Phillips 66 announces $2 billion notes offering with maturities in 2056

Phillips 66 (NYSE:PSX), a $53.28 billion market cap energy company currently rated as undervalued according to InvestingPro analysis, disclosed on Monday that its subsidiary, Phillips 66 Company, has entered into agreements for an underwritten public offering totaling $2 billion in junior subordinated notes. The offering consists of $1 billion in 5.875% Series A Junior Subordinated Notes due 2056 and $1 billion in 6.200% Series B Junior Subordinated Notes due 2056. Both series of notes are fully and unconditionally guaranteed by Phillips 66. The company maintains a debt-to-equity ratio of 0.76 and a current ratio of 1.07, indicating stable financial health with an overall Financial Health Score of "FAIR" based on comprehensive analysis available in the InvestingPro Research Report, which provides detailed insights for over 1,400 US stocks.

According to a statement released in a filing with the Securities and Exchange Commission, the notes will be issued under a subordinated indenture dated Wednesday among Phillips 66 Company as issuer, Phillips 66 as guarantor, and U.S. Bank Trust Company, National Association, as trustee. This new issuance will add to the company’s existing total debt of $20.94 billion.

The terms of the notes are described in a prospectus supplement dated Monday, which, together with the related prospectus dated July 28, 2025, was filed with the SEC under Rule 424(b)(2) of the Securities Act of 1933. The offering was registered under Phillips 66’s registration statement on Form S-3 (File Nos. 333-289011 and 333-289011-01).

The company also filed related documents as exhibits to the SEC report, including the terms agreement, the indenture, the forms of the notes, and legal and tax opinions from Gibson, Dunn & Crutcher LLP.

This information is based on a press release statement included in Phillips 66’s recent SEC filing.

In other recent news, Phillips 66 has reported significant developments impacting its operations and market perception. The company announced a definitive agreement to acquire the remaining 50% ownership interest in WRB Refining LP from Cenovus Energy for $1.4 billion in cash, which will increase its refining capacity by approximately 250,000 barrels per day. This move is part of Phillips 66’s strategy to expand its refining operations. In the financial arena, UBS has reiterated a Buy rating and raised its price target for Phillips 66 to $143.00, citing strong earnings and operational improvements. Similarly, TD Cowen has increased its price target to $134.00, highlighting the company’s strong refining performance and reduced operational expenses.

Additionally, Phillips 66 has appointed Sean Maher as the new vice president of investor relations and chief economist, following Jeff Dietert’s retirement. Maher brings nearly 30 years of experience in energy finance and investment to his new role. These recent developments underscore Phillips 66’s ongoing efforts to enhance its operational capabilities and investor relations.

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