Phillips 66

Since mid‑2022 PSX has emphasized returns and simplification: over 14 billion dollars to shareholders via repurchases and dividends, over 3 billion dollars of divestitures, consolidation of DCP, the 2.2 billion dollar EPIC NGL purchase to deepen the NGL chain, and a 1.4 billion dollar buy‑in of WRB. 2026 capex is a disciplined 2.4 billion dollars with about half for sustaining and the balance for NGL/fractionation growth and targeted refinery upgrades.

We like the mix shift and cost‑out progress, but we would prefer faster deleveraging given cyclicality and legal overhang. Repurchases appear well‑timed through 2023–2025, though inherently pro‑cyclical in refining upcycles.