PSX · 10-Q · 2026Q2 · Full report

Chemicals Segment Profitability

Phillips 66 · 2026-08-05 · Importance 45 · Surprise 64 · In source text

Chemicals segment results increased $384 million in the second quarter and $385 million in the first six months of 2026. The improvement was primarily caused by higher polyethylene sales prices and improved polyethylene margins. The benchmark high-density polyethylene chain margin increased to 43.6 cents per pound from 7.4 cents per pound because of lower Asian plant utilization related to Middle East supply concerns. Phillips 66’s Chemicals segment is a 50% equity investment in Chevron Phillips Chemical Company LLC, and CPChem externally marketed 5,006 million pounds in the second quarter and 10,714 million pounds in the first six months.

Key facts

• CPChem’s capital program was self-funded and we expect CPChem to continue self-funding its capital program for the remainder of 2026. source
• Results from the Chemicals segment increased $384 million and $385 million for the three and six months ended June 30, 2026, respectively, primarily due to improved polyethylene margins driven by higher sales prices. source
• CPChem externally marketed sales volumes were 5,006 and 6,128 million pounds for the three months ended June 30, 2026 and 2025, respectively (and 10,714 and 12,259 for the six months ended June 30, 2026 and 2025, respectively). source
• During the first six months of 2026, on a 100% basis, CPChem’s capital expenditures and investments were $524 million. source

Impact estimates