our Midstream segment.

The consideration paid is included in the “Acquisitions, net of cash acquired” line item on our consolidated statement of cash flows for the six months ended June 30, 2026.

Note 8— Earnings Per Share

4 unchanged sentences

Treasury stock is excluded from the denominator in both basic and diluted EPS.

Three Months Ended March 31

Basic Diluted Basic Diluted

Three Months Ended

June 30 Six Months Ended

2026 2025 2026 2025

Basic Diluted Basic Diluted Basic Diluted Basic Diluted

Amounts Attributed to Phillips 66 Common Stockholders (millions) :

9 unchanged sentences

Senior Notes and Term Loan Issuances and Repayments

On February 17, 2026, upon maturity, Phillips 66 repaid the remaining $ 100 million outstanding on its 1.300 % Senior Notes due February 2026, with an aggregate principal amount of $ 500 million.

On February 18, 2025, upon maturity, Phillips 66 Partners repaid its 3.605 % Senior Notes due February 2025, with an aggregate principal amount of $ 59 million.

Term Loan Agreement

9 unchanged sentences

or (b) the reference rate (as described in the Term Loan Agreement) plus an applicable margin of 0.100 %.

At March 31, 2026, the entire $ 2.25 billion was borrowed under the Term Loan Agreement, which matures in March 2027.

At June 30, 2026, $ 1.25 billion was outstanding under the Term Loan Agreement, which matures in March 2027.

On July 31, 2026, this amount was fully repaid.

On June 30, 2026, Phillips 66 Company repaid $ 1 billion of the outstanding $ 2.25 billion borrowed under its term loan that matures in March 2027.

On February 17, 2026, upon maturity, Phillips 66 repaid the remaining $ 100 million outstanding on its 1.300 % Senior Notes due February 2026, with an aggregate principal amount of $ 500 million.

On June 27, 2025, DCP LP early redeemed the outstanding $ 525 million of its 5.375 % Senior Notes due July 2025 with an aggregate principal amount of $ 825 million.

On February 18, 2025, upon maturity, Phillips 66 Partners repaid its 3.605 % Senior Notes due February 2025, with an aggregate principal amount of $ 59 million.

Accounts Receivable Securitization

2 unchanged sentences

During 2025, Phillips 66 Company amended the Receivables Securitization Facility to, among other things, increase the maximum size of the Receivables Securitization Facility to $ 1.25 billion and extend the term of the facility through September 28, 2026.

On March 13, 2026, Phillips 66 Company amended the Receivables Securitization Facility to, among other things, increase the maximum size of the Receivables Securitization Facility from $ 1.25 billion to $ 1.75 billion and permit P66 Receivables to request a future increase in the maximum facility size to up to $ 2.0 billion.

Under the amended Receivables Securitization Facility, P66 Receivables may borrow and incur indebtedness from, and/or sell certain accounts receivable in an amount not to exceed $ 1.75 billion in the aggregate, and will secure its obligations with a pledge of undivided interests in such receivables, together with related security and interests in the proceeds thereof, to PNC Bank, National Association, as Administrative Agent, for the benefit of the secured parties thereunder.

Accounts receivable outstanding under the Receivables Securitization Facility accrue interest at an adjusted term SOFR plus the applicable margin.

In all instances, Phillips 66 Company retains the servicing of the accounts receivables transferred.

In all instances, Phillips 66 Company retains the servicing of the accounts receivable transferred.

Accounts receivable sold under the Receivables Securitization Facility meet the sale criteria under ASC 860, Transfers and Servicing, and are derecognized from the consolidated balance sheet.

P66 Receivables guarantees payment, in full, for accounts receivable sold to the purchasers.

For the three months ended March 31, 2026, we sold $ 264 million of accounts receivable in exchange for a $ 264 million reduction in our borrowings under the Receivables Securitization Facility, which was recognized as a non-cash financing transaction.

For the three months ended March 31, 2025, we sold $ 130 million of accounts receivables for cash proceeds under the Receivables Securitization Facility.

We recognized immaterial charges associated with the transfers of financial assets, which are included as a component within the line item “Selling, general and administrative expense” on our consolidated statement of income, during the three months ended March 31, 2026 and 2025.

For the three months ended June 30, 2026, we sold $ 342 million of accounts receivable for cash proceeds.

