Yahoo Finance Phillips 66’s Stock Fell by 6.5% on Its 1Q16 Earnings Release
Phillips 66's 1Q16 Earnings Miss the Estimates
Phillips 66’s stock performance after its 1Q16 results
Phillips 66 (PSX) announced its 1Q16 results on April 29, 2016, before the Market opened. PSX’s stock received a weak opening, likely due to the fact that its 1Q16 earnings missed analysts’ estimates.
PSX opened at $85.20 per share, lower than its previous close of $87.80. Phillips 66 saw highs of $86.00 and lows of $81.20 during the day. Eventually, PSX closed at $82.10, around 6.5% lower than its previous day’s close.
On April 29, 2016, PSX’s peers Western Refining (WNR), CVR Refining (CVRR), and Alon USA Energy (ALJ) also fell by 5.5 %, 4.5%, and 5.2%, respectively. For global stock exposure, you could consider the Vanguard Total World Stock ETF (VT).
PSX’s capex position and projects update in 1Q16
Phillips 66’s capital expenditure (or capex) stood at $750 million in 1Q16. The LPG export terminal construction is progressing on schedule, with 80% completion and an expected startup in 2H16. PSX’s petrochemical project in the US Gulf Coast has approached 75% completion and is expected to start up by mid-2017. For 2016, PSX plans to incur capex of $3.9 billion, the bulk of which is toward growth projects in the midstream segment.
PSX aims to strengthen its midstream segment. Phillips 66 plans to lower its dependence on refining segment and increase its earnings from midstream segment. PSX is participating in the development of 470,000 barrels per day in the Dakota Access pipeline and Energy Transfer crude oil pipeline whose mechanical completion in expected in 4Q16.
PSXP also commenced operations at the Bayou Bridge Pipeline’s first segment in 1Q16. Plus, PSX has undertaken projects to enhance the storage and throughput capabilities of Beaumont Terminal.
Phillips 66 (PSX) has dropped down 25% interest in the Sweeny fractionator and associated Clemens Caverns natural gas liquids storage facility for $236 million to Phillips 66 Partners (PSXP), PSX’s midstream master limited partnership.
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