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Phillips 66 Pops On Earnings Miss

By  +Follow July 31, 2013 1:27PM
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Phillips 66 (PSX) , by market cap the world’s largest oil and gas refiner and marketer, posted second-quarter earnings on Wednesday morning that showed the company’s profits were significantly lower than expected.

Phillips is in the habit of beating earnings forecasts on a regular basis, but for the recently ended period, the company netted $958 million, or $1.53 per share on revenue of $43.95 billion, compared to the prior-year period during which the company made $1.18 billion, or $1.86 per share. Analysts had expected earnings of $1.81 per share on revenue of $42.03 billion.

The recent increase in US oil prices was cited as one of the reasons for the diminished results, but the company’s refining operations were also substantially hampered by a hike in the cost of ethanol credits, otherwise known as Renewable Identification Numbers (RINS).

In 2005, the Environmental Protection Agency implemented the Renewable Fuel standard, imposing a gradual decrease in the burning of fossil fuels by requiring refiners to blend increasing amounts of ethanol into their products, with the goal of adding 36 billion gallons of renewable fuel into the overall supply by 2022. The EPA tracks the compliance of oil and gas refiners through RINS, which operate as credits; in other words, a company can acquire RINS through the purchase and subsequent blending of ethanol into its products or, if it does not comply, can meet its RINS requirements by purchasing them from other companies.

As ethanol minimums have increased, so too has the cost of RINS, and oil companies claim that the higher prices are starting to inflate the cost of doing business. On a conference call discussing the company’s quarterly performance, Phillips 66 said that it will increase exports in the third quarter to offset higher prices.

Still, the rare miss on top and bottom lines was offset by the company’s approval of a $1 billion share buyback program, as well as a debt reduction of $500 million. Shares were down about 3 percent before the commencement of trading, but rebounded nearly 5 percent after the opening bell to $61.36.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions.


