Phillips 66 (PSX): Business Model Canvas [Dec-2025 Updated]

You're digging into Phillips 66's strategy right now, trying to figure out if their massive refining engine can successfully pivot to the future, and honestly, what I see is a company expertly balancing its legacy muscle-running its refineries at nearly 99% utilization in Q3 2025-while aggressively building out the next chapter, like turning the Rodeo Refinery into a 50,000 b/d renewable fuel facility. This dual focus, supported by a resilient Midstream network and a commitment to return over 50% of net operating cash flow to you, the shareholder, defines their entire model; look below for the full nine-block breakdown to see exactly how they connect their assets to revenue streams like specialty lubricants and Sustainable Aviation Fuel.

Phillips 66 (PSX) - Canvas Business Model: Key Partnerships

You're looking at how Phillips 66 structures its operations through key alliances, which is crucial for understanding its capital deployment and strategic direction as of late 2025. These partnerships are central to both its traditional business and its energy transition efforts.

Chevron Phillips Chemical (CPChem) joint venture for chemicals

Phillips 66 maintains a 50 percent ownership in Chevron Phillips Chemical Company LLC (CPChem), a limited liability company formed in 2000 with Chevron U.S.A. Inc.. This partnership is key for Phillips 66's Chemicals segment, providing deep integration value, especially at the Sweeny Hub.

Here are some financial snapshots for CPChem, reflecting performance through the first three quarters of 2025:

Phillips 66's proportionate share of capital spending for CPChem in the 2025 capital budget is part of a total of $877 million allocated to joint ventures, which is self-funded. Growth capital within CPChem continues to fund world-scale petrochemical facilities in the U.S. Gulf Coast and Ras Laffan, Qatar, which are expected to start up in 2026.

WRB Refining LP joint venture for certain refining assets

Phillips 66 entered into a definitive agreement in September 2025 to acquire the remaining 50 percent interest in WRB Refining LP from Cenovus Energy Inc. for a cash consideration of $1.4 billion, with closing expected in the fourth quarter of 2025. WRB Refining owns the Wood River refinery in Illinois and the Borger refinery in Texas.

The assets involved have specific capacities:

• Wood River refinery crude throughput capacity: 345 MBD (thousand barrels per day).
• Borger refinery crude throughput capacity: 149 MBD.

Upon closing, this acquisition is expected to reflect a combined increase of approximately 250 MBD to Phillips 66's refining capacity. The integration is projected to deliver operational and commercial synergies of approximately $50 million per year. WRB's capital spending for 2025 is directed toward sustaining projects.

Uniper/ITM Power for 120MW green hydrogen project at Humber

Phillips 66 Limited has a collaboration agreement, signed in March 2024, with Uniper to potentially receive green hydrogen from Uniper's Humber H2ub® (Green) project to replace some refinery fuel gas in industrial-scale fired heaters at the Phillips 66 Humber Refinery. ITM Power was selected by Uniper to supply equipment for this project.

The project details include:

Cyclum NextGen Travel Centers for 76® Renewable Diesel branding

Cyclum NextGen Travel Centers entered a branding agreement with Phillips 66 for its 76 brand, where Cyclum will dispense 76-branded gasoline and 76-branded Renewable Diesel. Cyclum plans to build 400 state-of-the-art travel centers nationwide over the next 10 years. The first flagship location opened in October 2025, offering renewable diesel alongside hydrogen, compressed natural gas (CNG), and electric vehicle (EV) charging. The partnership includes brand visibility through a 76® Renewable Diesel-branded car driven by Kole Raz in the ARCA and Xfinity series for 2025.

Major airlines for Sustainable Aviation Fuel (SAF) offtake agreements

Phillips 66 Aviation has secured several agreements to supply Sustainable Aviation Fuel (SAF), leveraging its Renewable Fuels capital budget investments at the Rodeo Renewable Energy Complex.

Agreements with major airlines include:

• United Airlines: Potential to increase supply to 8 million gallons by the first half of 2025 for use at Chicago O'Hare (ORD), with an initial 600,000 gallons at Los Angeles (LAX) by end of 2024.
• DHL Express: Multi-year agreement for over 240,000 metric tons (approximately 83 million gallons) of SAF over three years.
• British Airways: 5 million USG of unblended SAF already delivered since December from the Rodeo facility for use at LAX.