For the six months ended June 30, 2026, we sold $ 606 million of accounts receivable in exchange for cash proceeds of $ 342 million and a $ 264 million reduction in our borrowings under the

Receivables Securitization Facility, which was recognized as a non-cash financing transaction.

For the three months ended June 30, 2025, we sold $ 303 million of accounts receivable in exchange for a $ 303 million reduction in our borrowings under the Receivables Securitization Facility, which was recognized as a non-cash financing transaction.

For the six months ended June 30, 2025, we sold $ 433 million of accounts receivable in exchange for cash proceeds of $ 130 million and a $ 303 million reduction in our borrowings under the Receivables Securitization Facility.

We recognized immaterial charges associated with the transfers of financial assets, which are included as a component within the line item “Selling, general and administrative expenses” on our consolidated statement of income, during the three and six months ended June 30, 2026 and 2025.

Borrowings under the Receivables Securitization Facility are recognized as short-term debt on the consolidated balance sheet.

Borrowings are secured by the accounts receivable, held by P66 Receivables, which remain reported as accounts receivable on the consolidated balance sheet.

At March 31, 2026, and December 31, 2025, we had outstanding borrowings of $ 384 million and $ 200 million, respectively.

These borrowings were secured by accounts receivable held by P66 Receivables of $ 5.4 billion and $ 4.4 billion as of March 31, 2026, and December 31, 2025, respectively, which are included within the “Accounts and notes receivable” line item on our consolidated balance sheet.

At March 31, 2026, we had utilized $ 650 million of the $ 1.75 billion capacity of the Receivables Securitization Facility from $ 266 million of sold accounts receivable not yet remitted to the Administrative Agent and $ 384 million of outstanding borrowings.

At June 30, 2026, we had no outstanding borrowings under the Receivables Securitization Facility.

We had outstanding borrowings of $ 200 million at December 31, 2025, which were secured by accounts receivable held by P66 Receivables of $ 4.4 billion included within the “Accounts and notes receivable” line item on our consolidated balance sheet.

At June 30, 2026, we had utilized $ 346 million of the $ 1.75 billion capacity of the Receivables Securitization Facility, all of which was from sold accounts receivable not yet remitted to the Administrative Agent.

At December 31, 2025, we had utilized $ 367 million of the $ 1.25 billion capacity of the Receivables Securitization Facility from $ 167 million of sold accounts receivable not yet remitted to the Administrative Agent and $ 200 million of outstanding borrowings.

8 unchanged sentences

On March 26, 2026, Phillips 66 amended the 2025 Uncommitted Facility to increase the capacity by $ 100 million.

At March 31, 2026, the entire $ 300 million was outstanding, while at December 31, 2025, no borrowings were outstanding under the 2025 Uncommitted Facility.

At June 30, 2026, and December 31, 2025, no borrowings were outstanding under the 2025 Uncommitted Facility.

On June 25, 2024, we entered into a $ 400 million uncommitted credit facility (the 2024 Uncommitted Facility) with Phillips 66 Company as the borrower and Phillips 66 as the guarantor.

4 unchanged sentences

We may at any time prepay outstanding borrowings, in whole or in part, without premium or penalty.

At March 31, 2026, and December 31, 2025, no borrowings were outstanding under the 2024 Uncommitted Facility.

At June 30, 2026, and December 31, 2025, no borrowings were outstanding under the 2024 Uncommitted Facility.

On February 28, 2024, we entered into a new $ 5 billion revolving credit agreement (the Facility) with Phillips 66 Company as the borrower and Phillips 66 as the guarantor and a scheduled maturity date of February 28, 2029.

7 unchanged sentences

We also have the option to extend the scheduled maturity of the Facility for up to two additional one-year terms, subject to, among other things, the consent of the lenders holding the majority of the commitments and of each lender extending its commitment.

Outstanding borrowings under the Facility bear interest at either:

(a) the adjusted term SOFR (as described in the Facility) in effect from time to time plus the applicable margin;

Outstanding borrowings under the Facility bear interest at either (a) the adjusted term SOFR (as described

in the Facility) in effect from time to time plus the applicable margin;

or (b) the reference rate (as described in the Facility) plus the applicable margin.

The pricing levels for the commitment fee and interest-rate margins are determined based on the ratings in effect for our senior unsecured long-term debt from time to time.

At March 31, 2026, and December 31, 2025, no amount had been drawn under the Facility.