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Results for PSX
FinSentS SP500
25 Jan 15 15:07:40
$PSX:US Phillips 66 : Local girls star in multi-national meet #PHILLIPS 66 http://t.co/yI2vMqh4LH #SP500
Bilo Selhi
25 Jan 15 11:56:26
If you were subscribed to http://t.co/T9zutL79nE, you would have been alerted to: $SQQQ +13% http://t.co/BD6e9Xo85l $NOV $MS $PSX $FEYE
Kym L
24 Jan 15 16:06:52
Thurs cont $LLL $MTW $N $NOC $OXY $PHM $POT $PSX $RCL $RGLD $RTN $RVBD $RYL $SHW $TKR $TMO $TUES $TWC $V $VIA $VLO $WHR $WYNN
ProVesting
24 Jan 15 14:21:02
$PSX: Buy of the Year? Phillips 66 (NYSE:PSX): http://t.co/2Zev8Wk8VA
12Stocks.com
24 Jan 15 03:02:43
Weekly S&P500 #Stocks Performance $NFLX $LUV $PSX $MPC $TSO $ETFC $VLO $DAL $NFX $SBUX $NEM $DLTR $BWA more@ http://t.co/1GBrbjndnA
Envestor First
24 Jan 15 02:51:17
"@SprinkleBitInc: The Upside of Down Oil: http://t.co/lYnbFJ8jdf $HAL $CVX $XOM $LINE $COP $VLO $DVN $PSX $APA $EOG $OXY"
Marco Di Dionisio
23 Jan 15 21:45:42
$PSX Another "V" completed. Trimmed some on strength today! Let's see how it handles that descending TL now http://t.co/mkvn6CLouy
Jake13
23 Jan 15 17:30:00
Stocks Trending Now: http://t.co/8ymC0NGRs3 $PLWTY $PSX $CRR $SHPHF $CBAI $BFFI $HENKY $KGSPF $TMRAY $CTXR $QTS $QUSA ~
Paul W. Mahon
23 Jan 15 16:53:24
RT @SeekingAlpha: Earnings Make The Adrenaline Flow http://t.co/gBKF62ofJJ $AAPL #APPLE $AMZN $BABA $COH $COP $DOW $FB $GOOG $LVS $MSFT $PB…
James DiPlata
23 Jan 15 16:50:26
RT @SeekingAlpha: Earnings Make The Adrenaline Flow http://t.co/gBKF62ofJJ $AAPL #APPLE $AMZN $BABA $COH $COP $DOW $FB $GOOG $LVS $MSFT $PB…
Quantpost Basic Mats
23 Jan 15 16:46:50
$COP $DOW $PSX News: "Earnings Make The Adrenaline Flow $AAPL #APPLE $AMZN …" http://t.co/MeRxHNNB48 Board view: https://t.co/dv7mNa5Zef
Seeking Alpha
23 Jan 15 16:46:48
Earnings Make The Adrenaline Flow http://t.co/gBKF62ofJJ $AAPL #APPLE $AMZN $BABA $COH $COP $DOW $FB $GOOG $LVS $MSFT $PBR $PSX $VMW
12Stocks.com
23 Jan 15 16:02:43
S&P500 #Stocks Performance $ETFC $SBUX $VLO $TSO $MPC $HON $HAR $DLTR $NFLX $HAS $EXPE $MDT $CCI $COF $PSX more@ http://t.co/RPeaHChahC
Marco Di Dionisio
23 Jan 15 14:12:18
Longs, cost basis: $CELG ($109.60) $GE ($26.91) $JNJ ($83.82) $KO ($37.29) $PSX ($63.06) $SWKS ($48.55) $V ($177)
Marco Di Dionisio
23 Jan 15 14:11:36
Closed the week with these longs $CELG $GE $JNJ $KO $PSX $SWKS $V
Marco Di Dionisio
23 Jan 15 13:01:19
Trimmed some $PSX up here. Was not expecting gains so soon on this oil play but I'll take what the market gives me
12Stocks.com
23 Jan 15 13:00:22
S&P500 #Stocks Performance $ETFC $SBUX $VLO $MPC $TSO $HON $SLM $NBR $HAR $EXPE $PSX $DLTR $QEP $HAS $FSLR more@ http://t.co/RPeaHChahC
Bluegrass Capital
23 Jan 15 12:59:26
$PSX has some attractive natgas midstream infrastructure; thought they were just refineries: http://t.co/AMlb058cw6
Paul Karatzas
23 Jan 15 12:49:26
@MatthewMcCall Pickens says total rig count hits around 1500 inventory of oil surplus oil will start to deplete. I got $PSX this wk up 10%.
Scott Sherman
23 Jan 15 12:26:06
My $VLO and $PSX is up and $XOM, $CVX are down. I just bot the refiners. My contention is that lower $USO will be accretive to refiners.
Fish4Bucks
23 Jan 15 11:51:51
60m $PSX Upper Trendline Pressure 69.100 #trading #stocks 02:41:35 PM http://t.co/lSMcM5bjRW Signals based ... http://t.co/lSMcM5bjRW
Robert Lesnicki
23 Jan 15 11:43:05
Refiners really strong today across the board $TSO $VLO $PSX
D
23 Jan 15 11:12:14
@jimcramer What r your thoughts on $PSX? Value or value trap? #madtweets
Sleek Money
23 Jan 15 05:50:27
Phillips 66 Earns A Credit Rating $PSX http://t.co/pWQmBzhGWz
US Banking News
23 Jan 15 05:45:50
Phillips 66 Earns A Credit Rating $PSX http://t.co/2aEXntIhqE
StockNewsWires
23 Jan 15 05:41:04
$PSX: Phillips 66 Earns A Credit Rating (PSX): http://t.co/gIfuOOBA99
Someguy
