Phillips 66 posted first-quarter adjusted earnings of $0.49 per share, comfortably surpassing the consensus loss of $0.39, and net income of $207 million, underscoring the impact of higher refining margins amid the oil price rally. The earnings season has been shaped by a Middle East conflict that has driven crude prices higher, creating a favorable environment for U.S. refineries. In this backdrop, Phillips 66 leveraged its integrated operations to capture margin gains. Capital projects are accelerating: the company increased its Sweeny NGL fractionation capacity by 23% and its Freeport LPG export dock capacity by 15% through 2025 debottlenecking, while the Sweeny Hub now runs four fractionators with a combined 550,000 bpd capacity. The Coastal Bend NGL pipeline will lift capacity from 225,000 bpd to 350,000 bpd by Q4 2026, and a 100,000 bpd NGL fractionator in Corpus Christi is slated for a 2028 completion. The Phillips 66 and Kinder Morgan Western Gateway Pipeline will transport up to 200,000 bpd of refined products 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 Bakken crude on a foreign-flagged tanker to the Trainer refinery in Pennsylvania, owned by Delta Air Lines subsidiary Monroe Energy. Mark Lashier, chairman and CEO, said the company is confident in its ability to navigate market volatility thanks to its integrated business and strong balance sheet, and that disciplined execution and operating performance position it well to supply energy globally.