Phillips 66 (PSX - Free Report) announced that it has postponed a planned maintenance on a sulfur recovery unit (SRU) in its 146,000 barrel-per-day Borger, TX, refinery. The scheduled maintenance was to be conducted on Aug 26. We feel this delay may put pressure on the price of oil-based products like gasoline and diesel. This is solely due to the fact that any cut down in refinery production will give boost to price rise at a time when globally there is a huge surplus stock of gasoline and diesel.
Phillips 66 – through its extensive infrastructural network – manages 15,000 miles of crude oil, petroleum product and NGL pipeline, 42 finished product terminals, eight liquefied petroleum gas terminals, five crude oil terminals, and one coke exporting facility. The company’s vast range of operations should continue to increase revenues and boost shareholder value in the to-be-reported quarter as well as in the coming years.
Phillips 66 remains focused on its supply chain network. To this end, the company invests heavily in transportation and logistics assets. This should enhance its crude extraction capabilities from sources round the globe, thereby boosting its earnings.
However, Phillips 66’s performance is dependent on sourcing crude from suppliers worldwide. Hence, a steady supply is mandatory for the company to maintain its production volume. Any geo-political disturbance globally can render its refineries idle and hamper its top-line growth.
Also, the company’s profitability depends on the spread between the margins of refined product prices and crude oil feedstock prices. It is also contingent on a host of macro factors that are outside the domain of its control.
Moreover, Phillips 66’s chemicals business operates in a highly volatile industry where sales prices are always fluctuating. Notably, the company’s profitability in such a sector is not always guaranteed by controlling prices of raw materials only.
The company currently carries a Zacks Rank #5 (Strong Sell). Some better-ranked players from the energy sector are Devon Energy Corporation (DVN - Free Report) , NGL Energy Partners LP (NGL - Free Report) and Enbridge Energy Partners L.P. . All these stocks sport a Zacks Rank #1 (Strong Buy).
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Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Phillips 66 (PSX - Free Report) announced that it has postponed a planned maintenance on a sulfur recovery unit (SRU) in its 146,000 barrel-per-day Borger, TX, refinery. The scheduled maintenance was to be conducted on Aug 26. We feel this delay may put pressure on the price of oil-based products like gasoline and diesel. This is solely due to the fact that any cut down in refinery production will give boost to price rise at a time when globally there is a huge surplus stock of gasoline and diesel.
Phillips 66 – through its extensive infrastructural network – manages 15,000 miles of crude oil, petroleum product and NGL pipeline, 42 finished product terminals, eight liquefied petroleum gas terminals, five crude oil terminals, and one coke exporting facility. The company’s vast range of operations should continue to increase revenues and boost shareholder value in the to-be-reported quarter as well as in the coming years.
Phillips 66 remains focused on its supply chain network. To this end, the company invests heavily in transportation and logistics assets. This should enhance its crude extraction capabilities from sources round the globe, thereby boosting its earnings.
However, Phillips 66’s performance is dependent on sourcing crude from suppliers worldwide. Hence, a steady supply is mandatory for the company to maintain its production volume. Any geo-political disturbance globally can render its refineries idle and hamper its top-line growth.
Also, the company’s profitability depends on the spread between the margins of refined product prices and crude oil feedstock prices. It is also contingent on a host of macro factors that are outside the domain of its control.
Moreover, Phillips 66’s chemicals business operates in a highly volatile industry where sales prices are always fluctuating. Notably, the company’s profitability in such a sector is not always guaranteed by controlling prices of raw materials only.
The company currently carries a Zacks Rank #5 (Strong Sell). Some better-ranked players from the energy sector are Devon Energy Corporation (DVN - Free Report) , NGL Energy Partners LP (NGL - Free Report) and Enbridge Energy Partners L.P. . All these stocks sport a Zacks Rank #1 (Strong Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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