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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. To read our full disclosure, please go to: http://www.equities.com/disclaimer


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Results for PSX
24/7 Wall St.
29 Jul 15 12:20:50
Will Other Refiners Follow Marathon and Hike Dividends? http://t.co/da0Ly1M17W $MPC $PSX $VLO $TSO $
DailyStockPicks
29 Jul 15 09:10:39
$OCLS break out up 10% today. Price target of $5 $CSCO $AIG $PSX $BK $ICE $CI investors read http://t.co/rWpJvFmAFr
Estimize
29 Jul 15 08:20:48
@thomas_streater $PSX is reporting earnings for Q2 2015 on 07/31/15 – http://t.co/HDLKxstM5j
Estimize
29 Jul 15 08:20:39
@ogbranalyst $PSX is reporting earnings for Q2 2015 on 07/31/15 – http://t.co/HDLKxstM5j
Estimize
29 Jul 15 08:20:32
@strickliability $PSX is reporting earnings for Q2 2015 on 07/31/15 – http://t.co/HDLKxstM5j
Clark Joseph Kent
29 Jul 15 06:51:59
5 Cash-Rich Companies to Triple Your Gains $AAPL $EMC $QCOM $PSX $PCLN http://t.co/PDai6m7pON
Breaking News
29 Jul 15 06:44:10
$PSX: Shares of Phillips 66 (NYSE:PSX) Sees Large Inflow of Net Money ...: http://t.co/ydwqnwb6FE
Alexander Alt Cap
29 Jul 15 04:05:24
Morning Market $CVX $AAPL $SPY $LNG $PSX $MRK $TEVA $VLO $XOM $T $SBUX $GILD $NFLX $V $AMZN $CELG #macrolordofwar http://t.co/PZ8qSa4Uz5
PamphletShop
28 Jul 15 22:54:29
$MU Micron http://t.co/UKZ3MRoLy9 $SYN $MWE $MDXG $DHR $NAT $GOOGL $STNG $AMZN $BSBR $KO $PSX $BUD $HIG $KKR $JNJ $STI $GD
Alex Raffol
28 Jul 15 17:49:02
RT @barronsstckblog: Bespoke Says You Can Buy and Forget These Oil Stocks: $XOM $CVX $COP $DVN $MPC $VLO $PSX http://t.co/auWTik8Hru via @b…
InvestWithConf
28 Jul 15 17:34:02
$PSX is rated BUY, 18.1% upside by Wall Street analysts based on average ratings/targets http://t.co/szfpMk1oml http://t.co/GQwwt7mL1z
Capital Market Labs
28 Jul 15 14:54:11
Interactive Chart -> http://t.co/STkQ2ds5YR $PSX Cash from Operations is Deteriorating. http://t.co/bdbkNXNAbX
PamphletShop
28 Jul 15 14:18:45
$MU Micron Technology Inc http://t.co/UKZ3MRGmpH $SYN $MWE $MDXG $DHR $NAT $GOOGL $STNG $AMZN $BSBR $KO $PSX $BUD $HIG $KKR $JNJ $STI $WM
PamphletShop
28 Jul 15 13:28:51
$MU Micron Technology Inc http://t.co/UKZ3MRGmpH $SYN $MWE $MDXG $DHR $NAT $GOOGL $STNG $AMZN $BSBR $KO $PSX $BUD $HIG $KKR $JNJ $STI $GD
Barron's Stocks Blog
28 Jul 15 12:50:08
Bespoke Says You Can Buy and Forget These Oil Stocks: $XOM $CVX $COP $DVN $MPC $VLO $PSX http://t.co/auWTik8Hru via @barronsonline
Stocks On High Alert
28 Jul 15 12:20:37
#PENNYSTOCKS $EDGA $NQBX $PSX $BATS $EDGX $BYX $NASD $FB GRAB SOME SHARES ON $PUGE NOW! BIG NEWS EXPECTED SOON! http://t.co/Tjbfd4cqCb
rh
28 Jul 15 12:14:27
RT @natgastrading: Is It Time to Take Profits on Oil Refining Stocks? > http://t.co/VX7MC9rRGx $HFC $MPC $PSX $TSO $VLO
PamphletShop
28 Jul 15 10:08:42
$TWTR Twitter Inc http://t.co/UKZ3MRGmpH $SYN $MWE $MDXG $DHR $NAT $GOOGL $STNG $AMZN $BSBR $KO $PSX $BUD $HIG $KKR $JNJ $STI $GD $WM
PamphletShop
28 Jul 15 09:27:37
$APPF AppFolio Inc http://t.co/UKZ3MRGmpH $SYN $MWE $MDXG $DHR $NAT $GOOGL $STNG $AMZN $BSBR $KO $PSX $BUD $HIG $KKR $JNJ $STI $GDX
Penny Stock Secret
28 Jul 15 08:38:35
$71,000 in ONE TRADE!! By Follwing Their Signals More Info Here http://t.co/SVqoMkrw2z .. $PSF $PSG $PSO $PSX
Anant Patel
28 Jul 15 08:06:02
@DeltaNinety $CAT $LULU $PSX is a good example of relative strength first 30 minutes vs spy.They broke out opening range.
