Phillips 66 (PSX) Shows Earnings Momentum Amid Strategic Portfolio Transformation

Phillips 66 (NYSE:PSX) is one of the best long-term retirement stocks. On February 9, Citi raised its price target on Phillips 66 (NYSE:PSX) to $159 from $146 while maintaining a Neutral rating, following updates to its oil and gas refiner models after the company’s fourth-quarter results.

On February 4, Phillips 66 delivered impressive fourth-quarter and full-year results, benefiting from a rebound in US refining margins that lifted earnings.

The company delivered $2.9 billion in earnings in the fourth quarter compared to $133 million in the third quarter. The fourth quarter earnings included pre-tax special item adjustments of $2.0 billion in the Marketing and Specialties segment. Full-year earnings totaled $4.4 billion or $10.79 a share.

During the quarter, the company achieved record natural gas transportation and fractioning volumes of over 1MMBD, while also delivering a record clean product yield of 88%. The company generated $2.8 billion in net operating cash flow.

During the year, Phillips 66 enhanced its portfolio to focus on core assets and geographies. It also adopted a disciplined approach to improve refining operations.

“2025 was a transformative year for Phillips 66. We sold the majority of our European retail business, acquired the remaining 50% interest in WRB, and improved our Midstream competitive position with the acquisition of Coastal Bend and expansion of Dos Picos II,” said Mark Lashier, chairman and CEO of Phillips 66.

Phillips 66 (NYSE:PSX) is a major diversified energy manufacturing and logistics company. It refines crude oil into fuel, transports products via pipeline, produces petrochemicals, and markets gasoline, diesel, and lubricants globally.

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Disclosure: None. This article is originally published at Insider Monkey.