At June 30, 2026, and December 31, 2025, no amount had been drawn under the Facility.

Phillips 66 also has a $ 5 billion uncommitted commercial paper program for short-term working capital needs that is supported by the Facility.

Commercial paper maturities are contractually limited to less than one year.

At March 31, 2026, we had $ 5 billion borrowings outstanding under this program, while at December 31, 2025, $ 200 million of commercial paper had been issued under this program.

At June 30, 2026, no borrowings were outstanding under this program, while at December 31, 2025, $ 200 million of commercial paper had been issued under this program.

Note 10— Accounts Receivable Factoring

In addition to the Receivables Securitization Facility, discussed in Note 9—Debt, the Company maintains other accounts receivable factoring facilities with various financial institutions that enable the Company to sell certain eligible accounts receivable to these financial institutions on a non-recourse basis in which we retain the servicing of the accounts receivable transferred.

In addition to the Receivables Securitization Facility, discussed in Note 9—Debt, Phillips 66 maintains other accounts receivable factoring facilities with various financial institutions that enable Phillips 66 to sell certain eligible accounts receivable to these financial institutions on a non-recourse basis for which we retain the servicing of the accounts receivable transferred.

Sales of accounts receivable under these facilities meet the sale criteria under ASC 860, Transfers and Servicing, and are derecognized from the consolidated balance sheet.

Cash receipts from the sale of accounts receivable, received at the time of sale, are classified as cash flows from operating activities.

For the three months ended March 31, 2026, we sold $ 330 million of accounts receivable for cash proceeds under these facilities.

We recognized immaterial charges associated with these transfers, which are included as a component within the line item “Selling, general and administrative expense” on our consolidated statement of income for the three months ended March 31, 2026.

We had $ 292 million and $ 195 million of sold accounts receivable uncollected as of March 31, 2026 and December 31, 2025, respectively, and these amounts were derecognized from our consolidated balance sheet.

For the three and six months ended June 30, 2026, we sold $ 1.3 billion and $ 1.7 billion, respectively, of accounts receivable for cash proceeds under these facilities.

As of June 30, 2026, and December 31, 2025, $ 636 million and $ 195 million, respectively, remained uncollected of the total accounts receivable sold and derecognized from the consolidated balance sheet.

We recognized immaterial charges associated with these transfers, which are included as a component within the line item “Selling, general and administrative expenses” on our consolidated statement of income for the three and six months ended June 30, 2026.

Note 11— Guarantees

At March 31, 2026, we were liable for certain contingent obligations under various contractual arrangements as described below.

At June 30, 2026, we were liable for certain contingent obligations under various contractual arrangements as described below.

We recognize a liability for the fair value of our obligation as a guarantor for newly issued or modified guarantees.

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Under the operating lease agreement for our headquarters facility in Houston, Texas, we have the option, at the end of the lease term in September 2030, to request to renew the lease, purchase the facility or assist the lessor in marketing it for resale.

This agreement includes a residual value guarantee with a maximum potential future exposure of $ 404 million at March 31, 2026.

In addition, we have residual value guarantees associated with railcar, airplane and truck leases with maximum potential future exposures totaling $ 176 million.

This agreement includes a residual value guarantee with a maximum potential future exposure of $ 404 million at June 30, 2026.

In addition, we have residual value guarantees associated with railcar, airplane and truck leases with maximum potential future exposures totaling $ 174 million at June 30, 2026.

These leases have remaining terms of one to ten years .

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See Note 6—Investments, Loans and Long-Term Receivables, for additional information regarding Dakota Access and the CECU.

At March 31, 2026, we also had other guarantees outstanding primarily for our portion of certain joint venture debt, which have remaining terms of up to four years .

At June 30, 2026, we also had other guarantees outstanding primarily for our portion of certain joint venture debt, which have remaining terms of up to three years .

The maximum potential future exposures under these guarantees were approximately $ 52 million.

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The majority of these indemnifications are related to environmental issues, which generally have indefinite terms and potentially unlimited exposure.

At March 31, 2026, and December 31, 2025, the carrying amount of recorded indemnifications was $ 52 million and $ 53 million, respectively.

At June 30, 2026, and December 31, 2025, the carrying amount of recorded indemnifications was $ 52 million and $ 53 million, respectively.

