We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Phillips 66 (PSX - Free Report) reported third-quarter 2024 adjusted earnings of $2.04 per share, which beat the Zacks Consensus Estimate of $1.63. However, the bottom line was lower than the year-ago quarter’s level of $4.63.
Total quarterly revenues of $36.4 billion beat the Zacks Consensus Estimate of $32 billion. However, the top line declined from the year-ago level of $40.3 billion.
The better-than-expected quarterly results can be primarily attributed to cost reduction and the achievement of Midstream synergy targets. However, this was partially offset by reduced contributions from the Refining segment due to a decline in realized margins.
The segment generated adjusted pre-tax quarterly earnings of $672 million, up from $581 million in the year-ago quarter. The reported figure also surpassed our estimate of $640.3 million. The increase can be attributed to higher export margins, partially offset by seasonal maintenance costs.
Chemicals:
The unit recorded adjusted pre-tax earnings of $342 million, up from $104 million in the prior-year quarter. The reported figure also surpassed our estimate of $106.2 million. The rise in profits can be primarily attributed to increased margins and lower costs.
Refining:
The segment reported an adjusted pre-tax loss of $67 million against adjusted pre-tax earnings of $1.74 billion in the year-ago quarter. The reported figure also missed our projection of earnings of $976 million. The deterioration was primarily due to a decline in realized margins, largely caused by lower market crack spreads.
Refining’s realized refining margins worldwide declined to $8.31 per barrel from the year-ago quarter’s $19.06, and the same in the Central Corridor and Atlantic Basin/Europe declined to $14.19 and $5.87 per barrel, respectively, from the year-ago quarter’s $19.25 and $16.15.
The West Coast’s margins declined to $4.34 per barrel from $31.65 in the year-ago quarter. In the Gulf Coast, the metric declined to $6.39 per barrel from $13.99 a year ago.
Marketing & Specialties:
Pre-tax earnings declined to $583 million from $605 million in the year-ago quarter. The reported figure beat our projection of $464.1 million.
Realized marketing fuel margins in the United States declined to $2.45 per barrel from the year-ago quarter’s $2.85, and the same in the international markets increased to $6.19 from $5.55 a year ago.
Renewable Fuels:
The segment reported an adjusted pre-tax loss of $116 million against adjusted pre-tax earnings of $22 million in the year-ago quarter. The reported figure was wider than our projection of a loss of $50.6 million. This was primarily due to lower realized margins, partially offset by higher volumes.
Costs & Expenses
Total costs and expenses in the third quarter decreased to $35.75 billion from $37.51 billion in the year-ago period. Our projection for the same was pinned at $29.75 billion.
Financial Condition
Phillips 66 generated $1.13 billion of net cash from operations for the reported quarter, significantly lower than $2.69 billion a year ago. The company’s capital expenditure and investments totaled $358 million. It paid out dividends of $477 million in the third quarter.
As of Sept. 30, 2024, cash and cash equivalents were $1.6 billion. Total debt was $19.9 billion, reflecting a debt-to-capitalization of 39.6%.
Zacks Rank & Stocks to Consider
Phillips 66 currently carries a Zacks Rank #5 (Strong Sell).
Archrock is an energy infrastructure company based in the United States. It focuses on midstream natural gas compression, provides natural gas contract compression services and generates stable fee-based revenues.
The Zacks Consensus Estimate for AROC’s 2024 EPS is pegged at $1.10. It has witnessed upward earnings estimate revisions for 2024 and 2025 in the past 30 days.
Sunoco is a leading wholesale motor fuel distributor in the United States, boasting a vast distribution network spanning 40 states. With long-term contracts servicing more than 10,000 convenience stores, it distributes over 10 fuel brands, ensuring a stable revenue stream. SUN currently has a Value Score of A.
The Zacks Consensus Estimate for 2024 and 2025 earnings per unit is pegged at $9.28 and $6.76, respectively. The partnership has witnessed upward earnings estimate revisions for 2025 in the past seven days.
The Williams Companies is a premier energy infrastructure provider in North America. The company’s core operations include finding, producing, gathering, processing, and transporting natural gas and natural gas liquids. Boasting a widespread pipeline system of more than 33,000 miles, Williams is one of the largest domestic transporters of natural gas by volume.
The Zacks Consensus Estimate for WMB’s 2024 EPS is pegged at $1.75. The company has witnessed upward earnings estimate revisions for 2024 in the past seven days.
Zacks' 7 Best Strong Buy Stocks (New Research Report)
Valued at $99, click below to receive our just-released report predicting the 7 stocks that will soar highest in the coming month.
Image: Bigstock
Phillips 66 Q3 Earnings Beat Estimates, Revenues Decrease Y/Y
Phillips 66 (PSX - Free Report) reported third-quarter 2024 adjusted earnings of $2.04 per share, which beat the Zacks Consensus Estimate of $1.63. However, the bottom line was lower than the year-ago quarter’s level of $4.63.
