Phillips 66 (PSX Quick QuotePSX - Free Report) is looking to divest its Alliance refinery in Bell Chasse, LA, per Reuters. The decision reflects continued losses owing to the coronavirus pandemic as demand for gasoline and jet fuel has declined massively.

Power outages and shutdowns owing to hurricanes also kept the company from restoring normal operations of its Alliance refinery, which has the capacity to refine 255,600 barrels per day. Hence, the leading refiner in the United States is in talks with a potential buyer, the source revealed.

This initiative reflects possibilities of its refining business suffering in the long run since demand for cleaner fuel is on the rise. To add to the concerns, leading auto companies are now gradually turning focus to electric vehicles, thereby denting the long-term demand outlook for gasoline and jet fuels. Gregory Garland, chairman and CEO of Phillips 66, said that since the scope of refining business in the United States will get narrower in future, the focus will now be on hydrogen and cleaner fuels and also providing components of electric car batteries.

Phillips 66 Price

Phillips 66 price | Phillips 66 Quote

Phillips 66 currently carries a Zacks Rank #4 (Sell). A few better-ranked players in the energy space include Whiting Petroleum Corporation , Continental Resources, Inc. and PDC Energy, Inc. . While Whiting Petroleum and Continental Resources sport a Zacks Rank #1, PDC Energy carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Whiting Petroleum has witnessed upward earnings estimate revisions for 2021 in the past 30 days.

Continental is expected to witness earnings growth of 256% in 2021.

PDC Energy is likely to see earnings growth of 111.8% in 2021.