PSX

Phillips 66

Energy


Presented:06/25/2015
Price:$78.89
Cap:N/A
Current Price:$131.40
Cap:$55.00B

Presented

Date06/25/2015
Price$78.89
Market CapN/A
Ent Value$47.18B
P/E Ratio10.6x
Book Value$40.17
Div Yield2.84%
Shares O/S542.33M
Ave Daily Vol2,860,000
Short Int2.00%

Current

Price$131.40
Market Cap$55.00B
Phillips 66 operates as an energy manufacturing and logistics company. It operates through four segments: Midstream, Chemicals, Refining, and Marketing and Specialties (M&S). The Midstream segment transports crude oil and other feedstocks to its refineries and other locations; and delivers refined and specialty products, as well as provides storage services for crude oil and petroleum products. This segment also gathers, processes, transports, and markets natural gas; and transports, fractionates, and markets natural gas liquids in the United States. The Chemicals segment manufactures and markets ethylene and other olefin products; aromatics products, such as benzene, styrene, paraxylene, and cyclohexane, as well as polystyrene and styrene-butadiene copolymers; and various specialty chemical products, including organosulfur chemicals, solvents, catalysts, drilling chemicals, and mining chemicals. The Refining segment buys, sells, and refines crude oil and other feedstocks into petroleum products comprising gasolines, distillates, and aviation fuels at 14 refineries primarily in the United States and Europe. The M&S segment purchases for resale and markets refined petroleum products consisting of gasolines, distillates, and aviation fuels in the United States and Europe. It also manufactures and sells specialty products, such as petroleum coke, waxes, solvents, and polypropylene. In addition, this segment is involved in the generation of electricity. Phillips 66 was founded in 1875 and is headquartered in Houston, Texas.

Publicly traded companies mentioned herein: Phillips 66 (PSX)

Highlights

The presenter is long shares of Phillips 66 (PSX) on the basis of expectations of growing production, and thinks PSX is the best way to take advantage of this long-term trend. The presenter is particularly bullish on PSX’s midstream business, and thinks projects delayed by the oil dip are likely to resume. He models a $93 price target on a sum of the parts basis, with additional tailwind from possible share buyback acceleration.

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Idea Discussion

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