Phillips 66: Attractive As Geopolitical Tensions Surge

Seeking Profits5.31K FollowersFollow5ShareSavePlay(9min)CommentsSummaryPhillips 66 remains a buy, supported by refining modernization, midstream growth, and favorable crack spreads amid heightened geopolitical risk.PSX benefits from sourcing Venezuelan crude and widening crack spreads, with near-term margins above the long-term $25 norm.Refining utilization and operating cost reductions structurally enhance margins, while midstream EBITDA targets of $4.5B by 2027 appear attainable.Chemicals segment remains challenged; PSX focuses on debt reduction and maintains a secure 3.3% dividend, targeting $165–$170 per share. MattGush/iStock Editorial via Getty Images Shares of Phillips 66 (PSX) have been a solid performer over the past year, gaining about 20% as the company has benefited from an improvement in the refining environment, even as its chemicals unit struggles withThis article was written bySeeking Profits5.31K FollowersFollowOver fifteen years of experience making contrarian bets based on my macro view and stock-specific turnaround stories to garner outsized returns with a favorable risk/reward profile. If you want me to cover a specific stock or have a question for an article, just let me know!Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.