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Phillips 66 (PSX) Up 4% on Dividend Hike & Rodeo Renewed Project

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Phillips 66 (PSX - Free Report) has gained more than 4% since May 11 on the back of its two major announcements. 

Phillips 66 has received authorization from the board of directors to hike its quarterly dividend. The new dividend of 97 cents per share represents an increase of 5% from the prior quarter and is expected to be paid out on Jun 1 to shareholders on record as of the close of business on May 23.

With the recent resumption of the stock repurchase program, the increment in quarterly dividend represents Phillips 66’s strong focus on returning capital to stockholders. Phillips 66 added that since its inception in 2012, this has resulted to its 11th annual dividend hike. This has resulted in an 18% compound annual growth rate.

Along with its aim to return capital to stockholders, Phillips 66 focuses on paying down its debt. In April, Phillips 66 lowered $1.45 billion of its debt load and plans to pay down additional debt this year.

In a separate release on the same day, Phillips 66 announced its final investment decision for converting its San Francisco refinery in Rodeo, CA, to a renewable fuel facility. PSX boasted that the fuel unit, likely to be operational commercially in the first quarter of 2024, will be among the largest renewable fuel facilities across the globe.

Phillips 66 is expecting the cost of the project Rodeo Renewed, which got approval from Contra Costa County recently, to be roughly $850 million.

Phillips 66 currently carries a Zacks Rank #3 (Hold). Better-ranked players in the energy space include ConocoPhillips (COP - Free Report) , Marathon Oil (MRO - Free Report) and Occidental Petroleum (OXY - Free Report) . While ConocoPhillips and Marathon Oil carry a Zacks Rank #2 (Buy), Occidental Petroleum sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Considering production and reserves, ConocoPhillips is one of the leading exploration and production players in the global market. COP has witnessed upward earnings estimate revisions for 2022 and 2023 in the past 30 days.

In 2022, ConocoPhillips is likely to see earnings growth of 141.6%.

Marathon Oil is a leading oil and natural gas exploration and production company. MRO has witnessed upward earnings estimate revisions for 2022 and 2023 in the past 30 days.

In 2022, Marathon Oil is likely to see earnings growth of 201.3%.

In the United States, Occidental Petroleum is among the largest oil producers. OXY has witnessed upward earnings estimate revisions for 2022 and 2023 in the past 30 days.

In 2022, Occidental Petroleum is likely to see earnings growth of 278.8%.