#1 - Phillips 66 (NYSE:PSX)
Phillips 66 (NYSE: PSX) is one of the largest integrated energy companies in the natural gas sector. PSX stock is up just 2.6% for the year and has taken a drubbing in the last six months, posting a decline of 17.2% in that time.
That said, the bullish argument for PSX stock comes from Phillips’ role as a natural gas refiner. Through the first two quarters of 2024, Phillips reported 98% crude utilization, the company’s highest rate in over five years.
Analysts have a Moderate Buy rating on Phillips 66 and a consensus price target of $151.21, which is just 10% higher than the closing price on October 10. However, the company reports earnings in late October and any upside surprises, particularly in an area like operating cash flow, should excite income investors.
That's because the company has announced plans to pay out 50% of its operating cash flow to investors through its dividend. That dividend has increased for the last 13 consecutive years at an annualized average growth rate of over 5.2% in the last three years. That’s more than double the current rate of inflation growth.
About Phillips 66
Phillips 66 operates as an energy manufacturing and logistics company in the United States, the United Kingdom, Germany, and internationally. It operates through four segments: Midstream, Chemicals, Refining, and Marketing and Specialties (M&S). The Midstream segment transports crude oil and other feedstocks; delivers refined petroleum products to market; provides terminaling and storage services for crude oil and refined petroleum products; transports, stores, fractionates, exports, and markets natural gas liquids; provides other fee-based processing services; and gathers, processes, transports, and markets natural gas.
Read More - Current Price
- $130.91
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 11 Buy Ratings, 4 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $149.69 (14.3% Upside)
