Warren Buffet’s Berkshire Hathaway (NASDAQ:$BRK.A) is the largest shareholder in oil and gas refiner Phillips 66 (NASDAQ:$PSX), giving the Oracle of Omaha a promising pipeline to profits if the stock is able to see a new breakout.

Specifically, Berkshire owns approximately 16% of Phillips 66, accounting for about 4% Buffett’s overall portfolio- up from less than 0.5% at the end of 2014.

In October, Phillips 66 announced a $3 billion share repurchase program, which increases the company’s buyback authorization to $12 billion since the third quarter of 2012.

After several quarters of year-over-year declines in earnings per share, growth has accelerated recently, jumping from a 16% rise in Q2 to a 58% jump in Q3. Analysts are looking for a 656% jump in earnings for the fourth quarter and a 60% increase for the full year.

Phillips stock is currently working on a  shallow flat base as part of a first-stage base-on-base formation. The buy point is 95.10.

Top-line gains have also picked up, rising from 10% to 19% last quarter. Signs of institutional demand include a B Accumulation/Distribution Rating 1.3 up/down volume ratio and one-quarter of rising fund ownership.

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