Phillips 66 (PSX) closed at $131.78 in the latest trading session, marking a -6.88% move from the prior day. The stock's performance was behind the S&P 500's daily loss of 0.24%. Elsewhere, the Dow lost 0.62%, while the tech-heavy Nasdaq added 0.23%. The oil refiner's shares have seen an increase of 3.56% over the last month, surpassing the Oils-Energy sector's loss of 1.72% and the S&P 500's gain of 1.31%.Market participants will be closely following the financial results of Phillips 66 in its upcoming rel ...

Energy was the worst sector today with every component closing lower in the red. Performers include APA, Marathon Petroleum, Philips 66. Why are we seeing such a drastic move lower and will it continue.Joining us now, Bill Perkins. He is the founder, managing partner, and head trader for Skyler Capital, an energy focused fund. And Bill, it's great to have you back on the show.Welcome. >> Thanks. Great to be back.A lot to get into here, but first I do want to start with the move we've seen in crude oil uh an ...

Capital Spending Overview - Phillips 66 (PSX) has announced a $2.4 billion capital budget for 2026, an increase from $2.1 billion in 2025, indicating a strong focus on core business areas [1][11] - The budget allocates $1.1 billion for maintenance capital and $1.3 billion for growth capital [1] Segment Allocation - The majority of the capital spending is directed towards the midstream and refining segments, with minimal allocation to marketing specialties, renewable fuels, and corporate operations [2] - For the midstream segment, PSX has earmarked $400 million for sustaining projects and $700 million for growth projects, totaling $1.1 billion [3] Midstream Projects - Key midstream projects include: - Iron Mesa gas processing plant in the Permian Basin, with a capacity of 300 million cubic feet per day, expected to start operations in Q1 2027 [4] - Coastal Bend NGL pipeline expansion, set to increase daily transportation capacity from 225,000 barrels to 350,000 barrels, expected to be completed by late 2026 [4] - Proposed NGL fractionator in Corpus Christi, anticipated to increase fractionation capacity by 100 thousand barrels per day, with a final investment decision expected in early 2026 and completion in 2028 [5] - The midstream segment generates stable fee-based revenues, enhancing the stability of the company's business model [6] Refining Projects - The refining segment also receives $1.1 billion in capital spending, with $590 million for sustaining projects and $520 million for growth projects [7] - PSX has identified over 100 capital-efficient projects aimed at processing crude from various sources to produce cleaner, higher-value fuels [7] - A significant investment is directed towards the Humber gasoline quality improvement project, expected to begin operations in Q2 2027 [8]

Core Viewpoint - Phillips 66 has announced a capital spending plan for 2026, totaling $2.4 billion, which includes investments in sustaining operations and growth initiatives [1][2]. Spending by Segment - The Midstream segment will receive a capital allocation of $1.1 billion, with $400 million for sustaining investments and $700 million for growth initiatives, aimed at enhancing the NGL value chain [3]. - The Refining segment is set to receive approximately $1.1 billion, with $590 million allocated for sustaining capital and $520 million for growth initiatives [3]. - The CPChem joint venture will see an investment of $680 million, fully self-funded, with $200 million for sustaining capital and $480 million for growth, focusing on petrochemical facilities in the U.S. Gulf Coast and Qatar [4]. Recent Key Events - Phillips 66 completed the sale of a 65% stake in its retail marketing business in Germany and Austria for approximately €2.5 billion (around $2.8 billion), retaining a 35% non-operated interest in the new joint venture [5].

Core Viewpoint - Phillips 66 forecasts higher spending in 2026, anticipating increased expenditures in its midstream and refining segments [1] Company Summary - The company expects to allocate more resources towards its midstream operations and refining activities in the upcoming years [1]

Core Viewpoint - New Jersey has declared a state of emergency due to a potential propane shortage caused by a service disruption at Energy Transfer's Marcus Hook Terminal in Pennsylvania, affecting home and commercial heating for approximately 186,000 residents in New Jersey [1][2]. Group 1: Emergency Declaration and Impact - Governor Phil Murphy's emergency order waives hours-of-service regulations for trucking heating fuels to address the supply chain disruption [1]. - The disruption at the Marcus Hook Terminal is due to an electrical fault that occurred on November 19, which has led to a force majeure declaration by Energy Transfer [2]. Group 2: Supply Chain and Distribution - Customers are currently on allocation, receiving only 70% of their propane loads, with increased wait times for trucks loading propane directly from the pipeline [3]. - Trucks are also sourcing propane from alternative distribution hubs, such as Phillips 66's Bayway refinery in Linden, New Jersey [3]. Group 3: Market Conditions and Pricing - Approximately 2.7% of New Jersey households and 5.2% of Pennsylvania households utilize propane for heating, with residential propane prices remaining stable since the incident, while wholesale prices have increased by 30 cents per gallon in New Jersey and 11 cents per gallon in Pennsylvania [5]. - The Pennsylvania Department of Transportation has also waived hours-of-service regulations for bulk propane transport in response to the disruption [5]. Group 4: Regulatory Actions and Future Outlook - The National Propane Gas Association is in discussions with the Federal Motor Carrier Safety Administration for a regional waiver due to the impact on the Mid-Atlantic and New England regions [6]. - The waivers in Pennsylvania and New Jersey are specifically related to the disruption at Marcus Hook and not indicative of an overall propane shortage [7].