Other airlines mentioned as having agreements include Alaska Airlines and Qantas Airlines. The DHL agreement is among one of the largest SAF deals by a U.S. producer for the air cargo sector.

Finance: draft 13-week cash view by Friday.

Phillips 66 (PSX) - Canvas Business Model: Key Activities

Refining crude oil operations in the third quarter of 2025 saw a utilization rate of 99%. The company achieved a year-to-date clean product yield of 87%. Crude oil processing at the Los Angeles Refinery ceased on October 16.

Phillips 66 is operating and expanding the integrated NGL wellhead-to-market value chain. The company completed the acquisition of EPIC NGL for total cash consideration of approximately $2.2 billion. This move strengthens the ability to provide flow assurance from the Permian Basin to the Gulf Coast. Key operational metrics for the NGL business in Q3 2025 included record Y-grade throughput of 1 million barrels per day (MMBD) and fractionation volumes of 930 thousand barrels per day (MBD). The Sweeny Hub has four fractionators with a combined capacity of 550 Mb/d.

The conversion of the Rodeo Refinery in California to process only renewable feedstocks is complete, increasing throughput rates to 50,000 b/d of renewable fuels. The facility stopped processing crude in February, taking up to 115,000 b/d of oil refining capacity offline. The associated pre-treatment unit (PTU) has two trains, each with a capacity of 20,000 b/d.

Execution on cost reduction initiatives shows progress against the targeted program. The business transformation initiatives have delivered run-rate savings of $1.5 billion, comprising $1.2 billion in cost reductions and $0.3 billion in sustaining capital efficiencies. This exceeds the originally targeted $1.4 billion in run-rate cost and capital reductions by the end of 2024.

Manufacturing and marketing specialty lubricants and base oils is a component of the Specialties segment. The Humber Refinery and the Lake Charles Manufacturing Complex produce specialty coke. Phillips 66 is listed as a major global player in the lubricants market.

Here are the key operational and financial metrics related to these activities:

The company's 2025 capital budget is $2.1 billion, with $1.1 billion allocated for growth capital. The total 2025 capital program, including joint ventures, is projected at $3 billion.

• Refining segment investment planned for 2025: $822 million.
• Midstream capital budget for 2025: $975 million.
• Growth capital for Midstream in 2025: $546 million.
• Rodeo PTU Train Capacity: Two trains at 20,000 b/d each.
• EPIC NGL Pipeline Expansion Sanctioned Capacity: To 350 MBD by Q4 2026.

Phillips 66 (PSX) - Canvas Business Model: Key Resources

Global refining network with a high clean product yield of 87%

Phillips 66 is the fourth-largest refiner in the US, operating a system that achieved 99% utilization in the third quarter of 2025. The company reported a year-to-date clean product yield of 87% as of Q3 2025. The Sweeny Complex, which underwent a Crude Flexibility Project in Q1 2025, contributed to this performance.

The company is also taking full ownership of the Wood River, Illinois, and Borger, Texas, refineries from partner Cenovus, which will add over 200,000 b/d to its US crude refining capacity.

Extensive Midstream infrastructure, including the $2.2 billion EPIC NGL system

Phillips 66 finalized the acquisition of EPIC Y-Grade GP and EPIC Y-Grade, LP, known as EPIC NGL, for a total cash consideration of approximately $2.2 billion. This system includes an approximately 885-mile NGL pipeline with a current capacity of 175,000 BPD. Expansion projects are underway to increase this capacity to 225,000 BPD by the second quarter of 2025, with a further increase to 350,000 BPD expected by the fourth quarter of 2026. The acquired assets feature two fractionators near Corpus Christi, Texas, with a combined capacity of 170,000 BPD. The Midstream segment is targeting a $4.5 billion run rate by year-end 2027, up from $4 billion in Q3 2025.

