Phillips 66 (NYSE:PSX) has seen its share price fall over the past few days. The company has significant growth plans, especially in the midstream sector. Phillips 66 has done an impressive job of rewarding shareholders through buybacks and increasing dividends.
The company has remained strong during the recent oil crash. As a downstream oil company, it has not been as affected by the crash, which is reflected in its stock price. In fact, the company has seen its stock price barely drop from $81 before the crash to its August 21 price of $76 per share – a drop of less than 10%.
The company has seen its EBITDA hover somewhere between growing and constant. It is worth pointing out that looking at refining quarter by quarter is a poor idea, since it tends to be cyclical on a year-over-year basis.
Still, taking the average of the company’s 2013, 2014, and Q1 and Q2 2015 earnings, you’ll see that the most recent quarter had above-average earnings. In fact, since 3Q 2014, right around the start of the oil crash, the company has not reported income noticeably below the average – only at the average or above.
This points to the company’s continued ability to grow, despite a toughening overall oil situation. So it might be a good strategy to buy call options of the company’s stock.