We amortize the indemnification liability over the relevant time period, if one exists, based on the facts and circumstances surrounding each type of indemnity.

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Although it is reasonably possible future payments may exceed amounts recorded, due to the nature of the indemnifications, it is not possible to make a reasonable estimate of the maximum potential amount of future payments.

At March 31, 2026, and December 31, 2025, environmental accruals for known contamination of $ 49 million and $ 50 million, respectively, were included in the carrying amount of the recorded indemnifications noted above.

At June 30, 2026, and December 31, 2025, environmental accruals for known contamination of $ 49 million and $ 50 million, respectively, were included in the carrying amount of the recorded indemnifications noted above.

These environmental accruals were primarily included within the “Asset retirement obligations and accrued environmental costs” line item on our consolidated balance sheet.

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Additionally, P66 Receivables has guaranteed all borrowings and receivables sold under the Receivables Securitization Facility.

At March 31, 2026, $ 240 million of the sold accounts receivable remained uncollected, which represents our maximum potential future exposure under the guarantee associated with the Receivables Securitization Facility.

At June 30, 2026, we had sold accounts receivable of $ 346 million, of which $ 295 million remained uncollected from our customers.

This represents our maximum potential future exposure under the guarantee associated with the Receivables Securitization Facility.

See Note 9—Debt, for information regarding the guarantee under our Receivables Securitization Facility.

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After an assessment of environmental exposures for cleanup and other costs, we make accruals on an undiscounted basis (except those pertaining to sites acquired in a business combination, which we record on a discounted basis) for planned investigation and remediation activities for sites where it is probable future costs will be incurred and these costs can be reasonably estimated.

At March 31, 2026, our total environmental accruals were $ 487 million, compared with $ 506 million at December 31, 2025.

At June 30, 2026, our total environmental accruals were $ 467 million, compared with $ 506 million at December 31, 2025.

We expect to incur a substantial amount of these expenditures within the next 30 years.

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On October 16, 2024, a jury returned a verdict against Phillips 66 Company for $ 604.9 million in compensatory damages and issued a willfulness finding.

Based on the willfulness finding, Propel Fuels asked the Propel Court to award $ 1.2 billion in exemplary damages, and Phillips 66 Company filed a brief in opposition to that request.

A hearing on exemplary damages was held on March 4, 2025, and the Propel Court awarded Propel Fuels $ 195 million in exemplary damages on July 30, 2025.

Based on the willfulness finding, the Propel Court later granted Propel Fuels’ requests for exemplary damages and attorney’s fees and costs.

On August 5, 2025, the Propel Court entered a final judgment against Phillips 66 Company in the amount of $ 833 million.

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From the date of final judgment, post-judgment interest of 10 % is accruing, which is included within the “Selling, general and administrative expenses” line on our consolidated statement of income and reported in the M&S segment.

On August 25, 2025, Phillips 66 Company filed three post-trial motions requesting that the Propel Court render judgment in favor of Phillips 66 Company, grant a new trial, and/or reduce the damages award.

On October 20, 2025, the Propel Court denied Phillips 66 Company’s motions.

On November 14, 2025, Phillips 66 Company filed its Notice of Appeal, which has been assigned to Division Two of the First District Court of Appeal.

Phillips 66 Company intends to file its opening appellate brief in accordance with the applicable appellate deadlines and any extensions thereto.

Separately, on October 24, 2025, Propel Fuels filed additional motions with the Propel Court seeking attorney’s fees and costs.

Phillips 66 Company filed its opposition to that request on January 13, 2026.

The Propel Court heard argument on the motions on February 10, 2026, and took the motions under submission.

On July 10, 2026, Phillips 66 Company filed its opening brief with the Court of Appeal.

Phillips 66 Company denies any wrongdoing and intends to vigorously defend its position.

The accrued amounts totaling $ 887 million and $ 867 million as of March 31, 2026 and December 31, 2025, respectively, are reflected as “Other liabilities and deferred credits” on our consolidated balance sheet.

The accrued amounts totaling $ 928 million and $ 867 million as of June 30, 2026, and December 31, 2025, respectively, are reflected as “Other liabilities and deferred credits” on our consolidated balance sheet.

However, it is reasonably possible that the estimate of the loss could change based on the progression of the case, including the appeal s process.

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Under these agreements, we may be required to provide any such company with additional funds through advances and penalties for fees related to throughput capacity not utilized.