Branded retail network: Phillips 66, Conoco, and 76®

The branded network in the United States, Puerto Rico, and Guam includes 7,500 sites operating under the Phillips 66, 76, and Conoco brands. As of early 2025, there were 3,041 Phillips 66 gas stations across the USA. In May 2025, Phillips 66 agreed to sell its majority interest in 970 European retail sites across Germany and Austria for about $1.6 billion, retaining a non-operated 35% interest in a new joint venture. Approximately 840 of the divested European sites operated under the Jet fueling brand.

Rodeo Renewable Energy Complex for renewable diesel/SAF production

The Rodeo Renewable Energy Complex is designed for renewable feedstock processing capacity of approximately 50,000 BPD, equating to about 800 million gallons per year (MMgy). This facility has an initial unblended or neat Sustainable Aviation Fuel (SAF) production capability of approximately 150 million gallons per year. In the second quarter of 2025, renewable fuel production averaged 40,000 barrels per day. The complex is partially powered by a 30.2 megawatt (MW) solar facility, designed to generate approximately 60,000 MWh/year of electricity, which reduces the complex's grid power demand by 50%.

Proprietary technology and operational expertise for complex feedstocks

Phillips 66 leverages proprietary technology, which contributed to the 87% clean product yield across its system in Q3 2025. The Chemicals segment benefits from a unique feedstock advantage. The Rodeo complex utilizes new pre-treatment units to process feedstocks such as used cooking oil, fats, greases, and vegetable oils. The company is also exploring technologies like Honeywell's eFining for SAF production.

Phillips 66 (PSX) - Canvas Business Model: Value Propositions

Reliable supply of conventional fuels from high-efficiency assets

Phillips 66 achieved a crude capacity utilization of 99% in Refining during the third quarter of 2025. The clean product yield for the same period was 86%. The company plans to run its refineries in the mid-90% range of their combined crude oil throughput capacity of 1.9 million barrels per day (bpd). Phillips 66 announced plans to cease operations at its Los Angeles Refinery by the end of 2025. As of January 1, 2025, total U.S. operable crude distillation capacity was 18.4 million bbl/cd.

Integrated, resilient Midstream and Refining value chain

The Midstream segment generated adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of approximately \$1 billion in the second quarter of 2025. Phillips 66 is executing on a plan to organically grow Midstream annual EBITDA to \$4.5 billion by 2027. The Marketing and Specialties segment reported its strongest quarter since 2012 in the second quarter of 2025.

You see the strength of the integrated model in the consistent contributions from these segments. Here's a quick look at some key operational metrics from recent quarters:

Access to lower-carbon fuels like SAF and renewable diesel

The Rodeo Renewable Energy Complex, which completed conversion in 2024, has the capacity to produce approximately 50,000 barrels per day (800 million gallons per year) of renewable fuels. This facility began producing Sustainable Aviation Fuel (SAF) in September 2024. The Rodeo conversion represented a capital deployment of at least \$1.3 billion. In the third quarter of 2025, Phillips 66 produced 36,000 barrels per day of renewable fuels. The company completed the conversion of approximately 600 76 branded California sites to sell renewable diesel. The Rodeo Complex is powered in part by a 30.2-megawatt solar facility expected to generate approximately 60,000 MWh/year of electricity, which is designed to reduce the complex's grid power demand by 50%.

High-performance specialty products (e.g., Kendall and Red Line lubricants)

The Marketing and Specialties segment generated \$92.83 billion in revenue in fiscal year 2024. This segment includes the manufacturing and marketing of specialty products like automotive, commercial, industrial, and specialty lubricants, as well as base oils, sold under brands including Kendall and Red Line.

Commitment to return over 50% of net operating cash flow to shareholders

Phillips 66 plans to return over 50% of net operating cash flow to shareholders through dividends and share repurchases. Since its formation in 2012, the company has returned more than \$43 billion to shareholders through dividends and share repurchases. The dividend has grown at a 15% Compound Annual Growth Rate (CAGR). For the third quarter of 2025, Phillips 66 generated \$1.2 billion of net operating cash flow, or \$1.9 billion excluding working capital. In the second quarter of 2025, operating cash flow excluding working capital was \$1.9 billion. The company also anticipates receiving pre-tax cash proceeds of about €1.5 billion (\$1.6 billion) from the announced sale of a 65% stake in its Germany and Austria retail marketing business, which will be allocated towards strategic priorities like shareholder returns.

