Company Performance - Phillips 66 (PSX) closed at $130.78, down 1.31% from the previous trading session, underperforming the S&P 500 which lost 0.05% [1] - The stock gained 7.98% over the previous month, outperforming the Oils-Energy sector's gain of 3.82% and the S&P 500's gain of 3.44% [1] Upcoming Earnings - The upcoming earnings release is expected to show EPS of $2.18, a 6.86% increase from the prior-year quarter, with revenue anticipated at $30.13 billion, reflecting a 16.69% decrease from the same quarter last year [2] - For the full year, analysts expect earnings of $4.87 per share and revenue of $129.1 billion, indicating declines of 20.81% and 11.27% respectively from last year [3] Analyst Estimates and Revisions - Recent modifications to analyst estimates for Phillips 66 are crucial as they reflect short-term business trends, with positive revisions indicating a favorable business outlook [4] - The Zacks Rank system, which incorporates estimate changes, has shown that stocks ranked 1 (Strong Buy) have yielded an average annual return of +25% since 1988 [5][6] Valuation Metrics - Phillips 66 has a Forward P/E ratio of 27.2, which is a premium compared to its industry's Forward P/E of 17.78, and a PEG ratio of 2.06, higher than the industry average PEG ratio of 1.51 [7] Industry Context - The Oil and Gas - Refining and Marketing industry, part of the Oils-Energy sector, holds a Zacks Industry Rank of 73, placing it in the top 30% of over 250 industries [8]

Core Viewpoint - Piper Sandler has raised the target price for Phillips 66 from $144 to $154 while maintaining a "Neutral" rating [1] Group 1 - The target price adjustment reflects a positive outlook on Phillips 66's performance [1] - The "Neutral" rating indicates a cautious stance on the stock's potential for significant upside [1]

Group 1 - Marathon Petroleum was sold entirely by the company, which had seen a stock increase of 31% this year [1] - The refiner trade initiated in August included investments in Phillips 66, Marathon Petroleum, and Valero, with a decision to sell Marathon [1] - Valero is considered the best in breed among refiners, supported by price performance [2] Group 2 - Phillips 66 is viewed positively due to its potential turnaround, bolstered by an activist stake from Elliot Management, which holds two board seats [2] - Phillips 66 recently acquired the remaining 50% ownership of WRB Refining from Senovas, with a valuation around four times IBIDA, compared to a typical seven times IBIDA for such deals [2][3] - The acquisition is seen as a strong valuation move, with expectations for mean reversion in Phillips 66's performance [3]

Group 1: Phillips 66 - Phillips 66 announced a definitive agreement to acquire the remaining 50% ownership interest in WRB Refining LP from subsidiaries of Cenovus Energy [1] - Shares of Phillips 66 fell 0.7% to settle at $131.42 on Wednesday [5] Group 2: Tandem Diabetes Care - Oppenheimer analyst maintained Tandem Diabetes Care with an Outperform rating and lowered the price target from $44 to $22 [2] - Tandem Diabetes Care shares fell 1.5% to settle at $12.37 on Wednesday [5] - Cramer described Tandem Diabetes Care as a "speculative stock for younger people" [1] Group 3: Cintas - Cramer recommended buying Cintas stock and suggested waiting for the quarter results [2] - Cintas announced it will release fiscal year 2026 first-quarter results on September 24 [2] - Cintas shares fell 0.3% to close at $201.40 [5] Group 4: Intuitive Surgical - Intuitive Surgical reported second-quarter revenue of $2.44 billion, beating analyst estimates of $2.35 billion [3] - The company reported second-quarter adjusted earnings of $2.19 per share, exceeding analyst estimates of $1.93 per share [3] - Shares of Intuitive Surgical fell 3.8% to close at $449.98 [5]

Group 1: Phillips 66 - Phillips 66 announced a definitive agreement to acquire the remaining 50% ownership interest in WRB Refining LP from subsidiaries of Cenovus Energy [1] Group 2: Tandem Diabetes Care - Oppenheimer analyst maintained an Outperform rating for Tandem Diabetes Care but lowered the price target from $44 to $22 [2] - Tandem Diabetes Care shares fell 1.5% to settle at $12.37 [5] Group 3: Cintas - Cintas is recommended for purchase, with a suggestion to buy more if the upcoming quarter's results are disappointing [2] - Cintas shares fell 0.3% to close at $201.40 [5] Group 4: Intuitive Surgical - Intuitive Surgical reported second-quarter revenue of $2.44 billion, exceeding analyst estimates of $2.35 billion [3] - The company reported second-quarter adjusted earnings of $2.19 per share, beating analyst estimates of $1.93 per share [3] - Intuitive Surgical shares fell 3.8% to close at $449.98 [5]

