Phillips 66 (NYSE:PSX) stock rose Wednesday after the energy company reported better-than-expected third-quarter results, driven by strong refining operations and midstream volumes.
The rebound followed a more than 6% decline Tuesday, when refining stocks came under pressure as renewed talks to end the Iran war and the prospect of Russian diesel returning to U.S. markets raised concerns about weaker refining margins.
The company reported adjusted earnings of $14.08 per share, beating analysts’ expectations of $11.73.
Revenue reached $51.506 billion, topping the consensus estimate of $44.467 billion.
Refining and Midstream Performance
Refining utilization reached 98%, while processed inputs in the Central Corridor hit a record 848,000 barrels per day.
Phillips 66 also reported a record third-quarter distillate yield of 41% and a clean product yield of 86%.
In its midstream business, fractionation volumes reached 1 million barrels per day, while wellhead volumes totaled 4.6 billion cubic feet per day.
The Freeport liquefied petroleum gas export dock operated at 105% utilization.
Shareholder Returns and Debt Reduction
Phillips 66 returned $2.8 billion to shareholders through dividends and share repurchases during the quarter.
The company reduced total debt by $2 billion to $18.5 billion, while net debt declined $3.8 billion to $12.7 billion.
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Pipeline Projects and Expansion Plans
Phillips 66 reached a final investment decision on the proposed Western Gateway Pipeline system, which is expected to begin operations in 2029.
Chevron Phillips Chemical Company LLC continued developing the Golden Triangle Polymers Project in Orange, Texas, and the Ras Laffan Polymers Project in Qatar. Both projects are expected to become fully operational in 2027.
Meanwhile, Phillips 66 advanced its Coastal Bend expansion, with initial volumes expected in the fourth quarter of 2026.
The project is expected to ramp up to 350,000 barrels per day in early 2027.
The company also generated more than $50 million in near-term synergies following its Oct. 1, 2025, acquisition of the remaining 50% stake in WRB Refining LP.
PSX Price Action: Phillips 66 shares were up 1.25% at $271.88 at the time of publication on Wednesday, according to Benzinga Pro data.
Photo via Shutterstock
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