E Daily Stock Pick: Phillips 66 Partners

I'm now looking for a third energy sector representative for my new Ivy portfolio.

That energy sector includes six industries all related to bringing oil and gas to market. They are: drilling, exploration and production (E&P), equipment and services, integrated, midstream, refining & marketing.  (Those six oily and gassy enterprises.)

Today I'm reviewing a mid-cap oil and gas midstream company named Phillips 66 Partners LP. Its trading ticker symbol is PSXP.

Phillips 66 Partners is a master limited partnership that transports crude, natural gas liquids, and refined products. Its assets operate under long-term agreements with Phillips 66.

The company operates pipeline assets in Lake Charles, Sweeny, Wood River, Borger/Ponca City, Billings, and Borger; terminal, rail rack, and storage assets in Louisiana, Texas, Illinois, Missouri, Kansas, Oklahoma, New Jersey, Washington, Wyoming, and Montana; marine assets in Lake Charles and Wood River; and natural gas liquids assets in Texas and Louisiana.

Phillips 66 Partners GP LLC operates as the general partner of Phillips 66 Partners LP. The company was founded in 2013 and is headquartered in Houston, Texas.

Phillips 66 Partners LP is a subsidiary of Phillips 66 Project Development Inc.

I use three key data points to gauge the value of any dividend equity-like Phillips 66 Partners LP:

(1) Price

(2) Dividends

(3) Returns

Besides those three, several other keys will finally unlock an equity or fund in which to invest.

Those first three primary keys, however, best tell whether a company has made, is making, and will make money.

PSXP Price

PSXP's price per share closed at $50.74 yesterday. A year ago its price was $50.87. So price fell  $0.13 per share last year, or 0.25%.

Assuming PSXP's stock trades in the range of $40 to $55 next year, PSXP's recent $50.74 price could rise by  $3.26 and go to $54.00 by mid-February, 2020.

PSXP Dividends

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Disclosure: This article was compiled by Rydlun & Co., LLC from data derived from www.ycharts.com; www.finance.yahoo.com; analyst target ...

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