Phillips 66 Nears $5.50 Refining Cost Target as Executions Reach New Heights

Phillips 66 is an integrated downstream energy company with operations spanning midstream, chemicals, refining, marketing and specialties, and renewable fuels.

The refiner targets annual refining adjusted controllable costs of about $5.50 per barrel in 2027, excluding turnaround expenses and assuming Henry Hub natural gas prices of $3 per million British thermal units.

The company is close to its objective, with second-quarter 2026 refining adjusted controllable costs at $5.57 per barrel.

Management pursues more than 200 refining initiatives aimed at lowering operating expenses across the system, focusing on energy efficiency, process simplification, reliability and stronger utilization of available processing capacity.