02:50 PM EDT, 09/16/2025 (MT Newswires) -- Phillips 66 (PSX) is positioned to boost earnings through operational integration across its refineries, pipelines, and petrochemicals, cutting costs, improving efficiency, and expanding its commercial team 30% since 2023, UBS Securities said.

US distillate margins remain strong, with central corridor refining at $15.61 per barrel in Q2 versus $12.75 per barrel a year earlier, and the company expects margins to stay robust through year-end, the brokerage said in a Monday note.

UBS highlights that PSX's Rodeo Renewable Energy Complex is running below capacity due to regulatory hurdles, but its global CARB gasoline blending capabilities provide supply flexibility.

PSX will acquire the remaining 50% of WRB Refining from Cenovus Energy ( CVE ) for $1.4 billion, adding profitable central corridor assets and positioning the company to benefit from tight diesel supply and global market dynamics in 2026, the report added.

UBS has a buy rating on the stock, with a price target of $143.

Shares of Phillips 66 were up 1.5% in recent Tuesday trading.

Price: 133.19, Change: +2.01, Percent Change: +1.53