Phillips 66 (PSX) - Canvas Business Model: Customer Relationships

You're looking at how Phillips 66 (PSX) interacts with its diverse customer base as of late 2025. It's a mix of high-volume, low-touch transactions and deep, strategic partnerships.

Automated and transactional through branded retail stations

The relationship with the everyday consumer is primarily automated and transactional, driven by the strength of the Phillips 66, Conoco, and 76 brands across the United States. This network provides ratable placement, integrating directly with the refining assets, particularly on the U.S. Central and West Coasts. The scale of this physical presence is substantial, though figures can shift year-to-year.

Here are some key figures defining the branded retail footprint:

• Approximately 1,450 U.S. sites covered by brand-licensing agreements.
• Reported presence of 3,041 Phillips 66 gas stations across the USA (as of early 2025 data).
• The company markets retail and wholesale products in Europe under the JET brand, with approximately 1,290 marketing sites in Europe.
• Retail joint venture outlets in the U.S. totaled approximately 790 (based on recent historical context).

The transactional experience is enhanced by on-site amenities, though the focus remains on fuel and core automotive services. For instance, a subset of locations offers specific services:

For shareholders, the relationship is defined by capital discipline and returns. Phillips 66 aims to return over 50% of net operating cash flow to shareholders. The company returned $716 million to shareholders through dividends and share repurchases in the first quarter of 2025 alone. Cumulative distributions since July 2022 through Q1 2025 reached $14.3 billion.

Dedicated account management for large commercial and industrial buyers

For larger customers, the relationship moves beyond the pump to dedicated service, especially within the Specialties and Aviation businesses. Finished lubricants are marketed under premium brands like Phillips 66, Kendall, and Red Line, where supplier satisfaction rankings are high. Phillips 66 Aviation serves as a top supplier of jet fuels and aviation gas to private, commercial, and military aviation clients, requiring tailored logistics and supply contracts.

The Midstream segment, which provides stable cash flow, also involves dedicated commercial relationships for transportation and processing services. For example, the company sanctioned construction of a new gas processing plant in the Permian, advancing its integrated NGL wellhead-to-market strategy, which serves large producers and industrial users.

Strategic alliances for long-term feedstock and product offtake

Phillips 66 builds long-term relationships through strategic alliances that secure feedstock supply and guarantee product offtake, de-risking major capital investments. This is particularly evident in the Renewable Fuels segment.

Key alliance metrics include:

• The Rodeo Renewable Energy Complex is operating at full capacity, processing 50,000 barrels per day of renewable feedstocks.
• A foundational partnership with Uniper at the Humber Refinery moved forward in May 2025 with the selection of ITM Power to supply 120MW electrolyzers for green hydrogen supply.

The company also completed the acquisition of the remaining 50% interest in WRB Refining LP, gaining full ownership of the Wood River and Borger refineries, solidifying control over key assets serving commercial product markets.

Investor relations focused on capital discipline and shareholder returns

Investor engagement centers on demonstrating a disciplined approach to capital allocation and consistent delivery of shareholder value. The 2025 capital budget was set at $2.1 billion, with $998 million allocated to sustaining capital and $1.1 billion to growth capital. Including proportionate capital spending for joint ventures, the total 2025 program is projected to be $3 billion.

Financial performance metrics reinforce this relationship focus:

The company maintains dedicated channels for engagement, including Investor Relations contacts for institutional investors and Shareholder Services for individuals.

Direct engagement with fleet operators for renewable fuel solutions

The push into lower-carbon energy involves direct, high-value relationships with large end-users, moving beyond transactional sales to long-term supply contracts. This is a critical area for future growth and alignment with customer decarbonization goals.

Engagement points include:

• Secured Sustainable Aviation Fuel (SAF) offtake agreements with major airlines, including United Airlines and British Airways.
• The Renewable Fuels segment reported production volumes of 44 million barrels per day (MBD) in Q3 2025, showing scaling customer fulfillment.

The company is also exploring opportunities with hydrogen and electric vehicle charging in Europe to support low-carbon goals for fleet customers.

