Phillips 66 Stock Price, News & Analysis

The board of directors of Phillips 66 (NYSE: PSX) has announced a quarterly dividend of $1.05 per share, marking an 8% increase. This dividend will be paid on March 1, 2023, to shareholders on record by February 21, 2023. President and CEO Mark Lashier emphasized that rewarding shareholders through a competitive dividend is a company priority, with a history of 12 dividend increases since 2012, resulting in a 17% compound annual growth rate. The company aims to return between $10 billion and $12 billion to shareholders by the end of 2024 through dividends and a share repurchase program.

In Q4 2022, Phillips 66 (PSX) reported earnings of $1.9 billion or $3.97 per share, a decrease from $5.4 billion in Q3. Adjusted earnings for the quarter were $4.00 per share. The company generated $4.8 billion in operating cash flow and returned $1.2 billion to shareholders via dividends and share repurchases, while increasing its share repurchase program by $5 billion. For the full year, earnings reached $11.0 billion or $23.27 per share. Future initiatives include an agreement to acquire DCP Midstream units for an increased stake and a $2 billion capital program aimed at enhancing operational efficiency.

Phillips 66 (NYSE: PSX) has announced that its Sweeny Refinery in Texas has received ISCC PLUS certification for processing pyrolysis oil derived from hard-to-recycle waste plastics into sustainable feedstocks. This certification demonstrates the company's commitment to a circular economy, where waste materials are reused. The refinery is now equipped to produce circular ethane, circular propane, and circular propylene, which will be utilized by Chemicals producers to advance sustainable plastic solutions. The Sweeny Refinery is the second Phillips 66 facility to obtain this certification, underscoring the company's focus on a lower-carbon future.

Phillips 66 has announced an all-cash acquisition of DCP Midstream, LP, for $41.75 per common unit, raising its economic interest in DCP to 86.8%. The transaction, valued at approximately $3.8 billion, is set to close in Q2 2023 and aims to generate at least $300 million in operational and commercial synergies and an incremental $1 billion in adjusted EBITDA. The deal has received unanimous approval from DCP's board and majority consent from its common unit holders. Funding will be through cash and debt while maintaining investment-grade credit ratings.

Phillips 66 (NYSE: PSX) will participate in a fireside chat at the Goldman Sachs Global Energy and Clean Technology Conference on Thursday, Jan. 5, 2023, at 11 a.m. ET. CEO Mark Lashier and the Executive Leadership Team will discuss the company’s commitment to delivering shareholder value and its disciplined capital allocation strategy. Interested parties can access the live webcast via the Phillips 66 Investors site, with a replay available the following day.

Phillips 66 (NYSE: PSX) will host a webcast at noon ET on January 31, 2023, to discuss its fourth-quarter 2022 financial results, which will be released earlier that day. Investors can access the webcast through the Events and Presentations section on the Phillips 66 Investors website. A replay will be available two hours post-event. Phillips 66 operates in various sectors including Midstream, Chemicals, Refining, and Marketing, while focusing on providing energy and pursuing a lower-carbon future.

AM Best has affirmed the Financial Strength Rating of A (Excellent) and Long-Term Issuer Credit Ratings of 'a' (Excellent) for Spirit Insurance Company and Radius Insurance Company, with a stable outlook. The ratings reflect their strong balance sheet strength and adequate operating performance. Both companies benefit from being captive insurers for Phillips 66 (PSX). Their loss experience is favorable due to Phillips 66's effective loss control. However, both have exposure to low frequency, high severity claims, reliant on reinsurance, especially concerning terrorism coverage.

Phillips 66 (NYSE: PSX) has unveiled a $2 billion capital program for 2023, focusing on $865 million for sustaining capital and $1.1 billion for growth capital, half of which is earmarked for lower-carbon initiatives. The company aims to return $10 billion to $12 billion to shareholders through dividends and share repurchases by the end of 2024. Investments include enhancing their NGL platform and converting the Rodeo facility for renewable fuel production. Total projected capital for 2023, including joint ventures, is $3.1 billion.

Phillips 66 (NYSE: PSX) outlined its strategy to return $10 billion to $12 billion to shareholders by the end of 2024. The company is increasing its share repurchase authorization by $5 billion, bringing the total to $20 billion since 2012. Additionally, it aims to boost adjusted EBITDA by $3 billion in three years and achieve $1 billion in sustainable cost reductions through Business Transformation. Enhancements in Refining operations are also part of the plan.