2017-06-15 / The Motley Fool

The Motley Fool Take

Stepping on the Gas

Phillips 66 (NYSE: PSX) is one of the largest independent refining companies in the country. Its non-refining businesses of chemicals, midstream, and marketing and specialties have kept it in the green during the refining sector’s recent challenges, and those segments hold the company’s most compelling growth prospects.

Phillips 66 owns stakes in 11 refineries around the U.S. and two in Europe. Its empire includes a large integrated midstream network, with both crude oil and refined product pipelines and terminals as well as several natural-gas-liquids-related assets. The company’s marketing and specialties segment distributes gas and diesel in the U.S. and Europe to more than 8,750 branded outlets, while also controlling the largest aviation fuel network in the country.

Additionally, Phillips 66 also manufactures and markets specialty products. It’s one of the biggest finished lubricant suppliers in the country, and it shares ownership with Chevron in CPChem, a massive chemicals company and the world’s largest producer of polyethylene.

Since going public as a stand-alone company in 2012, Phillips 66 has invested tens of billions of dollars in growth projects in its petrochemicals and midstream segments, repurchased 17 percent of shares outstanding and increased its dividend by 215 percent. Its recent yield near 3.7 percent is attractive, and further dividend growth could deliver bigger returns over time. Take a closer look at it. (The Motley Fool has recommended Chevron.) ¦

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