RBC Capital analysts provided their views on Phillips 66 (NYSE:PSX) after attending the company’s 2022 Investor Day, where its growth and capital allocation plans were discussed in detail.

The company sees a path to meaningfully grow its mid-cycle adjusted EBITDA over the next three years given the midstream realignment, Rodeo start-up, and cost reductions, with further upside potential in the current refining environment.

According to the analysts, the expected growth drives higher shareholder capital returned, with $10-$12 billion distributed over the next 2.5 years. The analysts raised their price target to $131 from $119 while reiterating the Outperform rating.