Phillips 66 PSX is expanding the use of artificial intelligence (AI) across its operations to improve refinery efficiency, accelerate problem-solving and enhance operational performance. During the second-quarter 2026 earnings call, management highlighted the company's growing adoption of AI-enabled technologies, allowing engineers to analyze operational data and implement solutions more efficiently. Management emphasized that AI helps employees analyze operational data and implement solutions within days or weeks rather than the months or years traditionally required.
Phillips 66 has been leveraging machine learning to optimize maintenance activities, shorten refinery turnaround periods and extend operating intervals between scheduled shutdowns. The company is building on these capabilities through a broader AI program that identifies successful applications and extends them across its operations. These initiatives complement its refining transformation efforts, which have already reduced operating costs by more than $1 per barrel, with management progressing toward $1.50 per barrel in savings.
Greater AI adoption presents opportunities to improve asset reliability, accelerate efficiency gains and strengthen refining profitability over time. Faster implementation of operational improvements is expected to reinforce Phillips 66's ongoing efforts to enhance refinery utilization and product yields. Although management has not separately quantified AI-related financial benefits, wider deployment of these technologies is expected to support sustainable cost efficiencies and strengthen the company's long-term earnings potential.
CVX & SHEL Leverage AI to Boost Operational Efficiency
Apart from Phillips 66, energy giants Chevron Corporation CVX and Shell plc SHEL are increasingly integrating AI into their operations to improve efficiency, lower costs and strengthen profitability.
Chevron is leveraging AI-driven technologies to optimize production activities, monitor equipment performance and identify potential operational issues before they escalate. Similarly, Shell is deploying AI-powered predictive maintenance solutions across its energy operations, including refineries, to improve equipment reliability and minimize unplanned shutdowns. While CVX's AI initiatives focus on improving production efficiency and accelerating operational decisions, SHEL's digital technologies help maintenance teams identify equipment abnormalities and take preventive action.
The developments highlight how Chevron and Shell are using advanced analytics to reduce operational disruptions and enhance asset performance.
PSX’s Price Performance, Valuation & Estimates
Phillips 66 shares have skyrocketed 114.3% over the past year compared with the industry’s 136.4% whopping growth.
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From a valuation standpoint, PSX trades at a trailing 12-month enterprise-value-to-EBITDA (EV/EBITDA) of 12.27X. This is above the broader industry average of 6.25X.
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The Zacks Consensus Estimate for PSX's 2026 earnings has been unchanged over the past seven days.
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PSX currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
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This article originally published on Zacks Investment Research (zacks.com).