Earnings (Loss) Per Share

6 Months Ended

Jun. 30, 2022

The numerator of basic earnings (loss) per share (EPS) is net income (loss) attributable to Phillips 66, adjusted for noncancelable dividends paid on unvested share-based employee awards during the vesting period (participating securities) and the premium paid for the repurchase of noncontrolling interests. The denominator of basic EPS is the sum of the daily weighted-average number of common shares outstanding during the periods presented and fully vested stock and unit awards that have not yet been issued as common stock. The numerator of diluted EPS is also based on net income (loss) attributable to Phillips 66, which is reduced by dividend equivalents paid on participating securities for which the dividends are more dilutive than the participation of the awards in the earnings (loss) of the periods presented, and the premium paid for the repurchase of noncontrolling interests. To the extent unvested stock, unit or option awards and vested unexercised stock options are dilutive, they are included with the weighted-average common shares outstanding in the denominator. Treasury stock is excluded from the denominator in both basic and diluted EPS.


	Three Months Ended June 30					Six Months Ended June 30
	2022			2021			2022		2021
	Basic		Diluted	Basic	Diluted		Basic	Diluted	Basic	Diluted
Amounts Attributed to Phillips 66 Common Stockholders (millions):
Net income (loss) attributable to Phillips 66	$	3,167	3,167	296	296		3,749	3,749	(358)	(358)
Income allocated to participating securities	(3)		—	(3)	(3)		(5)	—	(6)	(6)
Premium paid for the repurchase of noncontrolling interests	—		—	(2)	(2)		—	—	(2)	(2)
Net income (loss) available to common stockholders	$	3,164	3,167	291	291		3,744	3,749	(366)	(366)

Weighted-average common shares outstanding (thousands):	481,105		483,088	437,909	439,940		464,249	466,286	437,639	439,722
Effect of share-based compensation	1,983		1,947	2,031	456		2,037	2,052	2,083	—
Weighted-average common shares outstanding—EPS	483,088		485,035	439,940	440,396		466,286	468,338	439,722	439,722

Earnings (Loss) Per Share of Common Stock (dollars)	$	6.55	6.53	0.66	0.66		8.03	8.00	(0.83)	(0.83)

On March 9, 2022, we completed the merger between us and Phillips 66 Partners. The merger resulted in the acquisition of all limited partnership interests in Phillips 66 Partners not already owned by us in exchange for approximately 42 million shares of Phillips 66 common stock issued from treasury stock. See Note 18—Phillips 66 Partners LP, for additional information on the merger transaction.