23 Jan 15 04:13:40
RT @tradewithjoe: $GOOGL Daily Doubles #2 - $GOOG $PSX $HIMX $BP $NE $NTRS $BABA $WHX $ARNA $FRO $BSX $QCOM $TLT $PFE $NFLX - http://t.co/q…
Someguy
23 Jan 15 04:13:17
RT @tradewithjoe: $CBS Parabolic Buy Signals #2 - $D $DAL $DVN $FLS $KO $KORS $PSX $RICE $SLB $TER $XLB $XLE $YOKU $ZTS - http://t.co/Fq6Jr…
12Stocks.com
23 Jan 15 03:02:40
Weekly S&P500 #Stocks Performance $NFLX $NFX $LUV $PSX $AVP $NEM $TSO $DAL $NTRS $NBR $HAL $MPC $BWA $FCX more@ http://t.co/RPeaHChahC
MICHAEL FILLOON
22 Jan 15 16:43:43
Phillips 66's neutral rating reiterated at Zacks. $70.00 PT. http://t.co/LrxxDBvy7C $PSX #PSX via @RatingsNetwork http://t.co/un5Bjq6lzl
Analyst Ratings
22 Jan 15 10:01:07
Phillips 66's neutral rating reiterated at Zacks. $70.00 PT. http://t.co/IqMT3H9GjS $PSX #PSX
US Consumer News
22 Jan 15 09:59:05
Phillips 66's neutral rating reiterated at Zacks. $70.00 PT. http://t.co/4fHtsamSHX $PSX #PSX
Stock Market Intel
22 Jan 15 08:57:50
Basic Materials Stocks Buzz - $WMB $PSX $AU $OAS *Free Reports* http://t.co/T13eTQ5VA6
12Stocks.com
22 Jan 15 08:52:28
S&P500 #Stocks Performance $NFLX $NFX $NBR $NTRS $NE $ESV $BTU $DNR $RIG $LYB $COH $SWN $CHK $PSX $QEP more@ http://t.co/RPeaHChahC
Fish4Bucks
22 Jan 15 07:45:10
60m $PSX Upper Trendline Pressure 67.490 #trading #stocks 10:45:00 AM http://t.co/lSMcM5bjRW Signals based ... http://t.co/lSMcM5bjRW
Scott Sherman
22 Jan 15 07:28:31
Bot some $VLO and $PSX for LONG term acct. Refiners benefit from low oil prices. Good r/r. Greatly oversold.
Fish4Bucks
22 Jan 15 06:45:29
60m $PSX Upper Trendline Pressure 67.480 #trading #stocks 09:45:18 AM http://t.co/lSMcM5bjRW Signals based ... http://t.co/lSMcM5bjRW
Jeffrey ️
22 Jan 15 05:37:41
WTI Futures are up... $SDRL (do not own) is up over 5% in pre-market. Another good day for oil? $SLB $COP $PSX $WMB $SLCA $LYB $ASH $SLCA
Langan Stocks
22 Jan 15 05:34:49
Stocks Trending Now: http://t.co/TkLSaz2n0F $AGFMF $EYNOP $CDSAF $NLGCF $BSFT $RVNC $JPC $VNRCF $CWNM $PSX $BEAM $ASNCF ~
Fish4Bucks
22 Jan 15 04:40:18
60m $PSX Upper Trendline Pressure 67.170 #trading #stocks 07:40:07 AM http://t.co/lSMcM5bjRW Signals based ... http://t.co/lSMcM5bjRW
12Stocks.com
22 Jan 15 03:02:40
Weekly S&P500 #Stocks Performance $NFLX $NEM $NFX $PSX $TSO $SWN $NBL $LYB $DAL $NE $PXD $OKE $ESV $NTRS more@ http://t.co/RPeaHChahC
Stockmarketsvane
21 Jan 15 19:01:06
Swing Sell Picks: $ATLS, $BAS, $COP, $GLNG, $LEG.CA, $NBR, $OKE, $PSX, $PTEN, $PXX.CA, $RES, $RRC, $SDRL, $SM http://t.co/4ITxSDbnnz
12Stocks.com
21 Jan 15 16:02:40
S&P500 #Stocks Performance $NFLX $NFX $NBR $NTRS $NE $ESV $BTU $DNR $RIG $LYB $COH $SWN $CHK $PSX $QEP more@ http://t.co/1GBrbjndnA
tradewithjoe
21 Jan 15 14:01:47
$CBS Parabolic Buy Signals #2 - $D $DAL $DVN $FLS $KO $KORS $PSX $RICE $SLB $TER $XLB $XLE $YOKU $ZTS - http://t.co/Fq6JrGrD0A
James DiPlata
21 Jan 15 13:49:07
RT @tradewithjoe: $GOOGL Daily Doubles #2 - $GOOG $PSX $HIMX $BP $NE $NTRS $BABA $WHX $ARNA $FRO $BSX $QCOM $TLT $PFE $NFLX - http://t.co/q…
tradewithjoe
21 Jan 15 13:46:03
$GOOGL Daily Doubles #2 - $GOOG $PSX $HIMX $BP $NE $NTRS $BABA $WHX $ARNA $FRO $BSX $QCOM $TLT $PFE $NFLX - http://t.co/qOInBJceZs
_Subhan
21 Jan 15 13:08:18
@clintasaurus Genspace report came out showing huge build at Cushing, to the tune of 2mmbbls. Lets see how traders react. $PSX #markets
Rosner Stocks
21 Jan 15 13:06:06
Stocks Trending Now: http://t.co/0kBSoPZVDp $LDBKF $IBIBF $ZHNE $PSX $ARAH $GLP $QTEYF $USAP $ZEON $PSCO $SADMF $FANG ~
12Stocks.com
21 Jan 15 13:00:18
S&P500 #Stocks Performance $NFLX $NTRS $NFX $NE $NBR $BTU $ESV $COH $SWN $DNR $RIG $PSX $LYB $PXD $EQT more@ http://t.co/RPeaHChahC
TheStreet Alerts
21 Jan 15 13:00:18
Phillips 66 $PSX Stock Gains as Oil Prices Rebound http://t.co/pRmMFnI6bx
				
				
By  +Follow July 31, 2013 1:27PM
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