At March 31, 2026, we had performance obligations secured by letters of credit and bank guarantees of $ 592 million related to various purchase and other commitments incident to the ordinary conduct of business.

At June 30, 2026, we had performance obligations secured by letters of credit and bank guarantees of $ 2,288 million related to various purchase and other commitments incident to the ordinary conduct of business.

Note 13— Derivatives and Financial Instruments

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Gains and losses from derivative contracts held for trading not directly related to our physical business are reported net within the “Other income” line item on our consolidated statement of income.

Realized and unrealized gains and losses on foreign currency derivatives entered into in connection with the sale of our 49 % ownership interest in Coop are reported in the “Net gain on dispositions” line item on our consolidated statement of income.

Realized and unrealized gains and losses on foreign currency derivatives entered into in connection with investment dispositions are reported in the “Net gain (loss) on dispositions” line item on our consolidated statement of income.

Cash flows from all of our commodity derivative activity for the periods presented appear within the “Cash Flows from Operating Activities” section on our consolidated statement of cash flows.

Purchase and sales contracts with firm minimum notional volumes for commodities that are readily convertible to cash are recorded on our consolidated balance sheet as derivatives unless the contracts are eligible for, and we elect, the normal purchases and normal sales exception, whereby the contracts are recorded on an accrual basis.

We generally apply the normal purchases and normal sales exception to eligible crude oil, refined petroleum product, NGL, natural gas, renewable feedstocks and power commodity contracts to purchase or sell quantities we expect to use or sell in the normal course of business.

We generally apply the normal purchases and normal sales exception to eligible crude oil, refined petroleum products, NGL, natural gas, renewable feedstocks, renewable fuels and power commodity contracts to purchase or sell quantities we expect to use or sell in the normal course of business.

All other derivative instruments are recorded at fair value on our consolidated balance sheet.

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Commodity Derivative Contracts

We sell into or receive supply from the worldwide crude oil, refined petroleum product, NGL, natural gas, renewable feedstocks and renewable fuels and electric power markets, exposing our revenues, purchases, cost of operating activities and cash flows to fluctuations in the prices for these commodities.

We sell into or receive supply from the worldwide crude oil, refined petroleum products, NGL, natural gas, renewable feedstocks and renewable fuels and electric power markets, exposing our revenues, purchases, cost of operating activities and cash flows to fluctuations in the prices for these commodities.

Generally, our policy is to remain exposed to the market prices of commodities;

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However, we have elected to present our commodity derivative assets and liabilities with the same counterparty on a net basis on our consolidated balance sheet when the legal right of offset exists.

At June 30, 2026, and December 31, 2025, there was no material cash collateral received or paid that was not offset on our consolidated balance sheet.

Millions of Dollars

March 31, 2026 December 31, 2025

June 30, 2026 December 31, 2025

Commodity Derivatives Effect of Collateral Netting Net Carrying Value Presented on the Balance Sheet Commodity Derivatives Effect of Collateral Netting Net Carrying Value Presented on the Balance Sheet

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Total $ 9,800 ( 9,404 ) ( 148 ) 248 2,804 ( 2,711 ) 20 113

At March 31, 2026, and December 31, 2025, there was no material cash collateral received or paid that was not offset on our consolidated balance sheet.

The realized and unrealized gains (losses) incurred from commodity derivatives, and the line items where they appear on our consolidated statement of income, were:

Millions of Dollars

Three Months Ended March 31

Three Months Ended

June 30 Six Months Ended

2026 2025 2026 2025

Sales and other operating revenues $ 234 149 ( 1,302 ) 84

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Purchased crude oil and products 326 54 ( 890 ) ( 122 )

Net loss from commodity derivative activity $ ( 2,646 ) ( 227 )

Net gain (loss) from commodity derivative activity $ 643 257 ( 2,003 ) 30

The following table summarizes our material net exposures resulting from outstanding commodity derivative contracts.

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Financial derivative contracts may also offset physical derivative contracts, such as forward purchase and sales contracts.

The percentage of our derivative contract volumes expiring within the next 12 months was more than 90 % at March 31, 2026, and December 31, 2025.

The percentage of our derivative contract volumes expiring within the next 12 months was more than 90 % at June 30, 2026, and December 31, 2025.

Open Position

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however, many contracts also permit us to post letters of credit as collateral.

