Phillips 66 (PSX), one of the largest U.S. energy firms, saw its third-quarter profits grow amid rising oil prices and record earnings for energy companies.

The company reported earnings of $5.4 billion in the third quarter, up from $3.2 billion in the previous quarter, a 68% increase. The company reported $6.46 in adjusted earnings per share, a 28.25% gain over the expected $5.04.

"Third-quarter results reflect a continued favorable market environment, as well as strong operating performance and improved market capture," Mark Lashier, president and CEO of Phillips 66 said in a statement. "Our focus remains on operating safely and reliably producing critical energy products."

With record-level inflation and fuel prices rising, oil and gas companies have seen a rise in earnings in recent months. BP reported Tuesday its third-quarter profits more than doubled amid the climbing prices. ExxonMobil (XOM) and Chevron (CVX), the country's two largest energy companies, reported record Q3 earnings last week.

President Joe Biden has urged energy companies to lower costs, issuing a threat of higher taxes as a rebuke against the soaring prices and record earnings.

In August, Phillips 66 announced its further investment into DCP Midstream, a pipeline operator, in a bid to boost its natural gas business. The company said the expansion has helped it produce up to 550,000 barrels per day of natural gas liquids at its Sweeny Hub refinery in Texas.

In the third quarter, Midstream reported pre-tax income of $3.6 billion, up from $292 million in previous quarter.

Shares of Phillips early Tuesday stood at $108.28, up $3.99, or 3.82%, as of 09:34 a.m. ET.