Research Alert: Psx: Derivative Headwinds, But A Q1 Beat Nonetheless
CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:PSX surprised to the upside in Q1 with adjusted EPS of $0.49 vs. a loss of $0.90 in the prior year, beating consensus by $0.88. However, PSX incurred sizable $839M losses on derivative positions against just $200M in adjusted earnings. The WRB acquisition boosted net crude throughput capacity by 45k b/d to 1.993M b/d, while midstream expansion efforts increased Sweeny NGL fractionation capacity by 23% and Freeport LPG export dock capacity by 15%. Upcoming projects include the Iron Mesa gas plant (300 mmcf/d) and two polymers projects, both targeting 2027 startups. Refining utilization remained strong at 95% despite planned turnarounds, though realized margins declined to $10.11/b from $12.48/b sequentially. Midstream volumes pulled back from Winter Storm Fern, with NGL pipeline throughput dropping to 930 MBD vs. 1,006 MBD in Q4. We think the efficiency efforts can support increased LNG and LPG exports to Asia, which faces supply shortages following Strait of Hormuz blockades.