What is a cash flow waterfall?

A cash flow waterfall is a bar chart that walks from operating cash flow through capital expenditure to free cash flow, then shows how the remaining cash is allocated — acquisitions, buybacks, dividends, debt, and other financing — ending at the net change in cash. Each step is colour-coded: green bars add to the running total, red bars subtract.

How does Phillips 66 (PSX) spend its free cash flow?

For TTM through Q1 2026, Phillips 66 generated $2.51B of operating cash flow and $119M of free cash flow — a free cash flow margin of 4.7% of operating cash flow. The waterfall breaks down how the remaining cash was allocated across investing and financing activities.

How much did Phillips 66 (PSX) return via buybacks and dividends?

The waterfall shows buybacks (share repurchases) and dividends paid as separate steps in the financing section. Together these represent Phillips 66's shareholder returns for TTM through Q1 2026. You can compare these against free cash flow to assess the capital-return payout ratio.

Phillips 66 (PSX) Cash Flow Waterfall

Operating CF

$2.51B

Capex

-$2.39B

Free Cash Flow

$119M

FCF Margin

+4.7%

Cash flow waterfall for Phillips 66 (PSX) — TTM through Q1 2026

Free cash flow: $119M

Note: Other Investing is large — driven mainly by purchases or sales of investments.

Cash flow breakdown for Phillips 66 (PSX) — TTM through Q1 2026

Line item	Amount	Running total
Operating Cash Flow	$2.51B	$2.51B
Capital Expenditure	-$2.39B	$119M
Free Cash Flow	$119M	$119M
Acquisitions	$89M	$208M
Other Investing	-$1.86B	-$1.65B
Share Buybacks	-$1.23B	-$2.88B
Dividends Paid	-$1.96B	-$4.84B
Net Debt Change	$8.57B	$3.73B
Other Financing & FX	-$69M	$3.66B
Net Cash Increase	$3.66B	$3.66B

Operating Cash Flow$2.51B
Capital Expenditure-$2.39B
Free Cash Flow$119M
Acquisitions$89M
Other Investing-$1.86B
Share Buybacks-$1.23B
Dividends Paid-$1.96B
Net Debt Change$8.57B
Other Financing & FX-$69M
Net Cash Increase$3.66B

Want to see what drove the FCF change?Free Cash Flow Bridge

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