| Metric | Details |
|---|---|
| Parent Company | Phillips 66 |
| S&P / Moody’s Rating | BBB+ / A3 |
| Investment Grade Status | Investment Grade (Upper-Medium) |
| Sector | Energy / Midstream & Fuel Marketing |
| US Branded Sites | ~7,000 (Phillips 66, Conoco, 76 branded) |
| Cap Rate Range | 5.25–6.25% |
| Typical Lease Term | 10–20 years (NNN / Ground Lease) |
| Guarantee Type | Corporate (Phillips 66 Company) or Dealer |
| Stock Ticker | PSX (NYSE) |
| Annual Revenue | ~$151B (FY2024) |
| Typical Price Range | $2,000,000–$6,000,000 |
Phillips 66 Business Overview & NNN Investment Profile
Phillips 66 is a diversified energy company operating across midstream, chemicals, refining, and marketing segments. The company markets fuel across approximately 7,000 US branded sites under the Phillips 66, Conoco, and 76 brand names — a legacy of its 2012 spinoff from ConocoPhillips. With BBB+/A3 ratings placing it in the upper portion of investment grade, Phillips 66 represents one of the stronger investment grade fuel sector NNN tenants available.
Phillips 66’s integrated business model — spanning refining, midstream pipelines and storage, chemicals through the CPChem joint venture, and retail fuel marketing — creates diversified cash flow streams that support credit quality independent of any single business segment. This diversification is a meaningful credit differentiator from pure-play refiners.
Phillips 66 Credit Rating Analysis
Phillips 66’s credit strength is underpinned by its DCP Midstream acquisition (completed 2023), which added significant fee-based midstream income and reduced earnings volatility. The company’s CPChem chemicals joint venture with Chevron provides additional durable income. These structural diversifiers support the BBB+ position and differentiate Phillips 66 from single-segment energy companies.
As with all major oil company retail networks, investors must confirm whether a given NNN property carries a direct Phillips 66 Company corporate guarantee versus a dealer or distributor guarantee. Upper-medium investment grade ratings at BBB+/A3 indicate strong capacity to honor long-term lease obligations.
Phillips 66 NNN Lease Structure
Phillips 66 corporate NNN and ground leases carry 10 to 20 year initial terms with annual escalations of 1.5% to 2.0%. Corporate-guaranteed sites are structured as NNN or absolute ground leases where Phillips 66 Company assumes all operating expenses including environmental compliance. The three-brand portfolio (Phillips 66, Conoco, 76) spans different geographic markets, with 76 dominant on the West Coast, Conoco in the Mountain West, and Phillips 66 in the Midwest and Southeast.
Phillips 66 NNN Cap Rate & Pricing Trends
Phillips 66 corporate-guaranteed NNN properties trade at cap rates between 5.25% and 6.25% as of Q1 2026. The BBB+/A3 rating commands a meaningful premium over BBB-rated fuel tenants, placing Phillips 66 in the same cap rate tier as BP and approaching Chevron’s AA‑ levels. Dealer-operated branded sites trade at wider spreads reflecting individual dealer credit rather than Phillips 66 Company.
Acquisition prices typically range from $2,000,000 to $6,000,000 for freestanding fuel and convenience formats. West Coast 76-branded sites can trade at the premium end given California’s high real estate values and strong fuel demand fundamentals.
Phillips 66 Brand Portfolio for NNN Investors
The three-brand structure requires investors to understand geographic concentration. The 76 brand leads in California, Oregon, and Washington. Conoco is strongest in Colorado, Wyoming, Montana, and Texas. Phillips 66 dominates the Midwest, Southeast, and mid-Atlantic. All three brands operate under the same Phillips 66 Company corporate umbrella and carry equivalent credit quality when directly guaranteed. Brand does not affect guarantee strength — only the guarantor entity matters.
