Phillips 66 Nears $5.50 Refining Cost Target for 2027

Earnings
โดย Zacks Investment Research·US·Read original
Summary · why it matters

Phillips 66 is close to achieving its 2027 target of about $5.50 per barrel in annual refining adjusted controllable costs, having reported $5.57 per barrel in the second quarter of 2026. The company is pursuing over 200 refining initiatives focused on energy efficiency, process simplification, reliability, and utilization, with projects at Bayway, Ferndale, and Wood River each expected to cut annual operating expenses by more than $1 million. Phillips 66 also reported 96% crude-capacity utilization and an 86% clean-product yield in the second quarter, supporting its cost-reduction program. Among peers, Marathon Petroleum reported second-quarter refining operating costs of $5.72 per barrel, up from $5.34 a year earlier, and expects costs to moderate to $5.60 in the third quarter. Valero Energy's refining operating expenses fell to $4.70 per barrel in the second quarter from $4.91 a year earlier, and the company is advancing a $230-million optimization project at St. Charles expected to start in the third quarter of 2026.

Impact on stocks 4

Synthetic Biology (non-pharma)± Mixed · 3 stocks
Phillips 66
PSX
▲ PositiveSupplyrelevance

Close to achieving 2027 cost target of $5.50 per barrel, with Q2 2026 costs at $5.57 and over 200 initiatives to reduce costs.

Valero Energy Corporation
VLO
▲ PositiveSupplyrelevance

Refining operating expenses fell to $4.70 per barrel from $4.91, and advancing a $230-million optimization project.

Marathon Petroleum Corp
MPC
▼ NegativeSupplyrelevance

Reported higher refining costs of $5.72 per barrel, up from $5.34 a year earlier, indicating cost pressures.

Energy▲ · 1 stocks
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