| Metric | Details |
|---|---|
| Company | Phillips 66 (NYSE: PSX), Houston, Texas |
| S&P / Moody’s | BBB+ (Stable) / Baa1 (Stable) |
| Investment grade status | Investment Grade |
| Branded outlets | About 7,620 U.S. outlets in 48 states under the Phillips 66, Conoco and 76 brands (December 31, 2025), operated by marketers and joint ventures |
| Median asking cap rate | See the live table below |
Phillips 66 Business Overview
Phillips 66 is a refining, midstream, chemicals and marketing company. In the U.S., it markets fuel through marketer and joint venture outlets under the Phillips 66, Conoco and 76 brands; at December 31, 2025, it had about 7,620 branded outlets in 48 states. Its wholesale marketers operated about 5,360 outlets, and its retail joint ventures about 780. It also held brand-licensing agreements covering about 1,460 sites. For a net lease buyer, that means the tenant at a Phillips 66-branded station may be a marketer or local operator rather than Phillips 66; confirm the tenant and any guarantor in the lease.
Phillips 66 Credit Profile
S&P rates Phillips 66’s long-term debt BBB+ (Stable), and Moody’s long-term credit rating for the company is Baa1 (Stable), as shown in our ratings database. Its Form 10‑K for 2025 states that both S&P’s and Moody’s ratings are considered investment grade. The rating applies to a lease only if Phillips 66 or a rated Phillips 66 entity signs or guarantees it.
Ratings come from our tenant ratings database and update when agencies change them. A rating at or above BBB‑/Baa3 is investment grade; see the investment grade guide.
Source: S&P Global Ratings BBB+, Stable, as of February 20, 2026; Moody’s Baa1, Stable, as of February 20, 2026. Ratings checked October 8, 2026.
Phillips 66 NNN Cap Rates
Live asking cap rates for Phillips 66 and comparable tenants:
| Tenant | S&P / Moody’s | Median asking cap rate | Middle half of listings | Listings | Median vs. 10-year Treasury |
|---|---|---|---|---|---|
| Circle K (rated entity: Alimentation Couche-Tard Inc.) | BBB+ / Baa1 | 5.12% | 5.00% to 5.50% | 36 | −13 bps |
| 7-Eleven | A- / Baa2 | 5.15% | 4.93% to 5.50% | 147 | −9 bps |
| ExxonMobil | AA- / Aa2 | 7.15% | 6.00% to 7.20% | 5 | +191 bps |
| Chevron | AA- / Aa2 | 7.25% | 6.38% to 7.38% | 7 | +201 bps |
| Marathon (rated entity: Marathon Petroleum Corporation) | BBB / Baa2 | 7.31% | 6.70% to 7.41% | 3 | +207 bps |
| Valero | BBB / Baa2 | 7.38% | 7.05% to 7.63% | 4 | +214 bps |
Active listings InvestmentGrade.com tracks with an asking cap rate (stated in the listing, or computed from its stated income and price when no rate is stated), listings last observed October 12, 2026. Asking cap rates are not closed-sale cap rates. The middle half is the range from the 25th to the 75th percentile of listings. The 10-year Treasury yield is 5.24% as of October 1, 2026 (FRED series DGS10). Ratings are the agency ratings in our ratings database for the entity shown, which may be a parent company; the rating type (for example issuer, senior unsecured debt, long-term debt or revenue bond ratings) varies by company and is shown on each tenant page. A rating applies to a lease only if the rated entity signs or guarantees it, so confirm the tenant and any guarantor in the lease. n/a means no verified rating is on file. Not shown because fewer than 3 active listings with a published cap rate were observed: Phillips 66.
Listings labeled with a fuel brand, such as Phillips 66, Conoco, 76 or the refiner brands in the table, can be stations run by marketers or local operators; in that case their cap rates can reflect the operator, the site and the fuel volume more than the refiner’s rating. Compare a property with listings that have the same kind of tenant and lease structure.
What to Check in a Phillips 66 Lease
- Who the tenant is: Phillips 66 describes its U.S. branded outlets as marketer and joint venture outlets; confirm whether the oil company, a marketer or a local operator signs the lease.
- Guarantee: whether a rated corporate entity guarantees the lease; a fuel supply agreement is not a lease guarantee.
- Term and rent: remaining term, renewal options and the rent schedule; rent increases vary by lease.
- Ground lease or building lease: some fuel sites are ground leases; confirm who owns the building and improvements.
