Here's Why Phillips 66's Stock Rallied Sharply in September

Several catalysts combined to drive shares of Phillips 66 (NYSE: PSX) 8.5% higher in September, which helped pull it out of the red for the year. Leading the charge was the company's quick recovery from Hurricane Harvey, which benefited certain refiners, and the announcement of a significant asset drop-down to its MLP Phillips 66 Partners (NYSE: PSXP).

Hurricane Harvey battered the Houston area in late August, causing significant flooding and forcing many oil refineries to shut down operations. However, Phillips 66 quickly reopened its Sweeney refinery and Beaumont terminal, which enabled it to take advantage of higher market prices for refined products in the aftermath of the storm. Meanwhile, the company's Lake Charles refinery in Louisiana took delivery of oil from the U.S. Strategic Petroleum reserve so it could continue operating at full capacity and help keep the market supplied with refined products. Because of these factors, Phillips 66's third-quarter earnings could see a boost due to the jump in refining margins as a result of the storm.

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Source: Fool.com