October 31, 2012
Since spinning off from ConocoPhillips, Phillips 66 has been nothing short of spectacular. The company is up 40% since April's split, and this past quarter gave us a glimpse inside of this refiner's impressive run. Although adjusted earnings per share of $2.97 shattered analyst estimates, the more important number is the company's 21% return on capital employed. Refining margins continue to increase, especially in the mid-con and Atlantic Basin, due to greater access of WTI-indexed crude from Canada and Williston Basin. Phillips 66 now receives 61% of its feedstock from this cheaper source, and the future looks bright. More production, in addition to more takeaway capacity, is expected to come online in the near future, with Enbridge, Enterprise Product Partners, and TransCanada trying to release the crude bottlenecks in the Bakken and Cushing.
There are many different ways to play the energy sector, and our analysts have uncovered an under-the-radar company that's dominating its industry. This company is a leading provider of equipment and components used in drilling and production operations, and poised to profit in a big way from it. To get the name and detailed analysis of this company that will prosper for years to come, check out our special free report: "The Only Energy Stock You'll Ever Need." Don't miss out on this limited-time offer and your opportunity to discover this under-the-radar company before the market does. Click here to access your report -- it's totally free.