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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
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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.

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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.

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