Excerpt from the Yahoo article: ....Out of 43 public companies in its portfolio of publicly-traded stocks, Berkshire has nearly $7 billion invested in five energy companies. The largest is the holding in Exxon Mobil. The Suncor stake is worth about $450 million, according to Berkshire's most recent 13F filing, with the Conoco position worth $775 million and Berkshire's chunk of Conoco's spun-off downstream company, Phillips 66 (NYSE:PSX - News), worth about $750 million. The stake in National Oilwell is worth a little shy of $700 million.
This stock is a smoking buy! Stupid wall street houses sell off all refiners and can't differentiate one from another. Total idiots! Everyone knows PSX has a very robust chemicals biz aside from crude.
Independent refiner, Phillips 66’s (PSX) board of directors has given consent to an increase in 2014 capital spending. The raise in capital spending is to support the company’s growth strategy and authorized returning additional capital to shareholders.
The board has authorized a capital expenditure of $3.9 billion for 2014, up by $1.2 billion or over 44% from the previously approved budget. The increased capital program is intended to ramp up the development of the Sweeny Fractionator One and Freeport Liquid Petroleum Gas Export Terminal. The recently announced acquisitions of the Beaumont Terminal in Texas and specialty lubricants’ company Spectrum Corporation are also expected to be funded through this capital hike.
An additional $2 billion share repurchase program has been approved by the board. The board had authorized a total of $7 billion in share repurchases during the third quarter of 2012. Since then, company’s cumulative share repurchases has totaled $3.2 billion through the first quarter of 2014.
The company is carrying out its growth plans through disciplined organic capital spending and by selective acquisition by its Transportation and Lubricants businesses. Phillips 66’s financial flexibility boosts its investment in higher valued business lines apart from raising dividends and stocks repurchases and thus enhancing value for its shareholders.
Another example….I keep seeing COP in the INTEGRATED OIL conversation on CNBC along side XOM and CVX 2 years after the fact.
It just turned with news of increased capital spending, large buy back of shares, and the most recent dividend declaration. Yes, it is the same company and more today!
P66 is on top of this .
Wall street can't differentiate between refiners because they don't understand the industry processes and technology. So they just dump the whole group.
Reference my post on 6/25 "Condensate Splitter".
...Earlier this year, Houston-based Phillips 66 came out in support of lifting the decades-old ban on exports. The company is among the few independent refiners advocating for exports while other refiners like Valero oppose them.
Phillips 66 Chief Executive Greg Garland said on Thursday the United States is unlikely to make meaningful policy changes anytime soon, with American consumers still concerned that exports will result in higher gasoline prices.
His company is making a bet on that projection. Phillips 66 plans to build a condensate splitter at its 247,000 barrels-per-day Sweeny refinery in Texas, which will allow it to process condensates into fuel components that can be exported.
Don't they have an obligation to protect shareholder value? They should be defending the company or at least give investors an idea of just how much the gov't ruling will effect the company! Doesn't take a rocket scientist to understand fiduciary duty! Duh!!!
I don't know who these guys are but.... they've cost me a lot of money with their constant downgrading good companies on strictly technicals and not fundamentals. They downgraded PSX from buy to neutral on July 3 and its been a helluva downside trip. Sadly the SEC condones such activity.
Where did you get the 31% ROE number. In Yahoo stat it is 14..62%. The refining business makes up a huge % of the company and the returns are about 10% which is an industry leading number. The insiders are buying because the company is in a growth mode led by midstream and the chemical JV. I believe in the next 3 years all of their businesses collectively are investing $12 billion and 75% is growth capital. Over the next few years free cash flow will increase significantly. They have said they will raise the dividend double digit % every year plus buy back stock as long as they consider the market price lower than intrinsic value. Today only 15% of cah flow goes to dividends.