PSX - Up 50% in The 2022 Bear Market Is Phillips 66 Still a Winner?
In a brutal year for stocks outside the oil and gas patch, Phillips 66 (NYSE: PSX) proved the value of diversification in 2022, with its shares gaining 44% over the year. Add in the company's generous -- and secure -- dividend, and shareholders enjoyed 49.6% in total returns.
Those results were the product of relatively strong recovery in demand for oil, natural gas, the chemicals made from them, and all the challenges with supply that affected global markets and commodity prices.
Phillips 66 is a major refiner, operator of pipelines and storage, petrochemicals manufacturer, and seller of refined products to customers and resellers. It has really benefited from the recovery in demand, as well as inflationary impacts. It does not operate any exploration and production, so while other peers have benefited more from higher oil prices, Phillips 66 has been more a story of recovery of demand, and the strong returns it has a long history of generating. Over the past four quarters, the $5.8 billion in free cash flow it generated is the most in its history as a stand-alone company.
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Up 50% in The 2022 Bear Market, Is Phillips 66 Still a Winner?