Phillips 66 (PSX) - Canvas Business Model: Channels

Midstream pipelines, terminals, and export facilities for bulk delivery

Phillips 66 moves crude oil, refined products, and Natural Gas Liquids (NGLs) through an integrated network that supports its refining and chemicals operations, as well as third-party customers.

The company's Midstream segment provides transportation, terminaling, and processing services across several key areas:

• Crude oil and refined products transportation and terminaling.
• Natural gas gathering and processing.
• NGL transportation, storage, fractionation, gathering, processing, and marketing services.

Key asset statistics as of 2025 include:

The Freeport facility serves as an export channel, capable of loading up to 260 Mb/d of LPG simultaneously, including propane and butane vessels.

Branded retail gas stations (dealer/franchise network)

Phillips 66 markets fuels through outlets using the Phillips 66, Conoco, or 76 brands, providing integration with refining assets, especially in the U.S. Central and West Coast regions.

The network scale includes:

Missouri held the largest concentration of U.S. Phillips 66 gas stations with 552 locations, representing about 22% of the U.S. total as of December 2024. Separately, Phillips 66 agreed to sell 970 European retail sites, about 840 of which operate under the Jet brand, for $1.6B, with closing expected in the second half of 2025.

Direct sales force for Chemicals and Specialties segments

The Specialties business markets finished lubricants under the Phillips 66, Kendall, and Red Line brands, and also moves high-quality specialty graphite and anode-grade petroleum cokes in the U.S.. The Chemicals segment generated $863.00M in revenue in fiscal year 2024. The broader Marketing and Specialties Segment recorded revenue of $92.83B in fiscal year 2024.

Long-term supply contracts with major commercial customers

Phillips 66 is actively exploring a strategic shift involving securing U.S. liquefied natural gas (LNG) supplies through long-term contracts and has begun hiring dedicated LNG-focused staff in Houston.

Digital platforms for wholesale and commercial ordering

The company uses digital tools to interface with its branded network, including the Fuel Forward® App for payments at Phillips 66®, Conoco®, and 76® stations.

Finance: draft 13-week cash view by Friday.

Phillips 66 (PSX) - Canvas Business Model: Customer Segments

You're looking at the customer base for Phillips 66 as of late 2025. This company serves a wide spectrum, from the individual filling up their car to major industrial partners relying on complex midstream infrastructure. Honestly, the retail footprint is shifting due to strategic moves, so you have to track those asset sales.

Individual consumers of gasoline and diesel at branded stations

This segment is served through the Marketing and Specialties business, primarily under the Phillips 66, Conoco, or 76 brands in the U.S. While the company has a strong historical footprint, a significant portfolio change is underway. As of a late 2025 report, Phillips 66 was executing the sale of $\mathbf{970}$ European retail sites, with the deal expected to close in the second half of 2025. Before this divestiture, the U.S. network was substantial; one 2025 estimate placed the total U.S. presence at $\mathbf{3,041}$ gas stations.

The geographic density is notable in the central U.S. For instance, Missouri reportedly held $\mathbf{607}$ locations, and Oklahoma had $\mathbf{415}$ locations, according to data from early 2025.

• Approximately $\mathbf{7,450}$ branded sites were noted in the U.S. network in a prior report, though this number is being adjusted by the European sale.
• Approximately $\mathbf{1,450}$ sites are covered by brand-licensing agreements, showing the reach beyond wholly-owned or directly operated sites.
• The company markets retail products in Austria, Germany, and the United Kingdom under the JET brand, though these are largely part of the pending divestiture.

Commercial and industrial fleets purchasing bulk fuels and SAF

This group relies on Phillips 66 Aviation, a top supplier of jet fuels and aviation gas to private, commercial, and military aviation customers. The push toward decarbonization also brings in a new set of commercial customers focused on lower-emission options. The company is actively serving this need through supply agreements.

A concrete example of this commercial engagement is the agreement signed in late 2024 to supply over $\mathbf{240,000}$ metric tons of Sustainable Aviation Fuel (SAF) to DHL Express.

Petrochemical manufacturers buying ethylene and polyolefins

This customer base is served through the company's 50% equity investment in Chevron Phillips Chemical Company (CPChem). These manufacturers purchase olefins and polyolefins, which are fundamental building blocks for plastics and other materials. CPChem operates cost-advantaged assets concentrated in North America and the Middle East.