Core Insights - Phillips 66 (PSX.US) has had its MSCI ESG rating downgraded from AA to A as of September 10, 2025 [1] Group 1 - The downgrade reflects a change in the company's environmental, social, and governance performance metrics [1]

HOUSTON--(BUSINESS WIRE)--Phillips 66 announced that Sean Maher has been appointed vice president of investor relations and chief economist, effective Oct. 1. ...

Core Viewpoint - Phillips 66 has signed a definitive agreement to acquire the remaining 50% ownership interest in WRB Refining from Cenovus Energy for $1.4 billion, expected to close in Q4 2025 [1] Group 1: Acquisition Details - The transaction is valued at $1.4 billion and is subject to customary purchase price adjustments [1] - WRB Refining is a joint venture that owns the Borger refinery in Texas and the Wood River refinery in Illinois, with a combined crude throughput capacity of 495,000 barrels per day (bpd) [2] - Post-acquisition, Cenovus Energy's downstream business will consist of several refineries with a combined capacity of 472,800 bpd, with 55% dedicated to heavy crude oil processing [2] Group 2: Strategic Implications - Phillips 66 aims to strengthen its integrated business and expand its industry position in the region with full ownership of the refineries [3] - The acquisition is expected to deliver operational and commercial synergies of approximately $50 million per year, enabling full integration with Phillips 66's value chain [4] - The Wood River and Borger refineries will contribute an estimated additional 250,000 bpd to Phillips 66's refining capacity upon completion of the deal [4] Group 3: Financial Impact - Cenovus plans to use the proceeds from the sale to reduce net debt and enhance shareholder returns through accelerated share repurchases [5] - As of August, Cenovus has repurchased approximately 18.8 million common shares for $388 million at an average price of around $20.59 per share [5] Group 4: Recent Activities - This acquisition follows Phillips 66's earlier purchase of EPIC Y-Grade GP and EPIC Y-Grade for $2.2 billion in April, which includes long-haul natural gas liquids pipelines and fractionation facilities [6]

Group 1 - Phillips 66 will acquire the remaining 50% stake in WRB Refining from Cenovus Energy for $1.4 billion, gaining full ownership of two major U.S. refineries [1] - The acquisition will add approximately 250,000 barrels per day to Phillips 66's refining capacity, enhancing its ability to produce transportation fuels and process various crude types [2] - The deal is seen as a strategic move to strengthen Phillips 66's integrated business and expand its market position in the refining sector [3] Group 2 - The transaction is considered appealing in terms of valuation and is expected to upgrade Phillips 66's portfolio by adding higher margin capacity [4] - Cenovus aims to simplify its downstream business and focus on heavy oil operations following the sale of WRB [4] - The deal is anticipated to close between the end of the third and fourth quarters, with Cenovus planning to use the proceeds to reduce net debt and enhance shareholder returns through share repurchases [5]

Company Overview - Phillips 66 will begin winding down operations at its Los Angeles-area refinery this week, with a permanent closure expected in the fourth quarter of 2025 [1] - The refinery has a capacity of 139,000 barrels per day and is set to cease operations following the company's announcement last year [1][10] Employee Impact - More than half of the 600 employees at the refinery are represented by the United Steelworkers Union, with most facing layoffs in December [2][10] - A small number of workers may be transferred to the Phillips 66 marine oil terminal in Los Angeles, but the company has not commented on post-closure employment plans [2] Market Implications - The closure of Phillips 66's refinery, along with Valero Energy Corporation's Benicia facility, which has a capacity of 145,000 barrels per day, will impact approximately 20% of California's gasoline supply [3][10] - These closures are expected to tighten fuel markets and may contribute to volatility in pump prices as California increases reliance on imports and alternative sources to meet demand [3] Operational Details - The shutdown process will be multi-phased and complex, involving environmental remediation and coordination with local agencies [4] - Phillips 66 has stated its commitment to work with state officials to supply fuel and address the long-term fate of its strategically located properties near the Port of Los Angeles [4]