Here's Why Retain Strategy is Apt for Phillips 66 Stock Now

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]