On August 12, Phillips 66 rose 3.24% in regular trading, trading at $222.50/share, with turnover of $188 million. The rally was driven by the announcement that Phillips 66, Kinder Morgan, and HF Sinclair have reached a final investment decision to build the $5 billion Western Gateway Pipeline system.

The 1,300-mile pipeline system is designed to carry 230,000 barrels of refined fuel per day from St. Louis, Missouri, and expanded Gulf Coast origin points to Arizona and California, with construction targeted for completion in 2029 pending regulatory clearances. Phillips 66 will own 49.9% of the joint venture, contributing approximately $2.5 billion in cash, while Kinder Morgan holds 35.1% and HF Sinclair holds 15%.

The move was further supported by multiple tailwinds: the company's Q2 adjusted EPS of $9.41 beat consensus by 26.5%, representing a 295% year-over-year increase. Additionally, the board previously approved a $10 billion increase in share buyback capacity, and UBS raised its EPS estimate to $21.10 from $17.38 while maintaining a buy rating with a $235 price target, citing accelerated deleveraging and resilient refining margins.

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