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Phillips 66 (PSX) Q4 Earnings & Revenues Beat Estimates

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Phillips 66 (PSX - Free Report) reported fourth-quarter 2021 adjusted earnings per share of $2.94, beating the Zacks Consensus Estimate of $1.93. The bottom line also turned around from a loss of $1.16 per share in the year-ago quarter.

Quarterly revenues totaled $33,568 million, up from the year-ago quarter’s $16,768 million. The top line also beat the Zacks Consensus Estimate of $22,466 million.

The strong quarterly results were driven by stronger refining margins on a worldwide basis.

Segmental Results


The segment generated adjusted pre-tax quarterly earnings of $668 million, up from $323 million in the year-ago quarter. Higher contributions from transportation, NGL and other activities aided the segment.


It recorded adjusted pre-tax earnings of $424 million, up from $203 million in the prior-year quarter. Contributions from the olefins and polyolefins business aided the segment.


It reported adjusted pre-tax earnings of $404 million against the year-ago loss of $1.1billion. Increased volumes and realized margins backed the segment.

The segment’s realized refining margins on a worldwide basis improved to $11.60 per barrel from the year-ago quarter’s $2.18. The same in the Central Corridor and Atlantic Basin/Europe increased to $12.60 and $11.00 per barrel from the year-ago level of $4.27 and $2.99, respectively. In the Gulf Coast, the metric registered an improvement to $9.19 per barrel from a loss of 78 cents in the prior-year quarter. The West Coast witnessed an increase in margins from $1.79 per barrel in the year-ago quarter to $15.41 for the December quarter of 2021.

Marketing and Specialties

Pre-tax earnings increased to $499 million from $221 million in the year-ago quarter. Increased international and domestic realized marketing fuel margins aided the segment.

While realized marketing fuel margins in the United States increased to $1.87 per barrel from the year-ago quarter’s $1.37, the same in international markets rose to $9.81 from the year-ago level of $5.07.

Costs and Expenses

Total costs and expenses for the fourth quarter increased to $31,941 million from $17,459 million in the year-ago period.

Financial Condition

For the reported quarter, Phillips 66 generated $1,800 million of net cash from operations, up from $639 million a year ago. Its capital expenditures and investments totaled $597 million. It paid dividends of $403 million in the reported quarter.

As of Dec 31, 2021, cash and cash equivalents were $3.1 billion. The company’s total liquidity was $8.8 billion. Consolidated debt was $14.4 billion, reflecting a debt to capitalization of 40%.

Zacks Rank & Other Stocks to Consider

Phillips 66 currently has a Zacks Rank #2 (Buy). Other players in the energy space that warrant a look include Murphy USA Inc. (MUSA - Free Report) , Exxon Mobil Corporation (XOM - Free Report) and APA Corporation (APA - Free Report) . While Murphy USA and ExxonMobil sport a Zacks Rank #1 (Strong Buy), APA Corp. carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Murphy USA is well positioned to gain from improving gasoline demand in the coming months since it is a prominent retailer of gasoline and convenience merchandise. With a network of retail gasoline and convenience stores in 27 states, Murphy USA is able to serve an estimated 2 million customers every day.

In the past 30 days, Murphy USA has witnessed upward earnings estimate revisions for 2022.

A favorable oil pricing scenario is a boon for ExxonMobil’s upstream operations. ExxonMobil has a pipeline of key projects in the Permian — the most prolific basin in the United States — and offshore Guyana. In the Permian, ExxonMobil has an inventory of more than 8,000 well locations, with the integrated energy major estimating a net of 10 billion oil-equivalent barrels of recoverable resource.

In offshore Guyana, ExxonMobil made several discoveries, which are estimated at more than 9 billion oil-equivalent barrels.

APA Corp. is well poised to gain from the latest spike in crude oil and natural gas prices, banking on exploration and production activities in the United States, Egypt and the United Kingdom.

In the past seven days, APA Corp. has witnessed upward earnings estimate revisions for 2022. The Zacks Consensus Estimate for APA Corp.’s 2022 earnings of $6.4 per share suggests a year-over-year improvement of more than 59%.

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