Penn Wealth Publishing

2020.04.05 Penn Wealth Report Vol 8 Issue 02

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See disclaimers on the back cover of e Report. is is not a solicitation to invest. Always consult your financial professional before making an investment. *As of date/time written Penn Wealth Report Copyright 2020. All Rights Reserved. investment intelligence investment intelligence 05 apr 2020 penn wealth Report volume 8 issue 02 13 Suitable for the Global Leaders Club Phillips 66 is a US-based independent refiner and marketer of oil and gas products. The $20 billion company (down from $53 billion last November) operates 13 refineries with a total capacity of 2.1 million BPD. Its joint midstream venture holds 61 natural gas pro- cessing facilities and controls 64,000 miles of pipeline. The company also holds a 75% stake in the 6,000+ Phillips 66, Conoco, and 76 gas stations throughout America. Its DPChem unit, a joint partnership, produces a number of specialty chemicals at 30 global manufac- turing facilities and 2 US R&D centers. INVESTMENT PROFILE Symbol: PSX Class: Large-Cap Value Sector: Energy Industry: Refining & Marketing Purchase Price: $45.49 Target Price 1*: $100 Before the great downturn and the Saudi/Russia oil war hit, PSX shares were trading in the fair value range of $100. With its midstream refineries and pipelines, and its downstream gas stations, the com- pany turns a profit irrespective of the price of oil and gas. After the selloff, PSX has a P/E ratio of just 7, and carries a stellar (and safe) dividend yield of 7.7% (at the time of purchase). Image courtesy of Phillips 66

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