PSX - Phillips 66 opens higher after easy Q3 beat; buybacks exceeded estimates

Phillips 66 ( NYSE: PSX ) +3.9% in early trading Tuesday after easily beating estimates for Q3 adjusted earnings while also buying back more of shares than expected, as the refiner was helped by surging fuel demand and tight energy supplies.

Phillips 66 ( PSX ) said it returned $1.2B to shareholders through dividends and share repurchases during the quarter, funding another $694M in share buybacks during Q3 after executing $66M in repurchases during Q2.

Q3 net earnings skyrocketed by more than 12-fold to $5.4B, or $11.16/share, from $402M, or $0.91/share, in the year-earlier quarter.

Q3 adjusted pre-tax income for refining fell to $2.8B from $3.1B in Q2, primarily due to a 6% drop in realized margins to $26.58/bbl from $28.31/bbl in Q2, partially offset by higher volumes; a year ago, Phillips' ( PSX ) refining margins was just $8.57/bbl.

Q3 midstream pre-tax income soared to $3.6B from $292M in Q2, with Q3 including a $3B net gain related to the consolidation of DCP Midstream, Sand Hills Pipeline and Southern Hills Pipeline and the transfer of interest in Gray Oak Pipeline.

Q3 results "reflect a continued favorable market environment, as well as strong operating performance and improved market capture," President and CEO Mark Lashier said.

Phillips 66's ( PSX ) stock price return shows a 43% YTD gain and a 38% increase during the past year .

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