Phillips 66 operates as an energy manufacturing and logistics company. It operates through four segments: Midstream, Chemicals, Refining, and Marketing and Specialties. The company was founded in 1875 and is based in Houston, Texas.
PSX Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for PSX, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Phillips 66 ranked in the 7th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 94%. The most interesting components of our discounted cash flow analysis for Phillips 66 ended up being:
The stock's equity weight, or the proportion of capital from equity relative to debt, is 65. Notably, its equity weight is greater than 72.95% of US equities in the Energy sector yielding a positive free cash flow.
Phillips 66's weighted average cost of capital (WACC) is 12%; for context, that number is higher than 81.53% of tickers in our DCF set.
Phillips 66's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -1.68. This coverage rate is greater than that of merely 18.2% of stocks we're observing for the purpose of forecasting via discounted cash flows.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Energy that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as PSX, try GLNG, USEG, DWSN, FPPP, and IO.
Phillips 66 (PSX) says its Alliance refinery in Louisiana, which closed ahead of Hurricane Sally, will stay shut and begin preparing for maintenance originally scheduled to begin in October.The turnarounds will include its sole crude unit, the reformer and some catalyst changes and last about four weeks, Bloomberg reports.Alliance is...
The U.S. government says 21%, or 395.8K bbl/day, of offshore crude oil production and 25%, or 685M cf/day, of natural gas output has been shut in the U.S. Gulf of Mexico, as Tropical Storm Sally becomes a hurricane ahead of its anticipated Tuesday morning landfall east of New Orleans.Refiners in...
(Bloomberg) -- Oil markets were paralyzed on Monday by uncertainty over exactly when global fuel demand will rebound from a pandemic-driven collapse.Some of the world’s largest oil suppliers are painting a bleak picture for crude demand, with the Organization of Petroleum Exporting Countries cutting the demand estimate for its oil by 1.1 million barrels a day and BP Plc saying the relentless growth in oil demand is over. But U.S. stock markets gained, signaling that investors are seeing an increase in business activity which could buoy demand.West Texas Intermediate crude for October delivery was virtually unchanged, falling 7 cents to settle at $37.33 a barrel in New York.“There’s no demand for crude oil and there’s plenty of supply if you actually needed it,”said Bob Yawger, director ...
(Bloomberg) -- Hurricane Sally will begin hammering the U.S. Gulf Coast with flooding rains late Monday, making landfall the next day between New Orleans and Mobile, Alabama, and potentially causing as much as $3 billion in losses and damage.Sally rapidly strengthened to a Category 1 hurricane on the Saffir-Simpson scale, with maximum sustained winds of 90 miles (145 kilometers) per hour, the National Hurricane Center said in a special update. Sally, which has sparked evacuations from some offshore energy platforms, will make landfall sometime Tuesday morning or afternoon. The storm may reach 105 mph, the center said, which would make it a Category 2 hurricane.The U.S. has been pummeled by natural disasters this year, with wildfires devastating the West, storms causing billions of dolla...
HOUSTON: Offshore platforms and one refinery along the U.S. Gulf Coast shut down on Sunday as they prepared for a second hurricane strike in less than a month. Phillips 66 began shutting its 255,600 barrel-per-day (bpd) Alliance, Louisiana, refinery as Tropical Storm Sally was forecast to pass …