Core Viewpoint - Phillips 66 is actively restructuring its portfolio and enhancing its financial position through strategic asset sales and focusing on growth in its Midstream business [3][4][5]. Group 1: Asset Sale - Phillips 66 has sold a 65% stake in its retail marketing business in Germany and Austria to a consortium led by Stonepeak Partners LP and Energy Equation Partners, retaining a 35% non-operating interest through a new joint venture [3]. - The transaction values the retail business at an enterprise value of approximately $2.8 billion, with Phillips 66 receiving about $1.6 billion in pre-tax proceeds [4]. Group 2: Financial Outlook - The sale is part of a strategy to strengthen the company's balance sheet and streamline its operations [4]. - Piper Sandler raised the price target for Phillips 66 from $170 to $171, maintaining a 'Neutral' rating, following an investor trip that showcased the growth potential of its Midstream business [5]. - The Midstream segment is expected to contribute around 40% to the company's EBITDA for 2025, with projected EBITDA growth of $500 million over the next two years [5]. Group 3: Investment Position - Phillips 66 has been recognized as one of the best stocks for long-term investment, although some analysts suggest that certain AI stocks may offer greater upside potential [6].

Core Viewpoint - Chevron and Phillips 66's joint venture, Chevron Phillips Chemical (CPChem), is advancing two world-class petrochemical projects that are now expected to commence production in 2027, delayed from the original 2026 timeline [1] Group 1: Project Details - The two projects include an $8.5 billion ethylene and high-density polyethylene (HDPE) joint facility located in Orange, Texas, and a $6 billion integrated petrochemical complex in Ras Laffan, Qatar [1] - The Texas project will feature a 2.1 million tons per year ethane cracker and two HDPE units with a capacity of 1 million tons each, while the Qatar project will have a 2.1 million tons per year ethane cracker and two HDPE units with a total capacity of 1.68 million tons per year [1] Group 2: Market Impact - Upon completion, these projects will add 4.2 million tons per year of ethylene and 2.68 million tons per year of HDPE capacity to the currently oversupplied and weak global market [1] - The projects will leverage low-cost ethane feedstock from U.S. shale gas and Qatar's North Field, providing a competitive cost advantage [1]

Core Insights - Phillips 66 (PSX) completed the divestment of a 65% interest in its German and Austrian fuel retail marketing business, with the transaction valued at $2.8 billion and generating $1.6 billion in pre-tax proceeds [1][2][7] - The company aims to focus on more profitable and attractive businesses, which is expected to enhance long-term shareholder value and reduce its debt profile [2][7] - Since 2022, PSX has divested over $5 billion in assets while strengthening its positions in the U.S. Central Corridor and the Gulf Coast [3] Financial Performance - Following the divestment, PSX stock closed at $139.06 per share, reflecting a 1.5% increase since the last divestment and a year-to-date rise of 10.91% [1] - The company retains a 35% non-operational interest in the divested business, indicating a continued stake in the market [2] Industry Context - Other key players in the downstream sector include PBF Energy Inc., Valero Energy Corporation, and Chevron Corporation, all benefiting from lower raw material costs due to West Texas Intermediate crude prices trading below $60 per barrel [5] - PBF Energy has a daily throughput capacity of 1.023 million barrels, showcasing its advanced refining assets [5] - Valero Energy focuses on returning capital to shareholders through dividends and repurchases, while Chevron operates across the entire energy value chain [6]

Core Viewpoint - Phillips 66 (NYSE:PSX) is recognized as a strong long-term investment option, particularly due to its Midstream business potential and solid financial position [1][2]. Group 1: Investment Potential - Phillips 66 is included among the 14 Best US Stocks to Buy for Long Term, indicating strong investor confidence in its future performance [1]. - Piper Sandler has raised the price target for Phillips 66 to $171 from $170, maintaining a Neutral rating, which reflects cautious optimism about the company's growth prospects [2]. - The Midstream segment is expected to contribute 40% of the projected EBITDA for 2025, highlighting its significance in the company's overall financial strategy [2]. Group 2: Financial Performance - In Q3 2025, Phillips 66's Midstream results saw a decline due to lower margins, but the company anticipates achieving $4.5 billion in Midstream EBITDA by 2027, indicating a recovery and growth trajectory [3]. - The company reported an operating cash flow of $1.2 billion in the recent quarter, showcasing its strong cash generation capabilities [3]. - At the end of the quarter, Phillips 66 had nearly $2 billion in cash and cash equivalents, reinforcing its solid balance sheet compared to peers [3].