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The Second Biggest Energy Company in the U.S. Changes its Tune

By Taylor Muckerman and Joel South – Feb 12, 2014 at 10:02AM

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Phillips 66 has altering its strategy to reduce its reliance on a volatile refining sector.

In quite a significant shift, Phillips 66 (PSX 0.06%) will begin concentrating more on its midstream activities as opposed to its more well known downstream refining business. Two key areas of focus will be liquified petroleum gas exports-think butane and propane-and NGL fractionation. It might encounter some significant competition from Enterprise Product Partners (EPD -0.08%) and Kinder Morgan (KMI -0.11%), but there could be plenty of business to go around.

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This segment is from Tuesday's edition of "Digging for Value," in which sector analysts Joel South and Taylor Muckerman discuss energy and materials news with host Alison Southwick. The twice-weekly show can be viewed on Tuesdays and Thursdays. It can also be found on Twitter, along with our extended coverage of the energy & materials sectors @TMFEnergy.

Joel South has no position in any stocks mentioned. Taylor Muckerman has no position in any stocks mentioned. The Motley Fool recommends Enterprise Products Partners L.P. and Kinder Morgan. The Motley Fool owns shares of Kinder Morgan. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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Stocks Mentioned

Phillips 66 Stock Quote
Phillips 66
PSX
$110.78 (0.06%) $0.07
Enterprise Products Partners Stock Quote
Enterprise Products Partners
EPD
$24.75 (-0.08%) $0.02
Kinder Morgan Stock Quote
Kinder Morgan
KMI
$18.63 (-0.11%) $0.02

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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