Phillips 66, FCFE calculation

US$ in millions

12 months ended:	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015
Net income attributable to Phillips 66	3,076)	5,595)	5,106)	1,555)	4,227)
Net income attributable to noncontrolling interests	301)	278)	142)	89)	53)
Net noncash charges	2,261)	1,973)	(1,662)	818)	1,654)
Working capital adjustments	(830)	(273)	62)	501)	(221)
Net cash provided by operating activities	4,808)	7,573)	3,648)	2,963)	5,713)
Capital expenditures and investments	(3,873)	(2,639)	(1,832)	(2,844)	(5,764)
Issuance of debt	1,783)	2,184)	3,508)	2,090)	1,169)
Repayment of debt	(1,307)	(1,144)	(3,678)	(833)	(926)
Free cash flow to equity (FCFE)	1,411)	5,974)	1,646)	1,376)	192)

Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).

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Item	Description	The company
FCFE	Free cash flow to equity is the cash flow available to Phillips 66 equity holders after all operating expenses, interest, and principal payments have been paid and necessary investments in working and fixed capital have been made.	Phillips 66 FCFE increased from 2017 to 2018 but then decreased significantly from 2018 to 2019.

Phillips 66, current P/FCFE calculation, comparison to benchmarks

No. shares of common stock outstanding	439,445,842
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions)	1,411)
FCFE per share	3.21
Current share price (P)	89.25
Valuation Ratio
P/FCFE	27.80
Benchmarks
P/FCFE, Competitors¹
Chevron Corp.	19.23
ConocoPhillips	13.73
Exxon Mobil Corp.	14.46
Marathon Petroleum Corp.	5.67
Occidental Petroleum Corp.	9.93
Valero Energy Corp.	6.92
P/FCFE, Sector
Oil, Gas & Consumable Fuels	23.02
P/FCFE, Industry
Energy	23.57

Based on: 10-K (reporting date: 2019-12-31).

¹ Click competitor name to see calculations.

If the company P/FCFE is lower then the P/FCFE of benchmark then company is relatively undervalued.
Otherwise, if the company P/FCFE is higher then the P/FCFE of benchmark then company is relatively overvalued.

Phillips 66, historical P/FCFE calculation, comparison to benchmarks

	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015
No. shares of common stock outstanding¹	439,445,842	454,913,087	501,237,339	517,816,429	527,459,894
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions)²	1,411)	5,974)	1,646)	1,376)	192)
FCFE per share³	3.21	13.13	3.28	2.66	0.36
Share price^1, 4	89.25	97.36	91.83	78.66	80.09
Valuation Ratio
P/FCFE⁵	27.80	7.41	27.96	29.60	220.02
Benchmarks
P/FCFE, Competitors⁶
Chevron Corp.	38.28	—	—	—	—
ConocoPhillips	14.36	—	—	—	—
Exxon Mobil Corp.	16.01	—	—	—	—
Marathon Petroleum Corp.	5.87	—	—	—	—
Occidental Petroleum Corp.	1.84	—	—	—	—
Valero Energy Corp.	7.61	—	—	—	—
P/FCFE, Sector
Oil, Gas & Consumable Fuels	11.93	—	—	—	—
P/FCFE, Industry
Energy	12.49	—	—	—	—

Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).

¹ Data adjusted for splits and stock dividends.

² See details »

³ 2019 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 1,411,000,000 ÷ 439,445,842 = 3.21

⁴ Closing price as at the filing date of Phillips 66 Annual Report.

⁵ 2019 Calculation
P/FCFE = Share price ÷ FCFE per share
= 89.25 ÷ 3.21 = 27.80

⁶ Click competitor name to see calculations.

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Valuation ratio	Description	The company
P/FCFE	Price to free cash flow to equity is cash valuation indicator of stockholders’ equity.	Phillips 66 P/FCFE ratio decreased from 2017 to 2018 but then increased from 2018 to 2019 not reaching 2017 level.

Phillips 66 (NYSE:PSX)

Price to FCFE (P/FCFE)

Free Cash Flow to Equity (FCFE)

Price to FCFE Ratio, Current

Price to FCFE Ratio, Historical