Phillips 66 (PSX): Navigating Opportunities in Energy Markets

Abdul Rahman

Wed, February 25, 2026 at 6:05 PM GMT+9 2 min read

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Phillips 66 (NYSE:PSX) is among the best oil & gas refinery stocks to buy now. On February 18, Reuters reported that U.S. refiner Phillips 66 (NYSE:PSX) is seeking approval to buy heavy crude directly from Venezuela’s state oil company PDVSA starting in April, aiming to boost profits by avoiding middlemen like Chevron and trading houses.

Phillips 66 (PSX): Navigating Opportunities in Energy Markets

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The company recently purchased Venezuelan oil from Vitol at about $9 per barrel below Brent and says its Gulf Coast refineries can process a wide range of crude, making access to heavy Venezuelan oil a valuable opportunity. However, Reuters noted that refiners face challenges, as PDVSA requires special U.S. Treasury licenses and banks remain cautious about financing Venezuelan oil trades.

On February 11, Phillips 66 announced a quarterly dividend of $1.27 per share, up $0.07 from the prior payout. The dividend will be paid on March 4, 2026 to shareholders of record on February 23, 2026.

CEO Mark Lashier said the increase reflects confidence in the company’s ability to generate steady cash flows. He noted that Phillips 66 has raised its dividend every year since 2012, achieving a 15% compound annual growth rate.

On February 6, TD Cowen raised its price target on Phillips 66 to $155 from $151 while keeping a Buy rating. The firm said lower refining costs and Phillips 66’s ability to add 45,000 barrels per day of refining capacity were key reasons for the upgrade.

TD Cowen noted that Phillips 66’s refining business should benefit in the near term from seasonal demand and favorable Canadian crude price differentials. The firm expects the Midstream segment to stay steady until late 2026, but by 2027 its earnings could fall slightly below company guidance.

The analysts also suggested Phillips 66 could perform better in the second half of 2026 if Midstream ramps up and chemicals improve, though the Marketing segment’s outlook is less certain. In recent results, Phillips 66 reported Q4 2025 EPS of $2.47, beating forecasts of $2.25. However, revenue of $32.14 billion missed expectations of $34.14 billion, showing mixed performance.

Phillips 66 (NYSE:PSX) is a large downstream energy company with global operations in the U.S., U.K., Germany, and other countries. It runs five main businesses: Midstream (pipelines and transport), Chemicals, Refining (turning crude oil into fuels), Marketing & Specialties (fuel sales and lubricants), and Renewable Fuels.

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