The oil refining and marketing company offered no additional guidance. The current consensus estimate for the third quarter calls for EPS of $1.54, as well as full-year EPS of $5.21 on full-year revenue of $186.29 billion. The company previously announced a $1 billion share repurchase program.
The company’s chairman and CEO referred to the company’s recent spin-off from ConocoPhillips (NYSE: COP):
We’re off to a solid start, running well in a positive margin environment. The location of our domestic refining, midstream and chemicals facilities enabled us to access advantaged feedstocks, creating strong earnings and cash flow.
Phillips 66 sold assets worth $234 million in the quarter, including its refinery in Trainer, Penn. In the company’s refining and marketing segment, revenue rose nearly 53%, chiefly due to much better refining margins in the U.S. Midwest and in Europe. In the not-so-good news department, the company took a noncash charge of $170 million on its investment in the Rockies Express pipeline, causing the company’s midstream segment to report a loss of $91 million for the quarter.
Shares are up more than 5% in premarket trading at $39.50, a new post-IPO high if it holds during the trading day. The current 52-week range is $28.75 to $38.36. Thomson Reuters had a consensus analyst price target of $42.90 before today’s results were announced.
Paul Ausick
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