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Here's How Much a $1000 Investment in Phillips 66 Made 10 Years Ago Would Be Worth Today
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How much a stock's price changes over time is a significant driver for most investors. Not only can price performance impact your portfolio, but it can help you compare investment results across sectors and industries as well.
The fear of missing out, or FOMO, also plays a factor in investing, especially with particular tech giants, as well as popular consumer-facing stocks.
What if you'd invested in Phillips 66 (PSX - Free Report) ten years ago? It may not have been easy to hold on to PSX for all that time, but if you did, how much would your investment be worth today?
Phillips 66's Business In-Depth
With that in mind, let's take a look at Phillips 66's main business drivers.
Based in Houston, TX, Phillips 66's operations incorporate refining, midstream, marketing and specialties, and chemicals. The company, in its current form, came into existence following the 2012 spin-off of ConocoPhillips' downstream business into a separate, independent and publicly-traded entity. The company’s operations include processing, transportation, storing and marketing fuels and products all over the world. Phillips 66 Partners, the company's master limited partnership, is an important asset in the portfolio. The company operates through the four business segments, namely, Midstream, Chemicals, Refining, and Marketing and Specialties.
Midstream – contributed $1,902 million to total earnings in 2021 – gathers, processes, transports and markets natural gas; and transports, fractionates and markets NGL in the United States. In addition, this segment transports crude oil and other feedstocks to its refineries and other locations, and delivers refined and specialty products to the market.
Chemicals – contributed $1899 million in profits – manufacture and markets petrochemicals and plastics on a worldwide basis. The segment consists of its 50% stake in the joint venture (JV) with Chevron, named Chevron Phillips Chemical Company LLC.Assets of the JV are primarily located on the U.S. Texas Gulf Coast and Middle East. Moreover, the JV has manufacturing properties all around the world.
Refining – delivered $1,144 million loss – buys, sells and refines crude oil and other feedstocks at its refineries. The company owns interest in 13 refineries located in the United States and in Europe.
Marketing and Specialties – contributed $1,815 million in profits – purchases for resale and markets refined products, mainly in the United States and Europe. In addition, this segment includes the manufacturing and marketing of specialty products.
Phillips 66 recently completed the acquisition of Phillips 66 Partners’ remaining units for $3.4 billion. The acquisition is expected to simplify Phillips 66’s governance and corporate structure.
Bottom Line
Anyone can invest, but building a successful investment portfolio requires research, patience, and a little bit of risk. So, if you had invested in Phillips 66 ten years ago, you're likely feeling pretty good about your investment today.
A $1000 investment made in June 2012 would be worth $3,448.53, or a 244.85% gain, as of June 2, 2022, according to our calculations. Investors should note that this return excludes dividends but includes price increases.
In comparison, the S&P 500 gained 220.90% and the price of gold went up 9.35% over the same time frame.
Analysts are anticipating more upside for PSX.
Phillips 66is the leading player in each of its operations like refining, chemicals and midstream in terms of size, efficiency and strength. With its pipeline network spreading across 22,000 miles, the company is a leader in the midstream business, generating stable fee-based revenues. The company is well-poised to make huge profit from higher demand for distillate fuel. Phillips 66 recently reported strong first-quarter results, owing to stronger refining margins. However, the company’s significant exposure to debt is concerning. It expects jet fuel and overall refined products’ demand to stay down. Hence, the company will miss the potential gain in refining margins. Also, it has been constantly bearing the brunt of increasing costs over the past few quarters, adversely affecting the income. As such, the stock warrants a cautious stance.
The stock has jumped 7.29% over the past four weeks. Additionally, no earnings estimate has gone lower in the past two months, compared to 4 higher, for fiscal 2022; the consensus estimate has moved up as well.
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Here's How Much a $1000 Investment in Phillips 66 Made 10 Years Ago Would Be Worth Today
How much a stock's price changes over time is a significant driver for most investors. Not only can price performance impact your portfolio, but it can help you compare investment results across sectors and industries as well.
The fear of missing out, or FOMO, also plays a factor in investing, especially with particular tech giants, as well as popular consumer-facing stocks.
What if you'd invested in Phillips 66 (PSX - Free Report) ten years ago? It may not have been easy to hold on to PSX for all that time, but if you did, how much would your investment be worth today?
Phillips 66's Business In-Depth
With that in mind, let's take a look at Phillips 66's main business drivers.
Based in Houston, TX, Phillips 66's operations incorporate refining, midstream, marketing and specialties, and chemicals. The company, in its current form, came into existence following the 2012 spin-off of ConocoPhillips' downstream business into a separate, independent and publicly-traded entity. The company’s operations include processing, transportation, storing and marketing fuels and products all over the world. Phillips 66 Partners, the company's master limited partnership, is an important asset in the portfolio. The company operates through the four business segments, namely, Midstream, Chemicals, Refining, and Marketing and Specialties.
Midstream – contributed $1,902 million to total earnings in 2021 – gathers, processes, transports and markets natural gas; and transports, fractionates and markets NGL in the United States. In addition, this segment transports crude oil and other feedstocks to its refineries and other locations, and delivers refined and specialty products to the market.
Chemicals – contributed $1899 million in profits – manufacture and markets petrochemicals and plastics on a worldwide basis. The segment consists of its 50% stake in the joint venture (JV) with Chevron, named Chevron Phillips Chemical Company LLC.Assets of the JV are primarily located on the U.S. Texas Gulf Coast and Middle East. Moreover, the JV has manufacturing properties all around the world.
Refining – delivered $1,144 million loss – buys, sells and refines crude oil and other feedstocks at its refineries. The company owns interest in 13 refineries located in the United States and in Europe.
Marketing and Specialties – contributed $1,815 million in profits – purchases for resale and markets refined products, mainly in the United States and Europe. In addition, this segment includes the manufacturing and marketing of specialty products.
Phillips 66 recently completed the acquisition of Phillips 66 Partners’ remaining units for $3.4 billion. The acquisition is expected to simplify Phillips 66’s governance and corporate structure.
Bottom Line
Anyone can invest, but building a successful investment portfolio requires research, patience, and a little bit of risk. So, if you had invested in Phillips 66 ten years ago, you're likely feeling pretty good about your investment today.
A $1000 investment made in June 2012 would be worth $3,448.53, or a 244.85% gain, as of June 2, 2022, according to our calculations. Investors should note that this return excludes dividends but includes price increases.
In comparison, the S&P 500 gained 220.90% and the price of gold went up 9.35% over the same time frame.
Analysts are anticipating more upside for PSX.
Phillips 66is the leading player in each of its operations like refining, chemicals and midstream in terms of size, efficiency and strength. With its pipeline network spreading across 22,000 miles, the company is a leader in the midstream business, generating stable fee-based revenues. The company is well-poised to make huge profit from higher demand for distillate fuel. Phillips 66 recently reported strong first-quarter results, owing to stronger refining margins. However, the company’s significant exposure to debt is concerning. It expects jet fuel and overall refined products’ demand to stay down. Hence, the company will miss the potential gain in refining margins. Also, it has been constantly bearing the brunt of increasing costs over the past few quarters, adversely affecting the income. As such, the stock warrants a cautious stance.
The stock has jumped 7.29% over the past four weeks. Additionally, no earnings estimate has gone lower in the past two months, compared to 4 higher, for fiscal 2022; the consensus estimate has moved up as well.