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In an earnings season highlighted by a Middle East conflict that has sent oil prices soaring, Texas oil refiner Phillips 66 (NYSE:PSX) has reported first quarter adjusted earnings of $0.49 per share, easily beating Wall Street’s consensus of a loss of $0.39 while net income came in at $207 million thanks to higher refining margins amid the big oil price rally.
The giant refiner reported that it has formally increased its Sweeny NGL fractionation capacity by 23% and its Freeport LPG export dock capacity by 15% mainly through debottlenecking projects completed in 2025 to optimize the company’s Gulf Coast NGL value chain.
“We are confident in our ability to navigate market volatility due to our integrated business and the strength of our balance sheet. Backed by disciplined execution and strong operating performance, we remain well positioned to provide energy to the global market,” said Mark Lashier, chairman and CEO of Phillips 66.
The Sweeny fractionation increase follows record fractionation volumes achieved throughout 2025. The Sweeny Hub previously operated four fractionators with a combined capacity of 550,000 bpd. Meanwhile, expansion at the company’s Freeport Export Dock will boost its ability to meet international LPG demand.
Phillips 66 has several key projects in the pipeline. The Coastal Bend NGL pipeline (formerly EPIC NGL) expansion is expected to increase capacity from 225,000 barrels per day to 350,000 bpd, with completion expected in the fourth quarter of 2026. This project connects Permian and Eagle Ford basin production to Gulf Coast fractionation, including the Sweeny Hub.
Phillips 66 is also moving ahead with a proposed 100,000 bpd Natural Gas Liquids (NGL) fractionator in Corpus Christi, Texas, with a final investment decision (FID) anticipated in early 2026 and project completion targeted for 2028.
Meanwhile, the Phillips 66 and Kinder Morgan Western Gateway Pipeline project aims to transport up to 200,000 bpd of refined products (gasoline, diesel, jet fuel) to Arizona and California by mid-2029.
Last week, Phillips 66 became the first company to use Washington’s temporary Jones Act waiver to move domestic crude on a foreign-flagged tanker, shipping Bakken crude from Beaumont, Texas to the Trainer refinery in Pennsylvania owned by Delta Air Lines subsidiary Monroe Energy.
By Alex Kimani for Oilprice.com
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