Phillips 66 (NYSE:PSX) Announces Earnings Results, Misses Estimates By $1.61 EPS

Phillips 66 (NYSE:PSX) issued its quarterly earnings results on Wednesday. The oil and gas company reported $0.49 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $2.10 by ($1.61), Zacks reports. Phillips 66 had a net margin of 3.22% and a return on equity of 9.13%. The business had revenue of $32.54 billion for the quarter, compared to analysts’ expectations of $34.36 billion. During the same period last year, the business earned ($0.90) earnings per share. The company’s revenue was up 6.9% on a year-over-year basis.

Here are the key takeaways from Phillips 66’s conference call:

• Company highlighted strong commercial agility and operational reliability during unprecedented commodity volatility, achieving a market capture of 138% by leveraging global trading, Jones Act waivers, and time‑chartered vessels.
• Reported Q1 earnings were $207M ($200M adjusted) and were materially impacted by $839M of mark‑to‑market losses
• Management expects refining margins to remain constructive through the remainder of the year with worldwide crude utilization in the low‑to‑mid‑90s, while CP Chem (80%+ U.S. Gulf Coast capacity) is well positioned to capture stronger petrochemical margins.
• Capital allocation remains disciplined — the company returned $778M (including $269M of buybacks), raised the dividend 7%, reiterated returning >50% of operating cash flow to shareholders, and reaffirmed a target to reduce total debt to $17B by year‑end 2027.
• Growth projects and targets remain on track — management expects FID on the Western Gateway pipeline mid‑to‑late summer (target in‑service 2029) and reiterated a $4.5B midstream EBITDA goal for 2027, implying additional volume and cash‑flow upside.

Phillips 66 Stock Up 0.8%

Phillips 66 stock traded up $1.33 during trading hours on Thursday, hitting $174.82. The stock had a trading volume of 317,976 shares, compared to its average volume of 3,000,960. The company has a quick ratio of 0.91, a current ratio of 1.30 and a debt-to-equity ratio of 0.62. The stock has a market capitalization of $70.06 billion, a P/E ratio of 16.16, a price-to-earnings-growth ratio of 0.28 and a beta of 0.76. Phillips 66 has a 12-month low of $103.35 and a 12-month high of $190.61. The stock’s 50-day moving average price is $167.21 and its 200-day moving average price is $148.79.

Phillips 66 Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Monday, June 1st. Shareholders of record on Monday, May 18th will be issued a $1.27 dividend. The ex-dividend date of this dividend is Monday, May 18th. This represents a $5.08 annualized dividend and a yield of 2.9%. Phillips 66’s payout ratio is 46.95%.

Phillips 66 News Summary

Here are the key news stories impacting Phillips 66 this week:

• Positive Sentiment: Surprise Q1 profit and earnings beat driven by stronger refining margins — management cited higher realized refining margins that produced an unexpected adjusted profit for the quarter. Refiner Phillips 66 posts surprise profit
• Positive Sentiment: Higher utilization and throughput: Phillips is running its nine refineries in the low- to mid‑90% range (roughly 95% utilization vs ~80% a year earlier), boosting underlying refinery margins and volumes. Phillips 66 running refineries in low to mid 90% range
• Positive Sentiment: Operational progress and shareholder focus: management emphasized expanded midstream/export capacity (e.g., NGL fractionation and LPG export dock projects) and reiterated capital allocation priorities. That message supports confidence in recurring cash generation. Q1 2026 Earnings Call Highlights
• Neutral Sentiment: Analyst momentum and sector tailwinds: Zacks upgraded PSX to “strong‑buy” and energy names broadly were stronger—these market/analyst signals likely amplified the stock’s reaction. Zacks: Q1 Earnings Beat
• Negative Sentiment: Large mark‑to‑market losses: the quarter included sizable pre‑tax derivative losses (management has referenced ~\$900M pre-tax tied to a net short derivatives position), which weighed on reported profitability and could reverse if commodity prices move. Q1 Earnings Beat (notes on derivative losses)
• Negative Sentiment: Near‑term costs and balance‑sheet targets: the company expects Q2 turnaround expenses of roughly \$120M–\$150M and has set a target to reduce gross debt toward about \$17B by year‑end 2027 — execution here could pressure cash flow and sentiment if costs or timing deviate. Debt target and Q2 turnaround expense

Insider Transactions at Phillips 66

In other news, Director Lisa Ann Davis sold 3,800 shares of Phillips 66 stock in a transaction that occurred on Friday, March 13th. The shares were sold at an average price of $174.37, for a total value of $662,606.00. Following the completion of the sale, the director directly owned 8,701 shares in the company, valued at $1,517,193.37. The trade was a 30.40% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, CFO Kevin J. Mitchell sold 15,629 shares of Phillips 66 stock in a transaction that occurred on Monday, March 30th. The stock was sold at an average price of $190.07, for a total transaction of $2,970,604.03. Following the completion of the sale, the chief financial officer owned 97,376 shares of the company’s stock, valued at $18,508,256.32. This represents a 13.83% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last three months, insiders sold 95,923 shares of company stock valued at $16,399,619. Company insiders own 0.40% of the company’s stock.

Institutional Trading of Phillips 66

Large investors have recently made changes to their positions in the stock. SWAN Capital LLC grew its stake in shares of Phillips 66 by 1,055.6% in the fourth quarter. SWAN Capital LLC now owns 208 shares of the oil and gas company’s stock worth $27,000 after acquiring an additional 190 shares during the period. Sfam LLC bought a new stake in Phillips 66 during the fourth quarter valued at approximately $34,000. Wealth Watch Advisors INC bought a new stake in Phillips 66 during the third quarter valued at approximately $36,000. WFA of San Diego LLC bought a new stake in Phillips 66 during the second quarter valued at approximately $52,000. Finally, Quattro Advisors LLC bought a new stake in Phillips 66 during the fourth quarter valued at approximately $65,000. 76.93% of the stock is currently owned by institutional investors.

Wall Street Analysts Forecast Growth

A number of research analysts recently issued reports on the stock. Citigroup lifted their price target on shares of Phillips 66 from $159.00 to $183.00 and gave the company a “neutral” rating in a research report on Thursday, April 9th. BMO Capital Markets lifted their price target on shares of Phillips 66 from $175.00 to $195.00 and gave the company an “outperform” rating in a research report on Tuesday, April 7th. JPMorgan Chase & Co. lifted their target price on shares of Phillips 66 from $161.00 to $188.00 and gave the stock an “overweight” rating in a report on Wednesday, April 8th. Raymond James Financial lifted their target price on shares of Phillips 66 from $175.00 to $205.00 and gave the stock an “outperform” rating in a report on Wednesday, March 25th. Finally, Zacks Research raised shares of Phillips 66 from a “hold” rating to a “strong-buy” rating in a report on Monday. One research analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating and eleven have given a Hold rating to the company. According to MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $181.33.

Phillips 66 Company Profile

Phillips 66 (NYSE: PSX) is an independent energy manufacturing and logistics company engaged primarily in refining, midstream transportation, marketing and chemicals. The company processes crude oil into transportation fuels, lubricants and other petroleum products, operates pipeline and storage infrastructure, and participates in petrochemical production through strategic investments. Phillips 66 serves commercial, industrial and retail customers and positions its operations across the value chain of the downstream energy sector.

The company’s principal activities include refining crude oil into gasoline, diesel, jet fuel and feedstocks for petrochemical production; operating midstream assets such as pipelines, terminals and fractionators that move and store crude oil and natural gas liquids; and marketing and distributing fuels and lubricants through wholesale and retail channels.

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