:max_bytes(150000):strip_icc()/GettyImages-2006245391-159ce22ac2de4f49855942df2ef659c6.jpg "Higher Midstream Revenue Boosts Results at Phillips 66")
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Key Takeaways
- Phillips 66 beat profit and sales estimates in the second quarter as midstream income jumped 23.7% year-over-year.
- The energy company pointed to higher natural gas liquids volume and margin, along with cost cuts, for the midstream gains.
- Phillips’ crude utilization rate was the highest in five years.
Shares of Phillips 66 (PSX) jumped in intraday trading Tuesday after the energy company posted better-than-anticipated results on higher midstream profit.
The company reported second-quarter earnings per share (EPS) of $2.38, with revenue up 8.9% year-over-year to $38.91 billion. Both exceeded consensus forecasts of analysts polled by Visible Alpha.
Midstream, Chemicals Profits Jump, Refining Income Plummets
Midstream income soared 23.7% year-over-year to $767 million, which the company explained was primarily because of higher natural gas liquids volume and margin, plus lower costs. Chemicals income rose 15.6% to $222 million, mainly on higher margins. However, refining income slumped 74.3% to $302 million, pulled down by lower crack spreads.
The crude utilization rate increased to 98%, which Chief Executive Officer (CEO) Mark Lashier said was the highest in five years. He added the company lowered costs by almost a dollar per barrel, “reflecting the success of our business transformation efforts.”
Phillips 66 shares jumped 5% to $147.37 as of 3 p.m. ET Tuesday and have gained about 10% year-to-date.