Skip to Content

Phillips 66 PSX

Rating as of

Morningstar’s Analysis

Valuation
Currency in USD
Is it the right time to buy or sell?
Find out with Morningstar Premium
Is it the right time to buy or sell?
Find out with Morningstar Premium

1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

Energy Stocks Surge on Positive Vaccine News, but Plenty of Upside Remains

Preston Caldwell Equity Analyst

Analyst Note

| Preston Caldwell |

Energy stocks surged on Nov. 9 following Pfizer's announcement of favorable phase 3 data on its COVID-19 vaccine. The broader U.S. Market Index was up 1% on the day, but the energy sector led the way up 14%. Oil prices (West Texas Intermediate) were also up about 8%. Despite the rally, the energy sector is still down around 45% year-to-date. We think the sell-off has been overdone, and as such energy stocks continue to look undervalued overall. Our median covered energy stock trades at a 37% discount to our fair value. Within energy, oilfield services look cheapest overall, trading at a median 52% discount to fair value. E&Ps are also at a 45% median discount to fair value.

Read Full Analysis

Company Profile

Business Description

Phillips 66 is an independent refiner with 13 refineries that have a total throughput capacity of 2.2 million barrels per day. Its DCP Midstream joint venture holds 45 natural gas processing facilities, 11 natural gas liquids fractionation plants, and a natural gas pipeline system with 58,000 miles of pipeline. Its CPChem chemical joint venture operates facilities in the United States and the Middle East and primarily produces olefins and polyolefins. Phillips 66 also holds a 75% interest in Phillips 66 Partners after exchanging its general partner incentive distribution rights for limited partner units.

Contact
2331 CityWest Boulevard
Houston, TX, 77042
T +1 281 293-6600
Sector Energy
Industry Oil & Gas Refining & Marketing
Most Recent Earnings Sep 30, 2020
Fiscal Year End Dec 31, 2020
Stock Type Hard Assets
Employees 14,500

Related