DailyStockPicks
28 Jul 15 07:03:42
$OCLS cheap health care stock. Price target of $5. 200%+ upside $CSCO $AIG $PSX $BK $ICE $CI investors read http://t.co/rWpJvFmAFr
Alexander Alt Cap
28 Jul 15 06:03:04
Morning Market $CVX $AAPL $SPY $LNG $PSX $MRK $TEVA $VLO $XOM $GLD $T $SBUX $NFLX $V $AMZN $CELG #macrolordofwar http://t.co/cNtgZC0MYO
PamphletShop
27 Jul 15 22:25:47
$NFLX Netflix http://t.co/UKZ3MRGmpH $SYN $MWE $MDXG $DHR $NAT $GOOGL $STNG $AMZN $BSBR $KO $PSX $BUD $HIG $KKR $JNJ $STI $GD $WM
StockNewsWires
27 Jul 15 21:47:03
$PSX: Phillips 66 (NYSE:PSX) Short Interest Update: http://t.co/Vi0Xvv6D7P
leahanne
27 Jul 15 21:46:30
Volume Alert - PSX 76.72 Phillips 66 Common Stock $PSX Hit a high today of 78.04 Closing the day 07/27/15 at 7 http://t.co/dwGi0pbrDf
Joe Larson
27 Jul 15 20:08:31
ST mean reversion setups in $NFLX $MLM $FB $TSO $EBAY $VLO $CELG $THC $MPC $ZION $ALXN $AVGO $TGNA $SWKS $CTSH $PSX $ETFC $GILD $VRTX $CMA
Capital Market Labs
27 Jul 15 19:55:03
Website -> http://t.co/Cff6qn8Aqe $PSX Reports Friday, Consensus Est. Rev: $25282M, EPS: $1.81 http://t.co/5KtVRTuWdb
PamphletShop
27 Jul 15 19:06:07
$NFLX Netflix http://t.co/UKZ3MRGmpH $SYN $MWE $MDXG $DHR $NAT $GOOGL $STNG $AMZN $BSBR $KO $PSX $BUD $HIG $KKR $JNJ $STI $WM
ßuy ßlood
27 Jul 15 18:08:37
$PSX Long radar http://t.co/ln5SZIWfqW
dailystockplays.com
27 Jul 15 17:15:54
Below Bollinger http://t.co/happJX272x $VALE $VWO $XOP $ZNGA $WLL $SDRL $BMY $BSX $PSX $SLB $CLR $ETE $AVP $ETFC $GNW $APC $ALLY $AVGO
PamphletShop
27 Jul 15 17:14:09
$NFLX Netflix http://t.co/UKZ3MRGmpH $SYN $MWE $MDXG $DHR $NAT $GOOGL $STNG $AMZN $BSBR $KO $PSX $BUD $HIG $KKR $JNJ $STI $GD
FinSentS SP500
27 Jul 15 15:06:11
$PSX:US Investment Analysts' Recent Ratings Updates for Phillips 66 (PSX) #PHILLIPS 66 http://t.co/tXnYEca117 #SP500
Shiraz Lakhi
27 Jul 15 13:09:09
Volume Spike Screener: Energy #Stocks Trading DOWN on STRONG Volume-Spike $CVX $COP $PSX $EOG ++ Full List: http://t.co/2YwM5WXUyZ
Hot Stock Bot
27 Jul 15 12:01:00
$PSX drops -2.63%, currently trading at $76.95
BNK Invest
27 Jul 15 11:36:26
Monday Sector Laggards: Materials, Energy $FCX $CF $XLB $NFX $PSX #stocks http://t.co/s7Gt24RZzM
Hot Stock Bot
27 Jul 15 10:54:05
$PSX tumbles -2.59%, currently trading at $76.98
StockReadBot
27 Jul 15 10:50:06
$PSX
Hot Stock Bot
27 Jul 15 10:50:03
$PSX drops -2.59%, currently trading at $76.98
DailyStockPicks
27 Jul 15 10:09:55
$OCLS spiking today, price target of $5. 200%+ upside $CSCO $AIG $PSX $BK $ICE $CI investors read http://t.co/rWpJvFmAFr
PamphletShop
27 Jul 15 09:36:22
$SLV iShares Silver http://t.co/UKZ3MRGmpH $SYN $MWE $MDXG $DHR $NAT $GOOGL $STNG $AMZN $BSBR $KO $PSX $BUD $HIG $KKR $JNJ $STI $GD $WM
Hot Stock Bot
27 Jul 15 08:52:48
$PSX tumbles -2.72%, currently trading at $76.88
StockReadBot
27 Jul 15 07:52:05
$PSX
Hot Stock Bot
27 Jul 15 07:52:02
$PSX falls -2.58%, currently trading at $76.99
Trader Daily
27 Jul 15 07:32:11
Trade-Ideas: Phillips 66 $PSX Is Today's "Roof Leaker" Stock $PSX http://t.co/six3YaqcWU
Chris DeMuth Jr
27 Jul 15 07:24:37
Gasoline Is Cheap; Here's How To Get It 10% Cheaper: http://t.co/hm5kX9Vp8O ( $PSX ). Save $60 per couple on gas... http://t.co/aHFtyiUeTf
Nathan Smith
27 Jul 15 06:51:46
@jimcramer Why are those refineries down? Good time to pickup $PSX? #booyatoyah
Willie Delwiche, CMT
27 Jul 15 06:16:01
RT @WarrenPies: Refiners continue to mirror the 1986 path @NDR_Research $VLO $MPC $PSX http://t.co/EWDrSeTJB7
Ticker Report
27 Jul 15 05:26:34
Morningstar Assigns “A” Credit Rating to Phillips 66 $PSX http://t.co/kUqnLzROHx
Dakota Financial
27 Jul 15 05:23:53
Morningstar Assigns “A” Credit Rating to Phillips 66 $PSX http://t.co/H17wvAmAPa
				
				
By  +Follow July 31, 2013 1:27PM
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