Phillips 66 deploys 'near all-time highs' asset base to meet peak summer demand: analyst – Phillips 66 (NYSE:PSX)

Phillips 66 (NYSE: PSX) announced a binding RFP for shipper commitments for services on its Blue Line system.

The Houston-based energy company plans to deploy its “near all-time high” asset base to meet peak summer demand, while focusing on capturing market share, reducing costs and improving performance. its overall operating performance, according to Goldman Sachs.

THE Phillips 66 Analyst: Neil Mehta maintained a Buy rating, while reducing the price target from $166 to $152.

THE Phillips Thesis 66: The company reported that its business transformation efforts resulted in cost reductions of more than $560 million, Mehta said in a note.

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Phillips 66 expects to achieve $1 per barrel cost reduction by the end of 2024, he added.

“As management continues to view the West Coast as a more challenging market due to declining domestic crude supply at the Los Angeles refinery, the company sees potential for positive change in crude flow dynamics as TMX began operations,” the analyst wrote.

The company expects refining crude utilization in the mid-90s in the second quarter, which is broadly in line with Goldman Sachs estimates, he added.

PSX Price Action: Shares of Phillips 66 were down 1.13% at $136.51 at press time Tuesday.

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