PSX · 10-Q · 2026Q2 · Full report

Interest Rate and Debt Exposure

Phillips 66 · 2026-08-05 · Importance 61 · Surprise 66 · No source text

Interest and debt expense increased 19% for the second quarter and 24% for the first six months of 2026, primarily because of higher average debt balances. Phillips 66 Company entered into a $2.25 billion, 364-day term loan on March 18, 2026, priced at term SOFR plus a 1.100% margin or a reference rate plus 0.100%; $1.25 billion was outstanding at June 30 and was fully repaid on July 31, 2026. Total debt was $20.565 billion at June 30, 2026, with 6% floating-rate debt, and management is targeting total debt of $17 billion and a lower debt-to-capital ratio by the end of 2027.

Key facts

• On March 18, 2026, Phillips 66 Company entered into a 364-day, $2.25 billion term loan agreement; at June 30, 2026, $1.25 billion was outstanding under the Term Loan Agreement, which matures in March 2027, and on July 31, 2026 this amount was fully repaid. source
• Outstanding borrowings under the Term Loan Agreement bear interest at either term SOFR plus a margin of 1.100% or the reference rate plus a margin of 0.100%. source
• Interest and debt expense increased 19% and 24% for the three and six months ended June 30, 2026, respectively. source
• Corporate and Other net interest expense was $(233) million and $(230) million for the three months ended June 30, 2026 and 2025, respectively, and $(488) million and $(417) million for the six months ended June 30, 2026 and 2025, respectively. source

Impact estimates