This extremely diversified energy company has a long and successful operating history. Phillips 66 (NYSE: PSX) operates through four segments: Midstream, Chemicals, Refining, and Marketing and Specialties. The company holds many of these assets within its master limited partnership, Phillips 66 Partners.
The company is able to benefit from the tax-advantaged structure while still operating a more diversified operating business that also contains many assets that aren’t ideal master limited partnership assets, such as its fast-growing chemical manufacturing business and its super-profitable refined products marketing business.
The analysts said this about the company recently, regarding spending going forward:
On December 14, Phillips 66 hosted its annual sell-side event virtually. Prior to the event, the company released 2021 capital spending guidance of $1.7 billion versus our numbers at $1.9 billion and 2020 levels near $2.9 billion with the difference versus our estimate being entirely at Midstream, reinforcing capital discipline.
Investors receive a 5.35% dividend. Goldman Sachs has set a $78 price target. The consensus target is $74.06, and Phillips 66 stock closed most recently at $67.29.
While oil has had a sparkling run off the lows back in the spring, West Texas Intermediate closed Wednesday at $47.84 a barrel. Many feel that any sustained reopening of the economy and a return to normal could easily spike the price 50% or more.
These stocks are solid ways for investors to play any upswing in oil and an improving 2021 economy. Plus, with two integrated majors and two high-volume large-cap refiners, all are stellar stocks for this looking for a degree of safety and income.
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