Analyst Note| Allen Good, CFA |
Phillips 66 reported an adjusted loss of $509 million during the first quarter compared with adjusted earnings of $450 million the year before. Although market conditions showed an improvement, Phillips 66 realized lower utilization and higher costs across each business related to winter storms. As such, the quarterly results do not change our thesis of a continued economic recovery driving an improvement in the refining market, benefiting independent refiners. Our fair value estimate and narrow moat rating remain unchanged.