Q3 2023 Earnings Summary
Reported on Jan 4, 2025 (Before Market Open)
Pre-Earnings Price$110.10Last close (Oct 26, 2023)
Post-Earnings Price$111.14Open (Oct 27, 2023)
Price Change
$1.04(+0.94%)
- 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.