To give you a sense of scale, in fiscal year 2024, the Chemicals Segment generated $\mathbf{\$863.00}$ Million in revenue. While utilization figures can fluctuate, CPChem reported $\mathbf{91\%}$ olefins and polyolefins utilization in 2022, indicating a high level of output to meet demand.

NGL producers utilizing Midstream transportation and fractionation services

The Midstream segment is critical here, providing transportation, storage, fractionation, gathering, and processing services for Natural Gas Liquids (NGLs) and natural gas, largely in the United States. NGL producers use these services to get their product from the wellhead to market. The integration of DCP Midstream, LP, significantly bolstered this customer service offering.

The scale of the Midstream infrastructure directly serves these producers. As of April 2025, the company held $\mathbf{889,000}$ BPD of fractionation capacity. Furthermore, the network includes over $\mathbf{72,000}$ miles of U.S. pipeline systems and $\mathbf{4.8}$ billion cubic feet per day (Bcf/d) net natural gas processing capacity.

Agricultural and industrial users of specialty lubricants

This segment includes users of finished lubricants marketed under premium brands like Phillips 66, Kendall, and Red Line, as well as other private label brands. These products are essential for heavy equipment in agriculture and various industrial machinery. The company is a leading lubricants manufacturer in the U.S.

The production backbone for these specialty products involves joint ventures. For example, the Excel Paralubes joint venture has a facility capable of producing $\mathbf{22,200}$ BPD of high-quality Group II clear hydrocracked base oils, which are key inputs for finished lubricants.

Here's a quick look at the operational scale supporting these diverse customer segments as of the latest available data:

The Midstream segment, which supports NGL producers, represented $\mathbf{\$19.65}$ Billion in revenue for fiscal year 2024, showing the significant financial scale of serving that industrial customer base. Also, the Marketing And Specialties Segment, which covers retail fuels and lubricants, brought in $\mathbf{\$92.83}$ Billion in revenue in fiscal year 2024. If you're tracking the core fuel volume, the Refining Segment revenue was $\mathbf{\$85.01}$ Billion in FY2024, which underpins the supply to the retail and bulk commercial customers.

Finance: draft 13-week cash view by Friday.

Phillips 66 (PSX) - Canvas Business Model: Cost Structure

You're looking at the core expenditures that keep Phillips 66 running, which are heavily influenced by commodity markets and long-term capital commitments. Honestly, the biggest variable cost you see here is the price of the raw material itself.

High cost of crude oil and renewable feedstocks (variable costs)

The cost of crude oil and renewable feedstocks represents the largest component of the cost of goods sold for Phillips 66's refining and renewable fuels segments. While I don't have the precise 2025 average feedstock cost per barrel here, you know this line item fluctuates directly with global energy prices, which is the primary driver of profitability volatility. The company targets achieving an annual adjusted controllable cost of $5.50 per barrel in Refining, excluding adjusted turnaround expense.

Capital Expenditures and JV Commitments

Phillips 66 maintains a disciplined capital program, which includes significant spending on its own operations and its joint ventures. The total 2025 capital program, including the proportionate share of joint ventures like CPChem and WRB, is projected to be $3 billion.

Here's how that capital allocation breaks down for the core company budget:

• Midstream capital budget: $975 million
• Refining investment planned: $822 million
• Sustaining capital planned (company-wide): $998 million
• Growth capital planned (company-wide): $1.1 billion

The joint venture capital spending share (CPChem and WRB) is expected to total $877 million and be self-funded.

Operating Expenses for Maintenance and Turnarounds

Refinery maintenance and turnarounds are significant, lumpy operating expenses that impact quarterly results. For instance, in the second quarter of 2025, turnaround expenses dropped 47% from $53 million year-over-year. By the third quarter of 2025, turnaround expenses were about $36 million, a 74% drop compared to the $94 million incurred a year prior. These planned shutdowns are necessary to maintain asset reliability but create short-term cost spikes.

Debt Servicing Costs

Servicing the company's debt load is a fixed, ongoing cost. As of September 30, 2025, Phillips 66 reported total debt of $21.8 billion or $21.755 Billion, resulting in a Net Debt to Capital Ratio of 41%. The company has an explicit target to reduce total debt to $17 billion by 2027.

