PSX · 10-Q · 2026Q2 · Full report

Operating Expense Trends

Phillips 66 · 2026-08-05 · Importance 41 · Surprise 48

Operating expenses increased $370 million in the second quarter and $629 million in the first six months of 2026. The primary driver was the October 2025 acquisition of WRB, while lower costs after the Los Angeles Refinery ceased operations partially offset the increase. Depreciation and amortization decreased 28% in the second quarter and 29% in the first six months because 2025 included depreciation for the Los Angeles Refinery. Corporate overhead and other costs decreased $28 million in the second quarter and $15 million in the first six months, primarily because of lower information-technology depreciation and lower proxy-solicitation advisory fees.

Key facts

• We currently expect to make additional contributions of approximately $185 million to our U.S. pension and other postretirement benefit plans and approximately $1 million to our international pension plans during the remainder of 2026. source
• Depreciation and amortization decreased 28% and 29% for the three and six months ended June 30, 2026, respectively. source
• Operating expenses increased $370 million and $629 million for the three and six months ended June 30, 2026, respectively. source
• Taxes other than income taxes decreased $91 million and $90 million for the three and six months ended June 30, 2026, respectively. source
• Total Corporate and Other loss before income taxes was $(407) million and $(428) million for the three and six months ended June 30, 2026, respectively, and $(858) million and $(804) million for the six month comparisons. source
• During the six months ended June 30, 2026 we contributed $15 million to our U.S. pension and other postretirement benefit plans and $3 million to our international pension plans. source
• Effective in the first quarter of 2026, activities associated with the decommissioning and redevelopment of the idled Los Angeles Refinery site are included in Corporate and Other. source