Phillips 66 (NYSE:PSX) on Monday disclosed around $900 million in pre-tax mark-to-market losses in the first quarter of 2026.

As of March 31, the net short position in crude and products-related derivative contracts stood at about 50 million barrels.

Segment Details

In the Refining segment, the company expects a negative impact of about $300 million on pre-tax results due to the standard two-week lag in Gulf Coast clean products pricing.

Also, the Midstream segment faced setbacks from producer downtime caused by Winter Storm Fern and accelerated depreciation at a Permian Basin gas plant.

In the Chemicals segment, Global O&P utilization declined due to lower operations at CPChem's Middle East joint ventures.

Moreover, the Marketing & Specialties segment experienced margin pressure from sharply rising spot prices.

Impact on Financial Metrics

Phillips 66 says that the surge in commodity prices triggered a cash collateral outflow of around $3 billion related to derivative positions.

To address this, the company fully drew a new 364-day term loan of $2.25 billion and expanded its accounts receivable securitization program from $1.25 billion to $1.75 billion.

As of March 31, the company had about $6 billion in total liquidity, including $5 billion in cash and cash equivalents.

Total debt was roughly $27 billion. The company remains focused on reducing total debt to $17 billion by the end of 2027.

Outlook Revised

For the first quarter of FY26, the company now expects global olefins & polyolefins utilization in low-90% (vs. mid-90% earlier) and refining crude utilization in mid-90% (vs. low-90% projected earlier).

Earnings & Analyst Outlook

Following last quarter’s results, investors are now tracking the path toward the next reporting date on April 29, 2026 (confirmed).

  • EPS Estimate: $2.16 (Up from Loss of 90 cents YoY)
  • Revenue Estimate: $32.36 Billion (Up from $31.73 Billion YoY)
  • Valuation: Forward P/E of 16.4x (Suggests fair valuation relative to peers)

Analyst Consensus & Recent Actions: The stock carries a Buy Rating with an average price target of $162.06. Recent analyst moves include:

  • UBS: Buy (Raises Target to $212.00) (April 2)
  • Wells Fargo: Overweight (Raises Target to $201.00) (March 31)
  • Raymond James: Outperform (Raises Target to $205.00) (March 25)

Top ETF Exposure

  • State Street Energy Select Sector SPDR ETF (NYSE:XLE): 3.77% Weight
  • The Energy Select Sector SPDR Fund (NYSE:XLE): 3.81% Weight
  • SPDR S&P Oil & Gas Exploration & Production ETF (NYSE:XOP): 3.22% Weight

PSX Stock Price Activity: Phillips 66 shares were down 0.75% at $176.00 during premarket trading on Tuesday, according to Benzinga Pro data.

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