Phillips 66 (NYSE: PSX) reported Q1 EPS of $1.51, $0.08 better than the analyst estimate of $1.43.

Midstream adjusted earnings were $67 million in the first quarter, compared with adjusted earnings of $97 million in the fourth quarter of 2014.

Phillips 66’s Transportation business generated earnings of $65 million during the first quarter. The $12 million increase was primarily due to the fourth quarter write-off of a deferred tax asset.

During the first quarter, the company’s equity investment in DCP Midstream, LLC (DCP Midstream) had an adjusted loss of $12 million, comparable to the prior quarter. The loss was due to lower NGL, crude and natural gas prices, partially offset by the absence of hedge losses associated with the steep price declines during the fourth quarter.

Earnings from the NGL business were $14 million in the first quarter. The $41 million decrease was largely related to lower trading margins on seasonal propane and butane storage activities, as well as inventory impacts.

Phillips 66 Partners contributed $19 million to the Midstream segment's first-quarter earnings.

The Chemicals segment reflects Phillips 66's equity investment in Chevron Phillips Chemical Company LLC (CPChem). First-quarter Chemicals adjusted earnings were $203 million, compared with adjusted earnings of $270 million in the fourth quarter of 2014.

During the first quarter, CPChem's Olefins and Polyolefins (O&P) business contributed $183 million to Phillips 66's Chemicals adjusted earnings. The $65 million decrease was mainly due to lower O&P cash chain margins, driven by lower polyethylene sales prices, as well as planned turnarounds in the first quarter. Global utilization for O&P was 87 percent during the quarter, up from 83 percent in the fourth quarter, primarily reflecting a full quarter of Port Arthur operations.

CPChem's Specialties, Aromatics and Styrenics (SA&S) business contributed $26 million of adjusted earnings in the first quarter, in line with the prior quarter.

Refining adjusted earnings were $495 million in the first quarter, compared with $322 million in the fourth quarter of 2014. The improvement was primarily due to higher realized refining margins, partially offset by lower volumes.

The increase in margins was largely driven by improved secondary product margins as well as higher gasoline market crack spreads. Secondary product margins improved mainly due to lower crude costs. Crack spreads improved mainly as a result of significantly higher gasoline market cracks in the Western/Pacific. First-quarter gasoline market cracks for that region were $20.21 per barrel, compared with $7.46 per barrel during the fourth quarter of 2014.

Lower volumes were primarily driven by turnaround activity and unplanned downtime in the Gulf Coast at the Alliance Refinery. Phillips 66’s worldwide refining crude utilization and clean product yield were both 84 percent in the first quarter of 2015.

Marketing and Specialties (M&S) first-quarter adjusted earnings were $194 million, compared with $324 million in the fourth quarter of 2014.

Adjusted earnings for Marketing and Other were $144 million, a decrease of $112 million from the prior quarter. The business was impacted by lower global marketing margins compared to the strong margins realized in the previous quarter, which benefited from favorable market conditions. Additionally, decreased earnings were due to lower biodiesel blending tax credits compared to the fourth quarter. First-quarter refined product exports were 86,000 barrels per day (BPD), down 57,000 BPD from the fourth quarter primarily due to turnarounds in the first quarter.

Phillips 66’s Specialties businesses generated earnings of $50 million during the first quarter. The $18 million decrease was primarily related to lower lubricants margins, partially offset by increased volumes.

For earnings history and earnings-related data on Phillips 66 (PSX) click here.