Phillips 66 (PSX) Price Target Raised by Analyst, 2026 CapEx Budget Approved

Phillips 66 (NYSE:PSX) is included among the 7 Best Fortune 500 Dividend Stocks to Invest in Now.

Phillips 66 (NYSE:PSX) operates as a diversified, integrated downstream energy provider, manufacturing, transporting, and marketing refined products across its network.

On December 12, Mizuho raised its price target on Phillips 66 (NYSE:PSX) to $150 from $145 and kept a Neutral rating on the shares. The move came as part of the firm’s 2026 outlook for the exploration and production group. Sentiment around US oil and gas stocks remains weak, driven by concerns over oil oversupply and elevated gas storage levels. Even so, the analyst pointed to ‘underappreciated value’ across the group. Longer-term fundamentals, especially in exploration and production, may start to show through in 2026. Mizuho suggested shifting risk toward oil-focused E&Ps, with a selective approach to gas stocks, while taking a more neutral stance on refining.

A few days later, on December 15, Phillips 66 (NYSE:PSX) approved a $2.4 billion capital budget for 2026. The figure comes in slightly above this year’s forecast and reflects a shift in growth spending toward its midstream natural gas liquids network and higher-return refining projects. The plan reinforces Phillips 66’s focus on shareholder returns as it invests in assets designed to lift margins and cash flow across the integrated business, CEO Mark Lashier said.

In September, the company completed its acquisition of full ownership of WRB Refining from Cenovus Energy, a move expected to expand its crude processing flexibility. For 2026, capital spending for the midstream and refining segments is set at $1.1 billion each, compared with estimated outlays of $975 million and $822 million in 2025. Midstream investments include the Iron Mesa gas processing plant, a 300-million-cubic-feet-per-day facility in the Permian Basin scheduled to start up in the first quarter of 2027. The plan also covers an expansion of the Coastal Bend NGL pipeline, which is expected to lift capacity to 350,000 barrels per day by the fourth quarter of 2026.

In addition, Phillips 66 is planning a new fractionator in Corpus Christi that would add 100,000 barrels per day of NGL fractionation capacity. A final investment decision is expected in early 2026, with completion targeted for 2028.

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