Phillips 66 PSX, a leading energy company, has announced its plans to expand its commercial-scale production of renewable diesel. This move aligns with the company's commitment to sustainability and renewable energy solutions.
PSX’s Rodeo Renewed project has seen significant advancement, with the facility now exclusively processing renewable feedstocks. This has resulted in the production of approximately 30,000 barrels per day of renewable diesel.
The Rodeo Renewable Energy Complex in California is on a trajectory to further increase its production rates. Phillips 66 aims to boost production to more than 800 million gallons per year of renewable fuels by the end of the second quarter. This places Phillips 66 at the forefront of renewable fuel production, reinforcing its commitment to sustainability and innovation.
Rich Harbison, executive vice president of Refining at Phillips 66, conveyed satisfaction with the notable accomplishment, emphasizing the significance of the achievement at the Rodeo facility. He highlighted its alignment with the company's strategy to enhance renewable fuel production, reduce carbon emissions, and provide dependable, cost-effective energy, all while generating lasting value for shareholders. Harbison reaffirmed the company's dedication to executing the project proficiently, with a focused effort on completing it by the second quarter.
The Rodeo Renewed project's design also incorporates the capability to produce renewable jet fuel, a crucial element of sustainable aviation fuel. Production of renewable jet fuel is slated to commence in the second quarter of 2024, further underscoring Phillips 66's dedication to innovation and sustainability in the aviation industry.
The decision (made in 2022) to move forward with the Rodeo Renewed project was a significant one for Phillips 66. This transformative initiative has effectively positioned the San Francisco refinery as one of the world’s largest renewable fuel facilities. Leveraging a combination of premium geographic location, unique processing infrastructure and flexible logistics, the converted facility is poised to significantly reduce lifecycle carbon emissions.
Zacks Rank & Key Picks
Currently, Phillips 66 carries a Zack Rank #3 (Hold).
Some better-ranked stocks in the energy sector are Sunoco LP SUN, Murphy USA Inc. MUSA and Global Partners GLP, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Sunoco is among the biggest motor fuel distributors in the U.S. wholesale market in terms of volumes. By distributing more than 10 fuel brands via 10,000 convenience stores under long-term distribution contracts, the partnership will continue to generate stable cash flow.
The Zacks Consensus Estimate for SUN’s 2024 earnings per share (EPS) is pegged at $4.96. The stock has witnessed upward earnings estimate revisions for 2024 and 2025 in the past 30 days.
Murphy USA is a leading independent retailer of motor fuel and convenience merchandise in the United States.
The Zacks Consensus Estimate for MUSA’s 2024 EPS is pegged at $26.32. The company has a Zacks Style Score of B for Growth and B for Value. It has witnessed upward earnings estimate revisions for 2024 and 2025 in the past 30 days.
Global Partners is a leading operator of gasoline stations and convenience stores. Over the past 30 days, GLP has witnessed upward earnings estimate revisions for 2023 and 2024.
The Zacks Consensus Estimate for Global Partners’ 2024 and 2025 EPS is pegged at $3.90 and $4.47, respectively. GLP currently has a Zacks Style Score of A for Value.
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Free: See Our Top Stock and 4 Runners Up >>Sunoco LP (SUN) : Free Stock Analysis Report
Murphy USA Inc. (MUSA) : Free Stock Analysis Report
Phillips 66 (PSX) : Free Stock Analysis Report
Global Partners LP (GLP) : Free Stock Analysis Report
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