Phillips 66 (NYSE:PSX) posted fourth-quarter 2019 adjusted earnings per share of $1.54, beating the Zacks Consensus Estimate of $1.53, courtesy of contributions from chemical business. However, the bottom line plunged 68.4% from the year-ago figure of $4.87 due to soft refining margins.
Quarterly revenues totaled $29.6 billion, slightly down from the year-ago quarter’s $29.8 billion. However, the top line surpassed the Zacks Consensus Estimate of $27.3 billion.
Segmental Results
Midstream
The segment generated adjusted pre-tax quarterly earnings of $405 million, down from $409 million in the year-ago quarter.
Chemicals
Adjusted pre-tax earnings of $173 million were up from $152 million in the prior-year quarter.
Refining
Adjusted pre-tax profit of $345 million tanked from the year-ago quarter’s $2,008 million. This underperformance can be attributed to higher costs pertaining to turnaround activities and weak margins.
The segment’s realized refining margins worldwide fell to $9.50 per barrel from the year-ago quarter’s $16.53 per barrel.
Marketing and Specialties (M&S)
Pre-tax earnings plunged from $592 million in the year-ago quarter to $287 million.
Realized marketing fuel margins both for the United States and International markets contracted to $1.51 per barrel and $3.35 per barrel, respectively, from the year-ago quarter’s $1.95 per barrel and $11.99 per barrel each.
Phillips 66 Price, Consensus and EPS Surprise
Phillips 66 price-consensus-eps-surprise-chart | Phillips 66 Quote
Financial Condition
In the reported quarter, Phillips 66 generated $1.7 billion of cash from operations. The company returned capital worth $810 million to its stockholders through dividend payouts and share repurchases.
As of Dec 31, 2019, cash and cash equivalents were $1.6 billion along with debt of $11.8 billion. The company’s debt-to-capitalization ratio was 30%.
Zacks Rank & Key Picks
Phillips 66 carries a Zacks Rank #3 (Hold). Better-ranked players in the energy space include RGC Resources Inc. (NASDAQ:RGCO) , Equinor ASA (NYSE:EQNR) and TC Energy Corporation (TSX:TRP) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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