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Phillips 66 (NYSE:PSX) is one of the most undervalued stocks to buy and hold for 2 years. On May 18, Phillips 66 is advancing its integrated wellhead-to-market strategy by moving forward with the Zeus Gas Plant in the Permian Basin and a third Coastal Bend Fractionator on the Texas Gulf Coast. Both projects are scheduled to come online in 2028 and are designed to increase gas processing and NGL fractionation capacity to support growing Permian production volumes.

The Zeus project includes a 300 MMcf/d gas processing facility and the new 45-mile Midland Express/MEX Pipeline, which will integrate gathering systems and provide increased operational flexibility. The third Coastal Bend Fractionator, a 100 MBD facility in Robstown, Texas, will further enhance the company’s ability to move NGLs efficiently through its value chain.

These investments fall within Phillips 66’s existing capital spending guidance and support its broader financial goals of debt reduction and shareholder returns. By expanding these midstream assets, the company aims to better connect Permian supply to key market centers and capture additional value across its integrated network.

Phillips 66 (NYSE:PSX) operates as an integrated downstream energy provider across the United States, the United Kingdom, Germany, and international markets.

While we acknowledge the potential of PSX as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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