Phillips 66 stock rises on Q4 earnings beat

Diversified energy firm Phillips 66 (PSX) reported strong earnings for the fourth quarter, supported by strong midstream business. The market responded positively to the above-consensus earnings and the company’s stock gained about 7% in the pre-market trading.

In Q4, adjusted earnings more-than-quadrupled year-over-year to $4.87 per share, surpassing analysts’ estimate of $2.76 per share. The bottom-line was helped by a 33% quarter-over-quarter improvement in midstream pre-tax income to $379 million.

Meanwhile, Q4 revenue of $29.84 billion, missed the street consensus of $30.05 billion.

Shares of the energy giant have declined 26% from its 52-week high achieved in July.

CEO Greg Garland said, “Our Midstream results reflect growth from value-enhancing capital projects completed over the past two years. CPChem achieved full operations at its new U.S. Gulf Coast petrochemical assets, contributing to increased cash distributions.”

Q4 refining pre-tax income was $2 billion, compared with $1.2 billion in the third quarter, which was driven by the Central Corridor and Gulf Coast regions.

The company added that it returned $864 million to shareholders through dividends and share repurchases during the fourth quarter.

During the last reported quarter, PSX shares gained about 4% after delivering record earnings on strong revenue growth.

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