Phillips 66 NNN Investment: Pros & Cons
| Pros | Cons |
|---|---|
| BBB+/A3 upper-medium IG — above-average fuel sector credit | Corporate vs. dealer guarantee must be verified |
| Diversified midstream/chemicals/refining reduces earnings cyclicality | Standard fuel property environmental due diligence required |
| Three-brand portfolio provides national geographic coverage | Long-term EV transition creates secular demand uncertainty |
| DCP Midstream acquisition added stable fee-based income | Tight cap rates (5.25–6.25%) reflect limited current yield upside |
Comparable NNN Tenants
| Comparable Tenant | Rating | Cap Rate Range |
|---|---|---|
| Chevron | AA‑ / Aa2 | 5.0–6.0% |
| BP / AMOCO | A‑ / A2 | 5.0–6.5% |
| Marathon Petroleum | BBB / Baa2 | 5.5–6.5% |
What is Phillips 66’s credit rating?
Phillips 66 carries BBB+ from S&P and A3 from Moody’s, placing it in the upper-medium investment grade tier. This is one of the stronger credit profiles among US fuel marketing companies, supported by diversified midstream, chemicals, and refining operations.
What brands does Phillips 66 operate under?
Phillips 66 markets fuel under three US brands: Phillips 66 (Midwest/Southeast), Conoco (Mountain West/Texas), and 76 (West Coast). All three brands operate under Phillips 66 Company and carry equivalent corporate credit quality when directly guaranteed.
What cap rates are Phillips 66 NNN properties trading at?
Corporate-guaranteed Phillips 66 NNN properties trade at 5.25% to 6.25% as of Q1 2026. Dealer-operated branded sites trade at wider spreads reflecting individual dealer credit.
Convenience store and fuel station properties carry significant accelerated depreciation potential. Under IRS rules, qualifying gas station and c-store buildings can be classified as 15-year property rather than 39-year, making the entire structure eligible for 100% bonus depreciation in Year 1. Underground storage tanks, fuel dispensing systems, canopy structures, and refrigeration equipment add further reclassification value. See our full analysis: Gas Station and C-Store NNN Bonus Depreciation Guide.
The Only Phillips 66 NNN Advisor Whose Fee Comes From the Deal, Not From You
In NNN buyer representation, the listing broker pays the cooperating commission. That means you get a dedicated Phillips 66 NNN advisor handling sourcing, underwriting, financing, and closing — and on the majority of transactions, there is no separate fee to you as the buyer.
Find It — Phillips 66, Conoco, and 76-branded NNN properties sourced with guarantee structure confirmed upfront.
Fund It — BBB+ credit attracts strong life company and CMBS interest. Best terms for this specific credit and lease structure.
Exit It — Selling a fuel NNN asset through a 1031? Deep demand for upper-IG energy credit. Targeted, quiet process.
Not committed to Phillips 66? Tell us your criteria — the tenant is a variable. Your criteria is the constant.
Get Your Free Phillips 66 NNN Consultation →
In a 1031 exchange with a deadline? Tell us your timeline — we move faster.
Related NNN Tenants
Own a Phillips 66 Property? Capital Markets Strategies Beyond Selling
Maturing debt and considering refinancing? Our capital markets team maintains 150+ lender relationships underwriting NNN properties across investment-grade and non-investment-grade credit tiers. We structure rate-and-term refinancing, cash-out refis, and bridge-to-perm takeouts.
Evaluating a 1031 exchange or disposition? We represent both sides of Phillips 66 NNN transactions — whether you are looking to exit at peak value, exchange into a higher-quality credit tenant, or reposition within the same sector.
Need a current valuation? We maintain live comps on Phillips 66 NNN transactions and can produce a Broker Opinion of Value within 48 hours reflecting today’s cap rate market.
Own multiple Phillips 66 properties? Considering an off-market sale?
Investment Grade represents owners on confidential disposition of Phillips 66 portfolios and individual properties through off-market direct-to-principal distribution to specialty REITs, private equity funds, and family offices. Phillips 66 buyer demand runs deep, and portfolio sales consistently produce stronger pricing than sequential individual sales because the institutional buyer pool is structured around portfolio acquisition.
For multi-property owners considering a portfolio disposition, see Selling Investment Grade NNN Off-Market: Tenant-by-Tenant Buyer Demand. For the full off-market framework covering individual property dispositions, sale-leasebacks, and 1031 coordination, see Off-Market CRE Sales: The Complete 2026 Guide.
The pre-listing conversation is at no cost and fully confidential. Email team@investmentgrade.com or see contact Investment Grade.
