PSX · 10-Q · 2026Q2 · Full report

NGL Supply Market Tightness

Phillips 66 · 2026-08-05 · Importance 30 · Surprise 40

The weighted-average NGL price rose to $0.73 per gallon in the second quarter of 2026 from $0.64, primarily because of a tight supply market and fewer cargos from the Middle East. Phillips 66 reported increased wellhead and fractionation volumes and widening natural gas transportation differentials out of the Permian Basin in the quarter. However, NGL results were negatively affected by customer recontracting during the six-month period, indicating contract repricing or renewal pressure in the customer base.

Key facts

• The weighted-average NGL price was $0.73 per gallon during the second quarter of 2026, compared with $0.64 per gallon during the second quarter of 2025. source
• Henry Hub natural gas price was $2.93 per MMBtu during the second quarter of 2026, compared with $3.16 per MMBtu during the second quarter of 2025. source
• Results from the NGL business increased $46 million and decreased $118 million for the three and six months ended June 30, 2026, respectively. source