Phillips 66’s stock performance
Phillips 66 (PSX) announced its 1Q18 results on April 27. On the same day, Phillips 66 opened at $110.8 per share—lower than the previous close of $112.5. Phillips 66 opened lower despite its 1Q18 earnings beat. Phillips 66 stock saw highs of $111.9 and lows of $109.7 during the day. Eventually, Phillips 66 stock closed at $111.3, which is ~1.0% lower than the previous day’s close. Phillips 66 is in line with peers HollyFrontier (HFC), PBF Energy (PBF), and Delek US Holdings (DK), which also fell on the same day. The broader market indicators had a mixed trend.
HollyFrontier, PBF Energy, and Delek US Holdings fell 2.7%, 3.3%, and 3.7%, respectively, on April 27. On the same day, broader market indicators, the SPDR S&P 500 ETF (SPY) and the SPDR Dow Jones Industrial Average ETF (DIA) had mixed performances. While SPY rose 0.1%, DIA fell 0.1%. On April 27, the US Gulf Coast WTI 3-2-1 crack rose 4.1%.
Phillips 66’s 1Q18 update
Phillips 66’s capex was $328 million in 1Q18. The company’s petrochemical project in the US Gulf Coast is almost complete. The ethane cracker, which was commissioned in 1Q17, increased to full capacity in April.
Phillips 66 is in the process of getting 3.5 MMbbls (million barrels) of storage capacity for crude oil online at the Beaumont Terminal. The process should be completed by 4Q18. If the expansion is completed in 4Q18, the terminal’s total storage capacity would rise to 14.6 MMbbls.
Projects to modernize fluid catalytic units at the Bayway and Wood River have been completed. Modifications at the Lake Charles refinery aimed at lowering the feedstock cost have also been completed. More work at the refinery is expected to be done by 4Q18. Finishing these projects by 4Q18 would result in additional production of 25,000 barrels per day of clean products for Phillips 66.