Retirement Stock Portfolio: 11 Energy Stocks to Buy

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5. Phillips 66 (NYSE:PSX)

Number of Hedge Fund Holders: 47

Phillips 66 (NYSE:PSX) is a leading integrated downstream energy provider that is engaged in refining, transporting, and marketing fuels.

Phillips 66 (NYSE:PSX) announced on December 1 that it has closed the sale of a 65% stake in its Germany and Austria retail marketing business to a consortium owned by Stonepeak Partners LP and Energy Equation Partners. Phillips will retain a 35% non-operating interest in the business through a newly formed JV.

The transaction values the business at an enterprise value of approximately $2.8 billion, with Phillips 66 (NYSE:PSX) receiving approximately $1.6 billion in pre-tax proceeds. The strategic move is aimed at bolstering the company’s balance sheet, in addition to streamlining its portfolio.

In other news, Phillips 66 (NYSE:PSX) received a lift on December 5 when Piper Sandler raised its price target on the stock from $170 to $171, while maintaining a ‘Neutral’ rating on its shares. The update comes after the Houston-based company hosted an investor trip to the Permian Basin last week, highlighting the growth and potential of its Midstream business. The analyst believes that investors have turned a blind eye to the segment, despite its contribution of around 40% in the expected EBITDA for 2025, and $500 million of projected EBITDA growth over the next two years.

Phillips 66 (NYSE:PSX) was recently included among the 14 Best US Stocks to Buy for Long Term.

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