Phillips 66 PSX posted adjusted third-quarter 2017 earnings of $1.66 per share that beat the Zacks Consensus Estimate of $1.62. The bottom line also increased from $1.05 in the year-ago quarter. The growth came on the back of higher contribution from the Refining segment.Quarterly revenues of $26,206 million lagged the Zacks Consensus Estimate of $29,945 million. Revenues also declined from the year-ago quarter’s level of $22,042 million.Segmental ResultsMidstreamThe segment generated adjusted quarterly earnings of $67 million compared with $75 million in the year-ago quarter. The decline is mainly attributable to adverse impacts of natural calamities.ChemicalsThe segment reported adjusted earnings of $153 million as against $190 million in the year-earlier quarter. Lower margins and volume led to the drop.RefiningThe segment’s adjusted earnings were $548 million compared with earnings of $134 million in the prior-year quarter. Higher distillate and gasoline margins led to the growth. During the quarter, Phillips 66’s refining utilization was 98% and clean product yield was 85%.Marketing and Specialties (M&S)This segment reported adjusted earnings of $211 million compared with $267 million in the year-ago quarter. Financial ConditionIn the reported quarter, Phillips 66 generated $401 million of cash from operations. It also returned capital worth $817 million to shareholders. Of this, $356 million was disbursed as dividends, while $461 million was utilized to repurchase common stock.As of Sep 30, 2017, the company had cash and cash equivalents of $1,547 million and debt of $10,201 million. The company’s debt-to-capitalization ratio was 30%.Capital Expenditure GuidancePhillips 66 has lowered its capital expenditures for 2017 to $2 billion from $2.7 billion. Postponement of a final investment decision relating to incremental fractionation capacity is mainly responsible for the reduction. For 2018, capital expenditure is expected between $2 billion and $3 billion.Q3 Price PerformanceThe pricing chart reveals that the company’s shares have outperformed the industry in the last three months. During this period, the company’s shares have returned 10.7%, compared with the industry’s rally of 10.5%.Zacks RankCurrently, Phillips 66 carries a Zacks Rank #3 (Hold). A few better-ranked players in the energy sector include Canadian Natural Resources Limited CNQ, Braskem SA BAK and Noble Midstream Partners LP NBLX. All these stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.Canadian Natural Resources, based in Austin, TX, is an independent oil and gas company. The company delivered earnings surprise of 22.22% in the preceding quarter.The largest petrochemical operator in Latin America, Braskem, delivered an average positive earnings surprise of 88.17% in the last four quarters.Noble Midstream Partners, headquartered in Houston, TX, has diversified energy infrastructure properties. The company delivered positive earnings surprise of 30.67% in the preceding quarter.Wall Street’s Next AmazonZacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.Click for details >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Phillips 66 (PSX): Free Stock Analysis Report Canadian Natural Resources Limited (CNQ): Free Stock Analysis Report Braskem S.A. (BAK): Free Stock Analysis Report Noble Midstream Partners LP (NBLX): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research