Kiawah Commentary – Executing in a Tight Margin Environment & Growing Midstream

Research evidence excerpt

Kiawah Commentary – Executing in a Tight Margin Environment & Growing Midstream

USA | Refining & Marketing

Phillips 66 EquityJuneResearch12, 2026

FLASH NOTEKiawah Commentary – Executing in a Tight

RATING HOLDMargin Environment & Growing Midstream

PRICE $178.10^

We hosted Mark Lashier, Chairman & CEO, and Sean Maher, Chief Economist at

our Kiawah Conference. The conversation focused on the tight refining macro PRICE TARGET | % TO PT $191.00 | +7%

environment and PSX’s ability capitalize. PSX mgmt do not expect a US product 52W HIGH-LOW $190.61 - $118.00

export ban. In addition, PSX mgmt spoke to the progress on Western Gateway MARKET CAP $0.0M

and other midstream opportunities. The macro should support PSX hitting its TICKER PSX ^Prior trading day's closing price unless otherwise

debt target ahead of schedule. noted.

(1) Refining Macro. PSX spoke to a tight global refining complex with margins expected to remain

elevated even after the Strait reopens. Fundamentals were tight even before the supply losses from

the conflict and on top of this refining capacity in the Middle East has been damaged and Asian

capacity additions delayed. PSX notes industry turnaround activity has been low the last few years

and will need to tick higher in 2027 thereby reducing oil product supply. In addition, Mr Lashier

spoke to an ongoing dislocation in the market with crude supply & demand growth outpacing

refinery capacity additions. PSX and other downstream operators are in close coordination with the

Trump administration and have argued against a US product export ban. The federal government

is receptive to the view that it would be counterproductive.

(2) Refining Operations. PSX mgmt remain focused on improving refining operations and reiterated