The aggregate fair values of all derivative instruments with such credit-risk-related contingent features that were in a liability position were immaterial at March 31, 2026, and December 31, 2025.

The aggregate fair values of all derivative instruments with such credit-risk-related contingent features that were in a liability position were immaterial at June 30, 2026, and December 31, 2025.

Note 14— Fair Value Measurements

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Millions of Dollars

March 31, 2026

June 30, 2026

Fair Value Hierarchy Total Fair Value of Gross Assets & Liabilities Effect of Counterparty Netting Effect of Collateral Netting Difference in Carrying Value and Fair Value Net Carrying Value Presented on the Balance Sheet

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Note 15— Pension and Postretirement Plans

The components of net periodic benefit cost for the three months ended March 31, 2026 and 2025, were as follows:

The components of net periodic benefit cost for the three and six months ended June 30, 2026 and 2025, were as follows:

Millions of Dollars

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Components of Net Periodic Benefit Cost

Three Months Ended March 31

Three Months Ended June 30

Service cost $ 33 2 30 3 1 1

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Settlements 1 — 2 — — —

Net periodic benefit cost* $ 30 ( 1 ) 31 — 1 1

Net periodic benefit cost (credit)* $ 28 ( 2 ) 30 — 1 1

Six Months Ended June 30

Service cost $ 67 4 61 6 1 1

Interest cost 64 17 64 18 3 4

Expected return on plan assets ( 82 ) ( 23 ) ( 76 ) ( 23 ) — —

Amortization of net actuarial loss (gain) 6 ( 1 ) 8 ( 1 ) ( 2 ) ( 3 )

Settlements 3 — 4 — — —

Net periodic benefit cost (credit)* $ 58 ( 3 ) 61 — 2 2

* Included within the “Operating expenses” and “Selling, general and administrative expenses” line items on our consolidated statement of income.

During the three months ended March 31, 2026, we contributed $ 10 million to our U.S.

pension and other postretirement benefit plan.

During the six months ended June 30, 2026, we contributed $ 15 million to our U.S.

pension and other postretirement benefit plans and $ 3 million to our international pension plans.

We currently expect to make additional contributions of approximately $ 185 million to our U.S.

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Net current period other comprehensive income (loss) 7 ( 96 ) — ( 89 )

March 31, 2026 $ ( 108 ) ( 118 ) ( 5 ) ( 231 )

June 30, 2026 $ ( 106 ) ( 145 ) ( 5 ) ( 256 )

December 31, 2024 $ ( 140 ) ( 262 ) ( 5 ) ( 407 )

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Net current period other comprehensive income 9 280 — 289

March 31, 2025 $ ( 134 ) ( 174 ) ( 5 ) ( 313 )

June 30, 2025 $ ( 131 ) 18 ( 5 ) ( 118 )

* Included within the computation of net periodic benefit cost.

See Note 15—Pension and Postretirement Plans, for additional information.

** Included within the gain on sale of Coop, recognized in the “Net gain on dispositions” line item on our consolidated statement of income.

** Included within the gain on sale of Coop, recognized in the “Net gain (loss) on dispositions” line item on our consolidated statement of income.

See Note 6—Investments, Loans and Long-Term Receivables, for additional information.

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Millions of Dollars

Three Months Ended March 31

Three Months Ended June 30 Six Months Ended June 30

2026 2025 2026 2025

Non-cash financing activities

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Millions of Dollars

Three Months Ended March 31

Three Months Ended

June 30 Six Months Ended

2026 2025 2026 2025

Operating revenues and other income (a)(d) $ 1,954 1,074 3,475 2,110

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(a) We sold NGL, other petrochemical feedstocks and solvents to Chevron Phillips Chemical Company LLC (CPChem), gas oil and hydrogen feedstocks to Excel Paralubes LLC (Excel Paralubes) and refined petroleum products to several of our equity affiliates in the M&S segment, including OnCue, CF United LLC (CF United), and JET Management Holding.

JET Management Holding is a newly formed entity, established in December 2025, in which we hold a 35 % non-operating equity interest.

We also sold certain feedstocks and intermediate products to WRB and acted as an agent for WRB in supplying crude oil and other feedstocks for a fee.

In addition, we charged several of our equity affiliates, including CPChem, for the use of common facilities, such as steam generators, waste and water treaters and warehouse facilities.

