GuidanceApr 6, 2026, 04:16 PM
Phillips 66 Expects $900 Million Pre-Tax Mark-to-Market Losses in Q1 2026 Due to Commodity Price Increases
AI Summary
Phillips 66 announced preliminary Q1 2026 financial information, including an expected $900 million pre-tax loss due to mark-to-market adjustments on derivative contracts resulting from sharp increases in commodity prices. The company also provided ranges for income/(loss) before income taxes for each segment, with Refining, Marketing and Specialties, and Renewable Fuels segments expected to report losses.
Key Highlights
- Q1 2026 results impacted by approximately $900 million in pre-tax mark-to-market losses due to commodity price increases.
- Net short position in crude and products related derivative contracts was approximately 50 million barrels as of March 31, 2026.
- Refining segment expected to report a loss between $400 million and $200 million before income taxes.
- Liquidity impacted by approximately $3 billion net outflow of cash collateral on derivative positions; company drew on credit lines and issued a new $2.25 billion term loan.