Phillips 66
PSX: XNYS (USA)
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
$944.00 | Vfxmhqh | Gclvzmzd |
Reducing Our Fair Value for Phillips 66 Slightly on Lower Refining Margins; Shares Still Undervalued
Business Strategy and Outlook
Phillips 66 remains the most diversified independent refiner with greater interests in marketing, chemical, and midstream assets than peers. While the performance of its refining segment will be the primary determinant of earnings in the near term, the midstream segment will increasingly be the value driver over time as Phillips 66 aims to grow its potential midcycle EBITDA by $3 billion to $13 billion by 2025.