First Read: Phillips 66 "PSX continues to grow Permian Midstream footprint"

Research evidence excerpt

First Read: Phillips 66 "PSX continues to grow Permian Midstream footprint"

Global Research

18 May 2026ab

First Read

EquitiesPhillips 66

PSX continues to grow Permian Midstream United States

footprint Oil Companies, Secondary

12-month rating Buy

12m price target US$212.00

What Happened?

PSX announced it is moving forward with the Zeus Gas Plant that will include new

Midland Express (MEX) pipeline and a third Coastal Blend Fractionator, two projects that Price (15 May 2026) US$176.20

will advance its integrated wellhead-to-market strategy. The two projects expand gas RIC: PSX.N BBG: PSX US

processing capacity in the Permian and NGL fractionation capability on the Gulf Coast.

Trading data and key metrics

Zeus and the third Coast Blend Fractionator are included in PSX's capital spending

program and fall within the company's stated $2.0-$2.5B capital spending range. This is 52-wk range US$188.28-111.78

consistent with the company's commitment to reduce debt to $17B by YE 2027 and Market cap. US$71.2b

return more than 50% of net operating cash flow (excluding working capital) to Shares o/s 404m (COM)

shareholders. Both projects are expected to be online in 2028. Free float 73%

Avg. daily volume ('000) 955

Project Scope Avg. daily value (m) US$161.4

Zeus Common s/h equity (12/26E) US$28.9b

P/BV (12/26E) 2.4x

300 MMcf/d processing facility in the Permian (will include the New Midland

Net debt to EBITDA (12/26E) 2.3x

Express (MEX) Pipeline, a ~45 mile, 20-inch line integrating PSX's Permian Basin

gathering systems) EPS (UBS, diluted) (USD)

12/26E

MEX will able to move up to 230 MMcf/d of wellhead gas and provide future

UBS Cons.

bidirectional flexibility between multiple processing facilities - expected to come Q1E (0.57) 0.49

online with Zeus Q2E 3.71 6.26

Q3E 3.82 5.95