How Did Phillips 66 Stock Perform after the Earnings?



Phillips 66’s stock performance

Phillips 66 (PSX) announced its second-quarter results on July 27. Phillips 66 closed at $118.8 per share, which was ~2.4% higher than its previous close. The increase could be due to Phillips 66’s second-quarter earnings, which beat the estimates. The uptrend continued on July 30. Overall, Phillips 66 stock has risen 5.3% since its earnings were announced.

HollyFrontier (HFC), PBF Energy (PBF), and Delek US Holdings (DK) also rose during the same period. The benchmark crack has risen since July 27, while markets have declined during the same period.

HollyFrontier, PBF Energy, and Delek US Holdings have risen 0.7%, 0.4%, and 1.2%, respectively, since July 27. During the same period, the USGC WTI 3-2-1 crack has risen 22.0%. Since July 27, the SPDR S&P 500 ETF (SPY), which resembles the S&P 500 Index, has fallen 1.2%.

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Second-quarter update

Phillips 66 has progressed well with its growth activities in the second quarter. Phillips 66’s capex was at $538 million in the second quarter—$339 million was in the Midstream segment.

In the Midstream segment, Phillips 66 is expanding its strategically located integrated NGL (natural gas liquids) facility, Sweeny Hub. Since Sweeny Hub is located on the Gulf Coast, it provides the company with vital access to export markets for fuels, petrochemicals, and liquefied petroleum gas. The expansion should be complete by 2020. Phillips 66’s other midstream project, the Gray Oak pipeline will have an initial capacity of 800,000 barrels per day, which could be expanded to one million barrels per day. The pipeline connects sources like the Permian and Eagle Ford to destinations like Corpus Christi and Sweeny. The pipeline should be completed by the fourth quarter of 2019.

Phillips 66’s petrochemical project in the US Gulf Coast has reached full operations. The project to modernize fluid catalytic cracking at the Sweeny refinery has been approved.


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