Latest news with #Phillips66
Yahoo
4 days ago
- Business
- Yahoo
Phillips 66 (PSX) Q2 2025 Earnings Call Highlights: Record Refining Utilization and Strong ...
Refining Utilization: 98% utilization, highest since 2018. Clean Product Yield: Over 86% yield. Midstream Adjusted EBITDA: Approximately $1 billion. Shareholder Returns: Over $900 million returned, including $490 million in share repurchases. Reported Earnings: $877 million or $2.15 per share. Adjusted Earnings: $973 million or $2.38 per share. Operating Cash Flow: $845 million; excluding working capital, $1.9 billion. Net Debt to Capital: 41%. Refining Market Capture: 99% of market indicator. Cash from Operations: $1.9 billion, excluding working capital. Capital Spending: $587 million. Ending Cash Balance: $1.1 billion. Warning! GuruFocus has detected 8 Warning Sign with PSX. Release Date: July 25, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Phillips 66 (NYSE:PSX) achieved a refining utilization rate of 98%, the highest since 2018, and a clean product yield of over 86%. The Midstream segment generated an adjusted EBITDA of approximately $1 billion, on track to achieve the $4.5 billion annual EBITDA target by 2027. Marketing and Specialties reported its strongest quarter since 2022, contributing to a robust capital allocation framework. Phillips 66 (NYSE:PSX) returned over $900 million to shareholders this quarter, demonstrating strong shareholder returns. The company achieved the lowest adjusted refining cost per barrel since 2021, with plans to reduce it further by 2027. Negative Points The Chemicals segment saw decreased results due to lower polyethylene margins driven by lower sales prices. Phillips 66 (NYSE:PSX) reported a $239 million pre-tax impact of accelerated depreciation due to the planned cessation of operations at the Los Angeles refinery. Net debt to capital was 41%, reflecting the impact of the Coastal Bend asset acquisition, indicating a need to reduce debt levels. Renewable fuels margins were weak, leading to reduced operational rates at the Rodeo facility. The company faces regulatory challenges in the renewable fuels segment, including changes in eligible feedstocks for PTC credits. Q & A Highlights Q: After the recent shareholder engagement, are you still comfortable with the current strategy of Phillips 66 as an integrated company, or do you foresee any changes? A: Mark Lashier, Chairman and CEO, stated that the company remains committed to its current strategy, which has been supported by shareholder feedback. The board continuously evaluates strategic alternatives to ensure long-term shareholder value creation, and there are no sacred cows except for the focus on shareholder value. Q: Given the strong quarter, how does the current environment affect your $15 billion EBITDA target, and what is the right level of debt for the company? A: Mark Lashier explained that the refining EBITDA was $867 million for the quarter, which annualizes to $3.5 billion at an $11 market indicator. The company aims for a $14 market indicator as mid-cycle, which would bring refining EBITDA to over $5 billion. Kevin Mitchell, CFO, added that the target debt level is $17 billion, which they plan to achieve through cash flow and asset dispositions. Q: What drove the significant quarter-over-quarter improvement in refining results, achieving 99% market capture and 98% crude utilization? A: Rich Harbison, Executive Vice President of Refining, attributed the improvement to a focus on safe and reliable operations, comprehensive reliability programs, and small capital high-return projects that enhanced clean product yield and flexibility. The company also managed costs effectively, achieving a refining cost of $5.46 per barrel. Q: Can you provide insights into the global refining capacity additions and the impact of China's export capacity on the market? A: Brian Mandell, Executive Vice President of Marketing and Commercial, noted that net refinery additions are expected to be below demand expectations through the decade, with low clean product yields from new Asian refineries. This supports a strong margin environment, despite potential unplanned shutdowns and rationalizations in Europe and Asia. Q: How is Phillips 66 addressing the challenges in the renewable fuels segment, given the weak margins? A: Brian Mandell mentioned that the company is running its renewable diesel plant at reduced rates due to weak margins. They are working on lowering operating costs, increasing SAF production, and enhancing feedstock optionality. Regulatory changes and market dynamics are being closely monitored to ensure profitability. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
5 days ago
- Business
- Yahoo
Palantir highs, Phillips 66 Q2 beat, Comcast's Versant spin-off
Julie Hyman examines some of the top stories on Wall Street in Yahoo Finance's Market Minute. Palantir (PLTR) stock climbs to a fresh record high as Piper Sandler analysts initiated coverage of the company with an Overweight rating. Phillips 66 (PSX) is in focus after reporting strong second quarter results. Comcast (CMCSA) named David Novak the board chair of its new spin-off company Versant Media. Stay up to date on the latest market action, minute-by-minute, with Yahoo Finance's Market Minute. And it's time for Yahoo! Finance's Market Minute. Stocks are moving higher poised for yet another record high close. Palantir shares jumping to a new all-time high as well. Piper Sandler initiating coverage on the stock with an overweight rating, calling it a quote, "Secular winner in the AI revolution." Palantir set to release second quarter earnings on August 4th. Energy giant Phillips 66 topping Wall Street's estimates in its second quarter. Refinery utilization hitting 98%, that's its highest level in seven years. The company also announced the sale of a 65% stake in its German and Austrian retail marketing business, which is expected to close by the end of this year. And Comcast shares under pressure down about 5%. The company named its the first board members for its planned spin-off company Versant Media. Co-founder and former CEO of Yum Brands, David Novak will serve as the chairman of that board. And that's your Yahoo! Finance Market Minute. Scan the QR code below to track the best and worst performing stocks of the session. Related Videos Intel earnings, Paramount-Skydance deal, Tesla rises Japan's 'novel' US investment deal faces 'a lot' of questions Question of the day: Are we in a market bubble? What Volkswagen's $1.5B tariff hit means for US expansion Sign in to access your portfolio
