Phillips 66's Q4 Earnings Soar to $2.9B on Record Midstream Volumes, Citi Lifts Target to $159
Phillips 66 posted $2.9B in fourth-quarter earnings, up from $133M in Q3, propelled by an 88% clean product yield and record midstream volumes over 1MMBD. On February 9, Citi raised its target to $159 from $146 after Phillips 66 divested retail assets, closed WRB stake and Coastal Bend deals.
1. Fourth-Quarter Financial Performance
Phillips 66 generated $2.9 billion in fourth-quarter earnings compared to $133 million in the prior quarter, driven by an 88% clean product yield and record natural gas transportation and fractionation volumes above one million barrels per day. Net operating cash flow reached $2.8 billion.
2. Strategic Portfolio Moves
In 2025, the company sold its European retail business, acquired the remaining 50% stake in WRB, purchased Coastal Bend and expanded the Dos Picos II midstream project to sharpen its focus on core assets and geographies.
3. Analyst Price Target Upgrade
On February 9, Citi lifted its price target on Phillips 66 to $159 from $146 after updating its refining models following the quarter’s results, maintaining a Neutral rating while highlighting the company’s earnings momentum.