See Note 6—Investments, Loans and Long-Term Receivables for additional information on JET Management Holding.

(b) We purchased crude oil, refined petroleum products, NGL and solvents from WRB.

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Our operating segments are:

1) Midstream— 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 the United States.

In addition, this segment exports liquefied petroleum gas to global markets.

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Our chief operating decision maker (CODM) is our Chief Executive Officer.

The measure of segment profit or loss reviewed by our CODM is “income (loss) before income taxes.” The CODM uses segment income (loss) before income taxes to allocate resources to each segment predominantly in the annual budgeting and forecasting process.

The measure of segment profit or loss reviewed by our CODM is “Income before income taxes” reported on our consolidated statement of income.

The CODM uses segment income (loss) before income taxes to allocate resources to each segment predominantly in the annual budgeting and forecasting process.

The CODM compares budget-to-actual segment income (loss) before income taxes on a monthly and quarterly basis and considers trend analyses as well as other market factors when making decisions about allocating capital and personnel to the segments.

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Millions of Dollars

Three Months Ended March 31, 2026

Three Months Ended June 30, 2026

Operating Segments

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Total sales and other operating revenues 6,300 — 35,932 32,086 2,563 10 ( 25,887 ) 51,004

Equity in earnings of affiliates 103 114 — 35 — — — 252

Equity in earnings (loss) of affiliates 99 403 ( 1 ) 135 ( 1 ) — — 635

Net gain on dispositions — — — 110 — 7 — 117

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Millions of Dollars

Three Months Ended March 31, 2025

Three Months Ended June 30, 2025

Operating Segments

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Equity in earnings (losses) of affiliates 98 20 ( 2 ) 38 ( 1 ) — — 153

Net loss on dispositions ( 4 ) — — ( 89 ) — — — ( 93 )

Other income 3 — 34 15 44 43 — 139

Total Revenues and Other Income 5,153 20 18,726 21,381 1,658 55 ( 13,471 ) 33,522

Costs and Expenses

Purchased crude oil and products 3,514 — 16,960 20,420 1,633 — ( 13,450 ) 29,077

Operating expenses* 512 1 848 17 90 ( 7 ) ( 21 ) 1,440

Selling, general and administrative expenses* 52 ( 1 ) 32 334 14 151 — 582

Depreciation and amortization 260 — 443 33 23 57 — 816

Impairments — — 3 1 — — — 4

Taxes other than income taxes 83 — 94 6 23 12 — 218

Interest and debt expense — — — — — 264 — 264

Other segment items** 1 — ( 13 ) ( 1 ) 8 6 — 1

Total Costs and Expenses 4,422 — 18,367 20,810 1,791 483 ( 13,471 ) 32,402

Income (loss) before income taxes $ 731 20 359 571 ( 133 ) ( 428 ) — 1,120

* These significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM.

The total of the line items "Operating expenses" and "Selling, general and administrative expenses" is considered "Controllable costs" and is provided to the CODM.

** “Other segment items” for each reportable segment includes the following line items on our consolidated statement of income:

“Accretion on discounted liabilities” and “Foreign currency transaction (gains) losses.”

Millions of Dollars

Six Months Ended June 30, 2026

Operating Segments

Midstream Chemicals Refining M&S Renewable Fuels Corporate and Other Consolidating Adjustments Total Consolidated

Revenues and Other Income

Third-party sales and other operating revenues $ 9,949 21,390 50,841 1,345 19 — 83,544

Intercompany revenues 1,875 — 37,076 1,445 2,765 3 ( 43,164 ) —

Total sales and other operating revenues 11,824 — 58,466 52,286 4,110 22 ( 43,164 ) 83,544

Equity in earnings (losses) of affiliates 202 517 ( 1 ) 170 ( 1 ) — — 887

Net gain on dispositions 6 — — 110 — 7 — 123

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“Accretion on discounted liabilities” and “Foreign currency transaction (gains) losses.”

