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Phillips 66: Blending Barrels Of Cash

Mar. 20, 2023 6:03 PM ETPhillips 66 (PSX)DCP, EPD30 Comments
Ronald Ferrie profile picture
Ronald Ferrie


  • Refinery capacity in the U.S. is stressed to serve the market with needed gasoline and jet fuels, leading to high profit margins.
  • Following the Phillips 66 acquisition of DCP Midstream, profits and stability are expected to grow.
  • Phillips 66 has committed to delivering $8 billion back to shareholders through 2024. I'll show how this is just the tip of the iceberg.

Aerial view of oil refinery at sunset.



Phillips 66 (NYSE:PSX) is traditionally a refining company, taking crude oil and processing them into the usable forms like gasoline, diesel, jet fuel, heating oils, etc. This industry has been underinvested over the last 10 years, and this has resulted in marginal refining

U.S. Refinery Capacity

U.S. Refinery Capacity (EIA)

3-2-1 Crack Spreads

3-2-1 Crack Spreads (EIA)

PSX Midstream

Midstream Operational Map (PSX 2022 Investor Presentation)

LNG export

LNG export projects (FLEX LNG)

This article was written by

Ronald Ferrie profile picture
I am a Licensed Professional Engineer who works in the Nuclear Power industry. I use my professional working knowledge of the power/energy industries to aid in evaluating potential equities worthy of long-term investment. I invest in income producing equities and rental real estate properties for cash flow and long-term appreciation. My articles are to serve as a platform for presenting the underlying fundamentals and long-term potential of each equity/business.

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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