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Is Phillips 66 Stock a Buy?

TheMotleyFool

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Is Phillips 66 Stock a Buy?Photo, wide shot, wide-angle lens, Coal company, Blue hour, twilight, cool, ISO1200, slow shutter speed, photo by David Maisel: https://img.midjourneyapi.xyz/temp/2a011bdc-adca-4de9-8457-d868b31178cf.png

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

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