- Environmental: underground storage tanks; review environmental reports and the lease’s environmental provisions.
Pros and Cons
| Strengths | Considerations |
|---|---|
| Investment Grade long-term ratings (S&P and Moody’s) | The tenant at a branded station may be a marketer or local operator, not Phillips 66 |
| U.S. fuel brands including Phillips 66, Conoco and 76, with about 7,620 branded outlets in 48 states (December 31, 2025) | Operator credit varies widely; environmental issues at fuel sites |
Frequently Asked Questions
Is Phillips 66 investment grade?
Yes. S&P rates Phillips 66’s long-term debt BBB+, and Moody’s long-term credit rating for the company is Baa1, as shown in our ratings database. Its Form 10‑K for 2025 states that both agencies’ ratings are investment grade.
Does Phillips 66 operate its branded stations?
Generally no. Its 10‑K describes about 7,620 U.S. branded outlets operated through marketers and joint ventures.
Which brands does Phillips 66 use?
Phillips 66, Conoco and 76 in the U.S.
Sources: Phillips 66 Form 10‑K for 2025; ratings from InvestmentGrade.com’s ratings database.
When the buyer owns the building, a cost segregation study may reclassify part of the purchase price, such as site improvements and some building systems and equipment, into 5-, 7- or 15-year property. That property can qualify for 100% bonus depreciation under IRC 168(k) if it is acquired and placed in service after January 19, 2025; property acquired under a written binding contract entered into before January 20, 2025 does not count as acquired after that date (IRS Notice 2026-11). How much qualifies varies widely by property and should be supported by a well-documented cost segregation study. On a ground lease where the tenant owns the building, the investor owns only land, which cannot be depreciated, and equipment owned by the tenant is not the landlord’s to depreciate. Bonus depreciation is generally recaptured on a taxable sale: as ordinary income, up to the gain, on section 1245 property, and on section 1250 property only to the extent it exceeds straight-line depreciation (IRC 1245(a), 1250(a) and (b)(1)). A 1031 exchange can defer gain, but only real property qualifies (IRC 1031(a)(1)), and depreciation recapture can still apply in an exchange (IRC 1245(b)(4), 1250(d)(4)). This is general information, not tax advice; consult a tax professional. Some gas station and convenience store buildings can qualify as 15-year property as a retail motor fuels outlet (IRC 168(e)(3)(E)(iii)), and therefore for bonus depreciation, if the property is used to a substantial extent in retail fuel sales and meets one of three IRS tests: the building is 1,400 square feet or less, at least 50% of the property’s gross revenue comes from fuel sales, or at least 50% of its floor space is devoted to fuel sales (IRS Publication 946); confirming the revenue test requires the operator’s sales data. Fuel tanks, dispensers and canopies are often owned by the operator or fuel supplier rather than the landlord. See the Gas Station and C-Store NNN Depreciation Guide.
Phillips 66 Net Lease Property: Buying, Selling and Financing
Buying: We find on-market and off-market Phillips 66 properties, review the lease and the tenant’s credit, and compare pricing with current listings. On the majority of transactions, there is no separate fee to you as the buyer; the listing broker pays a cooperating commission.
Selling: We can prepare an opinion of value from current listings and recent sales and, when it fits your goals, run a confidential sale to private investors, family offices and institutional buyers. See our guide to off-market sales.
Financing: Investment Grade Capital, a service of Investment Grade LLC, matches buyers and owners with lenders for acquisitions and refinancing.
1031 exchanges: Tell us your identification and closing deadlines so we can plan the search around them.
Request an NNN investment consultation or email team@investmentgrade.com.
Related NNN Tenants
Phillips 66 NNN Properties Observed For Sale
2 active Phillips 66 net lease listings observed across public listing sources, most recently Oct 9, 2026. Asking figures as published by the listing party.
| Location | Asking Price | Cap Rate | Building SF | Term Left | |
|---|---|---|---|---|---|
| Littleton, CO | $3,088,000 | 6.00% | 4,074 | n/a | View listing |
| Missouri City, TX | $7,043,000 | 7.00% | 7,251 | n/a | View listing |
Search all 2 observed Phillips 66 listings and the full NNN inventory
Market observations aggregated from listing broker materials; not offerings by Investment Grade Income Property, LP. Buyer representation available on a cooperating commission basis. Information deemed reliable but not guaranteed.
