Phillips 66 (NYSE:PSX) Q4 2023 Earnings Conference Call January 31, 2024 12:00 PM ET Company Participants Jeff Dietert - Vice President, Investor Relations Mark Lashier - President and CEO Kevin Mitchell - Chief Financial Officer Tim Roberts - Midstream and Chemicals Rich Harbison - Refining Brian Mandell - Marketing and Commercial Conference Call Participants Ryan Todd - Piper Sandler Manav Gupta - UBS Doug Leggate - Bank of America John Royall - JPMorgan Paul Cheng - Scotiabank Matthew Blair - Tudor, Pick ...

Core Insights - Phillips 66 reported fourth-quarter 2023 adjusted earnings of $3.09 per share, exceeding the Zacks Consensus Estimate of $2.37, but lower than the $4 from the same quarter last year [1] - Total quarterly revenues reached $38.74 billion, surpassing the Zacks Consensus Estimate of $34.3 billion, yet declining from $40.91 billion in the prior year [1] - The better-than-expected results were mainly due to decreased costs and expenses, although this was partially offset by lower refining margins globally [1] Segmental Results - **Midstream**: Adjusted pre-tax earnings were $754 million, an increase from $674 million in the year-ago quarter, and exceeded the estimate of $410 million [2] - **Chemicals**: Adjusted pre-tax earnings rose to $106 million from $52 million in the prior-year quarter, surpassing the estimate of $88.8 million [3] - **Refining**: Adjusted pre-tax earnings fell to $797 million from $1,626 million in the year-ago quarter, missing the projection of $977.4 million. Realized refining margins worldwide decreased to $14.41 per barrel from $19.73 a year ago [4] - **Marketing and Specialties**: Pre-tax earnings declined to $432 million from $539 million in the year-ago quarter, with realized marketing fuel margins in the U.S. dropping to $1.62 per barrel from $2.05 [5] Costs and Expenses - Total costs and expenses in the fourth quarter decreased to $37 billion from $38.36 billion in the previous year, exceeding the projection of $31.84 billion [6] Financial Condition - Phillips 66 generated $2.19 billion of net cash from operations, down from $4.75 billion a year ago. Capital expenditures totaled $634 million, with dividends paid out amounting to $457 million [7] - As of December 31, 2023, cash and cash equivalents were $3.3 billion, and total debt stood at $19.4 billion, reflecting a net debt to capitalization of 34% [7]

STRONG PERFORMANCE, EXECUTING ON OUR PRIORITIES 4Q 2023 CONFERENCE CALL January 31, 2024 ...

For the quarter ended December 2023, Phillips 66 (PSX) reported revenue of $-999 million, down 102.4% over the same period last year. EPS came in at $3.09, compared to $4.00 in the year-ago quarter. ...

HOUSTON--(BUSINESS WIRE)--Phillips 66 (NYSE: PSX), a leading diversified and integrated downstream energy company, announced fourth-quarter earnings of $1.3 billion, compared with earnings of $2.1 billion in the third quarter. Excluding special items of $102 million, the company had adjusted earnings of $1.4 billion in the fourth quarter, compared with third-quarter adjusted earnings of $2.1 billion. In addition, the company provided an update on progress toward its strategic priorities. “ In the fourth qu ...

Core Viewpoint - Phillips 66 is expected to report fourth-quarter 2023 earnings on January 31, with a consensus estimate indicating a significant decline in earnings and revenues compared to the previous year [1][2]. Estimate Trend - The Zacks Consensus Estimate for fourth-quarter earnings per share is $2.41, reflecting two upward and four downward revisions in the last 60 days, indicating a notable decline from the previous year's figure [2]. - The estimated revenue for the fourth quarter is $34.3 billion, which represents a 16.1% decrease from the year-ago reported figure [2]. Factors to Consider - The company is likely to have stable earnings from its midstream business due to the integration of pipeline and storage assets with refining, marketing, specialties, and chemical segments [3]. - However, high oil prices and lower retail gasoline prices in the fourth quarter are expected to negatively impact refining operations, with adjusted pre-tax earnings from refining projected to decline nearly 40% year over year [3]. Earnings Whispers - The current model does not indicate an earnings beat for Phillips 66, as the Earnings ESP is 0.00% and the company holds a Zacks Rank of 3 (Hold) [4]. Stocks to Consider - Western Midstream Partners, LP has an Earnings ESP of +10.54% and a Zacks Rank of 2, scheduled to release fourth-quarter earnings on February 21 [5]. - Exxon Mobil Corporation has an Earnings ESP of +0.49% and a Zacks Rank of 3, with earnings scheduled for release on February 2 [5].

