Phillips 66 Joins PSP to Enhance Community Development

Phillips 66 PSX has announced its membership in the Permian Strategic Partnership ("PSP"), joining Energy Transfer ET and expanding the coalition to 31 members. This move marks a significant step for Phillips 66 as it aligns with PSP's mission to enhance the quality of life for residents in Southeast New Mexico and West Texas.

The Permian Basin region is a strategic growth area for Phillips 66 and the company has nearly 400 employees who call this area home. Partnering with the PSP demonstrates the company's commitment to supporting the communities wherein its employees live and work.

Founded five years ago, PSP has nearly doubled its size and exponentially expanded its impacts through collaborative efforts with federal, state and local leaders. The partnership remains dedicated to crafting and executing strategic plans to bolster essential facets of community life, including education, healthcare, workforce development and infrastructure.

Since its inception in 2019, PSP has committed nearly $160 million in member company contributions through public-private partnerships. These contributions have leveraged more than $1.5 billion in transformative investments, profoundly impacting the region's public schools, healthcare systems, road safety, infrastructure and workforce development opportunities.

With the inclusion of Phillips 66 and Energy Transfer, PSP's efforts are expected to further amplify its positive impacts on the Permian Basin. The collaborative efforts of these industry leaders will continue to drive initiatives that enhance community life, ensuring long-term benefits for the region's residents.

As Phillips 66 integrates into PSP, the company is poised to contribute significantly to the ongoing projects aimed at fostering excellence in education and healthcare, cultivating a skilled workforce, and enhancing infrastructure and road safety. This partnership underscores the commitment of Phillips 66 and other PSP members to support and uplift the communities wherein their employees live and work, promising a brighter future for the Permian Basin.

Zacks Rank & Key Picks

Currently, Phillips 66 carries a Zack Rank #3 (Hold).

Investors interested in the energy sector may look at some better-ranked companies mentioned below. The three companies presently carry a Zacks Rank #2 (Buy).

USA Compression Partners, LP USAC is one of the largest independent natural gas compression service providers across the United States in terms of fleet horsepower. USA Compression Partners earns its revenues from the overall horsepower use of natural gas transported rather than the price. As such, the partnership is largely insulated from fluctuations in commodity prices.

The Zacks Consensus Estimate for USAC's 2024 and 2025 EPS is pegged at 77 cents and 98 cents, respectively. The company has a Zacks Style Score of B for Growth. It has witnessed upward earnings estimate revisions for 2024 and 2025 in the past 30 days.

Enterprise Products Partners EPD is among the leading midstream energy players in North America. It has an extensive network of pipelines that spreads across more than 50,000 miles.

The Zacks Consensus Estimate for EPD's 2024 and 2025 EPS is pegged at $2.71 and $2.87, respectively. The company has a Zacks Style Score of A for Value. It has witnessed upward earnings estimate revisions for 2024 and 2025 in the past 60 days.

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