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Phillips 66 Partners (PSXP) Hikes Quarterly Payout for Q4

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Phillips 66 Partners LP announced the receipt of affiliation from the board of directors of its general partner to increase quarterly cash distribution.

The new payout — representing the fourth-quarter 2018 distribution — of 83.5 cents per common unit is higher than the distributions of prior quarter and the year-ago quarter by 5.4% and 23.2%, respectively. With this, the partnership since it’s the initial public offering in 2013 has hiked distributions for 21 successive quarters. Phillips 66 Partners has also accomplished its target of raising payout at a compound annual growth rate of 30% through 2018 since fourth-quarter 2013.

The increased distribution is expected to be paid on Feb 13, 2019, to unitholders as of Feb 1, 2019.

Investors should know that the consistent distribution hike of Phillips 66 Partners reflects stable fee-based revenues from its extensive midstream infrastructure that includes pipeline networks transporting raw crude, refined petroleum products and natural gas liquids.

Houston, TX-based Phillips 66 Partners — formed by Phillips 66 (PSX - Free Report) — is scheduled to report fourth-quarter 2018 results on Feb 8. The Zacks Consensus Estimate for the partnership’s fourth-quarter earnings is pegged at $1.08, representing a year-over-year increase of 30.1%.

Presently, the stock carries a Zacks Rank #2 (Buy). A couple of prospective energy players are RGC Resources Inc. (RGCO - Free Report) and TransCanada Corporation (TRP - Free Report) , with a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.  

RGC Resources has an average positive earnings surprise of 87.6% for the past four quarters.

TransCanada will likely record earnings growth of 2% in 2019.

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