By Sarfaraz A. Khan. Research assistant: Gohar Yousuf
The energy company, which has seen a profit decline in its core refining business, is diversifying by investing more in its higher-margin midstream and chemical businesses.
This year, Phillips 66 and its joint ventures will spend $4.6 billion in capital expenditures, primarily to expand the company's midstream and chemical businesses, both of which posted higher earnings last year. Midstream is the business of transporting and processing oil.
Phillips 66's expansion in the higher margin operations will likely boost the company's profits, and investors are optimistic, as the company's shares have rise 25% over the past 52 weeks. They were recently trading at $77.82, up 26 cents.