Kevin J. Mitchell
Executive Vice President and Chief Financial Officer at Phillips 66
Thank you, Mark.
Slide 5 provides cost detail at the total company level through the end of the third quarter compared with the same period of 2022. We have supported growth while mitigating inflationary impacts through business transformation and synergy capture. Through the first nine months of the year, we have realized approximately $700 million in cost reductions, including our share of WRB costs. In addition, we have reduced logistics spend by $200 million. These costs flow through gross margin. We lowered sustaining capital spend and continued to prioritize safe and reliable operations.
Slide 6 shows the business transformation reduction to refining cost per barrel. Adjusted controllable costs, excluding turnarounds, are $5.84 per barrel year-to-date. We have eliminated $1 per barrel of costs, achieving our target ahead of schedule.
Slide 7 covers key financial metrics. Earnings were $346 million. Adjusted earnings were $859 million or $2.04 per share. The adjusted results exclude special items, which include a legal accrual in the third quarter. We generated operating cash flow of $1.1 billion and returned $1.3 billion to shareholders.
I will now move to Slide 8 to cover the segment results. Adjusted earnings decreased $125 million compared with the prior quarter. Midstream results decreased, mostly due to seasonal maintenance costs and lower equity earnings, reflecting the sale of our interest in the Rockies Express pipeline. These decreases were partially offset by higher margins on LPG exports.
In Chemicals, results increased mainly due to higher polyethylene chain margins and lower costs.
Lower Refining results primarily reflect weaker crack spreads. Capture of the new indicator was 92%, in line with the previous quarter. In addition, the plan to cease operations at our Los Angeles refinery resulted in the acceleration of depreciation. The impact in the third quarter was $25 million. Going forward, we expect approximately $230 million per quarter of additional depreciation through the fourth quarter of 2025.
Marketing and Specialties results were higher, mostly due to seasonally stronger margins. In renewable fuels, results decreased due to lower realized margins. The Rodeo Renewable Energy Complex produced 44,000 barrels per day of renewable fuels during the third quarter.
Slide 9 shows the change in cash flow. Cash from operations, excluding working capital, was $1.5 billion, supported by the stability of our Midstream and Marketing and specialties businesses. Working capital was a use of $381 million, mainly reflecting the impact of falling commodity prices. In July, we acquired Pinnacle Midstream for $567 million. Also during the quarter, we received cash proceeds of approximately $200 million from the sale of non-core Midstream assets.
Looking ahead to the fourth quarter, in Chemicals, we expect the global O&P utilization rate to be in the mid-90s. In Refining, we expect the worldwide crude utilization rate to be in the low- to mid-90s and turnaround expense to be between $125 million and $135 million. Full year turnaround expense is now expected to be $485 million to $495 million. This is a reduction of more than $100 million from our original guidance. We anticipate corporate and other costs to come in between $300 million and $330 million.
Now we will open the line for questions, after which Mark will wrap up the call.