Phillips 66 (PSX - Free Report) posted third-quarter 2018 adjusted earnings of $3.10 per share, which surpassed the Zacks Consensus Estimate of $2.50. The bottom line increased from the year-ago quarter’s figure of $1.66. The upside came on the back of higher contribution from all the segments.

Phillips 66 Price, Consensus and EPS Surprise

Quarterly revenues totaled $30.6 billion, up from the year-ago quarter’s tally of $26.2 billion. The figure also beat the Zacks Consensus Estimate of $28.5 billion.

Segment Results

Midstream

The segment generated adjusted quarterly earnings of $261 million, up from $99 million in the year-ago quarter. The expansion of the Sweeny Hub as well as higher throughputs drove income.

Chemicals

The segment generated adjusted earnings of $210 million compared with $153 million in the year-ago quarter. The improvement was supported by the ramp-up of the new U.S. Gulf Coast petrochemicals assets.

Refining

The segment’s adjusted earnings of $959 million increased from $548 million in the prior-year quarter. During the quarter, Phillips 66’s refining utilization was 93%.

Marketing and Specialties (M&S)

This segment recorded earnings of $290 million, up from $211 million in the year-ago quarter.

Financial Condition

In the reported quarter, Phillips 66 generated $582 million of cash from operations. It also returned capital worth $775 million to shareholders.

As of Sep 30, cash and cash equivalents were $924 million along with debt of $11.3 billion. The company’s debt-to-capitalization ratio was 26%.

Q3 Price Performance  

During the third quarter, Phillips 66’s shares inched up 0.4% compared with the industry’s 4.1% rise.

Zacks Rank & Stocks to Consider

Currently, Phillips 66 carries a Zacks Rank #3 (Hold).

A few better-ranked players in the same sector are Murphy Oil Corporation (MUR- Free Report) , Enbridge Inc (ENB - Free Report) and Eni SpA (E - Free Report) . All these stocks flaunt a Zacks Rank #1 (Strong Buy). 

El Dorado, AR-based Murphy Oil is a global oil and gas exploration as well as production company. It pulled off an average positive earnings surprise of 96.5% in the last four quarters.

Headquartered in Calgary, Alberta, Enbridge is a leading energy infrastructure company. The company delivered an average positive earnings surprise of 35.3% in the trailing four quarters.

Based in Rome, Italy, Eni is among the leading integrated energy players in the world. The partnership delivered a negative earnings surprise of 0.3% in the last four quarters.