Phillips 66 remains a top idea across Wall Street banks with refining coverage, and many continue to see headroom for incremental capital returns from the company this year, and are very constructive on a positive rate of change at refining in 2022. In addition, they continue to see attractive nonefining value in the other segments.
The dividend yield is 4.40%. The Phillips 66 price target at BofA Securities of $123 compares to the $113.84 consensus target and the most recent close at $91.42, which was up close to 4% on the day.
TotalEnergies
This French integrated giant is a great way to play an energy rally from the European side. TotalEnergies S.E. (NYSE: TTE) operates as an integrated oil and gas company worldwide. Its Exploration & Production segment engages in oil and natural gas exploration and production activities in approximately 50 countries.
The Integrated Gas, Renewables & Power segment engages in the LNG production, shipping, trading and regasification activities; trading of liquefied petroleum gas (LPG), petcoke and sulfur, natural gas and electricity; transportation of natural gas; electricity production from natural gas, wind, solar, hydroelectric and biogas sources; energy storage activities; and development and operation of biomethane production units, as well as provides energy efficiency services.
The Refining & Chemicals segment refines petrochemicals, including olefins and aromatics; and polymer derivatives, such as polyethylene, polypropylene, polystyrene and hydrocarbon resins, as well as biomass conversion and elastomer processing. This segment also engages in trading and shipping crude oil and petroleum products.
The Marketing & Services segment produces and sells lubricants; supplies and markets petroleum products, including bulk fuel, aviation and marine fuel, special fluids, compressed natural gas, LPG and bitumen; and provides fuel payment solutions. It operates approximately 15,500 service stations.
Investors receive a 5.19% dividend. The $80 BofA Securities price target is well above the $64.24 consensus target. TotalEnergies stock closed over 3% higher on Tuesday at $54.70.
Brent and West Texas Intermediate crude are both 25% off of the intra-day highs printed back in March. With the Saudi Oil minister hinting that OPEC+ cuts could be in the works for the fall, energy stocks (especially the aforementioned seven top companies) may still be among the best ideas for investors, especially with the dangerous months of September and October right around the corner.
Originally posted at 24/7 Wall St.
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