Phillips 66 Catalysts Include Dividend Growth And MLP Spin-Off

By Todd Johnson:

I continue to accumulate Phillips 66 (PSX) shares due to dividend growth. The refining sector is benefiting from favorable refining margins. In 2013, Phillips 66 plans to spinoff a pipeline and storage Master Limited Partnership (MLP). The dividend growth and the spinoff will generate shareholder wealth. Phillips 66 growth prospects are robust. This will result in a growing dividend income stream.

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Paradigm Shift: U.S. Oil Exports vs. U.S. Oil Imports

The above chart highlights the rapid changes in U.S. oil imports. The influx of excess crude, within the U.S. has provided financial benefits to the U.S. refineries. Refineries benefit by decreased crude costs. The end result is Phillips reports higher profits due to lower crude costs.


Background

In 2011, ConocoPhillips separated its two primary businesses – Refining & Marketing (R&M) and Exploration & Production (E&P) – into independent publicly traded corporations. The Refining & Marketing


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