U.S. Refinery Use Hits May-to-September High Since 1998 Before Phillips 66 Q3 Report

Phillips 66 is due to publish third-quarter results Wednesday after U.S. refineries ran above 95% of capacity from May through September, their highest rate for those months since 1998.

The company plans to release results earlier Wednesday, Oct. 28, ahead of a management webcast at noon ET. U.S. refineries averaged 95% utilization during the quarter and processed more crude than in any third quarter since 2019, when national refining capacity was 4% higher.

Gasoline crack spreads averaged more than twice their year-earlier level during the quarter, although they fell in the second half. Distillate and jet-fuel spreads were nearly three times their year-earlier levels. Crack spreads reflect the market economics of turning crude into fuel; they are not Phillips 66’s realized refining margin.

Phillips 66’s second-quarter adjusted earnings were $3.788 billion, or $9.41 per diluted share. Total earnings were $3.847 billion, or $9.55 per diluted share. Its refining segment recorded a $24.08-per-barrel realized margin, 96% crude-capacity utilization and an 86% clean-product yield.

Refining adjusted pretax income rose from the first quarter, mainly on higher realized margins. Increased market crack spreads and favorable mark-to-market impacts also contributed to the sequential gain.

Year-over-year comparisons reflect a change in the company’s reporting basis. Beginning Oct. 1, 2025, Phillips 66 consolidated all results from the Borger and Wood River refineries after acquiring the remaining 50% interest in WRB Refining LP. Its third-quarter report is scheduled for Wednesday, ahead of the noon ET webcast.