Phillips 66

Balance sheet is investment grade (Moody’s A3 with negative outlook), with Q3 2025 cash of about 2.0 billion dollars, debt of about 21.8 billion dollars, and a debt‑to‑capital ratio near 44 percent. Liquidity includes a large undrawn revolver and an expanded 1.25 billion dollar A/R securitization facility.

Asset sales added cash in early 2025; however, the Propel judgment (833 million dollars) and cyclicality require caution on leverage. We view leverage as manageable but not low, and we prefer more debt reduction in a softer margin environment.