Phillips 66 (PSX) closed the latest trading day at $136.35, indicating a -0.05% change from the previous session's end. The stock trailed the S&P 500, which registered a daily gain of 0.61%. Meanwhile, the Dow gained 0.97%, and the Nasdaq, a tech-heavy index, added 0.33%.Heading into today, shares of the oil refiner had gained 8.51% over the past month, outpacing the Oils-Energy sector's loss of 2.26% and the S&P 500's gain of 5.36% in that time.Analysts and investors alike will be keeping a close eye on th ...

When Phillips 66 PSX releases earnings results for its third quarter on Tuesday, Oct. 29, analysts expect the company to report quarterly earnings at $2.1 per share. That’s down from $4.63 per share in the year-ago period. Phillips 66 projects to report revenue of $34.75 billion for the recent quarter, down from $40.32 billion a year earlier, according to data from Benzinga Pro.With the recent buzz around Phillips 66, some investors may be eyeing potential gains from the company's dividends, too. The compan ...

Phillips 66 (PSX) closed at $129.47 in the latest trading session, marking a -1.25% move from the prior day. The stock's performance was behind the S&P 500's daily gain of 0.25%. At the same time, the Dow added 0.2%, and the tech-heavy Nasdaq gained 0.56%.The oil refiner's shares have seen a decrease of 3.05% over the last month, not keeping up with the Oils-Energy sector's loss of 0.05% and the S&P 500's gain of 1.65%.The investment community will be paying close attention to the earnings performance of Ph ...

Phillips 66, (PSX) , a leading energy company, has sold its natural gas gathering and processing assets in East Texas to Voyager Midstream Holdings, a portfolio company of Pearl Energy Investments, per a Reuters report. This move is part of Phillips 66’s ongoing strategy to monetize non-core assets and enhance returns.Phillips 66’s Strategic Asset MonetizationThe sale aligns with Phillips 66’s previously announced plan to divest $3 billion in non-core assets in January 2024. The proceeds from these sales ar ...

Stock Performance - Phillips 66's shares surged 23.2% in the past year, outperforming the industry's 11.7% rise [1] Business Model and Strategy - The company has a diversified business model with strong presence in refining, midstream, chemicals, and marketing & specialties [2] - Phillips 66 prioritizes midstream, renewables, and chemicals segments to enhance business stability [2] - The company operates a 72,000-mile U.S. pipeline network, with nearly 80% of midstream contracts being fee-based, reducing susceptibility to commodity price fluctuations [2] Capital Return to Shareholders - Phillips 66 has returned $11.2 billion to shareholders through dividends and share repurchases since July 2022 [3] - The company expects to return $13 billion to $15 billion to shareholders by the end of this year [3] Refining Business and Industry - The refining business is exposed to volatility in commodity prices due to reliance on crude oil as raw material [4] - New refinery capacities coming online may depress refining margins in the coming quarters [4] - Marathon Petroleum manages the largest refining system in the U.S. [4] - Valero Energy has a combined daily throughput capacity of approximately 3.2 million barrels across 15 refineries in the U.S., Canada, and the U.K. [4] - ExxonMobil has a global refining capacity of roughly 5 million barrels per day across 21 refineries [5]

Two engineers man and woman using laptop to work at power plant on night shift.gettyDon’t worry—we haven’t missed out on the bargains from the August 5 “flash crash.” We’ve still got a sweet setup for surging dividends in a sector most people completely misunderstand.Misunderstood, unloved and soaring dividends? We’re interested!I’m talking about refinery stocks. We’re going to zero in on two of my favorites today: Phillips 66 (PSX) and Valero Energy Corp. (VLO). As you’ll see below, I like one more than th ...

Core Viewpoint - Phillips 66 is committed to rewarding shareholders through consistent dividend increases, making it an attractive option for income-focused investors [1][2]. Group 1: Dividend Growth - The company has increased its dividend at a compound annual growth rate of 12% from 2013 to 2023 [1]. - Phillips 66 declared a quarterly dividend of $1.05 per share in February 2024, which was subsequently raised to $1.15 per share for dividends paid in June [2]. - The total expected dividends for the first three quarters of 2024 amount to $3.35, with a target of $4.50 per share for the entire year [2]. Group 2: Cash Flow and Payout - In 2023, Phillips 66 generated significant operational cash flow of $7 billion [3]. - The management aims to return over 50% of cash from operations to shareholders, supported by a low payout ratio averaging 27% over the past three years [3]. - The company is projected to return approximately $1.9 billion to shareholders in 2024 through dividends [2].

Core Viewpoint - Phillips 66 reported better-than-expected second-quarter 2024 results, beating both earnings and revenue estimates, but the stock price has declined by 6.2% due to broader market concerns and high oil prices impacting refining operations [1][4]. Refining Business - Phillips 66 operates 13 refineries with a total capacity of 2.2 million barrels per day, relying on purchased feedstocks, which exposes the company to cost volatility [2]. - The refining segment is facing challenges due to high oil prices affecting profitability, leading to a focus on diversifying into midstream, renewables, and chemicals [2]. Midstream Business - Significant investments have been made in the midstream sector, including new pipelines and storage facilities, aimed at diversifying earnings and reducing reliance on refining [3]. - The midstream operations involve transportation, storage, and processing of crude oil and natural gas, aligning with industry trends towards stable, fee-based revenue [3]. Better-Than-Expected Q2 Results - Adjusted earnings for Q2 2024 were $2.31 per share, exceeding the Zacks Consensus Estimate of $2.12, but lower than $3.87 from the previous year [4]. - Total revenues reached $38.9 billion, surpassing the estimate of $32 billion and improving from $35.7 billion year-over-year [4]. Segmental Results - **Midstream**: Adjusted pre-tax earnings were $753 million, up from $642 million year-over-year, driven by higher NGL volumes and margins [5]. - **Refining**: Adjusted pre-tax earnings fell to $302 million from $1.19 billion in the previous year, missing projections due to lower market crack spreads [6]. - Realized refining margins declined significantly across various regions, with global margins dropping to $10.01 per barrel from $15.55 year-over-year [7].

PHILLIPS 66 SECOND-QUARTER CONFERENCE CALL July 30, 2024 Cautionary Statement This presentation contains forward-looking statements within the meaning of the federal securities laws. Words such as "anticipated," "estimated," "expected," "planned," "scheduled," "targeted," "believe," "continue," "intend," "will," "would," "objective," "goal," "project," "efforts," "strategies" and similar expressions that convey the prospective nature of events or outcomes generally indicate forward-looking statements. Howev ...

Core Thesis - Phillips 66 (PSX) has seen a significant shift in its earnings structure, with midstream assets now contributing over 45% of earnings, while the refining segment has dropped to under 20% of the bottom line, raising questions about the company's long-term outlook [2][5] Q2 Earnings Results - In Q2 2024, PSX reported an EPS of $2.31, beating market expectations by $0.33 and exceeding Q1 performance by $0.41, but still down from $3.87 a year ago [3] - Weak refinery margins, which have fallen approximately 33% year-over-year and 50% since Q1 2023, were the main driver for the decline in earnings [3] - The refining segment's earnings decreased from $1.7 billion in Q3 2023 to $302 million in the latest quarter, while midstream, chemicals, and marketing segments increased pretax income by 22% over Q1 [3][4] Midstream Business Developments - PSX announced the acquisition of Pinnacle Midstream for $550 million, expected to yield a 5.5x EBITDA multiple, indicating a strategic move to enhance its midstream capabilities [7] - The divestment of a 25% stake in the Rockies Express Pipeline for $1.275 billion at a multiple of 10.2x EBITDA allowed PSX to retire associated debt and unlock $135 million in cash [10] Future Refining Outlook - The refining sector faces challenges with new refineries in the Middle East and Africa expected to increase capacity, potentially putting pressure on crack spreads in the near term [11] - Despite current struggles, PSX's management remains optimistic about long-term refining fundamentals, citing limited capacity growth beyond 2025 and increasing global demand [11] Operating Costs and Efficiency - PSX has successfully reduced operating costs by $1.53 per barrel since 2022, achieving a quarterly cost of $6.43 per barrel with 98% utilization across its portfolio [12] - However, PSX's margins remain lower compared to competitors, indicating room for improvement in cost structure [12] Valuation and Shareholder Returns - PSX generated $4.13 billion in EBITDA in the first half of the year, yielding an annualized EV to EBITDA multiple of 9.6x, which is not expensive but represents a premium compared to peers [13] - The company has returned $11.2 billion to shareholders through dividends and share repurchases, with expectations to reach a total of $13-$15 billion by the end of 2024 [14] Key Takeaways - Weak refining crack spreads persist due to high US utilization and new Middle Eastern refinery capacities [16] - PSX's diverse business segments have created a reliable earnings floor, allowing for substantial cash generation despite market pressures [16] - The company's current valuation and near-term challenges lead to a HOLD rating, but long-term opportunities remain due to cash generation capabilities and positive refinery market forecasts [16]