Yahoo
5 days ago
- Business
- Yahoo
Phillips 66 Weighs Projects to Profit From Tight Diesel Market
(Bloomberg) -- Phillips 66 is maximizing diesel production to take advantage of strong demand and would consider investing in projects that give its refineries the flexibility to make more of the fuel. Trump Awards $1.26 Billion Contract to Build Biggest Immigrant Detention Center in US The High Costs of Trump's 'Big Beautiful' New Car Loan Deduction Can This Bridge Ease the Troubled US-Canadian Relationship? Salt Lake City Turns Winter Olympic Bid Into Statewide Bond Boom Trump Administration Sues NYC Over Sanctuary City Policy The refiner reported second-quarter earnings on Friday that topped analysts' estimates, with wider-than-expected margins boosting profit in its fuel-making division 19% from a year earlier. 'Refining margins have been driven by strength in diesel,' Chief Financial Officer Kevin Mitchell said in an interview. 'That is a function of very low inventories for distillate as well as strong demand.' Phillips 66 would consider projects that increase its ability to shift between making gasoline and diesel as the trend of low inventories and high demand for diesel persists, Mitchell said. The company earlier this year completed a project at its refinery in Sweeny, Texas, to allow it to more easily switch between processing heavy and light crudes. Diesel has been a focus for refiners and fuel traders this year after President Donald Trump's trade war roiled markets, turning speculators bearish on the industrial and road fuel, which is closely tied to the health of the global economy. But as diesel inventories dwindled into the summer months, traders have boosted bullish bets on the fuel, making it a bright spot for broader oil prices. 'We feel good about where the economy is at this point in time, but acknowledge there is uncertainty,' Mitchell said. Heading into the second half of the year, OPEC's production increases should pressure heavy crude prices, benefiting Phillips 66, Mitchell said. At the same time, about 1.1 million barrels of daily refining capacity is set to close this year — including Phillips 66's Los Angeles refinery — and capacity additions in Asia are focused on petrochemicals rather than refined products, Mitchell said. 'You put all that together, and we're relatively bullish on refining for the near to medium term,' he said. Burning Man Is Burning Through Cash Confessions of a Laptop Farmer: How an American Helped North Korea's Wild Remote Worker Scheme It's Not Just Tokyo and Kyoto: Tourists Descend on Rural Japan Elon Musk's Empire Is Creaking Under the Strain of Elon Musk A Rebel Army Is Building a Rare-Earth Empire on China's Border ©2025 Bloomberg L.P.
Bloomberg
5 days ago
- Business
- Bloomberg
Phillips 66 Weighs Projects to Profit From Tight Diesel Market
By and Barbara J. Powell Save Phillips 66 is maximizing diesel production to take advantage of strong demand and would consider investing in projects that give its refineries the flexibility to make more of the fuel. The refiner reported second-quarter earnings on Friday that topped analysts' estimates, with wider-than-expected margins boosting profit in its fuel-making division 19% from a year earlier.
CTV News
5 days ago
- Business
- CTV News
Phillips 66 profit beats estimates on higher refining margins
A jogger runs in front of the Phillips 66 refinery, July 16, 2014, in the Wilmington area of Los Angeles. (AP Photo/Mark J. Terrill, File) Refiner Phillips 66 beat Wall Street estimates for second-quarter profit on Friday, helped by higher refining margins and lower turnaround expenses. Top U.S. refiners were expected to post higher second-quarter profit, rebounding from losses in the prior quarter as stronger-than-expected diesel margins lifted earnings. The improved margins helped peers such as Valero Energy surpass Wall Street estimates. Fuelmakers have seen an unexpected boost in profit from key products in recent months, offering relief as earnings retreated from 2022 highs, driven by a post-pandemic demand rebound and supply disruptions following Russia's invasion of Ukraine. Analysts cheered stronger refining and marketing margins, which offset a fall in chemicals segment, but flagged concerns about debt as the company expands midstream capabilities. The refiner's realized margin per barrel rose 12.4 per cent to US$11.25 in the quarter from a year ago, while turnaround expenses fell 47 per cent at US$53 million. Its crude capacity utilization was 98 per cent, while adjusted earnings from its refining segment rose about 30 per cent at US$392 million. 'During the quarter, Refining ran at the highest utilization since 2018, achieved its lowest cost per barrel since 2021, strong market capture and record year-to-date clean product yield,' CEO Mark Lashier said. The results come after a board fight in May, where Phillips 66 and activist investor Elliott Investment Management each won two board seats at an annual shareholders meeting. As part of its argument for actions to boost share price, Elliott had advocated exploring the sale or spin off of its midstream business and other asset divestments, to focus on the company's refining operations. Earlier this year, the refiner reported a bigger-than-expected loss for the first quarter, hurt by lower refining margins amid heavy turnaround activities in the U.S. refining sector. In the second quarter, the refiner's quarterly adjusted earnings for its midstream segment was down about three per cent at US$731 million from a year ago. The company reported an adjusted profit of US$2.38 per share for the three months ended June 30, compared with analysts' average estimate of US$1.71, according to data compiled by LSEG. --- Reporting by Tanay Dhumal in Bengaluru; Editing by Arun Koyyur
