Chart in Focus: The Correlation of Phillips 66 Stock with WTI
The correlation coefficient of Phillips 66 (PSX) versus WTI stands at 0.40.
Institutional holdings in Phillips 66 (PSX) currently stand at ~71%.
Phillips 66 (PSX) has the lowest implied volatility among the downstream American refiners.
Phillips 66’s (PSX) 90-day beta stood at 1.2 on March 16, 2017, below its peer average of 2.1.
Since mid-February 2017, short interest in Phillips 66 (PSX) has risen 7%.
Phillips 66 is trading at a forward price-to-earnings ratio of 16.4x, which is above its peer average of 14.7x.
Phillips 66’s (PSX) PEG ratio stands at 0.56, below the peer average of 0.60.
Phillips 66’s (PSX) dividend yield has risen from 2.4% in 4Q13 to 3.1% in 4Q16.
Fifteen out of the 19 analysts covering Phillips 66 (PSX) rated it as a “hold” in March 2017. Another four analysts rated PSX as a “buy” or a “strong buy.”
In this series, we’ll provide an update on Phillips 66’s (PSX) market performance. Phillips 66 stock has fallen 8% year-to-date since January 3—the highest drop among its peers Tesoro, Valero Energy, and Marathon Petroleum.
Marathon Petroleum’s refining earnings are impacted by the blended LLS 6-3-2-1 crack, the sweet-sour differential, and the LLS-WTI spread.
Valero’s Midcon crack indicator rose to $11.90 per barrel in 1Q17 from $10.90 per barrel in 4Q16.
In 1Q17 to date, Tesoro’s refining index values have shown a mixed trend compared to 4Q16, quarter-over-quarter.
Refining yields indicate the quantity and variety of refined products produced.
Marathon Petroleum (MPC) posted the highest gross refining margin in 4Q16, followed by Tesoro (TSO), Valero Energy (VLO), and Phillips 66 (PSX).
For 2016, Phillips 66 (PSX) derived 15% of its operating income from its Midstream segment, 49% from its Marketing segment, and 32% from its Chemicals segment.
Refiners’ throughput and utilization rates indicate the quantity of oil and other feedstock processed as a percentage of total refining capacity.
Valero’s (VSO) cash flow excess as a percentage of CFO stands at 50%. Comparatively, Marathon Petroleum’s (MPC) excess stands at 11%.
Earnings of refining companies have been fluctuating due to volatile refining margin conditions. In this series, we’ll perform a cross-sectional analysis of refining companies following their 4Q16 results.
PSX has the highest “hold” ratings among the four refiners we’re evaluating in this series.