Millions of Dollars

Six Months Ended June 30, 2025

Operating Segments

Midstream Chemicals Refining M&S Renewable Fuels Corporate and Other Consolidating Adjustments Total Consolidated

Revenues and Other Income

Third-party sales and other operating revenues $ 9,355 — 12,807 40,062 1,509 20 — 63,753

Intercompany revenues 1,159 — 21,762 996 1,615 4 ( 25,536 ) —

Total sales and other operating revenues 10,514 — 34,569 41,058 3,124 24 ( 25,536 ) 63,753

Equity in earnings (losses) of affiliates 208 133 ( 107 ) 74 ( 2 ) — — 306

Net gain on dispositions 65 — — 929 — — — 994

Other income 13 — 37 21 63 61 — 195

Total Revenues and Other Income 10,800 133 34,499 42,082 3,185 85 ( 25,536 ) 65,248

Costs and Expenses

Purchased crude oil and products 7,603 — 31,985 39,465 3,169 — ( 25,485 ) 56,737

Operating expenses* 970 3 1,922 35 186 ( 3 ) ( 51 ) 3,062

Selling, general and administrative expenses* 105 ( 3 ) 78 662 32 227 — 1,101

Depreciation and amortization 493 — 899 53 46 116 — 1,607

Impairments — — 4 1 — 25 — 30

Taxes other than income taxes 144 — 204 15 58 30 — 451

Interest and debt expense — — — — — 485 — 485

Other segment items** 3 — ( 15 ) ( 2 ) 12 9 — 7

Total Costs and Expenses 9,318 — 35,077 40,229 3,503 889 ( 25,536 ) 63,480

Income (loss) before income taxes $ 1,482 133 ( 578 ) 1,853 ( 318 ) ( 804 ) — 1,768

* These significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM.

The total of the line items "Operating expenses" and "Selling, general and administrative expenses" is considered "Controllable costs" and is provided to the CODM.

** “Other segment items” for each reportable segment includes the following line items on our consolidated statement of income:

“Accretion on discounted liabilities” and “Foreign currency transaction (gains) losses.”

Other Segment Disclosures

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Midstream Chemicals Refining M&S Renewable Fuels Corporate and Other Total Consolidated

Three Months Ended March 31, 2026

Three Months Ended June 30, 2026

Interest Income $ — — — — — 81 81

Capital Expenditures and Investments* 428 — 255 20 6 17 726

Three Months Ended March 31, 2025

Three Months Ended June 30, 2025

Interest Income $ — — — — — 34 34

Capital Expenditures and Investments* 384 — 148 34 9 12 587

Six Months Ended June 30, 2026

Interest Income $ — — — — — 112 112

Capital Expenditures and Investments* 771 — 465 29 16 27 1,308

Six Months Ended June 30, 2025

Interest Income $ — — — — — 68 68

Capital Expenditures and Investments* 600 — 324 49 18 19 1,010

* Excludes Acquisitions, net of cash acquired.

Millions of Dollars

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Midstream Chemicals Refining M&S Renewable Fuels Corporate and Other Total Consolidated

As of March 31, 2026

As of June 30, 2026

Investments In and Advances to Affiliates $ 2,082 8,390 56 1,402 14 4 11,948

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Note 20— Income Taxes

Our effective income tax rate for the three months ended March 31, 2026, was 16 %, compared to 19 % for the corresponding period of 2025.

The decrease in our effective rate for the three months ended March 31, 2026, was primarily attributable to the impact of tax benefits from the vesting of share-based compensation awards and state income taxes on lower income before income taxes.

The effective tax rate for the three months ended March 31, 2026, varied from the U.S.

federal statutory income tax rate primarily due to tax benefits from the vesting of share-based compensation awards and state income taxes.

Our effective income tax rates for the three and six months ended June 30, 2026, were 22 %, compared to 19 % for the corresponding periods of 2025.

The increases in our effective rates were primarily attributable to the effects of state income taxes, foreign operations and non-taxable items.

The effective tax rates for the three and six months ended June 30, 2026, varied from the U.S.

federal statutory income tax rate primarily due to state income taxes, partially offset by the impact of foreign operations and non-taxable items.

Note 21— DCP Midstream Class A Segment

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Long-term debt 2,905 2,903

Note 22— New Accounting Standards

In May 2026, the FASB issued Accounting Standards Update (ASU) 2026-02, “Environmental Credits and Environmental Credit Obligations (Topic 818),” which establishes recognition, measurement, presentation and disclosure guidance for environmental credits and related environmental credit obligations.

This ASU is effective for annual reporting periods beginning after December 15, 2027, and interim periods within those annual reporting periods, with early adoption permitted.

We are evaluating the provisions of ASU 2026-02 and the impact on our consolidated financial statements and related disclosures.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements