Key TakeawaysPhillips 66 beat profit and sales estimates in the second quarter as midstream income jumped 23.7% year-over-year.The energy company pointed to higher natural gas liquids volume and margin, along with cost cuts, for the midstream gains.Phillips' crude utilization rate was the highest in five years. Shares of Phillips 66 (PSX) jumped in intraday trading Tuesday after the energy company posted better-than-anticipated results on higher midstream profit. The company reported second-quarter earnings ...

Core Insights - Phillips 66 reported second-quarter 2024 adjusted earnings of $2.31 per share, exceeding the Zacks Consensus Estimate of $2.12, but lower than the previous year's $3.87 [1] - Total revenues for the quarter reached $38.9 billion, surpassing the Zacks Consensus Estimate of $32 billion and improving from $35.7 billion in the same quarter last year [1] Segmental Results - **Midstream**: Adjusted pre-tax earnings increased to $753 million from $642 million year-over-year, exceeding the estimate of $604.6 million, driven by higher NGL volumes and margins [2] - **Chemicals**: Adjusted pre-tax earnings rose to $222 million from $192 million in the prior-year quarter, surpassing the estimate of $155.5 million, mainly due to increased margins [3] - **Refining**: Adjusted pre-tax earnings fell to $302 million from $1.19 billion year-over-year, missing the projection of $744.1 million, primarily due to lower market crack spreads [4] - **Marketing & Specialties**: Pre-tax earnings decreased to $415 million from $533 million in the previous year, falling short of the estimate of $492.1 million [5] Costs & Expenses - Total costs and expenses increased to $37.6 billion from $33.5 billion in the year-ago period, exceeding the projected $30 billion [6] Financial Condition - The company generated $2.1 billion in net cash from operations, significantly higher than $955 million a year ago, with capital expenditures totaling $367 million and dividends paid out amounting to $485 million [7] - As of June 30, 2024, cash and cash equivalents stood at $2.4 billion, with total debt at $19.9 billion, resulting in a debt-to-capitalization ratio of 43.4% [7]

Financial Performance - Phillips 66 reported total revenues and other income of $36,436 million for Q1 2024, compared to $38,911 million in Q2 2023, reflecting a decrease of approximately 6.3%[1] - Net income attributable to Phillips 66 for Q1 2024 was $748 million, down from $1,015 million in Q2 2023, representing a decline of about 26.4%[4] - Adjusted EBITDA for Q1 2024 was $1,943 million, compared to $2,183 million in Q2 2023, indicating a decrease of approximately 11%[5] - Phillips 66's diluted earnings per share for Q1 2024 was $1.73, compared to $2.38 in Q2 2023, a decrease of about 27.3%[2] - The company reported a total cost and expenses of $35,472 million in Q1 2024, compared to $37,600 million in Q2 2023, a reduction of approximately 5.7%[1] - In Q1 2024, Phillips 66 reported a net income of $761 million, with a year-to-date (YTD) net income of $1,734 million, compared to $2,143 million in the same period of 2023[12] Segment Performance - The company’s refining segment generated $545 million in adjusted EBITDA for Q1 2024, down from $1,968 million in Q2 2023, a decline of about 72.3%[5] - Midstream segment revenues for Q1 2024 totaled $861 million, compared to $971 million in Q2 2023, reflecting a decrease of approximately 11.4%[5] - Total adjusted EBITDA for the Midstream segment in Q1 2024 was $861 million, up from $748 million in Q4 2023[18] - Income before income taxes for the Central Corridor was $213 million in Q1 2024, compared to $367 million in Q2 2023, reflecting a decrease of 42.1%[24] - The worldwide refining income before income taxes was $1.50 per barrel in Q1 2024, a decrease from $2.00 per barrel in Q4 2023[23] - The Gulf Coast refining income before income taxes was $2.53 per barrel in Q1 2024, down from $14.22 per barrel in Q4 2023[23] Costs and Expenses - The corporate and other segment incurred restructuring costs of $35 million in Q1 2024, compared to $94 million in Q2 2023[7] - Total operating and SG&A expenses for the company were $991 million in Q1 2024, a slight increase from $935 million in Q2 2023, representing a rise of 6%[25] - The refining controllable costs per barrel were $6.89 in Q1 2024, up from $6.18 in Q2 2023, indicating an increase of 11.5%[27] - Depreciation and amortization expenses totaled $208 million in Q1 2024, compared to $204 million in Q2 2023, a slight increase of 2%[29] Cash Flow and Investments - The total cash provided by operating activities in Q2 2024 was $2,097 million, while the YTD cash provided was $7,029 million, reflecting a significant increase from $6,965 million in 2023[12] - Capital expenditures and investments for Q1 2024 amounted to $628 million, with a total of $2,418 million for the year, compared to $2,418 million in 2023[13] - The net cash used in financing activities for Q2 2024 was $(1,543) million, reflecting significant debt repayment and stock repurchase activities[13] Market and Production Metrics - The worldwide crude oil charge input averaged 1,700 MB/D in Q1 2024, showing a decrease from 1,802 MB/D in Q2 2023, a decline of 5.7%[30] - Refined petroleum products production in the Atlantic Basin/Europe totaled 522 MB/D in Q1 2024, a decrease of 6.1% from 556 MB/D in Q2 2023[32] - Total gasoline production in the Gulf Coast reached 526 MB/D in Q1 2024, up 2.6% from 571 MB/D in Q2 2023[32] - Total refined petroleum products sales in the U.S. reached 1,926 MB/D in Q1 2024, a decrease of 8.9% from 2,114 MB/D in Q2 2023[41] Taxation - The effective tax rate for Q1 2024 was 21.1%, slightly lower than the 22.2% reported in Q2 2023[2] - Phillips 66's total income tax expense for Q2 2024 was $13 million, with a YTD total of $57 million, indicating a tax impact from pre-tax special items[10] - The effective tax rate for the year-to-date was reported at 23.6%, with an adjusted effective tax rate of 22.7%[67] Special Items and Adjustments - The total special items (pre-tax) for Phillips 66 in Q2 2024 were $(83) million, with a YTD total of $(110) million[10] - The company incurred impairments of $165 million in Q1 2024, contributing to a total of $390 million for the year[12] - Special item adjustments for the third quarter included business transformation restructuring costs of $35 million[52] - The company experienced a legal settlement expense of $59 million, which was classified as a special item affecting net income[65]

Phillips 66 (PSX) is set to report second-quarter 2024 earnings on Jul 30, before the opening bell.In the last reported quarter, the company’s earnings of $1.90 per share missed the Zacks Consensus Estimate of $2.05 due to lower refining margins worldwide and increased expenses. PSX’s earnings beat the Zacks Consensus Estimate in two of the trailing four quarters and missed the same twice, delivering an average surprise of 7.3%. This is depicted in the graph below.Estimate TrendThe Zacks Consensus Estimate ...

Phillips 66 (PSX) is expected to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended June 2024. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.The earnings report, which is expected to be released on July 30, 2024, might help the stock move higher if these key numbers are better than expectat ...

Core Viewpoint - Phillips 66 is positioned as a reliable dividend stock, especially for investors looking to diversify their oil and gas holdings, with a strong focus on returning capital to shareholders and making strategic investments in renewable energy [1][4][6] Group 1: Financial Performance and Strategy - Phillips 66 experienced a significant loss of $4 billion in 2020 due to the COVID-19 pandemic, prompting a reevaluation of its business strategy [2] - The company aims to achieve $1.4 billion in run-rate cost savings by the end of 2024 and targets mid-cycle adjusted EBITDA of $14 billion by 2025, returning over 50% of operating cash flow to shareholders [2] - The company has committed to returning $13 billion to $15 billion to shareholders between July 2022 and year-end 2024 through dividends and buybacks [4] Group 2: Dividend and Shareholder Returns - Since its spin-off in 2012, Phillips 66 has raised its dividend at a compound annual rate of 16%, with a recent increase of 10% in the quarterly dividend to $1.15 per share, resulting in an annual payout of $4.60 per share and a forward yield of 3.3% [4][5] - The annual dividend expense is approximately $1.8 billion, and the company has spent $4.2 billion on buybacks over the last 12 months, indicating a strong commitment to shareholder returns [5] Group 3: Investment in Growth and Transition - Phillips 66 is investing in transforming its San Francisco Refinery into a biofuel facility, aiming for production of over 50,000 barrels per day, with current production at 30,000 bpd [3] - The company is focused on maintaining low capital expenditures and operating expenses while making strategic investments to grow earnings and meet the energy transition needs [3][6] Group 4: Market Position and Valuation - Phillips 66 shares are currently down 19% from their all-time high, presenting a potential buying opportunity, with a price-to-earnings ratio of 10.8, aligning with its historical average [6] - The company is recognized as an industry leader with the resources to invest in new projects, particularly in the biofuels sector, enhancing its attractiveness as a dividend stock [6]

Phillips 66 (PSX) has taken a significant step in modernizing its data protection operations by selecting Cohesity, a leader in AI-powered data security and management.Before implementing Cohesity’s innovative solutions, Phillips 66's data protection strategy relied on five disparate and siloed tools. This fragmented approach required backup teams to spend considerable time managing these tools, leading to inefficiencies, decreased productivity and escalating cloud costs.After a thorough competitive evaluat ...

StockPhotoAstur Shares of Phillips 66 (NYSE:PSX) have been a strong performer over the past year, rising by about one-third, but performance has been materially weaker of late with PSX down by about 23% since the beginning of April as concerns have intensified around the direction of the refining cycle. Given concerns about relative valuation, I downgraded shares to a “hold” in April. While I was right to downgrade them, I did not move sharply enough as the stock has fallen by 22% since that analysis, l ...

Phillips 66 (PSX) , a leading integrated energy company, has announced that it has finished the full conversion of its Rodeo Renewable Energy Complex in California. The complex has achieved full production rates following the conversion, which has raised throughput rates to 50,000 barrels per day. This equals approximately 800 million gallons of renewable fuel per year.The Rodeo complex has completely ceased crude oil processing and shifted to the production of renewable diesel and sustainable aviation fuel ...

In the latest market close, Phillips 66 (PSX) reached $139.40, with a -0.27% movement compared to the previous day. The stock's change was less than the S&P 500's daily gain of 0.09%. Meanwhile, the Dow experienced a rise of 0.09%, and the technology-dominated Nasdaq saw an increase of 0.3%.Shares of the oil refiner witnessed a gain of 1.15% over the previous month, beating the performance of the Oils-Energy sector with its loss of 1.6% and underperforming the S&P 500's gain of 3.38%.Market participants wil ...