Phillips 66 Sees Refinery Operations Rebounding to Pre-COVID Levels After Raise from TD Cowen

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Phillips 66 ($NYSE:PSX) is a major American energy company specializing in oil refining, marketing, and transportation. Phillips 66’s stock was given a boost by TD Cowen, who reported that Phillips 66’s refinery operations have returned to their pre-COVID levels. This is after the company experienced a decline in refinery operations due to the pandemic last year. TD Cowen’s observation is based on the latest data from the U.S. Energy Information Administration. Phillips 66 has been able to recover from the disruption to their operations, and they now stand to benefit from the resurgence in demand for their products.

The news of their recovery has been welcomed by investors, with the stock price of Phillips 66 rising in response to TD Cowen’s report. This surge in demand is expected to continue in the near future, providing a strong foundation for steady growth for Phillips 66. With their restoration to pre-COVID levels of operation, Phillips 66 stands to benefit from the growing demand for their products and services. Investors should be encouraged by the news that Phillips 66 has returned to its pre-COVID levels of operation, and it will be interesting to see what further gains can be made in the coming months.

Market Price

On Thursday, Phillips 66 saw a minor gain in their stock, with the opening price of $92.9 and closing price of $93.0, representing a 1.6% increase from the previous day’s closing price of $91.6. This came after the company received an upgrade from TD Cowen, raising their rating from “hold” to “buy”. However, Phillips 66’s operations seem to be bouncing back, with refinery operations returning to pre-pandemic levels. This increase in stock values is a promising sign for the company as they look to recover from economic losses. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Phillips 66. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Phillips 66. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Phillips 66. More…

Key Ratios Snapshot

Some of the financial key ratios for Phillips 66 are shown below. More…

Analysis

At GoodWhale, we did a deep dive into PHILLIPS 66’s fundamentals to get an idea of its financial health. According to our star chart, PHILLIPS 66 has a high health score of 9/10 with regards to its cashflows and debt, making it capable of sustaining future operations even in times of crisis. We classified PHILLIPS 66 into the ‘Cheetah’ type of companies – companies that achieved high revenue or earnings growth but are considered to be less stable due to lower profitability. We believe that investors who are looking for dividend growth and medium asset profitability will be interested in PHILLIPS 66. All in all, the company has strong points in terms of dividend, growth, and medium points in terms of asset and profitability. More…

Peers

Phillips 66 is an American multinational energy company headquartered in Houston, Texas. It was founded in 1917 and is engaged in the refining, marketing, and transportation of petroleum products, chemicals, and other petrochemical products. The company has a market capitalization of $46.61 billion as of February 2021. Phillips 66 is one of the largest refiners in the United States with a refining capacity of 2.2 million barrels per day. The company operates in three segments: Refining, Midstream, and Chemicals. The Refining segment engages in the refining of crude oil and other feedstocks into transportation fuels, such as gasoline, diesel fuel, aviation fuel, and heavy fuel oils, as well as other refined products, such as petrochemicals and lubricants. The Midstream segment provides transportation, storage, and marketing services for crude oil, natural gas liquids (NGLs), and natural gas. The Chemicals segment manufactures and markets chemicals and plastics.

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Summary

Phillips 66 (PSX) has been recently upgraded by TD Cowen, with the firm’s analysts expecting refinery operations to recover to pre-COVID levels. This sentiment has been echoed in the market as shares of PSX have seen an uptick in trading activity. Analysts believe the company may be in for a strong recovery due to its diversified portfolio, which includes refineries, pipelines, and retail gasoline stores. The firm has seen revenue growth over the past few years, and it looks to continue this trend going forward.

Its strong balance sheet and promising future cash flows make it an attractive option for investors looking for long-term returns. With oil prices expected to remain low and political uncertainties behind, Phillips 66 looks to be in a good position to capitalize on potential opportunities.