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    Phillips 66 (PSX)

    Q3 2023 Earnings Summary

    Reported on Jan 4, 2025
    Pre-Earnings PriceN/ADate unavailable
    Post-Earnings PriceN/ADate unavailable
    Price ChangeN/A
    • Phillips 66 increased its shareholder return target to $13 billion to $15 billion by year-end 2024, up from the original $10 billion to $12 billion, representing over 50% of operating cash flow.
    • The company raised its mid-cycle adjusted EBITDA growth target to $4 billion between 2022 and 2025, driven by enhanced business transformation and additional synergies from the DCP Midstream acquisition.
    • Phillips 66 has consistently grown its dividend every year since its spin-off and is committed to maintaining this trend.
    • Phillips 66 plans to sell high-performing assets, but management is not providing specific guidance on which assets will be sold or the impact on EBITDA, creating uncertainty about future earnings capacity.
    • Refining capture rates came in lower than expected due to unfavorable price differentials and impacts from inventory hedges, which negatively affected profitability and may continue to do so.
    • Management's reluctance to raise mid-cycle estimates despite better performance suggests uncertainty or lack of confidence in sustaining current performance levels.

    Research analysts covering Phillips 66.