Phillips 66 (PSX) is expected to accelerate share repurchases in H2 this year, supported by ongoing balance sheet deleveraging, UBS said in a note Monday.
Net debt declined to $16.46 billion at the end of Q2 from $21.9 billion at the end of Q1, with the company targeting $13.5 billion to $14 billion in net debt by year-end, according to the note.
UBS raised its 2026 earnings-per-share estimate to $21.10 from $17.38 and its 2027 estimate to $16.97 from $16.18, citing a strong Q2 beat and resilient refining and renewable diesel margins.
UBS said Phillips 66's Western Gateway project is approaching a final investment decision pending commercial and regulatory milestones, which would expand takeaway capacity for refined products to West Coast markets.
UBS maintained a buy rating on Phillips 66 with a $235 price target.
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