You can see the balance sheet structure influencing these costs:

Regulatory Compliance and Decarbonization Costs

Costs tied to environmental compliance and the transition to lower-carbon fuels are an increasing part of the structure. For example, the planned idle of the Los Angeles Refinery contributed to higher environmental costs impacting refining segment income in Q3 2025. Furthermore, significant capital is directed toward decarbonization projects, such as the $1.3 billion investment to convert the Rodeo Refinery into a 50,000 b/d biofuel facility. Phillips 66 is also leveraging renewable power solutions to support regulatory compliance.

Finance: draft 13-week cash view by Friday.

Phillips 66 (PSX) - Canvas Business Model: Revenue Streams

You're looking at how Phillips 66 actually brings in the cash, which, honestly, is the whole point of the business model. As a seasoned analyst, I focus on the segment reporting because that's where the real numbers live, not just the high-level total revenue figure. For late 2025, we are grounding this in the full-year 2024 results, as the 2025 fiscal year data is still rolling in, but the TTM (Trailing Twelve Months) revenue as of September 30, 2025, was reported at $131.953B.

The revenue streams are heavily weighted toward the traditional downstream side, but the growth story is increasingly tied to the energy transition assets, like the renewable fuels complex. Here's the quick math on the major buckets from the last full reporting year, fiscal year 2024, which gives you a solid baseline for where the money came from.

Let's break down what feeds those top-line numbers.

Sales of refined petroleum products (gasoline, diesel, jet fuel)

This is the bread and butter, derived mainly from the Refining Segment revenue of $85.01 B in 2024. Phillips 66 is running a tight ship here; for example, in Q2 2024, the crude utilization rate hit 98%, the highest in five years. The Marketing and Specialties segment, which brought in $92.83 B in 2024, also captures a huge chunk of this, as it handles the distribution of these refined products. You see the impact of market dynamics clearly here; the 2024 total revenue of $143.12 B was down 2.81% from 2023, largely due to lower refined product prices.

Midstream fees for NGL transportation, processing, and storage

This stream is about contracted, fee-based stability, which management likes because it smooths out the volatility of the refining margins. The Midstream Segment generated $19.65 B in revenue in 2024. This includes the Transportation and NGL businesses, which saw adjusted pre-tax income of $1,346 million in 2024. They are actively bolstering this footprint, for instance, by announcing an agreement to acquire EPIC's NGL business to enhance their Permian and Gulf Coast presence.

Sales of chemicals (polyolefins, aromatics) from CPChem

This revenue comes from Phillips 66's 50% equity investment in Chevron Phillips Chemical Company LLC (CPChem). The Chemicals segment reported revenue of $863.00 M in 2024. The income side shows the strength of this joint venture; in Q1 2024, adjusted pre-tax income for the segment was $205 million, driven by strong polyethylene margins. CPChem continues to invest in capacity, like the new world-scale 1-hexene unit at the Sweeny Hub.

Sales of renewable diesel and Sustainable Aviation Fuel (SAF)

This is the future-facing revenue stream, anchored by the Rodeo Renewable Energy Complex in California, which reached full processing rates in Q2 2024 and started SAF production in September 2024. The Renewable Fuels segment brought in $5.57 B in revenue in 2024. Production volumes are ramping up: Q1 2025 saw production of 44,000 barrels per day, up significantly from 9,000 barrels per day in Q1 2024. Still, this segment faces near-term policy uncertainty, reporting a $185 million loss before income taxes for Q1 2025.

Sales of specialty products, including lubricants and base oils

These revenues are bundled within the $92.83 B Marketing and Specialties Segment for 2024. While the segment is broad, it includes the sale of higher-value products like lubricants and base oils, which generally command better margins than commodity fuels. The segment's adjusted pre-tax income was $1,011 million in 2024, benefiting from higher realized margins in some areas, though litigation-related expenses were a drag.

The company is actively managing this portfolio, evidenced by the process to divest its retail marketing business in Germany and Austria to focus on core assets.

Finance: draft 13-week cash view by Friday.