Phillips 66 Posts Strong Q3 Results With Marketing, Chemicals Driving Gains

Phillips 66 PSX shares are trading lower on Tuesday after it reported third-quarter FY24 results.

Midstream segment adjusted pre-tax income stood at $672 million, vs. $753 million in the second quarter of FY24, owing to seasonal maintenance costs and lower equity earnings.

The Chemicals segment adjusted pre-tax income stood at $342 million versus $222 million in the prior quarter, led by higher margins and lower costs.

The Refining segment adjusted pre-tax income stood at $(67) million versus $302 million in the prior quarter due to weak realized margins on lower market crack spreads.

The Marketing and Specialties segment adjusted pre-tax income rose to $583 million from $415 million in the prior quarter on higher margins.

Adjusted EPS of $2.04 topped the consensus of $1.66.

The company reported refining operations with 94% crude capacity utilization and 87% clean product yield.

Phillips 66 reported operating cash flow, excluding working capital impacts, of $1.51 billion. 

As of September 30, the company reported cash and cash equivalents of $1.6 billion, along with $5.3 billion in committed credit facility capacity.

Since July 2022, the company has distributed $12.5 billion through share repurchases and dividends and is on pace to achieve its $13 billion to $15 billion target by year-end.

Phillips 66 achieved $1.4 billion in run-rate cost savings in the quarter.

Investors can gain exposure to the stock via IShares U.S. Oil & Gas Exploration & Production ETF IEO and VanEck Oil Refiners ETF CRAK.

Price Action: PSX shares are down 1.75% at $126.63 at last check Tuesday.

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