Oil refiner
Phillips 66
(
PSX
) has increased its quarterly common stock dividend by 25% to 25
cents per share. The new dividend will be paid on December 3, 2012
to shareholders of record as of October 15.
Phillips 66's latest payout hike marks the first dividend increase
since its formation in May 2012. The company paid a dividend of 20
cents during the previous quarter.
The strength of Phillips 66's business model reflects the company's
commitment towards returning value to shareholders with its strong
cash generation capabilities.
Phillips 66 has a good capital deployment policy through share
repurchase and payment of dividends. During the second quarter of
2012, the company's board of directors approved a share repurchase
program of $1.0 billion.
As on June 30, 2012, company had cash and cash equivalents of $3.1
billion.
We believe that the increase in dividend and share repurchase
programs will boost investor confidence in the stock, thereby
driving share value.
Recently,
Kinder Morgan Energy Partners L.P.
(
KMP
) inked a deal with Phillips 66 for the transportation of Eagle
Ford crude and condensate to the latter's Sweeny refinery in
Brazoria County, Texas.
Phillips 66, an independent publicly traded company, was formed
after the spin-off of the refining/sales business of
ConocoPhillips
(
COP
) in May 2012. The move has resulted in the creation of the largest
refining company in the U.S. (with a capacity of 2.4 million
barrels per day) and the largest exploration and production player
based on oil and gas reserves.
The new downstream company, Phillips 66, is headquartered in
Houston, Texas. In addition to the refining, marketing and
transportation businesses, Phillips 66 also includes most of the
Midstream and Chemicals segments, as well as power generation and
certain technology operations included in the Emerging Businesses
segment, to create an integrated downstream company.
Phillips 66 currently retains a Zacks #1 Rank, which translates
into a short-term Strong Buy rating.
CONOCOPHILLIPS (COP): Free Stock Analysis
Report
KINDER MORG ENG (KMP): Free Stock Analysis
Report
PHILLIPS 66 (PSX): Free Stock Analysis Report
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