- Phillips 66 reported an adjusted Earnings Per Share (EPS) of $2.38, surpassing the estimated $1.72.
- The refinery margin per barrel was $11.25, higher than the anticipated $10.88.
- Operating expenses amounted to $848 million, marking a 4.1% year-over-year decrease.
- For the third quarter, Phillips 66 anticipates global Olefins & Polyolefins utilization in the mid-90% range.
- Third-quarter refining crude utilization is expected to be in the low to mid-90% range.
- The company projects third-quarter refining turnaround expenses to be between $50 million and $60 million.
- Corporate and other costs for the third quarter are expected to range from $350 million to $370 million.
- In the second quarter, operating cash flow was $845 million, with capital expenditures and investments totaling $587 million.
- Market analysts have rated Phillips 66 with 10 buy recommendations, 12 holds, and 1 sell.
Phillips 66 on Smartkarma
Phillips 66 is under the spotlight on Smartkarma, with insightful analysis from Baptista Research shedding light on the company’s recent activities. Mark Lashier, the Chairman and CEO, remains committed to the company’s strategic direction amidst macro-economic challenges in various segments. Despite reporting earnings of $487 million, adjustments for factors like accelerated depreciation led to a temporary loss of $368 million. The focus on midstream operations, particularly in NGLs, shows promise for future payoffs.
The entry of activist investor Elliott Investment Management has added a new dimension to Phillips 66‘s corporate landscape. Elliott has taken bold steps, including filing a lawsuit against the company and demanding board seats for election at the upcoming shareholder meeting. With a significant stake in Phillips 66, Elliott’s intervention aims to unlock value and influence the board’s composition. Despite hidden pitfalls that could affect performance, Phillips 66‘s integrated portfolio and strategic priorities position it well for navigating challenging market conditions.
A look at Phillips 66 Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 4 | |
| Growth | 3 | |
| Resilience | 3 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.4 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Phillips 66, a downstream energy company with operations in oil refining, marketing, transportation, chemical manufacturing, and power generation, has been assessed using the Smartkarma Smart Scores. Across various factors, the company has received a mixed outlook. The company scores well in Dividend and Momentum, indicating a positive outlook for its dividend payments and market momentum. However, its scores in Value, Growth, and Resilience are moderate, suggesting average performance in these areas. Overall, while Phillips 66 shows strength in dividend distribution and market momentum, there may be room for improvement in areas related to value, growth, and resilience.
In analyzing Phillips 66‘s long-term prospects, the Smartkarma Smart Scores offer valuable insights. With a solid score in Dividend, investors can take comfort in the company’s commitment to rewarding shareholders. Additionally, the high Momentum score points towards a strong performance trend in the market. However, the average scores in Value, Growth, and Resilience highlight areas where Phillips 66 may need to focus on enhancing its performance for sustained long-term success. Investors seeking a company with a reliable dividend track record and market momentum may find Phillips 66 appealing, although there may be considerations around value, growth, and resilience that need further evaluation.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
Have feedback on this article? Concerned about the content? Get in touch with us directly.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Analytics and News
- ✓ Events & Webinars