Core Viewpoint - The market anticipates a year-over-year decline in earnings for Phillips 66 due to lower revenues, with a consensus EPS estimate of $2.41, reflecting a -39.8% change [2][5]. Earnings Expectations - Revenues for Phillips 66 are expected to be $34.3 billion, down 16.1% from the previous year [2]. - The consensus EPS estimate has been revised 3.37% lower in the last 30 days, indicating a reassessment by analysts [2]. Earnings Surprise Prediction - The Zacks Earnings ESP model shows that the Most Accurate Estimate for Phillips 66 matches the Zacks Consensus Estimate, resulting in an Earnings ESP of 0% [5]. - The stock holds a Zacks Rank of 3, making it challenging to predict an earnings beat [6]. Historical Performance - In the last reported quarter, Phillips 66 had an expected EPS of $4.78 but reported $4.63, resulting in a surprise of -3.14% [7]. - Over the last four quarters, the company has beaten consensus EPS estimates two times [7]. Industry Comparison - In the same industry, Marathon Petroleum is expected to post earnings of $2.36 per share, indicating a -64.5% year-over-year change, with revenues expected at $33.73 billion, down 15.9% [9]. - Marathon Petroleum has a higher Earnings ESP of 2.21% and has beaten consensus EPS estimates in the last four quarters [9].

The most recent trading session ended with Phillips 66 (PSX) standing at $129.66, reflecting a +0.44% shift from the previouse trading day's closing. This change outpaced the S&P 500's 0.22% gain on the day. At the same time, the Dow added 0.36%, and the tech-heavy Nasdaq gained 0.32%.The oil refiner's stock has dropped by 3.71% in the past month, exceeding the Oils-Energy sector's loss of 5.7% and lagging the S&P 500's gain of 1.61%.Analysts and investors alike will be keeping a close eye on the performanc ...

Core Insights - Phillips 66 is set to launch its Rodeo Renewed plant, a significant renewable diesel facility in Rodeo, CA, marking a transition from traditional oil refining to renewable fuel production [1][3] - The project has successfully passed a new environmental review, despite previous challenges related to environmental compliance [1][2] - Upon completion, the Rodeo Renewed plant will be the world's largest renewable fuel production facility, expected to reduce greenhouse gas emissions by 50% [3] Environmental Review and Approval - The recent environmental review acknowledged eight significant and unavoidable impacts on air quality, hazardous materials, and water quality, but confirmed that all feasible mitigation measures were implemented by Phillips 66 [2] - The Contra Costa County board of supervisors determined that the project's benefits, including contributions to renewable energy and lower-carbon solutions, outweigh the identified environmental impacts [2] Industry Trends and Company Strategy - The Rodeo Renewed project reflects broader industry trends towards renewable energy sources and growing environmental consciousness in fuel production [3] - Phillips 66's initiative is a response to regulatory pressures and market trends favoring renewable energy, highlighting the complexities of transitioning from fossil fuels to renewable sources [3]

Phillips 66 (PSX) has gained 24.2% in the past year, outpacing the industry’s 3.4% improvement. What's Favoring the Stock?PSX has a diversified business model, with a significant presence in businesses related to refining midstream, chemicals and marketing & specialties. In each of its operations, Phillips 66 has a solid footprint pertaining to safety, profitability, size and competitive strengths.It is focusing more on businesses like midstream, renewables and chemicals, which makes the business model more ...