Total quarterly revenues of $36.4 billion beat the Zacks Consensus Estimate of $32 billion. However, the top line declined from the year-ago level of $40.3 billion.
The better-than-expected quarterly results can be primarily attributed to cost reduction and the achievement of Midstream synergy targets. However, this was partially offset by reduced contributions from the Refining segment due to a decline in realized margins.
Phillips 66 Price, Consensus and EPS Surprise
Phillips 66 price-consensus-eps-surprise-chart | Phillips 66 Quote
Segmental Results
Midstream:
The segment generated adjusted pre-tax quarterly earnings of $672 million, up from $581 million in the year-ago quarter. The reported figure also surpassed our estimate of $640.3 million. The increase can be attributed to higher export margins, partially offset by seasonal maintenance costs.
Chemicals:
The unit recorded adjusted pre-tax earnings of $342 million, up from $104 million in the prior-year quarter. The reported figure also surpassed our estimate of $106.2 million. The rise in profits can be primarily attributed to increased margins and lower costs.
Refining:
The segment reported an adjusted pre-tax loss of $67 million against adjusted pre-tax earnings of $1.74 billion in the year-ago quarter. The reported figure also missed our projection of earnings of $976 million. The deterioration was primarily due to a decline in realized margins, largely caused by lower market crack spreads.
Refining’s realized refining margins worldwide declined to $8.31 per barrel from the year-ago quarter’s $19.06, and the same in the Central Corridor and Atlantic Basin/Europe declined to $14.19 and $5.87 per barrel, respectively, from the year-ago quarter’s $19.25 and $16.15.
The West Coast’s margins declined to $4.34 per barrel from $31.65 in the year-ago quarter. In the Gulf Coast, the metric declined to $6.39 per barrel from $13.99 a year ago.
Marketing & Specialties:
Pre-tax earnings declined to $583 million from $605 million in the year-ago quarter. The reported figure beat our projection of $464.1 million.
Realized marketing fuel margins in the United States declined to $2.45 per barrel from the year-ago quarter’s $2.85, and the same in the international markets increased to $6.19 from $5.55 a year ago.
Renewable Fuels:
The segment reported an adjusted pre-tax loss of $116 million against adjusted pre-tax earnings of $22 million in the year-ago quarter. The reported figure was wider than our projection of a loss of $50.6 million. This was primarily due to lower realized margins, partially offset by higher volumes.
Costs & Expenses
Total costs and expenses in the third quarter decreased to $35.75 billion from $37.51 billion in the year-ago period. Our projection for the same was pinned at $29.75 billion.
Financial Condition
Phillips 66 generated $1.13 billion of net cash from operations for the reported quarter, significantly lower than $2.69 billion a year ago. The company’s capital expenditure and investments totaled $358 million. It paid out dividends of $477 million in the third quarter.
As of Sept. 30, 2024, cash and cash equivalents were $1.6 billion. Total debt was $19.9 billion, reflecting a debt-to-capitalization of 39.6%.
Zacks Rank & Stocks to Consider
Phillips 66 currently carries a Zacks Rank #5 (Strong Sell).
Investors interested in the energy sector may look at some better-ranked stocks like Archrock Inc. (AROC - Free Report) , Sunoco LP (SUN - Free Report) and The Williams Companies, Inc. (WMB - Free Report) . While Archrocksports a Zacks Rank #1 (Strong Buy), Sunoco and Williams Companies carry a Zacks Rank #2 (Buy) each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Archrock is an energy infrastructure company based in the United States. It focuses on midstream natural gas compression, provides natural gas contract compression services and generates stable fee-based revenues.
The Zacks Consensus Estimate for AROC’s 2024 EPS is pegged at $1.10. It has witnessed upward earnings estimate revisions for 2024 and 2025 in the past 30 days.
Sunoco is a leading wholesale motor fuel distributor in the United States, boasting a vast distribution network spanning 40 states. With long-term contracts servicing more than 10,000 convenience stores, it distributes over 10 fuel brands, ensuring a stable revenue stream. SUN currently has a Value Score of A.
The Zacks Consensus Estimate for 2024 and 2025 earnings per unit is pegged at $9.28 and $6.76, respectively. The partnership has witnessed upward earnings estimate revisions for 2025 in the past seven days.
The Williams Companies is a premier energy infrastructure provider in North America. The company’s core operations include finding, producing, gathering, processing, and transporting natural gas and natural gas liquids. Boasting a widespread pipeline system of more than 33,000 miles, Williams is one of the largest domestic transporters of natural gas by volume.
The Zacks Consensus Estimate for WMB’s 2024 EPS is pegged at $1.75. The company has witnessed upward earnings estimate revisions for 2024 in the past seven days.