Is Phillips 66 Stock a Buy?
Leading downstream oil giant Phillips 66 (NYSE: PSX) had its worst year ever. The company had turned a profit every year since spinning off from ConocoPhillips in 2012. That is, until the COVID-19 pandemic crippled its refined product and chemicals demand, resulting in a $4 billion unadjusted loss. In 2020, the company reported record-low revenue and negative free cash flow (FCF), and added $4 billion in debt to its balance sheet.
Given this terrible performance, investors may be scratching their heads as to why shares of Phillips 66 are up around 20% so far this year. Let's dive into Phillips 66's refining business to determine what went wrong in 2020 and what could go right in 2021.
Image source: Getty Images.
Source Fool.com
