Phillips 66 operates as an energy manufacturing and logistics company. It operates through four segments: Midstream, Chemicals, Refining, and Marketing and Specialties (M&S). The Midstream segment transports crude oil and other feedstocks; delivers refined petroleum products to market; provides terminaling and storage services for crude oil and refined petroleum products; transports, stores, fractionates, exports, and markets natural gas liquids; provides other fee-based processing services; and gathers, processes, transports, and markets natural gas. The Chemicals segment produces and markets ethylene and other olefin products; aromatics and styrenics products, such as benzene, cyclohexane, styrene, and polystyrene; and various specialty chemical products, including organosulfur chemicals, solvents, catalysts, and chemicals used in drilling and mining. The Refining segment refines crude oil and other feedstocks into petroleum products, such as gasolines, distillates, aviation, and renewable fuels at 12 refineries in the United States and Europe. The M&S segment purchases for resale and markets refined petroleum products, including gasolines, distillates, and aviation fuels primarily in the United States and Europe. This segment also manufactures and markets specialty products, such as base oils and lubricants. The company was founded in 1875 and is headquartered in Houston, Texas.

BUILD UP FREE CASH	2022-12-31 (A)	2023-12-31 (A)	2024-12-31 (A)	2025-12-31 (E)	2026-12-31 (E)	2027-12-31 (E)	2028-12-31 (E)	2029-12-31 (E)
Revenue	169,990	147,399	143,153	131,997.7	129,871.8	133,303.4	133,303.4	133,303.4
Revenue % Chg.	52.5%	-13.3%	-2.9%
EBIT	9,854	8,235	2,051	4,607.5	7,315.3	7,189.6	7,189.6	7,189.6
EBIT Margin	5.8%	5.6%	1.4%
Tax Rate	22.2%	23.6%	18.7%
NOPAT	7,667.7	6,295.6	1,667.6	3,671.1	5,726.3	5,602.8	5,602.8	5,602.8
NOPAT Margin	4.5%	4.3%	1.2%	2.8%	4.4%	4.2%	4.2%	4.2%
D&A	1,629	1,977	2,110	3,262.9	2,347.2	2,343.8	2,343.8	2,343.8
D&A / Revenue	1%	1.3%	1.5%
Capex	-1,888	-2,155	-1,859	-2,122.3	-2,204.9	-2,225.4	-2,225.4	-2,225.4
Capex / Revenue	-1.1%	-1.5%	-1.3%
Chg. NWC	68	-1,815	-615	-713.2	-701.7	-720.3	-720.3	-720.3
Chg. NWC / Revenue	0%	-1.2%	-0.4%
Unlevered FCF (UFCF)	7,476.7	4,302.6	1,303.6	4,098.5	5,166.8	5,000.8	5,000.8	5,000.8
UFCF % Chg.	224.8%	-42.5%	-69.7%	214.4%	26.1%	-3.2%	0%	—
PV of UFCF	—	—	—	3,824	4,497.9	4,061.8	3,789.8	3,535.9
Sum of PV of UFCF	—	—	—	3,824	8,321.9	12,383.7	16,173.5	19,709.4

Cost of Debt
Tax Rate
After Tax Cost of Debt	3.4%
Risk Free Rate
Market Risk Premium
Beta	1
Cost of Equity	8.6%
Total Debt	21,417
Market Cap	56,175.3
Total Capital	77,592.3
Debt Weighting	27.6%
Equity Weighting	72.4%
WACC	7.2%

Exit Multiple EV/FCF
Terminal Value	77,245.3
PV of Terminal Value	50,959.8
Cumulative PV of UFCF	19,709.4
Net Debt	19,910
Equity Value	50,759.2
Shares Outstanding	402.9
Implied Share Price	126
Current Share Price	139.4
Implied Upside / (Downside)	-9.6%