Black Friday is Now! Don’t miss out on up to 60% OFF InvestingProCLAIM SALE

Phillips 66 Deploys Asset Base 'Near Historical Highs' To Meet Peak Summer Demand: Analyst

Published 11/06/2024, 17:22
Updated 11/06/2024, 18:41
© Reuters.  Phillips 66 Deploys Asset Base \'Near Historical Highs\' To Meet Peak Summer Demand: Analyst
PSX
-

Benzinga - by Priya Nigam, Benzinga Staff Writer.

Phillips 66 (NYSE:PSX) announced a binding open season for shipper commitments for services on its Blue Line System.

The Houston-based energy company expects to deploy its asset base "near historical highs" to meet peak summer demand, while it focuses on gaining market share, reducing costs and improving its overall operating performance, according to Goldman Sachs.

The Phillips 66 Analyst: Neil Mehta maintained a Buy rating, while slashing the price target from $166 to $152.

The Phillips 66 Thesis: The company has indicated that its business transformation efforts have translated to over $560 million in cost reductions, Mehta said in a note.

Check out other analyst stock ratings.

Phillips 66 expects to achieve $1 per barrel in run-rate cost reduction by yearend 2024, he added.

"While management continues to view the West Coast as a more challenging market as a result of declining supply of domestic crude availability at the Los Angeles refinery, the company sees potential for a positive change in crude flow dynamics as TMX has started operations," the analyst wrote.

The company expects Refining crude utilization in the mid-90s in the second quarter, which is broadly in-line with Goldman Sachs estimates, he further stated.

PSX Price Action: Shares of Phillips 66had declined by 1.13% to $136.51 at the time of publication on Tuesday.

Now Read: 7 Apple Analysts Mixed On WWDC 2024 – iPhone Upgrade Cycle Coming, But When?

Latest Ratings for PSX

DateFirmActionFromTo
Feb 2022RBC CapitalMaintainsOutperform
Jan 2022Raymond JamesMaintainsOutperform
Jan 2022Raymond JamesMaintainsOutperform
View More Analyst Ratings for PSX

View the Latest Analyst Ratings

© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Read the original article on Benzinga

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.